Kenmare Resources has said it will pay an interim dividend to shareholders despite plunging to an $88.6 million (€76.17 million) loss before tax in the first six months of 2025 after taking a $100 million impairment charge on its mining assets in Mozambique.
The titanium miner, which operates the Moma titanium mine in the southeast African country, announced earlier this year that it had lowered its future revenue assumptions amid uncertainty around the pricing of ilmenite, its main product.
The Dublin-listed company has also been embroiled in protracted negotiations with the government in Mozambique to extend its mining contract since 2022.
In half-year results published on Wednesday morning, Kenmare, which abandoned takeover talks with its former managing director Michael Carvill earlier this summer, confirmed that it took a $100.3 million impairment charge loss in the six months to the end of June.
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Excluding the charge, adjusted earnings fell by 25 per cent to $47.2 million compared to the same period last year due to rising costs.
Operating costs at Kenmare soared by 14 per cent in the first half of the year to $150.5 million. Costs directly related to the Moma mine rose 6 per cent, “mainly driven by higher labour costs and production overheads”, it said.
Before tax, the miner fell to an $88.6 million loss for the period from a $27.7 million profit last year despite generating mineral product revenues of $159.6 million, up 3 per cent, better than some analysts’ expectations.
Chief executive Tom Hickey said demand for Kenmare’s products remains “encouraging” while ilmenite prices in the first half were only “marginally below” 2024 levels.
He said the company remains “well capitalised” to fund “future shareholder returns”, including an interim dividend of $0.10 per share that has been approved by the board.
Among the factors driving the rise in costs in the first half were one-off security costs incurred at Moma in the wake of the unrest that followed a contentious presidential election in Mozambique in January.
Kenmare also had “advisory” costs and “other fees” associated with Mr Carvill’s bid approach earlier this year, Mr Hickey said. “Obviously, you would expect that those won’t recur year-on-year or, indeed, will be less in the second half as well,” he said.
Mr Carvill’s approach, which was backed by Abu Dhabi private equity firm Oryx Global Partners, ran aground in June after the consortium made it clear it would only be willing to proceed with a bid that was below its initial £473 million (€553 million) proposal.
“We’re a public company so we’re for sale every day,” said Mr Hickey on Wednesday when asked about Kenmare’s attitude to future approaches.
He said Mr Carvill’s bid “shone a light on the fundamental value of the business” and “reminded people of the value that’s there”.
Down by around 9 per cent over the past year, Kenmare’s share price fell by 3.7 per cent in early trading on Wednesday.
