Did you know that Mozambique is responsible for 7% of the world’s production of titanium raw materials? This milestone is achieved through Kenmare Resources, which has been operating for 17 years at the Moma Mine, located on the country’s northern coast.
Recognized as one of the world’s largest producers of mineral sands, Kenmare has played a crucial role in the global supply of ilmenite, rutile and zircon.
Solid financial performance in 2023
Kenmare reported a net profit of 220 million dollars in 2023, the second highest in its history, achieving an impressive EBITDA margin of 50%. Since 2019, the company has distributed more than 250 million dollars to its shareholders. This financial performance was achieved against a challenging backdrop, with weaker markets and operational pressures.
Despite a 12% drop in annual revenue, which totaled 437.1 million dollars, Kenmare maintains a robust performance, driven by demand for titanium pigment. The reduction was due to a 10% lower average price and a 3% decrease in shipments.
Promising projections for 2024
The company states that “2024 is well underway”. Annual production is expected to reach projected levels, with a stronger performance in the second half of the year due to higher ore grades. Robust demand for Kenmare’s products, particularly ilmenite, and higher than expected prices, demonstrate the strength of the market.
The Moma Mine: A world-class deposit
Located in the province of Nampula, the Moma Mine is recognized as one of the largest deposits of titanium minerals in the world, with resources estimated at 6.3 billion tons. The mine has a projected life of over 100 years, supporting consistent production and offering significant opportunities for future expansion.
Production in figures:
– 2023: Production totaled 342,600 tons of heavy mineral concentrate, representing an increase of 7%.
– Ilmenite: Production grew by 8% to 238,600 tons.
– Zircon: A growth of 12%, totaling 13,000 tons.
Total shipments fell by 18% due to adverse weather conditions and additional maintenance, but the company remains well positioned to continue meeting strong global demand.
Contributions to the global and local economy
Kenmare supplies more than 15 countries and is responsible for approximately 7% of the global supply of titanium raw materials. The minerals extracted from the mine are used in everyday products such as paints, plastics and ceramic tiles, reinforcing its importance to various industries.
Sustainability and Social Responsibility
Kenmare combines financial performance with environmental and social commitment. The company has significantly reduced its accident frequency rate (LTIFR) to 0.09 per 200,000 hours worked, a notable improvement on the previous period. In addition, the ongoing work of the Kenmare Moma Development Association (KMAD) promotes initiatives in education, health and economic development in local communities.
Growth prospects
With a market showing increasing demand for titanium pigments, Kenmare is well capitalized to finance operational improvements, such as the upgrade of the wet concentrator plant (WCP). This strategic approach positions the company to continue to generate value for shareholders and strengthen Mozambique’s position as a global leader in the supply of titanium minerals.
Quick facts about Kenmare Resources:
– Stock Exchange: Listed on the London Stock Exchange and Euronext Dublin.
– Operations: Moma Titanium Minerals Mine, Nampula, Mozambique.
– Products: Ilmenite, rutile (titanium) and zircon.
– Market: Customers in more than 15 countries.
Kenmare Resources is more than a global leader in mineral sands; it is an engine of economic transformation for Mozambique. With a balance between innovation, sustainability and financial performance, the company is well positioned to continue to lead in the global market, while contributing to the country’s development.
For more information, visit the official website: www.kenmareresources.com.
