Q2 2026 Kenmare Resources PLC Earnings Call

August 19, 2026

Speaker #2: Good morning, and welcome to the Kenmare Resources PLC Q2 2026 results and vendor presentation. Throughout this recorded presentation, investors will be in listen-only mode. Questions are encouraged and can be submitted at any time using the Q&A tab situated on the right-hand corner of your screen.

Operator 2: Good morning, and welcome to the Kenmare Resources PLC H1 2026 Results Event presentation. Throughout this recorded presentation, investors will be in listen-only mode. Questions are encouraged, and they can be submitted at any time using the Q&A tab situated on the right-hand corner of your screen. Simply type in your questions and press send. Before we begin, I would like to submit the following poll, and I would now like to hand you over to Managing Director, Tom Hickey. Good morning.

Operator: Good morning, and welcome to the Kenmare Resources PLC H1 2026 Results Event presentation. Throughout this recorded presentation, investors will be in listen-only mode. Questions are encouraged, and they can be submitted at any time using the Q&A tab situated on the right-hand corner of your screen. Simply type in your questions and press send. Before we begin, I would like to submit the following poll, and I would now like to hand you over to Managing Director, Tom Hickey. Good morning.

Speaker #2: Simply type in your questions and press send. Before we begin, I would like to submit the following poll, and I would now like to hand you over to Managing Director Tom Hickey.

Speaker #2: Good morning.

Speaker #3: Good morning, and thank you. Thank you all for taking the time to join us today to run through our half-year 2026 results. While you're reading the disclaimer, I'll just highlight that in the room with me I have James McCullough, our CFO.

Tom Hickey: Good morning, and thank you. Thank you all for taking the time to join us today to run through our half year 2026 results. While you are reading the disclaimer, I will just highlight that in the room with me, I have James McCullough, our CFO, Ben Baxter, our COO, Cillian Murphy, our head of marketing, is also on the call, and Katharine Sutton, our head of investor relations. So we will be running you through the presentation today and hopefully answering any questions that you have. Just a few quick reminders about Kenmare's business. We operate the Moma titanium minerals mine in Mozambique. We have been in Mozambique for nearly 40 years now, and producing for nearly 20. Moma is a pretty unique resource. It has over 100 years of mineral resources at our current production rate.

Speaker #3: Ben Baxter, our COO; Killian Murphy, our Head of Marketing, is also on the call; and Catherine Sutton, our Head of Investor Relations. We'll be running you through the presentation today and hopefully answering any questions that you have.

Tom Hickey: So we will be running you through the presentation today and hopefully answering any questions that you have. Just a few quick reminders about Kenmare's business. We operate the Moma titanium minerals mine in Mozambique. We have been in Mozambique for nearly 40 years now, and producing for nearly 20. Moma is a pretty unique resource. It has over 100 years of mineral resources at our current production rate.

Speaker #3: Just a few quick reminders about Kenmare's business. We operate, at the moment, a titanium minerals mine in Mozambique. We've been in Mozambique for nearly 40 years now and producing for nearly 20. MoMA is a pretty unique resource that's got over 100 years of mineral resources at our current production rate.

Speaker #3: So, of course, we need to think about the long term—about living through multiple cycles, and about investing to produce for many years to come.

Tom Hickey: Of course, we need to think about the long term, about living through multiple cycles, and about investing to produce for many years to come. I suppose if you are going to be in a country for a long time, you have got to behave well, and we believe we do. We are a good corporate citizen. We work hard to improve the lives and outcomes of the community around us, to contribute to the country and to the economy as a whole. I think that is recognized by us being included once again in the FTSE4Good Index. I will talk a little later about our negotiations around a critical agreement with the Mozambique government, where I think you may have seen we have seen good progress in recent weeks. Our production, we produce titanium minerals, principally ilmenite and rutile. You use them every day. You see them every day.

Speaker #3: And I suppose, if you're going to be in a country for a long time, you've got to behave well, and we believe we do.

Speaker #3: We're a good corporate citizen. We work hard to improve the lives and outcomes of the community around us, to contribute to the country, and to the economy as a whole.

Speaker #3: And I think that's recognized by us being included once again in the FTSE4Good Index. And I'll talk a little later about our negotiations around a critical agreement with the Mozambican government, where I think you may have seen we've made good progress in recent weeks.

Speaker #3: Our production: we produce titanium minerals, principally ilmenite and rutile. You use them every day. You see them every day. They're part of everyday life.

Tom Hickey: They are part of everyday life. We are a decent part of the world market, about 60%. Titanium minerals are part of the critical minerals list for Europe, the UK, and the US. There is a lot of focus on them, but I think as we hear when we come to talk about the market, the market has been through a couple of ups and downs in recent years. To go back to my comment about investing for the long term, we have made material investments in recent years to upgrade our biggest mining plants, WCP A, to move to our biggest ore body in Namalope. Namalope is 70% of our reserves. It is the future of the company. All our mining plants will end up there, and we have been working on WCP A to prepare it to work effectively at Namalope.

Speaker #3: We're a decent part of the world market—about 6%. And titanium minerals are part of the critical minerals list for Europe, the UK, and the US.

Speaker #3: So there is a lot of focus on them, but I think, as we’ll hear when we come to talk about the market, the market has been through a couple of ups and downs in recent years.

Speaker #3: And to go back to my comment about investing for the long term, we have made material investments in recent years to upgrade our biggest mining plant, WCPA, to move to our biggest ore body in Otaka.

Speaker #3: And Otaka is 70% of our reserves. It's the future of the company. All our mining plants will end up there. And we've been working on WCPA to prepare it to work effectively at Otaka.

Speaker #3: It's taking a little bit longer than we would have liked, and it's still a work in progress, but Ben Baxter will run you through the good progress we've made there recently, and what we expect over the remainder of the year.

Tom Hickey: Taking a little bit longer than we would have liked and it is still a work in progress, but Ben Baxter will run you through the good progress we have made there recently and what we expect over the remainder of the year. Our strategy overall, look, as I said, we want to operate responsibly. We have a 97% Mozambican workforce. We have spent nearly $25 million or over $25 million in working with the community over the last 20 years plus. For our own employees, we are really focused on safety. We had a really good safety performance in H1. We are over 4 million hours without a lost time incident and our lowest ever all-injury frequency rate achieved in H1. We are very proud of that. It is something that we work on every day. We are very focused on our industry position and operating effectively.

Speaker #3: Our strategy overall: as I said, we want to operate responsibly. We have a 97% Mozambican workforce. We spent nearly 25 million dollars, or over 25 million dollars, on working with the community over the last 20 years plus.

Speaker #3: And for our own employees, we're really focused on safety. We had a really good safety performance in the first half. We're over 4 million hours without a lost time incident, and our lowest ever all-injuries frequency rate achieved in the first half.

Speaker #3: So we're very proud of that. It's something that we work on every day. We're very focused on our industry position and operating effectively. We've done a good job so far in 2026 in managing and reducing our operating costs, enabling us to run through this point of the price cycle.

Tom Hickey: We have done a good job so far in 2026 in managing and reducing our operating costs and enabling us to run through this point of the price cycle. We do want to invest carefully and manage the cash flows at the outset. Investment case in previous years and hopefully will be again. It is a sensible thing to do at this point in the cycle when debt is elevated. We have made over $300 million in shareholder distributions since 2019. It is something that we do think about. Just to maybe recap on H1. I have already talked about our safety performance, and we are proud of that. It has been a difficult market, and we are just after a big CapEx program.

Speaker #3: And we do want to invest carefully and manage the cash flows that the investment case in previous years—and hopefully will be again. But it's a sensible thing to do at this point in the cycle when debt is elevated.

Speaker #3: And we have made over $300 million in shareholder distributions since 2019, so it is something that we do think about. So just to maybe recap on the first half of the year, I've already talked about our safety performance, and we're proud of that.

Speaker #3: But it has been a difficult market, and we are just after a big CapEx program. When we spoke to you all at the start of 2026, we talked about our priorities for the year. In reality, our priorities were to control the things we can, to ship as much product as we can, to generate as much cash as we can, to manage our costs well, to maintain financial flexibility, to continue to improve the performance of our assets, and to continue our agreement with the government around the implementation agreement.

Tom Hickey: When we spoke to you all at the start of 2026, we spoke about our priorities for the year. In reality, our priorities were to control the things we can, to ship as much product as we can, to generate as much cash as we can, to manage our costs well, to maintain financial flexibility and to continue to improve the performance of our assets and to conclude our agreements with the government around the Implementation Agreement. I think we have made really good progress on all of those in H1, but there are still things that we can hope to achieve in H2. From shipments, we are on track to achieve our 2026 shipments guidance. We have had some really good successes in H1 with our new Zirtech product.

Speaker #3: I think we've made really good progress on all of those in the first half, but there's still plenty we can hope to achieve in the second half.

Speaker #3: So, from shipments, we're on track to achieve our 2026 shipments guidance. We've had some really good successes in the first half with our new ZERTY product.

Speaker #3: You may have seen that we're reporting that in sales now, as opposed to a credit to cost of sales. That's because it's an important part of our production this year, and it will be an important part of our revenue mix for many years to come.

Tom Hickey: You may have seen that we are recording that in sales now as opposed to a credit to cost of sales. That is because it is an important part of our production this year, but it will be an important part of our revenue mix for many years to come. This is something we trialed in 2024 with customers. There was strong uptake on it, and we sold over 80,000 tonnes in the H1 of the year. We have done a good job on reducing our operating costs. James will run you through that. Maybe a little bit more to go there. The one area where I think we would like to see improvements in the H2 is our ilmenite production. A little bit softer than we would expected, and we kind of modestly adjusted our guidance to approximately 800,000 tonnes.

Speaker #3: This is something we trialed in 2024 with customers. There was strong uptake, and we sold over 80,000 tonnes in the first half of the year.

Speaker #3: We've done a good job on reducing our operating costs. James will run you through that. Maybe a little bit more to go there. The one area where I think we would like to see improvements in the second half is our ilmenite production.

Speaker #3: A little bit softer than we would have expected, and we've kind of modestly adjusted our guidance to approximately 100,000 tons. But we are on track to achieve all our guidance at the moment.

Tom Hickey: We are on track to achieve all our guidance at the moment with a close eye needed on H2 performance. On the financial side, our balance sheet has been an area of focus for us. Our net debt bounces around a bit. You have seen it increase slightly in the H1. Cost discipline gave us a 12% reduction in cash operating costs. Our lenders, as ever, have been constructive. They have assisted us with waivers where required. They have increased our revolving credit facility by $30 million. We hope we will not have to use that additional flexibility, but it is nice to have it there because who knows what happens in the future. Look, with the strong performance we had in the H1, we were cash flow positive before development costs in the H1, and development CapEx will be much lower in the H2.

Speaker #3: With a close line either on second-half performance. On the financial side, our balance sheet has been an area of focus for us. Our net debt bounces around a bit.

Speaker #3: You've seen it increase slightly in the first half, but cost discipline gave us a 12% reduction in cash operating costs. Our lenders, as ever, have been constructive.

Speaker #3: They've assisted us with waivers where required. They've increased our revolving credit facility by $30 million. We hope we won't have to use that additional flexibility.

Speaker #3: But it's nice to have it there because who knows what will happen in the future. But look, with the strong performance we had in the first half, we were cash flow positive before development costs in the first half.

Speaker #3: And development CapEx will be much lower in the second half. So we're managing what we can. We're maximizing our cash flow. We're paying attention to things on a day-to-day basis.

Tom Hickey: We are managing what we can. We are maximizing our cash flow. We are paying attention to things on a day-to-day basis. We are positioning ourselves hopefully to recover well when the market recovers. On the market, we have seen some progress on zircon in the H1, strong price increases, and I think we saw Iluka comment this morning in a manner very similar to us. We do expect to see those price increases maintained. Ilmenite is taking a little bit longer. We do not currently see any near-term recovery, although we would be hoping for next year. There have been some pigment price increases in recent months, and ilmenite generally follows them, albeit with a lag. Just a moment on WCPA. We are making steady progress on the commissioning. Even in July and August, things have improved. We are working through a process to get us up to nameplate capacity.

Speaker #3: And we're positioning ourselves, hopefully, to recover well when the market recovers. And on the market, we've seen some progress on zircon in the first half, strong price increases, and I think we saw a look at a comment this morning in a manner very similar to us.

Speaker #3: We do expect to see those price increases maintained. Ilmenite is taking a little bit longer. We don't currently see any near-term recovery, although we would be hoping for next year.

Speaker #3: But there have been some pigment price increases in recent months, and ilmenite generally follows them, albeit with a lag. Just a moment—on WCPA, we're making steady progress on the commissioning, even in July and August.

Speaker #3: Things have improved. We're working through a point to get us up to nameplate capacity. There are no fatal flaws in the project, but it is taking longer than we'd like, and we know it's a focus of investor attention.

Tom Hickey: No fatal flaws in the project, but it is taking longer than we would like, and we know it is a focus of investor attention. Finally, in this area, just to talk a little bit about the implementation agreement. This is an area that we focused a lot of time on. We worked very closely with the government in Mozambique. We have had really good engagement in the H1. There was a little bit of volatility in the Q1 related to the tax authority, but that is now concluded. We have had no more issues. We have had written assurances we continue to operate under the old terms, and the negotiations have continued constructively.

Speaker #3: And finally, in this area, I’d like to talk a little bit about the implementation agreement. This is an area that we've focused a lot of time on.

Speaker #3: We work very closely with the government in Mozambique. We've had really good engagement in the first half. There was a little bit of volatility in the first quarter related to the tax authority, but that's now concluded.

Speaker #3: We've had no more issues. We've had written assurances. We continue to operate under the old terms, and the negotiations have continued constructively. I met the Minister for Mineral Resources in late July.

Tom Hickey: I met the Minister for Mineral Resources in late July to really help the discussions, help understand what was important to their key stakeholders, which I think we already understood well, to kind of forge a path towards an agreement. I think what the technical team in Mozambique are doing is just trying to foresee any questions or queries that they might receive during the run-up to approval of or consideration of this by the Council of Ministers. We are in that usual part of the process now, the back and forth of comments. While there is no express timeline, we are very hopeful the progress that we have achieved will be maintained. As you can probably tell, our language here is warmer than it has been in the past. We certainly feel that there is a good understanding on both sides and a will to reach a conclusion.

Speaker #3: It was a really helpful discussion to help understand what was important to their key stakeholders, which I think we already understood well, but to kind of forge a path towards an agreement.

Speaker #3: And I think what the technical team in Mozambique are doing is just trying to foresee any questions or queries that they might receive during the run-up to approval, or consideration of this, by the Council of Ministers.

Speaker #3: We're in that usual part of the process now—the back-and-forth of comments. So, while there's no express timeline, we're very hopeful the progress that we've achieved will be maintained.

Speaker #3: And as you can probably tell, our language here is warmer than it has been in the past. We certainly feel that there's a good understanding on both sides, and a will to reach conclusions.

Speaker #3: And obviously, we'll keep you updated as we go through that process. So, with that, I'll hand over to James McCullough, who will run you through our financial results for the first half of the year.

Tom Hickey: Obviously, we will keep you updated as we go through that process. With that, I will hand over to James McCullough, who will run you through our financial results for the H1 of the year. Thank you.

Speaker #3: Thank you. Thanks, Dan, and good morning, everyone. Thanks for joining. Look, in summary, as Tom outlined, we have faced challenges in H1—notably, the market and where prices are for our products—at the same time as we’re ramping up WCPA, and that’s taking a little longer.

James McCullough: Thanks, Tom, and good morning, everyone. Thanks for joining. Look, in summary, as Tom outlined, we have faced challenges in H1. Notably the market and where prices are for our products at the same time as we are ramping up WCPA, and that is taking a little longer than anticipated. So those factors are certainly reflected in our financial performance. If we start at the top line, average prices received were down significantly in the half versus both H1 last year, we were down 26%, and H2 last year, down 31%. So our average price came out at $242 per ton. That is a reflection both of the weak market conditions as well as changes in our own product mix, and I will talk through that in a little bit more detail shortly. Shipments were strong, as we disclosed back in July, 555,000 tons.

Speaker #3: Anticipated. So those factors are certainly reflected in our financial performance. If we start at the top line, average prices received were down significantly in the half versus both H1 last year.

Speaker #3: We were down 26%, and H2 last year was down 31%. So our average price came out at $242 per ton. That's a reflection both of the weak market conditions, as well as changes in our own product mix, and I'll talk through that in a little bit more detail shortly.

Speaker #3: Shipments were strong, as we disclosed back in July: 555,000 tons. That's up 13%. But that wasn't sufficient to offset the decline in prices, so revenue outcome was sort of 16% down versus H1 last year.

James McCullough: That is up 13%, but that was not sufficient to offset the decline in prices. So revenue outcome was 16% down versus H1 last year. We did, as Tom mentioned, have a very strong focus on costs in the half and managed to reduce total cash operating costs by around $15 million or 12%. I will talk to that shortly. But notwithstanding that, we still saw the price impact flow through to the EBITDA line and came out at $4 million for EBITDA for the half. Net debt went up to $176 million from around 159 at the end of the year. That as we have kind of seen over the, well historically, that is a very lumpy metric. It depends very much on the timing of receipts coming in and cash going out.

Speaker #3: We did, as Tom mentioned, have a very strong focus on costs in the half, and managed to reduce total cash operating costs by around $15 million, or 12%.

Speaker #3: I'll talk through that shortly. But notwithstanding that, we still saw the sort of the price impact fall through to the EBITDA to the EBITDA line, and came out at 4 million dollars for EBITDA for the half.

Speaker #3: Net debt went up to $176 million from around $159 million at the end of the year. That, as we've kind of seen historically, is a very lumpy metric.

Speaker #3: It depends very much on the timing of receipts coming in and cash going out. We shared in our Q2 updates that we had very strong receipts coming in at the beginning of July, which would have largely offset the increase.

James McCullough: We shared in our Q2 update that we had very strong receipts coming in at the beginning of July, which would largely offset the increase. The lumpiness is part of the business but notwithstanding that, an increase of around $16 million. If you go to the next slide, please. Just looking at a summary income statement, you can see the revenue line there reflecting the markets and the mix. If we think about pricing for the different products that we sell, ilmenite pricing for the half went from $286 per ton down to $203 per ton. Zircon from around $1,300 to $42. Looking at that product mix, our actual percentage of zircon tons sold stayed flat or went up a little bit from 3% to 4%. Zircon is our most valuable product, so that is positive.

Speaker #3: So, the lumpiness is sort of part of the business, but notwithstanding that, an increase of around $16 million. If you go to the next slide, please.

Speaker #3: So just looking at a summary income statement, you can see the revenue line there reflecting the markets and the mix. So if we think about pricing for the different products that we sell, ilmenite pricing for the half went from $286 per ton down to $203 per ton.

Speaker #3: Zircon from around $1,300. Looking at that product mix, our actual percentage of zircon tons sold stayed flat, or it went up a little bit from 3% to 4%.

Speaker #3: And ZERCON is our most valuable product, so that's positive. But it's really offset by the increase in concentrates that we had in the year.

James McCullough: It is really offset by the increase in concentrates that we had in the year. That is particularly ZrTi, which brought us from a concentrates share of tons sold from 4% up to 20%, or the share of actual revenue generated from 6% to 17%. Those concentrates sell at a lower price and therefore impact the revenue generation through the deterioration of product mix. ZrTi has been a tremendous benefit for us this year. Those sales came out of tailings that we previously had not valued. It is very much a positive story. We do see that reflection in terms of product mix impact on revenue. Notwithstanding the lower cash costs that we had, the cost of sales is up significantly from $150 million up to $175 million. That is really reflecting the inventory drawdown that we have had in this H1.

Speaker #3: So that's particularly ZERTI, which kind of brought us from a concentrates share of tons sold from 4% up to 20%, or the share of actual revenue generated from 6% to 17%.

Speaker #3: And those concentrates sell at a lower price and therefore impact revenue generation through deterioration of the product mix. Now, ZERTI has been a tremendous benefit for us this year.

Speaker #3: Those sales came out of tailings that we previously hadn't valued, so it is very much a positive story. But we do see that reflection in terms of product mix impact on revenue.

Speaker #3: Look, notwithstanding the lower cash costs that we had, the cost of sales is up significantly—from $150 million up to $175 million. That's really reflecting the inventory drawdown that we've had in this first half.

Speaker #3: So, we've settled along that shipment to our primary focus and intended to monetize the inventory that we had accumulated over the course of last year.

James McCullough: We have said all along that shipments are our primary focus, and we intended to monetize the inventory that we had accumulated over the course of last year. That has provided very valuable liquidity for us. It does not provide as much EBITDA because we took an NRV adjustment to it at the end of last year. EBITDA from those sales is largely flat. It does contribute significantly to liquidity, which has been very useful for us over the course of the half. Finance costs up from last year reflecting the increased debt that we have. We are up at around $200 million of debt drawn and all of that, not the finance costs, but the rest falls through to lower EBITDA at $4 million and all that falls through to a lower profit number. So a loss after taxes of $34 million.

Speaker #3: That's provided very valuable liquidity for us. It doesn't provide as much EBITDA because we took an NRB adjustment to it at the end of last year.

Speaker #3: So, EBITDA from those sales is largely flat, but it does contribute significantly to liquidity, which has been very useful for us over the course of the half.

Speaker #3: Finance costs are up from last year, reflecting the increased debt that we have. So we're up at around $200 million of debt drawn. And all of that sort of—well, not the finance costs, but the rest—falls through to lower EBITDA at $4 million.

Speaker #3: And all of it falls through to a lower profit number, so a loss after taxes of $34 million. Just looking at the cash—or, sorry, at the cost side of things, so the bridge from cost of sales to cash costs—first of all, I've made expenses.

James McCullough: Just looking at the cash, or sorry, the cost side of things. The bridge from cost of sales to cash costs. First of all, admin expenses were down by around $3.5 million. That reflects the recognition of ilmenite stock or the recovery of ilmenite stocks from a sale that we had made to a customer last year, which that customer went into administration. We recovered those stocks last year or earlier this year, and so the recovery of those stocks comes through in the admin expenses line. There is also a reduction in head office costs there contributing to that reduction. You will also see the contribution of inventory and the product stock movements at $20.5 million. That is really reflecting that inventory drawdown that we had in the H1.

Speaker #3: We're down by around 3 and a half million dollars. That reflects the recognition of aluminite stock or the recovery of aluminite stocks from a sale that we had made to a customer last year, which that customer went into administration.

Speaker #3: We recovered those stocks last year—or, sorry, earlier this year. And so the recovery of those stocks went through in the admin expenses line.

Speaker #3: There's also a reduction in head office costs there, contributing to that reduction. You'll also see the contribution of inventory in the product stock movements of €20.5 million.

Speaker #3: So that's really reflecting that inventory drawdown that we've had in the first half. And then, when we get down to cash costs, you can see that reduction from $124 million to just over $110 million.

James McCullough: When we get down to cash costs you can see that reduction from USD 124 million to just over USD 110 million. So taking around USD 15 million out of the cost base. That is across all categories. The major contributors there were labor, where our costs reduced by around USD 5 million, just over USD 5 million versus H1 last year. Production overheads also came down by around USD 5 million. Major contributor to that was equipment rentals and reduction in the amount of heavy mobile equipment that we are renting, and power, fuel, and chemicals. We had significant reduction in our diesel consumption and electricity consumption. Notwithstanding the increases in unit prices for those things, particularly diesel, reflecting the US-Iran conflict, our overall power, fuel, and chemical costs came down by around USD 3.5 million.

Speaker #3: So taking around 15 million dollars out of the cost base, that's across all categories. So the major contributors there were labor, where our costs reduced by around 5 million dollars, which is over 5 million dollars, versus H1 last year.

Speaker #3: Production overheads also came down by around $5 million. The major contributor to that was equipment rentals and a reduction in the amount of heavy mobile equipment that we're renting.

Speaker #3: And power fuel and chemicals. So we had significant reduction in our diesel consumption and electricity consumption. So notwithstanding the increases in unit prices for those things, particularly diesel, reflecting the US Iran conflict, our overall power fuel and chemical costs came down by around 1 and a half million.

James McCullough: Unit costs, notwithstanding the reduction in total costs, unit costs were up to USD 255 per ton. That is really the reduction in production overall. So not a reduction in tons to absorb those total costs. That applies both at the total cost line as well as the net ilmenite cost line. Just to note, Tom mentioned the IA and the discussions ongoing there. As we have disclosed before, we are accruing at a rate of 2.5% on the royalties that we pay under the IA. But we are only actually paying at 1%, 1% being our historical terms, 2.5% being the terms that we have proposed to the government. So our total cash payment on that 1% royalty was USD 1.5 million. Over and above that, we accrued a further USD 2.2 million, and that total accrued amount now is USD 7.9 million.

Speaker #3: Unit costs, notwithstanding the reduction in total costs, were up to $255 per ton. And that's really due to the reduction in production overall.

Speaker #3: So, not a reduction in tons to absorb those total costs. And that applies both at the total cost line, as well as the net aluminite cost line.

Speaker #3: And just to note, Tom mentioned the IA and the discussions ongoing there. As we've disclosed before, we're accruing at a rate of 2.5% on the royalties.

Speaker #3: That's what we pay under the IA, but we're only actually paying at 1%, with the 1% being our historical terms and 2.5% being the terms that we proposed to the government.

Speaker #3: So our total cash payments on that 1% royalty were $1.5 million. Over and above that, we accrued a further $2.2 million, and the total accrued amount now is $7.9 million.

Speaker #3: So that's the total amount that we've accrued since December 2024 under the proposed new terms. Just looking at cash movements, you can see, really, that the standout feature here is the contribution of liquidity, or up cash, from the inventory drawdown.

James McCullough: That is the total amount that we have accrued since December 2024 under the proposed new terms. Just looking at cash movements, you can see really the standout feature here is the contribution of liquidity or of cash from the inventory drawdown. As I said, given the net realizable value adjustments that we took predominantly to ilmenite for USD 14 million at the end of 2025, those sums do not generate a significant EBITDA, but they do generate significant cash. That cash has been absorbed through both the higher interest costs but also sustaining capital. So sustaining capital, we incurred USD 12 million of costs and paid out seven. So the cash outflow was USD 7.5 million, leaving us with a kind of cash flow before development CapEx of USD 6.1 million. The development CapEx outflow was USD 23 million. A large chunk of that, USD 12 million, related to spend from 2025.

Speaker #3: And as I said, given the net realizable value adjustments that we took predominantly to Ilmenite, so $14 million at the end of 2025, those tons don't generate a significant EBITDA, but they do generate significant cash.

Speaker #3: That cash has been absorbed through both the higher interest costs, but also sustaining capital. So, sustaining capital — we incurred $12 million of costs and paid out $7 million.

Speaker #3: So, the cash outflow was $7.5 million, leaving us with a kind of cash flow before development CapEx of $6.1 million.

Speaker #3: The development capex outflow was $23 million. A large chunk of that, $12 million, related to spend from 2025. So there was $11 million of new incurrence effectively in 2026 H1.

James McCullough: There was USD 11 million of new incurrence effectively in 2026 H1, but a USD 23 million outflow, which led to a USD 17 million change in net debt. Looking at the balance sheets, just a few things to note. First of all, that large inventory reduction. So we had 128,000 ton drawdown of finished products all in. That is a mix. We had more than that, around 140,000, 150,000 ton of ilmenite drawdown, but we also had a ZrTi buildup which offset some of that. The inventory value does include a further NRV adjustment at the end of Q1 of around USD 5.9 million. That is reflective of the current elevated unit costs that we have predominantly relating to the WCPA ramp-up. Means that the cost of production is actually above the net realizable value of those products. So we took a USD 5.9 million adjustment at the end of the half.

Speaker #3: But a $23 million outflow, which led to a $17 million change in net debt. Looking at the balance sheets, just a few things to note.

Speaker #3: First of all, that large inventory reduction: so we had a 128,000-ton drawdown of finished products fall in—that's a mix. We had more than that, around 140,000 to 150,000 tons of ilmenite drawdown, but we also had a zircon tie buildup, which offset some of that.

Speaker #3: The inventory value does include a further NRB adjustment at the end of H1 of around $5.9 million. That's reflective of the current elevated unit costs that we have, predominantly relating to the WCPA ramp-up.

Speaker #3: It means that the cost of production is actually above the net realizable value of those products, and so we took a $5.9 million adjustment at the end of the half.

Speaker #3: Net current assets at $135 million, so a very kind of comfortable position, or strong position, on the net current assets side. And just to note, we test for impairment at the end of each period.

James McCullough: Net current assets at USD 135 million. a very comfortable position or strong position on the net current assets side. Just to note, we test for impairment at the end of each period. The RCF upside that we did as well as the USD 30 million of upside that we agreed with the banks, we also agreed a number of waivers and new covenants in the debt package. Those new covenants are predominantly balance sheet related, reflecting where we are in the cycle and all of those covenants have been met at the end of the H1. With that, I will pass over to Ben.

Speaker #3: And the RCF upsize that we did, so as well as a $30 million upsize that we agreed with the banks, we also agreed a number of waivers and new covenants in the debt package. Those new covenants are predominantly balance sheet related.

Speaker #3: Reflecting on where we are in the cycle, all of those covenants have been met at the end of the half. With that, I will pass it over to Ben.

Speaker #4: Good morning, everybody. I'll commence with our sustainability goals and how they've advanced in the year. To start off with, let's talk about health and safety.

Ben Baxter: Good morning, everybody. I will commence with our sustainability goals and how they have advanced in the year. To start off with, let's talk about health and safety, and it really was an excellent performance through the H1 of the year. We had zero LTIs, and we have amassed more than 4 million hours now since our last recordable lost time injury. Over and above that, all injuries are also down, and this was actually our best ever H1 or our best ever year for all injury frequency rates. That is a record, so we are very chuffed about that. To support thriving communities around the mine, we have now completed more than 95% of the building of a hospital, a district hospital, which supports the other KMAD health centers that have been built over the years.

Speaker #4: And it really was an excellent performance through the first half of the year. We had zero LTIs, and we've now amassed more than 4 million hours since our last recordable lost time injury.

Speaker #4: Over and above that, all injuries are also down, and this was actually our best ever half year, or it's our best ever year, for all injury frequency rate, and that's a record.

Speaker #4: So we're very chuffed about that. To support thriving communities around the mine, we've now completed more than 95% of the building of a district hospital, which supports the other Kemad health centers that have been built over the years.

Speaker #4: And then we've also launched what we're calling our Padrinho Project. This is the outsourcing to small micro-enterprises within the local community for goods and services that can support the mine.

Ben Baxter: We have also launched what we are calling our Pedrini project. This is the outsourcing to small micro-enterprises within the local community for goods and services that can support the mine. That is a process that we have been working on for some time, and that is now being launched this year. We continue to advance agroforestry and our waste management approaches. We get more yield from the farms that we support now, and our recycling levels have increased dramatically over the last year. We now more than 97% of our waste is being recycled. Lastly, on trusted business, our governance continues to improve and has been recognized by EcoVadis this year. On the ground to support the safety of the operation and the people there, we are making sure that all employees involved in security take part in voluntary principles training. Moving to the next slide.

Speaker #4: That's a process that we've been working on for some time, and it's now being launched this year. We continue to advance agroforestry and our waste management approaches.

Speaker #4: We get more yield from the farms that we support now. Our recycling levels have increased dramatically over the last year, and now more than 97% of our waste is being recycled.

Speaker #4: And then lastly, on trusted business, our governance continues to improve, and this has been recognized by EcoVadis this year, and on the ground, we continue to support the safety of the operation and the people there.

Speaker #4: We're making sure that all employees involved in security take part in Voluntary Principles training. Moving to the next slide, I'll talk to the production. The highlight of the half was the strong demand for the new product called Zerti.

Ben Baxter: I will talk to the production. The highlight of ARF was the strong demand for the new product, called ZrTi. This partially offset the mining performance, where HMC production was down 34%. That was mostly 26% down due to lower ore grades at WCPA, but also due to the lower excavated ore volumes that were mined at WCPA because of the slower commissioning and also the paused dry mining that took part that we did in Q2. Right now, production is improving and as we expect it to do through the H2 of the year. That is supported by the fact that WCPA continues to make steady improvements. Also we are having very strong performance from the other plants, particularly from WCP B. Finished products were down 14% year-on-year. That was really down to the lower HMC production that I have mentioned.

Speaker #4: This partially offset the mining performance, where HMC production was down 34%. That was mostly, 26% down, due to lower ore grades at WCPA, but also due to the lower excavated ore volumes that were mined at WCPA because of the slower commissioning.

Speaker #4: And also the pause to dry mining that took place in Q2. Right now, production is improving, as we expect it to do through the second half of the year.

Speaker #4: And that's supported by the fact that WCPA continues to make steady improvements. Also, we're seeing very strong performance from the other plants, particularly from WCPP.

Speaker #4: Finished products were down 14% year on year, and that was really due to the lower HMC production that I've mentioned. However, this was boosted by the concentrated production, which was up 599% year on year.

Ben Baxter: However, it was boosted by the concentrates production. The concentrates production was up 599% year-on-year, and that is principally due to this new product, ZrTi. We prepared 102,000 tons of this former tailing, and converted it to saleable product during H1. We will continue to draw down those stocks with sales during H2. Shipments are our main, our principal KPI metric for the year. They were up 14% year-on-year, and that is because of our focus on drawing down the stocks that we had and with consistent and supported by the consistent transshipment performance to meet demand through H1. We drew down 128,000 tons of product stockpiles and our ilmenite stocks on site are now what we would say is at normalized levels.

Speaker #4: And that's principally due to this new product, Zerti. We prepared 102,000 tons of this former tailing and converted it to saleable product during the first half of the year.

Speaker #4: And we'll continue to draw down those stocks with sales during the second half. Shipments are our main principal KPI metric for the year. They were up 14% year-on-year.

Speaker #4: And that's because of our focus on drawing down the stocks that we had, and it's supported by the consistent transshipment performance to meet demand through the first half.

Speaker #4: We drew down 128,000 tons of product stockpiles, and our ilmenite stocks on site are now at what we would say are normalized levels. There is a remaining 17,000-ton stock holding of our ilmenite product that remains in Malaysia awaiting a sale.

Ben Baxter: There is a remaining 17,000 ton stock holding of our ilmenite product that remains in Malaysia, awaiting sale. So overall, we have got improved production into the early part of this half, and that is giving us the confidence around our ilmenite production, which is expected to be approximately 800,000 tons for the full year. On to the next slide, and I will talk a little bit more about the WCP A project. We have been making steady improvements. As we have said before, the major construction and installation works are all complete, and you can see that in the spend profiles. We have spent $23 million in H1, of which 12 was an accrual coming from 2025. We expect to only spend $7 million in H2 as we spend capital on the preparations for the transition to WCP A.

Speaker #4: So, overall, we've got improved production in the early part of this half, and that's giving us confidence around our ilmenite production, which is expected to be approximately 800,000 tons for the full year.

Speaker #4: On to the next slide. I'll talk a little bit more about the WCPA project. We've been making steady improvements. As we've said before, the major construction and installation works are all complete.

Speaker #4: And you can see that in the spend profile, we've spent $23 million in the first half of the year, of which $12 million was an accrual coming from 2025.

Speaker #4: And we expect to only spend $7 million in the second half of this year as we spend capital on the preparations for the transition to TACA.

Speaker #4: Our performance, though, has been underwhelming so far. We have not reached the nameplate capacities that we had expected to in Q2. In the first half of the year, we averaged 2,800 tons per hour, compared to the nameplate of 3,500 tons per hour.

Ben Baxter: Our performance, though, has been underwhelming so far. We have not got to the nameplate capacities that we had expected to in Q2. In H1, we averaged 2,800 tons per hour, compared to the nameplate of 3,500 tons an hour. There is a lot of focus on this area, as you would expect. We had some good breakthroughs in Q2 and those are continuing into H2. The feed preparation units were debottlenecked successfully, and they are performing very well now. The off-plant tails management has been made significantly more reliable at the densification paddock and at the tail storage facility. However, what is holding us back or what is limiting production at this moment remains the dredge and throughputs and utilizations are being addressed with the dredge supplier in order to strengthen the consistency of the feed that we can get into the plant.

Speaker #4: There's a lot of focus on this area, as you would expect. We had some good breakthroughs in Q2 and those are continuing into H2.

Speaker #4: The feed preparation units were debottlenecked successfully, and they're performing very well now. The off-plant tails management has been made significantly more reliable at the densification paddock and at the tail storage facility.

Speaker #4: However, what's holding us back, or what's limiting production at this moment, remains the dredge. Throughputs and utilizations are being addressed with the dredge supplier.

Speaker #4: In order to strengthen the consistency of the feed that we can get into the plant, we had the dredge winch braking system approved, and we have now placed orders. We expect to commission the new system in Q4.

Ben Baxter: We had a dredge winch braking system that has been approved, and we are now orders are placed, and we expect to commission the new system in Q4. We also do have remaining issues around the pumping system performance, and that is our main focus right now. We are mitigating that with continued improvements in the way we operate the plant, and also making sure that we have increased levels of spares available to us to bring those mitigations when reliability fails. But overall, we have seen throughputs and utilizations increase through Q2 into Q3. We have taken an approach to make our improvement profile a more realistic forecast through the rest of this year, and that was incorporated into our guidance statement.

Speaker #4: But we also do still have remaining issues around the pumping system performance, and that's our main focus right now. We are mitigating that with continued improvements in the way we operate the plant.

Speaker #4: And also making sure that we have increased levels of spares available to us to bring those mitigations when reliability fails. But overall, we've seen throughputs and utilizations increase through Q2 into Q3.

Speaker #4: We've taken an approach to make our improvement profile a more realistic forecast through the rest of this year, and that was incorporated into our guidance statement.

Ben Baxter: I will also talk a little bit on the next slide 17, about our selective mining operations and our expectation to increase production from those units in the H2 of the year. You will recall that SMO1 has been making a really valuable HMC contribution at particularly low capital costs, and it has been delivering to the expectation. That has prompted us to design and order a second SMO, which will be SMO2. It will have some upgrades on it based on the knowledge and the learnings that we have had with SMO1, and those design improvements will be brought into place to eventually have a 1,000 tonne per hour SMO2 in place. Construction of the first phase has just started, and that will be for 500 tonnes per hour. It is expected to be commissioned in Q4 of this year, and phase two will follow on in 2027.

Speaker #4: I'll also talk a little bit on the next slide, slide 17, about our selective mining operations and our expectation to increase production from those units in the second half of the year.

Speaker #4: You'll recall that SMO 1 has been making a really valuable HMC contribution at particularly low capital cost, and it's been delivering to the expectation.

Speaker #4: That's prompted us to design and order a second SMO, which will be SMO 2. That one will have some upgrades on it.

Speaker #4: Based on the knowledge and the learnings that we've had with SMO 1 and those design improvements will be brought into place to eventually to have a 1,000 ton per hour SMO 2 in place.

Speaker #4: Construction of the first phase has just started, and that will be for 500 tons per hour. It's expected to be commissioned in Q4 of this year.

Speaker #4: And phase two will follow on in 2027. And so with that, I will pass on to Killian, who's going to deliver the market update.

Ben Baxter: With that, I will pass on to Cillian, who is going to deliver the market update.

Speaker #1: Thanks, Ben. And good morning, everyone. I'll start. Really, on this slide and the first half of this year, what was challenging—we saw strong demand across all of our products.

Cillian Murphy: Thanks, Ben, and good morning, everyone. We will start really on this slide. The H1 of this year, while challenging, we saw strong demand across all of our products. However, particularly on the ilmenite side, there was sufficient supply to meet that, and that is what resulted in the decrease in price through the H1. The second impact that is clearly impacting pricing in the H1 was the freight. Following the US and Iran conflict in late Q1, we saw elevated freight increases, particularly on ilmenite shipments into China. Given the weak market, we have been unable to pass them through, and that has impacted IRC prices further. The steady demand has allowed us to de-stock, which I think James was talking about.

Speaker #1: However, particularly on the ilmenite side, there was sufficient supply to meet that, and that's what resulted in the decrease in price through the first half.

Speaker #1: The second impact that's clearly affecting pricing in the first half was the freight. Following the US and Iran conflict in late Q1, we saw elevated freight increases, particularly on ilmenite shipments into China.

Speaker #1: And given the weak market, we've been unable to pass them through, and that has impacted our received prices further. The steady demand has allowed us to destock, which I think James is talking about.

Speaker #1: And that, coupled with the strong zircon demand and strong zircon sales, kind of resulted in the steeper gradient of lower prices—lower average prices—across all products as the product mix worsens in the first half.

Cillian Murphy: That, coupled with the strong zirconite demand and strong zirconite sales, kind of resulted in the steeper gradient of lower average prices across all products as the product mix worsens in the H1 and as a result of those sales. Zircon is the bright spot. We saw stronger zircon price in the H1 across all of our products, and that kind of accelerated in the Q2. As we said previously, we see that more of a supply constraint issue rather than an improvement in demand. Let us move to the next slide. I want to talk about the supply and really the reason we have seen the weaker prices, we believe, is supply driven and coming from two main areas and centered around China. Firstly, the major reason is elevated ilmenite production in China. We have seen that increasing in recent years and remain at elevated levels.

Speaker #1: As a result of those sales, zircon is the bright spot. We saw stronger zircon prices in the first half across all of our products.

Speaker #1: And that kind of accelerated in the second quarter. As we've said previously, we see that as more of a supply constraint issue rather than an improvement in demand.

Speaker #1: So, we move to the next slide. I want to talk about the supply and, really, the reason we've seen the weaker prices. We believe it is supply driven.

Speaker #1: And coming from two main areas and centered around China. Firstly, the major reason is elevated ilmenite production in China. We've seen that increasing in recent years.

Speaker #1: And remain at elevated levels. Encouragingly, the major region in China, Panzhihua, has reduced over the last 12 months. That's being partially offset by an increase in Xinjiang.

Cillian Murphy: Encouragingly, the major reason or the major region in China, Panzhihua, has reduced over the last 12 months. That has been partially offset by increases in Xinjiang, but that is on the back of environmental reasons, which is encouraging. That ilmenite really all enters the sulfate pigment market in China. The second place we are seeing strong competition is the import of HMC into China. That has increased again over the last 12 months and principally from Mozambique, but there are other regions in Africa as well. That is stepping up their competition. It is important to say that still this product, both the domestic and the ilmenite contained in HMC, it is all staying in China, so it is captive there. It is leading to intense competition there, but is captive. However, lower price in China do have the ability to impact global pricing, and that is something we have seen really in H1.

Speaker #1: But that's on the back of environmental reasons, which is encouraging. So that ilmenite really all enters the sulfate pigment market in China. And the second place we're seeing strong competition is the import of HMC into China.

Speaker #1: That's increased again over the last 12 months, and principally from Mozambique, but there are other regions in Africa as well. And that's stepping up the competition.

Speaker #1: It's important to say that still, this product—both the domestic and the ilmenite contained in HMC—is all staying in China, so it's captive there.

Speaker #1: It's leading to intense competition there, but is captive. However, lower prices in China do have the ability to impact global pricing, and that is something we've seen really in the first half.

Speaker #1: So, we move to the next slide. Encouragingly, we are seeing strong demand, and that's what supported the drawdown of stocks and the zircon demand.

Cillian Murphy: Move to the next slide, yeah. Encouragingly, we are seeing strong demand, and that is what supported the drawdown of stocks and the zirconite demand. It is all on the back of improving pigment conditions. The graph on the left looking at pigment is Chinese pigment production. So record in H1 on both sulfate and chloride, which is a positive for us. What is particularly encouraging for Kenmare is that the chloride pigment continues to gain market share. That is accelerating at the moment due to the high sulfur and sulfuric acid prices, and we have customers that are ramping up capacity of both chloride pigments and of beneficiation in order to take advantage of those market conditions. So that is a real positive for the demand for Kenmare type ilmenite.

Speaker #1: It's all on the back of, I suppose, improving pigment conditions. So the graph on the left, looking at pigment, is Chinese pigment production—so record in the first half on both sulfate and chloride.

Speaker #1: Which is a positive for us. But what's particularly encouraging for Kenmare is that the chloride pigment continues to gain market share. That is accelerating at the moment due to the high sulfur and sulfuric acid prices.

Speaker #1: And we have customers that are ramping up capacity for both chloride pigment and beneficiation, in order to take advantage of those market conditions.

Speaker #1: So that's a real positive for the demand for Kenmare-type ilmenite. And even outside China, I think in the last couple of weeks we've seen results from the Western pigment producers, which talk of improving volumes and prices.

Cillian Murphy: Even outside China, I think the last couple of weeks we have seen results from the Western pigment producers, which talk of improving volumes and prices to levels we have not seen recently. So I think encouraging both inside and outside China on the pigment side there. On the metal side, continue to see strong growth. It is a market that we like and a market that likes our type of product. So one we will continue to try to push more of our ilmenite towards. Just turning to the outlook then on the next slide. With those positive demand trends continuing into Q3, obviously we have to compete on price, but the demand is there. As a result, we see a solid order book for Q3. One point probably important to make is in H1 as we were drawing down stocks, that was predominantly IP2.

Speaker #1: To levels we haven't seen recently, so I think that's encouraging, both inside and outside China on the pigment side there. On the metal side, we continue to see strong growth.

Speaker #1: It's a market that we like, and a market that likes our type of product. So, we will continue to try and push more of our ilmenite towards it.

Speaker #1: Just turning to the outlook then, on the next slide. Those positive demand trends continue into Q3. Obviously, we have to compete on price, but the demand is there.

Speaker #1: As a result, we see a solid order book for the third quarter. One point probably important to make is that in the first half, as we were drawing down stocks, that was predominantly Q2.

Speaker #1: So, ilmenite. Supply mix, and therefore higher-value ilmenite products are being sold. On the zircon side, we expect the momentum to continue. Particularly in China, we saw European prices were more stable over the last 12 months.

Cillian Murphy: So ilmenite supply mix, and therefore higher value ilmenite products being sold. On the zircon side, we expect the momentum to continue, particularly in China. I think we saw European prices was more stable over the last 12 months, and starting to increase now, whereas China decreased, so has a bit of catching up to do, and we expect that to continue in Q3. Finally, just to touch, I think Ben mentioned it, on our stockpile in Malaysia, we have title to it. We understand that sales process is ongoing. We are in discussions with the potential buyer, and we would hope to be a supplier to that plant in the future. So, yeah, we hope to see that concluded quickly and the plant restarting, and then we can restart our supply into it, starting with that stockpile. With that, I will pass back to Tom.

Speaker #1: And it's starting to increase now, whereas China decreased, so it has a bit of catching up to do. We expect that to continue in the third quarter.

Speaker #1: Finally, just to touch—Ben mentioned it—on our stockpile in Malaysia, we have title to it. We understand that the sales process is ongoing, and we're in discussions with the potential buyer.

Speaker #1: And we would hope to be a supplier to that plant in the future. So yeah, we hope to see that conclude quickly and the plant restarting.

Speaker #1: And then we can restart our supply into it, starting with that stockpile. And with that, I will pass back to Tom.

Speaker #2: Thanks very much, Killian. So, look, and thank you for your time today. In summary, before we move to Q&A: at the half-year, we're still on track to achieve our guidance and deliver our 1.1 million tons of shipments, which is the biggest objective for us.

Tom Hickey: Thanks very much, Cillian. So look, thank you for your time today. In summary, before we move to Q&A, at the H1, we are still on track to achieve our guidance and deliver our 1.1 million ton shipments, which is the biggest objective for us. As Cillian said, the Q3 demand and order book certainly supports that objective. We have a keen focus as well on achieving all the other metrics and particularly the continued ramp-up of WCPA as we go through the work program that Ben mentioned. I think that there has certainly been some good achievements in the H1 on all of those areas. If we look more generally to the business, a couple of things just to emphasize before we close. First, just to remind everybody, this is a world-class asset that is going to be around for a very long time.

Speaker #2: And as Killian said, the third-quarter demand and order book certainly support that objective. But of course, we have a keen focus as well on achieving all the other metrics, and particularly the continued ramp-up of WCPA as we go through the work program that Ben mentioned.

Speaker #2: But I think that there's certainly been some good achievements in the first half in all of those areas. And if we look more generally to the business, a couple of things just to emphasize before we close.

Speaker #2: First, just to remind everybody, this is a world-class asset that's going to be around for a very long time. We're investing to be ready for that.

Tom Hickey: We are investing to be ready for that and to be ready for the recovery in our markets that maybe we are seeing signs of, but certainly, there is a little more proof that needs to come through before we start to promote that a little bit more. We are invested for it. We are ready for it. Our development CapEx is behind us. Our SMO, our second SMO, is coming to help maintain and increase our production. So, we are certainly prepared. We have worked hard for the H1 to achieve operating cost improvements, as James said. They supported our liquidity objectives, and I think that has been something that we have done well on in the H1. Despite the wider geopolitical uncertainty, which obviously has caused some turbulence, I think we have managed so far to navigate it well and mitigate its impact.

Speaker #2: And to be ready for the recovery in the markets that maybe we're seeing signs of, but certainly, there's a little more proof that needs to come through before we start to promote that a little bit more.

Speaker #2: But we are invested for it. We're ready for it. Our development capex is behind us. Our SMO—our second SMO—is coming to help maintain and increase our production.

Speaker #2: So we're certainly prepared. We've worked hard in the first half to achieve operating cost improvements, as James said, and they've supported our liquidity objectives.

Speaker #2: And I think that's been something that we've done well on in the first half. And despite the wider geopolitical uncertainty, which obviously has caused some turbulence, I think we've managed so far to navigate it well and mitigate its impact.

Speaker #2: The nature of the MoMA asset, as Killian said, and the quality of our products, means that we're a preferred supplier to most of our customers.

Tom Hickey: The nature of the Moma asset, as Cillian said, the quality of our products means that we are a preferred supplier to most of our suppliers and our customers. Our customers stay with us a long time. Many have been with us 20 years plus. We are amongst the first ones they buy. That has not changed. That is what gives us the visibility on our sales and our order book, and means that we can achieve our shipment objectives. As you can probably detect, we are certainly more hopeful regarding our position in Mozambique or the ongoing conclusion of our implementation agreements. The eagerness shared by government to get that finished, and to enable us to get back to our long-term investments in the business, in the community, and work for the next 20 years plus in Mozambique. So thanks very much for your time this morning.

Speaker #2: And our suppliers—excuse me, our customers—and our customers stay with us a long time. Many have been with us 20 years plus. We're amongst the first ones they buy; that hasn't changed.

Speaker #2: And that's what gives us the visibility on our sales and our order book, and means that we can achieve our shipment objectives. And as you can probably detect, we're certainly more hopeful regarding our position in Mozambique, and the ongoing conclusion of our implementation agreement.

Speaker #2: The eagerness shared by government to get that finished, and to enable us to get back to our long-term investments in the business, in the community, and work for the next 20 years plus in Mozambique.

Speaker #2: So, thank you very much for your time this morning. We'll now move to Q&A and take any questions you might have.

Tom Hickey: We will now move to Q&A and take any questions you might have.

Speaker #3: That's great. Thank you all very much indeed for your presentation. Ladies and gentlemen, please do continue to submit your questions using the Q&A tab situated in the top right corner of your screen.

Operator 2: That's great. Thank you all very much indeed for your presentation. Ladies and gentlemen, please do continue to submit your questions using the Q&A tab situated on the top right corner of your screen. While the company takes a few moments to review those questions submitted today, I would like to remind you the recording of this presentation, along with a copy of the slides and the published Q&A, can be accessed via our invested dashboard. Katherine, at this point, if I may hand over to you to chair the Q&A, and I'll pick up from Tom at the end. Thank you.

Operator: That's great. Thank you all very much indeed for your presentation. Ladies and gentlemen, please do continue to submit your questions using the Q&A tab situated on the top right corner of your screen. While the company takes a few moments to review those questions submitted today, I would like to remind you the recording of this presentation, along with a copy of the slides and the published Q&A, can be accessed via our invested dashboard. Katherine, at this point, if I may hand over to you to chair the Q&A, and I'll pick up from Tom at the end. Thank you.

Speaker #3: While the company takes a few moments to review those questions submitted today, I would like to remind you that the recording of this presentation, along with a copy of the slides and the published Q&A, can be accessed via the investor dashboard.

Speaker #3: And Catherine, at this point, if I may, I'll hand over to you to chair the Q&A. I'll pick up from Tom at the end.

Speaker #3: Thank you.

Speaker #4: Thank you. So, our first question comes from Colin Grant at Davey. You noted that production improved in July and August. How does this shape your outlook for ilmenite production in 2027?

Katharine Sutton: Thank you. Our first question comes from Colin Grant at Davy. You noted that production improved in July and August. How does this shape your outlook for ilmenite production in 2027?

Speaker #2: Thank you, Ben. We'll hand over another. I think that's something we will focus on over the remainder of this year and analyze our plans for next year.

Tom Hickey: Maybe Ben will.

Ben Baxter: Yeah

Ben Baxter: I'm not a. I think that's something we will focus on over the remainder of this year as we finalize our plans for next year. Ben, do you want to give a bit more color?

Speaker #2: But Ben, do you want to give a bit more color?

Speaker #5: Yeah. I was sort of going to say the same thing. I think we are entering the transition towards an attacker, with WCPA, and you saw that the grades came down.

Ben Baxter: Yeah. I was sort of going to say the same thing. I think we are entering the transition towards Nataka with WCPA, and you saw that the grades came down this year because of that, and that will be the same next year. I think that's a main consideration there. To try and offset that, we have the SMO capacity that we need to bring further in place. You saw in the table on the slide there that we have

Speaker #5: This year, because of that. And that will be—and that will be—the same next year. So I think that's a main consideration there.

Speaker #5: But to try not to set that, we have the SMO capacity that we need to bring further in place. And you saw in the table that we have on the slide there, that we have an increase of 1,500 tons per hour of SMO capacity to try and offset that.

Ben Baxter: An increase of 1,500 tonnes per hour of SMO capacity to try and offset that grade shortfall. So it's certainly top of mind. We're going through our detailed planning processes right now, ready for 2027. That's where we're going to be able to get to by the end of the year.

Speaker #5: That grade shortfall, so it's certainly top of mind. We're going through and starting our detailed planning processes right now, ready for 2027. And that's where we're going to be able to get to by the end of the year.

Speaker #4: The next question is also from Colin. Is there a price level where you expect oversupply in the ilmenite market to diminish?

Katharine Sutton: Next question, also from Colin. Is there a price level where you expect oversupply in the ilmenite market to diminish?

Tom Hickey: I'll hand that to Cillian, but I think we are already seeing some distress amongst certain producers. When we talk about Chinese concentrate producers or concentrate producers generally, one thing we should emphasize is they're very dependent on diesel as their primary fuel source and obviously very exposed to the costs as a consequence of that. Cillian, I'll let you jump into a bit more detail on that.

Speaker #2: I'll hand that to Killian. But I think we are already seeing some distress among certain producers, and I think we've talked about Chinese concentrate producers, or concentrate producers generally.

Speaker #2: One thing we should emphasize is they're very dependent on diesel as their primary fuel source, and obviously very exposed to the cost as a consequence of that.

Speaker #2: But Killian, I'll let you jump into a bit more detail on that.

Speaker #1: Yeah. Okay, thanks. I think that's a key point—that we do hear anecdotally that these diesel prices, coupled with the lower price of finished product in the Chinese market, are really hurting these concentrate producers.

Cillian Murphy: Yeah. Okay. I think that's a key point that we do hear anecdotally, that these diesel prices, coupled with the lower price of finished product in the Chinese market, are really hurting these concentrate producers. That is an indication we're getting there. The other thing is we have seen significant supply come out of the market over the last 12 months as a result of those prices. While maybe we're not seeing new announcements, I think we're also not seeing the restart of those. That's because they probably would have needed higher prices, but it's not coming back online at the moment because it's not profitable to do so. I think we're getting there, but no clear sign yet that there's been sufficient product taken out of the market that's going to swing it in the near term.

Speaker #1: So that is an indication we're getting there. And then, the other thing is, we have seen significant supply come out of the market over the last 12 months.

Speaker #1: As a result of those prices, and while maybe we're not seeing new announcements, I think we're also not seeing the restart of those. And that's because they probably would have needed higher prices.

Speaker #1: But it's not coming back online at the moment because it's not profitable to do so. So I think we're getting there, but there's no clear sign yet that there's been sufficient product taken out of the market that's going to swing it in the near term.

Speaker #4: The next question—well, a few questions—come from Pete Mallon-Jones at Pill Hunt. First question: How much further cost-cutting performance can we expect in H2 on H1?

Katharine Sutton: The next questions, well, a few questions come from Pete Mallon-Jones at Peel Hunt. First question, how much further cost-cutting performance can we expect in H2 on H1?

Speaker #2: So mostly, obviously, there are a couple of things that I see as potential headwinds, which is just as we ramp up production, obviously we'll consume more electricity.

James McCullough: Yeah. Closely, obviously. There's a couple of things that I see as potential headwinds, which is just as we ramp up production, obviously, we'll consume more electricity. The more tonnes we produce, the more electricity we'll consume. So that'll be a headwind against us. We'll be looking to continue the programs that we put in place across all the different cost categories. I think I would expect we would be able to offset that, and I wouldn't be expecting that there would be significant other cost areas that we'll be able to get big benefit out of in the second half. But I think it'll be a series of incremental benefits across all the different categories. So I think continuing on the same trend, keeping the sort of run rate that we have with small gains where we can find them.

Tom Hickey: Yeah. Closely, obviously. There's a couple of things that I see as potential headwinds, which is just as we ramp up production, obviously, we'll consume more electricity. The more tonnes we produce, the more electricity we'll consume. So that'll be a headwind against us. We'll be looking to continue the programs that we put in place across all the different cost categories. I think I would expect we would be able to offset that, and I wouldn't be expecting that there would be significant other cost areas that we'll be able to get big benefit out of in the second half. But I think it'll be a series of incremental benefits across all the different categories. So I think continuing on the same trend, keeping the sort of run rate that we have with small gains where we can find them.

Speaker #2: The more tons we produce, the more electricity we'll consume. So that'll be a headwind. Against that, we'll be looking to continue the programs that we put in place across all the different cost categories.

Speaker #2: So, I think I would expect we would be able to offset that, and I wouldn't be expecting that there would be significant other cost areas that we'll be able to get big benefits out of in the second half.

Speaker #2: But I think it'll be a series of incremental benefits across all the different categories. So I think continuing on the same trend, keeping the sort of run rate that we have with small gains where we can find them.

Speaker #5: Yeah, I mean, we haven't changed our guidance. So, I mean, there's a message in that as well.

Tom Hickey: Yeah. We haven't changed our guidance, so there's a message in that as well.

James McCullough: Yeah. We haven't changed our guidance, so there's a message in that as well.

Speaker #2: Yeah, so we came out at—we're right in the middle of guidance at the moment. But guidance was $215 to $225 million for the full year.

James McCullough: Yeah. We came out at, we are right in the middle of guidance at the moment. That guidance was USD 250 to 225 for the full year. We came out at just shy of 110. If we continue that progress, we will be within that range. But we are looking at it very closely, and obviously, we will execute on any opportunities that we do see.

Tom Hickey: Yeah. We came out at, we are right in the middle of guidance at the moment. That guidance was USD 250 to 225 for the full year. We came out at just shy of 110. If we continue that progress, we will be within that range. But we are looking at it very closely, and obviously, we will execute on any opportunities that we do see.

Speaker #2: We came out at just shy of 110, and so if we continue that progress, we'll be within that range. But we're looking at it very closely.

Speaker #2: And obviously, we'll execute on any opportunities that we do see.

Speaker #4: Next question, also from Pete Mallon-Jones: Can we expect a step up in realized ilmenite prices in H2, simply from selling more to Western customers than in H1?

Katharine Sutton: Next question, also from Pete Mallon-Jones. Can we expect a step-up in realized ilmenite prices in H2 simply from selling more to Western customers than in H1? Does this come from a higher quality product mix or higher prices for like for like product?

Speaker #4: Does this come from a higher-quality product mix or higher prices for like-for-like products?

Speaker #2: Yeah, I think Killian touched on that. But Killian, maybe I'll let you develop that a little bit more.

Tom Hickey: Yeah. I think Cillian touched on that, but Cillian, maybe I will let you develop a little bit more.

Speaker #1: Yeah, I think we'll guide on the H2 prices, and we've said we've got a strong order book for Q3, but we still have work to do on Q4.

Cillian Murphy: Yeah. I think we are guide on the H2 prices and we have said we have strong order book for Q3, but we still have work to do on Q4. Freight will come into it, but I suppose what we are seeing is that H2 will have a better product mix, ilmenite product mix, and that is supportive for pricing. But we are not seeing a step-up in prices in the second half on the same product as the first half. So it is not an increase in price. It is really product mix driven, particularly in Q3 that we can see at the moment. Yeah, I think that probably answers it.

Speaker #1: Freight will come into it, but I suppose what we are seeing is that Q2 will have a better product mix—ilmenite product mix—and that is supportive for pricing.

Speaker #1: But we're not seeing a step up in prices in the second half on the same product as in the first half, so it's not an increase in price.

Speaker #1: It's really product mix-driven, particularly in Q3, that we can see at the moment. Yeah, I think that probably answers it.

Speaker #4: Third question from Pete Mallon-Jones: How big a step up in output at WCPA in volumes, mind, are you expecting when the new winch brakes are installed?

Katharine Sutton: Third question from Pete Mallon-Jones. How big a step up in output at WCPA in volumes mined are you expecting when the new winch brakes are installed? Is that the single biggest factor in releasing increased asset utilization?

Speaker #4: Is that the single biggest factor in releasing increased asset utilization?

Speaker #5: It's certainly one of the big ones. To get the utilization up, I think that you're looking at sort of between 10 and 15 percent is my rough answer to that in terms of how much extra utilization we will get out of the plant.

Ben Baxter: It is certainly one of the big ones to get the utilizations up. I think that we are looking at between 10% and 15% is my rough answer to that in terms of how much extra utilization we will get out of the plant. There are also other ones which we are actively talking with. I mentioned the pumping system performance, which is probably the next. That is the one where we are placing most of our energies with the manufacturer right now. I think we have made some improvements over and above the numbers that were in the H1 report here. Probably they have gone up already by a good 10%. As I said, there is some steady progress. Before we talk too much about those, I am looking for August and September to really bed those numbers in and be able to be more sure about them.

Speaker #5: But there are also other ones which we're actively talking with. I mentioned the pumping system performance, which is probably the next. That's the one where we're placing most of our energies; it would be with the manufacturer right now.

Speaker #5: So, I think we have made some improvements over and above the numbers that were in the H1 report here. Probably they've already gone up by a good 10 percent.

Speaker #5: And as I said, there's been some steady progress. But before we sort of talk too much about those, I'm looking for August and September to really bed those numbers in.

Speaker #5: And to be able to be, too, to be more sure about them. Then we get to the winch brake changeout in—hopefully—in the earlier part of Q4 rather than the later part of Q4.

Ben Baxter: We get to the winch brake changeouts, hopefully, in the earlier part of Q4 than later part of Q4, and we will bed that in by the end of the year and be able to see the true benefits of that. In the meantime, the pump system, we are working very closely with the OEM to get to a conclusion on that. Yes, there are more tons to come. I am confident that those things can be remedied. Where it is a bit more tricky to give detail is in exactly how long it takes to fix those things, because in some cases, those pumping system challenges have not yet been resolved.

Speaker #5: And we'll sort of bed that in by the end of the year and be able to see the true benefits of that. In the meantime, the pump system—we're working very closely with the OEM to get to a conclusion on that.

Speaker #5: So yes, there's more tonnes to come. I'm confident that those things can be remedied. Where it's a bit more tricky to give detail is exactly how long it takes to fix those things.

Speaker #5: Because, in some cases, those pumping system challenges have not yet been resolved.

Speaker #4: The next question comes from Jasper Mannering at Berenberg. Noting the more positive language around the implementation agreement, could you please provide a steer as to when you expect this to be finalized?

Katharine Sutton: Next question comes from Jasper Mainwaring at Berenberg. Noting the more positive language around the Implementation Agreement, could you please provide a steer as to when you expect this to be finalized?

Speaker #2: I'd love to. Look, I think we have to be cautious on this. The steps, once we reach an agreement and an agreed-form text with the MIREM, who are effectively the Minister for Mineral Resources, are that it goes to the Council of Ministers for approval.

Tom Hickey: I'd love to. Look, I think we have to be cautious on this. The steps once we reach an agreement and an agreed form text with the MIREME, who are effectively the Ministry for Mineral Resources, are that it goes to the Council of Ministers for approval. That's the key step. Council of Ministers meets regularly, probably three times a month, generally every Tuesday. We certainly are not far off being in that position, assuming the current dimension is maintained. But I think the experience we've had on this process reflects challenges that the government in Mozambique can have from time to time with other priorities emerging. I think we just need to be cautious and note that there's no set timetable. But we're very hopeful that they're as committed to maintaining the momentum we have at the moment as we are.

Speaker #2: And that's the key step. The Council of Ministers meets regularly, probably three times a month—generally every Tuesday. We certainly are not far off being in that position, assuming the current momentum is maintained.

Speaker #2: But I think the experience we've had on this process reflects challenges that the government in Mozambique can have from time to time, with other priorities emerging.

Speaker #2: And so I think we just need to be cautious and note that there's no set timetable. But we're very hopeful that they're as committed to maintaining the momentum we have at the moment as we are.

Speaker #2: So, I'm sorry I can't be more definitive, but we've had a couple of false starts on this over the last year or year and a half.

Tom Hickey: I'm sorry I can't be more definitive, but we've had a couple of false starts on this over the last year and a half, and I don't want to promise something that really isn't within our control to deliver.

Speaker #2: And I don't want to promise something that really isn't doable in our controls today.

Speaker #4: The next question comes from Charles Lamport-Bale at Fortified Securities. Given the mixed results for H1 and the promising outlook for H2 and 2027, do you expect the $230 million RCF to be sufficient funding for production against a mixed and unpredictable economic and market backdrop?

Katharine Sutton: The next question comes from Charles Lampot-Beale at Fortified Securities. Given the mixed results for H1 and promising outlook for H2 in 2027, do you expect the $230 million RCF to be sufficient funding for production against a mixed and unpredictable economic and market backdrop?

Speaker #2: Killian, do you want to take this?

Tom Hickey: Do you want to take this? I think we touched on it earlier.

Speaker #5: We touched on it earlier, I wish.

Speaker #2: Yeah. Thanks, Charles. Look, at the moment, we haven't drawn, nor do we have plans to draw, the additional $30 million. So, the upside is from $200 million to $230 million at June.

James McCullough: Thanks, Charles. Look, at the moment, we haven't drawn, nor do we have plans to draw the additional 30 million. The upsize from 200 to 230 million at June, I think it provides buffer. We did have a shock or a surprise last year when a customer who we had shipped tons to didn't pay. That was 9 million. Now we've recovered substantially all of that. Equally, we need the flexibility to be able to do that and to make some of the investments that Ben Baxter has talked about in terms of selective mining operation 2 and renewal of HME fleet and that sort of thing. It gives us more flexibility. Look, as you know, it's a very uncertain market, and we're still working through the WCPA upgrade.

Speaker #2: I think it provides a buffer. We did have a shock, or a surprise, last year when we had a customer who we had shipped tons to that didn't pay.

Speaker #2: That was $9 million. And now we've recovered substantially all of that. But equally, we need flexibility to be able to do that, and to make some of the investments that Ben has talked about in terms of selective mining operation, too.

Speaker #2: And renewal of H&E fleet and that sort of thing, so it gives us more flexibility. And look, as you've noted, it's a very uncertain market.

Speaker #2: And we're still working through the WCPA upgrade. As we've said, we expect, and we need, the WCPA upgrade to continue to see those improvements that Ben has mentioned—to see those heading in, and to start to see the tonnes come out.

James McCullough: As we've said, we expect and we need the WCPA upgrade to continue to see those improvements that Ben Baxter has mentioned, to see those bedded in and to start to see those tons come out. As Cillian Murphy has gone through, to see stabilization, at least in the TiO2 market. Those are our expectations. If there's deterioration from that, then obviously we'll have to look at what capital we have available. That's the nature of being in the industry. At the moment, quite comfortable. Always sort of looking at making sure we're prepared for anything that's coming down the track.

Speaker #2: And as Killian has gone through, we expect to see stabilization, at least in the TiO2 market. So those are our expectations. If there's deterioration from that, then obviously we'll have to look at how much more capital we have available.

Speaker #2: But that's the nature of being in the industry. So at the moment, quite comfortable, but always sort of looking at making sure we're prepared for anything that's coming down the track.

Speaker #3: Yeah. Well, I suppose maybe just to stay with the step up, or the increased loss, and to address and identify the need, because it's really just purely precautionary.

Tom Hickey: Well, I suppose maybe just to say that the step-up or the increase wasn't to address an identified need. It was very just purely precautionary to reflect the volatility and uncertainty that's around at the moment.

Speaker #3: To reflect the volatility and uncertainty that's present at the moment.

Speaker #4: Please provide some colour on development capex going forward for the rest of 2026 and into 2027.

Katharine Sutton: Please give color on development CapEx going forward for the rest of 2026 and 2027.

Speaker #5: Okay, I'll take that one. So, as we said in this release, we will spend about $7 million in the second half of this year.

James McCullough: Okay, I'll take that one. We said in this release that we would spend about USD 7 million in the H2 of this year. Those monies are related to infrastructure. As the plant moves into the transition channel and moves additional pipes, a terrace for stacking the HMC, and also electrical infrastructure. Nearly all of the USD 7 million relates to those sorts of items. Now, there are rectification costs and debottlenecking costs that the project has been taking on, but they are so far small, and they are sitting in the contingency, and they don't make a large difference and certainly don't put us in jeopardy on the overall project costs that we've previously outlined. Of course, many things are being done under warranty at the moment, so they're not reflecting as a cost to the project.

Speaker #5: Those monies are related to infrastructure. So, as the plant moves into the transition channel and moves additional pipes, a terrace, or stacking the HMC, and also electrical infrastructure.

Speaker #5: So, nearly all of the $7 million relates to those sorts of items. Now, there are rectification costs and debottlenecking costs that the project has been taking on.

Speaker #5: But they are, so far, small, and they are sitting in the contingency. They don't make a large difference and certainly don't put us in jeopardy on the overall project costs that we've previously outlined.

Speaker #5: And of course, many things are being done under warranty at the moment, which means they're not reflecting as a project cost. Looking into 2027, it's a little bit more of the same.

James McCullough: Looking into 2027, it's a little bit more of the same. I don't have it to hand here, but in our prelim results this year that we published in March,

Speaker #5: I don't have it to hand here, but in our preliminary results that we published in March, there is a curve that showed we have quite a tail in the development cost project.

James McCullough: There is a curve that shows that we have quite a tail in the development cost project and in the development costs for the project as we progress quite a lot of distance into Nataka itself. That remains broadly correct. In fact, I think that certainly we've been looking at 2027 to see where we could reduce some of those commitments, and certainly that's our focus to try and close out there maybe in a more capital-light form than previously. But for now, I would say if you can take a look at the premium results presentation, you'll see the curve of spend that's expected.

Speaker #5: In the development costs for the project, as we progress quite a lot of distance into Metacare itself, that remains broadly correct. In fact, I think that certainly, we've been looking at 2027 to see where we could reduce some of those commitments.

Speaker #5: And certainly, that's our focus—to try and close out there, maybe in a more capital-light form than previously. But for now, I'd say, if you can take a look at the prelim results presentation, you'll see the curve of spend that's expected.

Speaker #4: What cost quartile do you sit in?

Katharine Sutton: What cost quartile do you sit in?

Speaker #3: Look, I think we've talked in the past about where we want to be. I think probably, at the moment, we're sitting in or around the midpoint.

Tom Hickey: Look, I think we've talked in the past about where we want to be. I think probably at the moment, we're sitting in or around the midpoint. Certainly, our objective is to get well into the lower-cost quartiles. Of course, that curve changes as the mix of participants in the market changes. I think what we've emphasized and Cillian talked about earlier was certainly over the last couple of years, the Chinese concentrate producers have lower operating capital costs. They increase production quickly, but when perhaps the resources or ore bodies they are mining become more challenging, where costs increase, they can reduce that production quickly too. Look, I think we're comfortable that we're working hard to be as efficient as we can be and to survive through cycles and because of the long life of our assets.

Speaker #3: And certainly, our objective is to get well into the lower cost quartiles. Of course, some of that curve changes as the mix of participants in the market changes.

Speaker #3: And I think what we've emphasized, and Killian talked about earlier, was that certainly over the last couple of years, the Chinese concentrate producers have had lower operating capital costs.

Speaker #3: They increase production quickly, but when perhaps the resources or bodies they're mining become more challenging, where costs increase, they can reduce that production quickly too.

Speaker #3: So look, I think we're comfortable that we're working hard to be as efficient as we can be and to survive through cycles. Because of the long life of our assets—in many other cases, we're talking about assets with much shorter lives.

Tom Hickey: In many other cases, we're talking about assets with much shorter lives.

Speaker #4: Now, the question is in a similar vein. Where would Kenmare be on the global cash cost curve once the attacker starts production? Assuming elevated diesel prices and your base case scenario for the IA.

Katharine Sutton: Another question in a similar vein: where would Kenmare be on the global cash cost curve once Nataka starts production, assuming elevated diesel prices and your base case scenario for the IA?

Speaker #2: Yeah. Look, Tom mentioned the cost curve is moving around quite a lot, and it certainly has evolved significantly over the last couple of years.

James McCullough: Yeah. Look, as Tom mentioned, the cost curve is moving around quite a lot and certainly has evolved significantly over the last couple of years. You're now seeing Q1 of the cost curve largely occupied by iron ore miners for whom TiO2 is a by-product, which means that we're looking at Q2 really as where we would like to get to in the context of the overall industry cost curve. So that's over, as Tom said, the left-hand side of the cost curve of mineral sands producers. When Nataka is up and running and under the terms of the IA, as you say, I think as Tom said, we would be looking at being somewhere in the middle of Q2 would be where we would be, assuming nothing else changes.

Speaker #2: And you're now seeing Q1 of the cost curve largely occupied by iron ore miners, for whom TiO2 is a byproduct, which means that we're sort of looking at Q2 really as where we would like to get to.

Speaker #2: And in the context of the overall industry cost curve, so that's over—as Tom said—the left-hand side of, sort of, the cost curve of mineral sands producers.

Speaker #2: When Metacare is up and running, and under the terms of the IA, as you say—I think it's Tom who said—we would be looking at being somewhere in the middle of Q2; that would be where we would be.

Speaker #2: Assuming nothing else changes. Assuming nothing else changes. Yeah.

Speaker #4: Please give some color on the underlying commodity market you're in. Why are the prices down? Is it a supply or demand issue?

Katharine Sutton: Please give some color on the underlying commodity market you are in. Why are the prices down? Is this a supply or demand issue?

Speaker #3: Killian, do you want to take on that? I think we’ve covered it on the slides, but probably before, we were talking about some of the feedback loop.

Tom Hickey: Cillian, do you want to touch on that? I think we covered it on the slide, but probably it is worth talking about some of the key factors.

Speaker #5: Yeah. Look, from my perspective, we see it as mostly supply. We see the increase of production of alumina in China and this new trend of shipping concentrates into China as adding a lot of supply to the market.

Cillian Murphy: Yeah. Look, from our perspective, we see it as mostly supply. We see the increase of production of ilmenite in China and this new trend of shipping concentrate into China as adding a lot of supply to the market, and that is the primary driver. Demand could be better, I think is the other thing. We have seen slow housing markets in China, US, Europe. Improvement in them would give a boost. So demand is not bad, but it is not as good as it could be, and we would expect it to improve. But I think the primary reason for prices being down is an oversupply, mostly concentrated in China.

Speaker #5: And that's the primary driver. Demand could be better. I think is the other thing. We have seen slow housing markets in China. US, Europe, improvement in them.

Speaker #5: Would give a boost. So, demand isn't bad, but it's not as good as it could be, and we would expect it to improve. But we think the primary reason for prices being down is an oversupply, mostly concentrated in China.

Speaker #4: Now a question on dividends. For someone who relies on dividends to finance my retirement, when will we be able to receive dividends again on a regular basis?

Katharine Sutton: Now a question on dividends: for someone who relies on dividends to finance my retirement, when will we be able to receive dividends again on a regular basis?

Speaker #2: Thanks. Maybe I'll start with that. And James, can you jump in? Look, as I said at the outset, dividends, we recognize, have been an important part of the investment case in the past.

Tom Hickey: Right. Maybe I will start with that, and James can jump in. Look, as I said at the outset, dividends, we recognize, has been an important part of the investment case in the past and we would like it to be in the future. I think we need to see an improvement in the market. We need to see an improvement in our balance sheet. I think the important thing with dividends is when we recommence paying dividends that we can do it on a stable, continuous basis. We recognize that we have investors on our register to whom this is important, and we do speak to those investors regularly. I think we will give good notice of our plans for resuming dividends or resuming shareholder return in any form as we navigate the next number of months and see how the market evolves.

Speaker #2: And we'd like it to be in the future. I think we need to see an improvement in the market. We need to see an improvement in our balance sheet.

Speaker #2: And I think that the important thing with dividends is, when we recommence paying dividends, that we can do it on a stable, continuous basis.

Speaker #2: We recognize that we have investors on our register to whom this is important, and we do speak to those investors regularly. I think we will give good notice of our plans for resuming dividends, or resuming shareholder returns in any form.

Speaker #2: As we navigate the next number of months and see how the market evolves, but certainly from where we stand now, maybe the easiest way to say it is: the reasons why we suspended our pause for dividend in the first quarter of this year haven't changed.

Tom Hickey: But certainly, from where we stand now, maybe the easiest way to say it is the reasons why we suspended our full dividend in Q1 of this year has not changed. Until they do, I think we will have to assume that that will remain the case.

Speaker #2: And until they do, I think we'll have to assume that that role remains the case.

Speaker #4: Next question. Why does the management team continue to be negative in relation to the company's announcements to the market?

Katharine Sutton: Next question: why does the management team continue to be negative in relation to the company's announcements to the market?

Speaker #2: I don't think we do. But the market—I mean, it's very hard to be unremittingly positive when your resource price is falling. And look, I think we have a responsibility to be balanced in our commentary and to try and give people a fair view on what's happening in the market and what their expectations should be.

Tom Hickey: I do not think we do, but the market, it is very hard to be unremittingly positive when your resource price is falling. Look, I think we have a responsibility to be balanced in our commentary and to try and give people a fair view on what is happening in the market and what their expectations should be. It is worth noting, for example, that one of our peers, Iluka Resources in Australia, reported this morning, and if you read their commentary, it is pretty much exactly the same as ours. I think we, as I said at the outset, we have a lot of things that we want to achieve this year, and I think we have made really good progress. We have worked really hard on it. Our shipments have been good. We are making progress on WCP A, albeit slower than we might have thought or liked at the start of the year.

Speaker #2: It's worth noting, for example, that one of our peers, Iluka Resources in Australia, reported this morning. And if you read their commentary, it's pretty much exactly the same as ours.

Speaker #2: So, I think, as I said at the outset, we have a lot of things that we want to achieve this year, and I think we've made really good progress.

Speaker #2: It's worked really hard on it. Our shipments have been good. We're making progress on WPA, albeit slower than we might have thought or liked at the start of the year.

Speaker #2: We're making progress on our implementation agreement, and we've stabilized and maintained our cash flow and balance sheet. These are all the things that you do, and the behaviors you show, when you're at trough or difficult points in the market.

Tom Hickey: We are making progress on our implementation agreement. We have stabilized and maintained our cash flow and balance sheet. These are all the things that you do and the behaviors you show when you are at trough or difficult points in the market. As the market recovers, and as Cillian said, maybe there are some signs that it will, but we are not seeing it today. As the market recovers, our commentary will reflect that.

Speaker #2: As the market recovers—and as Killian said, maybe there are some signs that it will—but we're not seeing it today. As the market recovers, our commentary will reflect that.

Speaker #4: Given the significant decline in the share price, does management believe the current valuation represents an attractive opportunity for long-term investors? And what key factors could drive a re-rating?

Operator 2: Given the significant decline in the share price, does management believe the current valuation represents an attractive opportunity for long-term investors? What key factors could drive a re-rating?

Operator: Given the significant decline in the share price, does management believe the current valuation represents an attractive opportunity for long-term investors? What key factors could drive a re-rating?

Speaker #2: Look, we feel that Kenmare is well positioned for the long term. I suppose it depends on your investment horizon. It's worth noting that we all committed to investing our bonuses for 2025 in company stock.

Tom Hickey: Look, we feel that Kenmare is well-positioned for the long term. I suppose it depends on your investment horizon. It is worth noting that we all committed to investing our bonuses for 2025 in company stock. Obviously, there have been external factors that have limited our ability to do that. We all are holders of stock. I think history would show that as price cycles turn, significant returns are achievable. What we are trying to do is give people a view on how we see that trajectory playing out. I think many of our investors have been with us for many years, and they take a multi-year view. I suppose it just depends on people's investment horizon.

Speaker #2: And obviously, there have been external factors that have limited our ability to do that. But we all are holders of stock. I think history would show that cycles of prices turn.

Speaker #2: Significant returns are achievable, and what we're trying to do is give people a view on how we see that trajectory playing out. I think many of our investors have been with us for many years.

Speaker #2: And they take a multi-year view. I suppose it just depends on people's investment horizon. Of course, there's risk at any point, but certainly, we believe that if we continue to control the things we can control, Kenmare will perform well over the coming years, assuming our markets recover.

Tom Hickey: Of course, there is risk at any point, but certainly, we believe that if we continue to control the things that you can control, Kenmare will perform well over coming years, assuming our markets recover.

Speaker #4: That was the final question. Turning back to you, Tom.

Operator 2: That was the final question. Handing back to you, Tom.

Operator: That was the final question. Handing back to you, Tom.

Speaker #2: Okay, and thank you all. It was a good range of questions. I think we've had good feedback on the results today. We've done a lot, but we've quite a bit more to do in the second half of the year.

Tom Hickey: Okay. Listen, thank you all. It was a good range of questions. I think we've got good feedback on the results today. We've done a lot, but we've quite a bit more to do in the H2 of the year, and we'll continue to report on that. Obviously, as ever, if you have any queries or questions or anything you'd like to follow up on or omitted to question us on, please get in touch and we'd be delighted to respond and help you in any way we can. Thank you all, and have a good day.

Speaker #2: And we'll continue to report on that. And, obviously, as ever, if you have any queries or questions, or anything you'd like to follow up on, or omitted to question us on, please get in touch and we'd be delighted to respond and help you in any way we can.

Speaker #2: Thanks. Thank you all, and have a good day.

Speaker #4: Fantastic. Thank you all once again for allowing me to invest this today. Could I please ask investors much closer to the session, as you now be automatically redirected to provide your feedback, which will help the company.

Operator 2: Fantastic. Thank you all once again for attending Investors Today. Could I please ask investors, let's close this session, as you'll now be automatically redirected to provide your feedback which help the company.

Operator: Fantastic. Thank you all once again for attending Investors Today. Could I please ask investors, let's close this session, as you'll now be automatically redirected to provide your feedback which help the company.

Q2 2026 Kenmare Resources PLC Earnings Call

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