Kenmare Resources has announced a 15% reduction in its workforce at the Moma mine, in Nampula province, and the suspension of its final dividend for 2025, following a sharp decline in its financial results, pressured by falling prices and export volumes of titanium minerals.
According to an official statement, the company’s gross profit dropped by 79%, from $95.4 million to $18.4 million. Revenues fell by 20% to $312 million, reflecting a 13% decrease in shipments and a 6% drop in the average selling price, which stood at $338 per tonne.
During the same period, the company recorded a net loss of $325 million, heavily impacted by an accounting adjustment of $301.3 million related to the Moma mine’s assets, following a downward revision of long-term revenue expectations amid uncertainty over international price trends.
In recent months, Kenmare had already laid off around 200 workers at its Moma operation, with a further 20 redundancies planned as part of a cost-containment strategy. The company’s CEO, Tom Hickey, stated that “given the difficult market conditions, we had to make tough but responsible decisions, including reducing the workforce at Moma by 15% and suspending the 2025 final dividend.”
He emphasized that these measures aim to preserve the group’s financial flexibility and ensure long-term stability, adding that the board remains committed to resuming dividend payments as soon as conditions allow. This marks the first time since 2019 that the company has not proposed a final dividend.
Despite the challenging environment, the company expressed some optimism regarding ongoing negotiations with the Mozambican government over a new implementation agreement to replace the previous one, which expired at the end of 2024. In recent months, disagreements over the application of new VAT rates, customs duties, and increased royalties on production and exports had led the company to consider the possibility of international arbitration.
Even so, according to Kenmare, “following recent meetings, we continue to believe there is room for a mutually acceptable negotiated agreement that avoids the need for arbitration.” The Moma mine, the company’s main asset, accounts for around 6% of global titanium production. Among its key products is ilmenite, used in industries such as paints, plastics, and textiles. The company also produces zircon, used in ceramics manufacturing, whose price has been stabilizing after a period of decline, unlike ilmenite, which has been falling for three consecutive years.
On the financial front, Kenmare reported net debt of $158.8 million in December, while maintaining current assets above $150 million, expected to be converted into liquidity over the next 12 months. The company faces no debt maturities until 2029, although it has indicated the possibility of renegotiating certain financial ratios with its African lenders, including Absa Bank, Nedbank, Rand Merchant Bank, and Standard Bank.
When asked about the impact of the conflict involving Iran, Hickey highlighted rising diesel prices as a key concern due to their weight in mining operations. The company’s shares fell by more than 9% on the London Stock Exchange, reflecting investors’ negative reaction to the reported results.
Source: Diário Económico
