Maputo, March 27, 2025 (Lusa) - The profits of Kenmare Resources, which operates the Mozambican Moma mine, one of the world's largest producers of titanium and zircon, fell by 50% in 2024, to US$64.9 million (€60.2 million), the Australian mining company announced.
This performance is set out in the information to the markets consulted by Lusa on Thursday, in which Kenmare also said it had approved the payment of a total dividend for the 2024 financial year of US$28.6 million (€26.5 million), equivalent to US$32 (€29.6) per share, compared to the US$56.04 (€51.9) paid in 2023.
Even so "raising distributions to shareholders to US$295 million [€273.3 million] since 2019", says Kenmare's CEO Tom Hickey, quoted in the document.
The mining company's information adds that revenue from mineral products, extracted from the Moma mine in northern Mozambique, fell by 10% in 2024, to US$392.1 million (€363.2 million), "due to a 14% reduction in the average price received for Kenmare's products, partially offset by a 4% increase in shipments".
"With 2025 well underway, we are on track to achieve our annual production guidance. Production in the first quarter was impacted by the rainy season in the southern hemisphere, but is expected to strengthen from the second quarter onwards. Demand for our products remains healthy, with ilmenite prices stabilising after a weaker 2024," Tom Hickey also says.
He adds that the company recently turned down a possible takeover bid from a consortium made up of Oryx Global Partners and Kenmare's former CEO Michael Carvill, as well as awaiting the outcome of negotiations with the Mozambican government to extend the concession for the mine in Cabo Delgado, which ended on 21 December and will remain in force until a final decision is made.
"Kenmare has always taken a long-term view of our operations and relationships in Mozambique. When negotiating the extension under our Implementation Agreement, we proposed changes to the applicable investment regime, seeking to balance the company's interests with the government's desire to support economic development and ensure a greater contribution to Mozambique," said the company's CEO.
The Moma mine contains reserves of heavy minerals including titanium, ilmenite and rutile, which are used as raw materials to produce titanium dioxide pigment, as well as a relatively high-value zirconium silicate mineral, zircon.
The mining company announced in April 2023 that it planned to explore a new lode within two years on the Moma concession, signalling the longevity and profitability of the mine.
Exports from the Moma mine, one of the world's largest producers of titanium and zircon, grew by 4% in 2024. According to market information previously provided by Kenmare, shipments of various finished minerals totalling 1,088,600 tonnes (heavy sands, zircon, ilmenite and rutile) were made throughout last year, especially in the second half.
"Shipments are expected to exceed production in 2025, supported by the high stock levels of finished products," adds the same information from the mining company, which operates the mine on the coast of Nampula province in northern Mozambique.
The company is one of the world's largest producers of mineral sands, listed on the London and Dublin stock markets, and production in Mozambique represents approximately 7% of global titanium raw materials, with customers in more than 15 countries, which use its heavy minerals in paints, plastics and ceramics.
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