Kenmare Resources Plc is to announce a 2024 interim dividend of USc15 per share (H1 2023: USc17.5 per share) and the full year dividend is expected to be towards the upper end of the Company’s target payout range of 20–40% of profit after tax.
Other financial highlights include:
- Revenue from mineral products of $154.5 million in H1 2024, down 33% year-on-year (“YoY”) due to lower shipments, pricing and product mix
- In H2 2024, shipments are expected to increase and the product mix is anticipated to reverse, with two zircon shipments delayed from Q2 dispatched in early Q3
- Despite the lower shipments, at the end of H1 2024 net cash increased to a record $58.9 million, having paid $34.7 million in dividends and invested $49.1 million in capital expenditure
- EBITDA of $63.2 million, down 43% YoY due to lower revenues but maintaining a 41% margin, and profit after tax of $20.9 million, down 69% YoY
- Cash operating cost of $218 per tonne of finished product, down 5% YoY, benefitting from increased production volumes
- Cash operating cost per tonne of ilmenite (net of co-products) of $201, up 47% YoY due to a temporary reduction in co-product revenues, partially offset by a 4% increase in ilmenite production
- Demand for Kenmare’s ilmenite remains robust, with prices in H1 above the Company’s expectations – good demand and sales visibility for shipments in H2
- The zircon market remains relatively stable with improving demand in India and Europe
