Core Insights - Kenmare Resources reported a strong safety performance in 2025 with only three lost time injuries and highlighted its significant community investment of over $25 million since 2004, including a nearly 80% completion of a new district hospital [1][2] - The company emphasized its economic importance in Mozambique, contributing approximately 6% to the national GDP and being the largest employer in Nampula province [2] - Kenmare's Moma mine is described as a long-life asset with nearly 100 years of mineral resources at current production rates, producing titanium minerals that account for about 6% of global ilmenite supply [3][4] 2025 Operational Performance - The WCP A upgrade, costing $341 million with over 80% spent, is aimed at accessing the Nataka orebody, which holds more than 70% of the mine's resources, although it led to a 15% decline in concentrate output for 2025 [5][12] - Production in 2025 was affected by the WCP A upgrade and poor weather, resulting in lower shipments and a deliberate decision not to offset production shortfalls with higher-cost mining [9][11] - Kenmare introduced a new product, "ZirTi," from stockpiled material, which is expected to continue into 2026 [10] 2026 Guidance and Financial Outlook - For 2026, Kenmare aims for 1.1 million tonnes of finished product shipments, over 800,000 tonnes of production, and operating costs between $215 million and $225 million, with a capital expenditure of approximately $60 million [6][16] - The company anticipates a non-cash impairment of $250 million to $300 million for full-year 2025 due to weaker pricing, alongside a $15 million inventory write-down [7][15] - Kenmare is shifting focus from production targets to cash generation and reducing high finished-product inventories, with a strong order book for early 2026 [14][16] Market Conditions and Strategic Initiatives - Demand for Kenmare's products remains stable, but oversupply in ilmenite has led to weaker pricing [14] - The company is working on renewing its implementation agreement with the Mozambican government, proposing an increase in royalties from 2.5% to 3.5% [18]