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Q2 and H1 2025 Production Report
Globenewswire· 2025-07-16 06:00
Core Viewpoint - Kenmare Resources plc reported stable demand for its products in Q2 2025, with ilmenite prices remaining stable, but the company has lowered its long-term pricing assumptions due to market uncertainties, leading to an expected impairment charge of up to $125 million in H1 2025, which will be a non-cash charge and will not affect operations or dividends [4][40]. Production Overview - Heavy Mineral Concentrate (HMC) production reached 358,300 tonnes in Q2 2025, a 5% increase year-on-year, driven by a 16% increase in ore grades despite a 12% decrease in excavated ore volumes [8][11]. - Ilmenite production was 245,400 tonnes, up 3% year-on-year, while primary zircon production increased by 1% to 13,100 tonnes [8][12]. - Total shipments of finished products were 181,800 tonnes, down 23% year-on-year, primarily due to adverse weather and maintenance of transshipment vessels [8][15]. Operational Update - The company achieved zero Lost Time Injuries (LTIs) in H1 2025, with a Lost Time Injury Frequency Rate (LTIFR) of 0.03 per 200,000 hours worked, an improvement from 0.09 in the previous year [8][10]. - Kenmare is on track to meet its 2025 production and cost guidance, expecting higher production in H2 2025 supported by increased excavated ore volumes [8][14]. Capital Projects - The Wet Concentrator Plant A upgrade project is progressing as planned, with an estimated capital cost of $341 million, and commissioning is expected to begin in Q3 2025 [8][20]. - The company has initiated a Selective Mining Operation (SMO) with a targeted run rate of 300 tonnes per hour, and a second unit is planned for commissioning in H1 2026 [23][25]. Market Conditions - Demand for titanium feedstocks remains robust, with stable ilmenite pricing, while zircon and rutile prices have continued to decline [26][27]. - The zircon market is subdued due to weak demand, particularly in China's construction sector, although demand for high-grade zircon remains strong [30][31]. Corporate Developments - Kenmare has been included in the FTSE4Good Index Series, reflecting strong Environmental, Social, and Governance (ESG) practices [35][36]. - The company terminated discussions with Oryx Global Partners regarding an offer, as the revised pricing was deemed to undervalue Kenmare's business [38][39]. - James McCullough was appointed as the new Chief Financial Officer on 1 May 2025, bringing extensive experience from Rio Tinto Plc [37].
Is UUUU's HMS Diversification Strategy a Smart Long-Term Move?
ZACKS· 2025-06-20 16:51
Core Insights - Energy Fuels (UUUU) reported a 33.5% decline in revenues in Q1 2025 to $16.9 million due to withholding uranium sales amid falling prices [2][14] - The Heavy Mineral Sands (HMS) segment became the primary revenue contributor, generating $15.5 million from sales of rutile, ilmenite, and zircon [2][14] - The company is cautious about uranium sales in 2025, projecting only 220,000 pounds compared to 450,000 pounds in 2024, as uranium prices have decreased by approximately 12% over the past year [3][4] Revenue and Sales Performance - Q1 2025 revenues dropped to $16.9 million from $25 million in the same quarter last year, primarily due to reduced uranium sales [2][14] - The HMS segment's revenue of $15.5 million came from the sale of 6,836 tons of rutile, 12,852 tons of ilmenite, and 1,429 tons of zircon, mainly from the Kwale Project [2][14] Future Outlook - Energy Fuels does not expect immediate production from the Kwale operation, which is in reclamation, until other projects are operational [4] - The company anticipates continued revenue declines and losses in 2025 due to reduced uranium sales and lower price expectations [4] Strategic Initiatives - The diversification into the HMS sector is seen as beneficial for long-term growth, targeting titanium and zirconium minerals while also producing monazite as a byproduct [5][6] - Energy Fuels acquired Base Resources in 2024, gaining control of the Toliara HMS project in Madagascar, with development expected to resume following the lifting of the project's suspension [7] - The company is also advancing its Bahia HMS project in Brazil and holds an option for up to 49% in the Donald Project in Australia, with a final investment decision expected in late 2025 [8] Industry Comparison - Cameco Corporation (CCJ) reported a 24% increase in Q1 revenues to $789 million, with uranium revenues up 10% to $619 million, indicating a contrasting performance in the uranium sector [11][12] - Energy Fuels shares have increased by 12.5% this year, outperforming the industry's growth of 0.4% [15]
Correction: Report on Payments to Governments
Globenewswire· 2025-05-15 06:00
Core Viewpoint - Kenmare Resources plc has published its Report on Payments to Governments for the financial year ended 31 December 2024, detailing payments made to the Government of Mozambique, with total payments amounting to $20,323,000, which includes taxes, royalties, and fees [3][4][22]. Company Overview - Kenmare Resources plc is a leading global producer of titanium minerals and zircon, operating the Moma Titanium Minerals Mine in northern Mozambique, which accounts for approximately 6% of global titanium feedstocks [3][6]. - The company is incorporated in Ireland and has listings on the London Stock Exchange and Euronext Dublin [6][25]. Report Scope and Compliance - The report complies with the Transparency Regulations and the Companies Act, detailing payments related to the exploration, development, and extraction of minerals [5][9]. - Payments are disclosed on a cash basis and are categorized into royalties, taxes, and fees, among others [12][14]. Financial Summary - Total payments to the Government of Mozambique for 2024 include: - Taxes: $9,921,000 - Royalties: $10,087,000 - Fees: $315,000 - Total: $20,323,000 [22]. - The mining operations are conducted by wholly-owned subsidiaries, Kenmare Moma Mining (Mauritius) Limited and Kenmare Moma Processing (Mauritius) Limited, which account for 100% of the Group's turnover [7][10]. Payment Details - The Group is subject to a mining royalty of 3% based on Heavy Mineral Concentrate (HMC) sold, and a revenue royalty of 1% on revenue recognized by the processing subsidiary [14][15]. - The corporation tax rate applicable to the Mozambique branch is 35% on taxable profits [15]. Community and Infrastructure Contributions - Payments for infrastructure improvements and social investments are excluded from the report, focusing instead on direct payments to the government [17].
Report on Payments to Governments
Globenewswire· 2025-05-14 06:00
Core Viewpoint - Kenmare Resources plc has published its Report on Payments to Governments for the financial year ended 31 December 2024, detailing payments made to the Government of Mozambique related to its mining operations at the Moma Titanium Minerals Mine [2][3]. Company Overview - Kenmare Resources plc is a leading global producer of titanium minerals and zircon, operating the Moma Titanium Minerals Mine in northern Mozambique, which accounts for approximately 6% of global titanium feedstocks [5][22]. - The company is incorporated in Ireland and has a premium listing on the London Stock Exchange, with a secondary listing on Euronext Dublin [5]. Regulatory Compliance - The report complies with the Transparency Regulations, Companies Act 2014, and UK Financial Conduct Authority's Disclosure Guidance and Transparency Rules, ensuring transparency in payments made to governments [4]. Payment Analysis - The report categorizes payments made to the Government of Mozambique, including taxes, royalties, and fees, with a total payment of $20,323,000 for the year 2024 [21]. - Specific payments include $9,921,000 in taxes, $10,087,000 in royalties, and $315,000 in fees [21]. Operational Structure - The mining operations at the Moma Mine are conducted by Kenmare Moma Mining (Mauritius) Limited and processing by Kenmare Moma Processing (Mauritius) Limited, both wholly-owned subsidiaries of Kenmare [6][9]. - The Group's corporate costs are recorded by the parent company, which does not engage in direct exploration or mining activities [7]. Financial Metrics - For the fiscal year ending 31 December 2024, the margin applied to cash costs of mining was 50.5%, as stipulated in the Mineral Licensing Contract with the Government of Mozambique [12]. - KMML is subject to a mining royalty of 3% based on HMC sold to KMPL, while KMPL pays a revenue royalty of 1% on recognized revenue [13][16]. Community Contributions - The report highlights the Group's contributions to local communities, although specific payments for infrastructure improvements are excluded from the report [10][17].