Shares in mining company Kenmare Resources fell as much as 8 per cent on Wednesday, after it said production of ilmenite – it’s most important mineral – will be towards the lower end of guidance this year.
Titanium-rich ilmenite accounts for up to four fifths of the group’s revenue. Kenmare is said to command about 7 per cent of the global ilmenite market.
In its latest quarterly update, the Dublin-headquartered company, which operates the Moma titanium mineral mine in Mozambique, said it continues to expect to achieve 2025 production and cost guidance.
However it said ilmenite production is expected to be towards the lower end of the range it had previously given to investors, at 930,000 to 960,000 tonnes.
RM Block
This was due primarily to the upgrade work starting later in quarter three than expected.
“We expect to move our EBITDA forecasts to around $90 million in both FY2025 and FY2026 from $104 million and $108 million respectively,” Davy analyst Colin Grant wrote in a note to clients. “We expect 2026 will be the fourth year in the latest downcycle inKenmare’s commodity prices.”
Ilmenite production of 209,000 tonnes in the quarter was down 19 per cent year on year while primary zircon production of 12,300 tonnes was down 16 per cent.
Kenmare said total shipments of finished products of 227,400 tonnes was down 25 per cent due to reduced shipping capacity because “the Peg transshipment vessel was in dry dock during the third quarter but returned to Moma in late September”.
“Work on hiring a third transshipment vessel has been deferred due to reduced short-term demand, following a customer in financial distress signalling that it will be unable to take contracted volumes, but remains under consideration for 2026,” the company said.
Managing director Tom Hickey said global market conditions remain challenging “and one of Kenmare’s customers has indicated that it will be unable to take its contracted volumes in Q4”.
“Besides this, demand for our products remains in line with expectations, with strong, high-value zircon sales volumes expected in Q4,” he said.
Mr Hickey also noted that quarter three was an important quarter for the company’s wet concentrator plant upgrade project, “with commissioning of the new dredges and new feed preparation module commencing”.
“The upgraded plant is on track to achieve its nameplate capacity by the end of 2025,” he said.
