Titanium and zircon miner Kenmare Resources has reported profit after tax of $64.9m for the year to the end of December 2024, down 50% on 2023.
The company reported mineral product revenue of $392.1m for the year, down 10% on 2023, due to a 14% decrease in the average price received for Kenmare's products, which was partially offset by a 4% increase in shipments.
Kenmare operates the Moma Titanium Minerals Mine in northern Mozambique, and its products are used in such items as paints, plastics and ceramic tiles.
It said that shipments of finished products rose by 4% to 1,088,600 tonnes in 2024, boosted by strong customer demand.
The company reported Heavy Mineral Concentrate (HMC) production of 1,446,600 tonnes for the year, broadly in line with 2023, due to record excavated ore tonnes which was offset by lower ore grades.
Ilmenite production came to 1,008,900 tonnes in 2024, a 2% increase due to higher ilmenite content in the HMC and stronger recoveries.
The company noted that demand continues to be strong for all of its products so far this year and although ilmenite prices are lower than in the second half of 2024, they look to be stabilising.
Tom Hickey, Managing Director, said that Kenmare delivered EBITDA of $157m last year, supporting its ability to fund its capital programme and continue to make shareholder distributions.
He said the board is proposing a full year dividend of 32 cents per share for 2024, bringing shareholder distributions to $295m since 2019.
"With 2025 well underway, we are on track to achieve our annual production guidance. Production in the first quarter has been impacted by the southern hemisphere rainy season but it is expected to strengthen from the second quarter onwards," Mr Hickey said.
"Demand for our products remains healthy, with ilmenite prices beginning to stabilise after a weaker 2024," he said.
"Kenmare has always taken a long-term view on our operations and relationships in Mozambique. In negotiating the extension under our Implementation Agreement, we have proposed changes to the applicable investment regime, seeking to balance the company's interests with the government's desire to support economic development and secure an increased contribution to Mozambique," he added.
Earlier this month, Kenmare Resources rejected a proposal from a consortium made up of Oryx Global Partners and former managing director and founder Michael Carvill as it said the offer undervalued its business and its prospects.
It said today that access to limited due diligence information has now been provided with the aim of improving the financial terms of the consortium's proposal.
"We will provide further updates to the market on the possible offer as appropriate," it added.
