Q2 2026 Kenmare Resources PLC Earnings Call

Speaker #3: Good morning, and welcome to the Kenmare Resources PLC H1 2026 results and vendor 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.

Operator 2: Good morning, and welcome to the Kenmare Resources PLC H1 2026 results investor 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. I would now like to hand you over to Managing Director, Tom Hickey. Good morning.

Speaker #3: 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 #3: Good morning.

Speaker #4: 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. Thank you. Thank you all for taking the time to join us today to run through our H1 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. 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 been producing for nearly 20. Moma is a pretty unique resource. It has over 100 years of mineral resources at our current production rate.

Speaker #4: Ben Baxter, our COO; Killian Murphy, our Head of Marketing, is also on the call; and Catherine Sutton, our Head of Investor Relations. So, we'll be running you through the presentation today and hopefully answering any questions that you have.

Speaker #4: Just a few quick reminders about Kenmare's business. We currently operate a titanium minerals mine in Mozambique. We've been in Mozambique for nearly 40 years now, and have been producing for nearly 20.

Speaker #4: And Moma is a pretty unique resource that's got over 100 years of mineral resources at our current production rate. 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 Mozambican 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 #4: 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 #4: 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 #4: 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 #4: 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 6%. 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 plant, WCP A, to move to our biggest ore body in Nataka. Nataka is 70% of our reserves. It is the future of the company. All our mining plants will end up there. We have been working on WCP A to prepare it to work effectively at Nataka.

Speaker #4: 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 #4: 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 #4: 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, WCP A, to move to our biggest ore body in Ataca.

Speaker #4: And Ataca 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 us to work effectively at Ataca.

Speaker #4: 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: It has taken a little bit longer than we would have liked, and it is still 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 USD 25 million, or over USD 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 the H1. We are over 4 million hours without a lost time incident, and our lowest ever all-injury frequency rate achieved in the H1. So 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 #4: Our strategy overall, as I said, we want to operate responsibly. We have a 97% Mozambican workforce. We spent nearly $25 million or over $25 million on working with the community over the last 20 years plus.

Speaker #4: 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.

Speaker #4: And our lowest-ever all-injury frequency rate was achieved in the first half, so we're very proud of that. It's something that we work on every day.

Speaker #4: 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 USD 300 million in shareholder distributions since 2019. So it is something that we do think about. Just to maybe recap on the H1 of the year, I have already talked about our safety performance, and we are proud of that. 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 spoke about our priorities for the year.

Speaker #4: And we do want to invest carefully and manage the cash flows. The investment case worked in previous years, and hopefully will again. But it's a sensible thing to do at this point in the cycle, when debt is elevated.

Speaker #4: And we have made over $300 million in shareholder distributions since 2019, so it is something that we do think about. 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 #4: But it has been a difficult market, and we are just after a big capex program. And when we spoke to you all at the start of 2026, we spoke about our priorities for the year.

Speaker #4: And 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 continue our agreements with the government around the implementation in the first half. But there's still plenty we can hope to achieve in the second half.

Tom Hickey: 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 the H1, but there are still things that we can hope to achieve in the H2. From shipments, we are on track to achieve our 2026 shipments guidance. We have had some really good successes in the H1 with our new ZirTi product. You may have seen that we are reporting that in sales now as opposed to a credit to cost of sales.

Speaker #4: 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 #4: You may have seen that we're reporting that in sales now, as opposed to a credit to cost of sales, and that's because it's an important part of our production.

Tom Hickey: That's because it's 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 tons in the H1 of the year. 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 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 tons. But we are on track to achieve all our guidance at the moment with a close eye needed on H2 performance.

Speaker #4: 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.

Speaker #4: There was strong uptake on it, and we sold over 80,000 tonnes in the first half of the year. We've done a good job on reducing our operating costs.

Speaker #4: James will run you through that. Maybe there's 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 #4: 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.

Speaker #4: 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.

Tom Hickey: On the financial side, our balance sheet has been an area of focus for us. Our net debt bounces around a bit. You've seen it increase slightly in the H1. But cost discipline gave us a 12% reduction in cash operating costs. Our lenders, as ever, have been constructive. 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, but it's nice to have it there because who knows what happens in the future. But 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. 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.

Speaker #4: 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 #4: They've assisted us with waivers for our revolving credit facility by $30 million. We hope we won't have to use that additional flexibility, but it's nice to have it there because who knows what happens in the future.

Speaker #4: But look, with the strong performance we had in the first half, we were cash flow positive before development costs in the first half. And development capex will be much lower in the second half.

Speaker #4: So we're managing what we can. We're maximizing our cash flow, paying attention to things on a day-to-day basis, and positioning ourselves, hopefully, to recover well when the market recovers.

Tom Hickey: We're positioning ourselves hopefully to recover well when the market recovers. On the market, we've 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's taking a little bit longer. We don't currently see any near-term recovery, although we would be hoping for next year. 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, things have improved. We're working through a process to get us up to nameplate capacity.

Speaker #4: And on the market, we've seen some progress on zircon in the first half, strong price increases, and I think we saw a Loup comment this morning in a manner very similar to us.

Speaker #4: We do expect to see those price increases maintained. Alumina has taken a little bit longer. We don't currently see any near-term recovery, although we would be hopeful for next year.

Speaker #4: 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.

Speaker #4: We're making steady progress on the commissioning, even in July and August. Things have improved. We're working through a point to get us up to nameplate capacity.

Speaker #4: 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. Finally, in this area, I want to talk a little bit about the implementation agreement.

Tom Hickey: 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. 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've had really good engagement in the H1. There was a little bit of volatility in the Q1 related to the tax authority, but that's now concluded. 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.

Speaker #4: This is an area that we've focused a lot of time on. We work very closely with the government in Mozambique, and we've had really good engagement in the first half.

Speaker #4: There was a little bit of volatility in the first quarter related to the tax authority, but that's now concluded. We've had no further issues.

Speaker #4: We've had written assurances that we can continue to operate under the old terms, and the negotiations have continued constructively. I met the Minister for Mineral Resources in late July.

Speaker #4: 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.

Tom Hickey: 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 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. Obviously, we will keep you updated as we go through that process.

Speaker #4: 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 of our consideration of this by the Council of Ministers.

Speaker #4: 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 that the progress we've achieved will be maintained.

Speaker #4: 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 #4: 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: 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 #4: 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.

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 WCP A, that is taking a little longer than anticipated. 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%. 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, 565,000 tons.

Speaker #4: And that's 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, where we're down 26%, and H2 last year, down 31%.

Speaker #4: 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 #4: 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. 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. 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 seen over the, historically, that is a very lumpy metric. It depends very much on the timing of receipts coming in and cash going out.

Speaker #4: 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 #4: 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 for EBITDA for the half.

Speaker #4: 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 #4: 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 $1,342. Looking at that product mix, our actual percentage of zircon tonnes sold stayed flat or went up a little bit from 3% to 4%, and zircon is our most valuable product, so that's a positive.

Speaker #4: 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 #4: 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 #4: ZERCON from around $1,300.42. Looking at that product mix, our actual percentage of ZERCON tons sold stayed flat or went up a little bit, from 3% to 4%.

Speaker #4: 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's really offset by the increase in concentrates that we had in the year. That's particularly ZirTi, which brought us from a concentrates share of tonnes 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 deterioration of product mix. ZirTi has been a tremendous benefit for us this year. Those sales came out of tailings that we previously hadn't valued. It is very much a positive story. We do see that reflection in terms of product mix impact on revenue. 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 the H1.

Speaker #4: So that's particularly ZERTI, which kind of brought us from a concentrate share of tons sold from 4% up to 20%, or the share of actual revenue generated from 60% to 17%.

Speaker #4: And those concentrates sell at a lower price and therefore impact the revenue generation through deterioration of product mix. Now, Q2 has been a tremendous benefit for us this year.

Speaker #4: 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 #4: 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 #4: 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've 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's provided very valuable liquidity for us. It doesn't provide as much EBITDA because we took an NRV adjustment to it at the end of last year. 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 Finance costs up from last year, reflecting the increased debt that we have. We're up at around $200 million of debt drawn and all of that sort of, well, not the finance costs, but the rest pulled through to lower EBITDA at $4 million and all that pulled through to a lower profit number. So a loss after taxes of $3 million to $4 million.

Speaker #4: 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 #4: 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 #4: 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—well, not the finance costs, but the rest—falls through to lower EBITDA at $4 million.

Speaker #4: 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 the bridge from cost of sales to cash costs, first of all I've made expenses.

James McCullough: Just looking at 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 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 earlier this year, and so the recovery of those stocks comes through in the admin expenses line. 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. So that's really reflecting that inventory drawdown that we had in the H1. Then when we get down to cash costs, as you can see, that reduction from $124 million to just shy of $110 million.

Speaker #4: We're down by around $3.5 million. 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, where that customer went into administration.

Speaker #4: 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 #4: 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 #4: 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.

Speaker #4: So, taking around $15 million out of the cost base—that's across all categories. The major contributors there were labor, where our costs reduced by around $5 million, which is over $5 million.

James McCullough: So taking around $15 million out of the cost base. That is across all categories. The major contributors there were labor, where our costs reduced by around $5 million, just over $5 million versus H1 last year. Production overheads also came down by around $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. 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 3.5 million. Unit costs, notwithstanding the reduction in total costs, unit costs were up to $255 per ton. That is really the reduction in production overall, so not a reduction in tons to absorb those total costs.

Speaker #4: Versus H1 last year, 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 #4: And power, fuel, and chemicals. So we had a 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 $1.5 million.

Speaker #4: 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. So not a reduction in tons to the store of those total costs.

Speaker #4: And that applies both at the total cost line as well as the net ilmenite cost line. Just to note, Tom mentioned the EIA and the discussions ongoing there.

James McCullough: That applies both at the total cost line as well as the net ilmenite cost line. Just to note, Tom mentioned the DIA 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 DIA. 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 $1.5 million. Over and above that, we accrued a further $2.2 million, and that total accrued amount now is $7.9 million. So 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.

Speaker #4: As we've disclosed before, we're accruing at a rate of 2.5% on the royalties that we pay under the EIA. But we're only actually paying at 1%, with 1% being our historical terms and 2.5% being the terms that we proposed to the government.

Speaker #4: So our total cash payments on that 1% royalty were $1.5 million and a half. Over and above that, we accrued a further $2.2 million. And that total accrued amount now is $7.9 million.

Speaker #4: 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.

Speaker #4: And as I said, given the net realizable value adjustments that we took predominantly to aluminite for $14 million at the end of 2025, those tons don't generate significant EBITDA, but they do generate significant cash.

James McCullough: As I said, given the net realizable value adjustments that we took predominantly to ilmenite for $14 million at the end of 2025, those tons 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 $12 million of costs and paid out seven. So the cash outflow was $7.5 million, leaving us with a kind of cash flow before development CapEx of $6.1 million. 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, but a $23 million outflow which led to a $17 million change in net debt. Looking at the balance sheet, just a few things to note. First of all, that large inventory reduction.

Speaker #4: That cash has been absorbed through both the higher interest costs, but also sustaining capital. So, for sustaining capital, we incurred $12 million of costs and paid out $7 million.

Speaker #4: So, the cash outflow was $7.5 million, leaving us with a kind of cash flow before development capex of $6.1 million. The development capex outflow was $23 million.

Speaker #4: A large chunk of that, $12 million, related to spend from 2025. So there was $11 million of new incurrence, effectively, in 2026 H1. But a $23 million outflow, which led to a $17 million change in net debt.

Speaker #4: Looking at the balance sheets, just a few things to note. First of all, that large inventory reduction. So we had a 128,000-ton drawdown of finished products fall in.

James McCullough: 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 zircon buildup which offset some of that. The inventory value does include a further NRV adjustment at the end of Q1 of around $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 $5.9 million adjustment at the end of the half. Net current assets at $135 million. So a very comfortable position or strong position on the net current assets side. Just to note, we test for impairments at the end of each period. The RCF upside that we did.

Speaker #4: That's a mix. We had more than that, around 140,000 to 150,000 tons of aluminite drawdown, but we also had a zero tie buildup, which offset some of that.

Speaker #4: 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 #4: 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 #4: Net current assets at $135 million, still a very kind of comfortable position or strong position on the net current assets side. And just to note, we had we test for impairment at the end of each period.

Speaker #4: And the RCF upsize that we did, so as well as the $30 million of upsize that we agreed with the banks, we also agreed to a number of waivers and new covenants in the debt package.

James McCullough: 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 #4: Those new covenants are predominantly balance sheet related, reflecting where we are in the cycle. All of those covenants were met at the end of the half.

Speaker #4: With that, I will pass over to Ben.

Speaker #5: 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 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. Then we have also launched what we are calling our Padrinho project.

Speaker #5: And it really was an excellent performance through the first half of the year. We had zero LTIs, and we've amassed more than 4 million hours now since our last recordable lost time injury.

Speaker #5: 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 #5: 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 KMAD health centers that have been built over the years.

Speaker #5: And then we've also launched what we're calling our Padrinho projects. This is the outsourcing to small microenterprises within the local community for goods and services that can support the mine.

Ben Baxter: 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. 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, I will talk to the production.

Speaker #5: 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 #5: We get more yield from the farms that we support now, and our recycling levels have increased dramatically over the last year. Now, more than 97% of our waste is being recycled.

Speaker #5: And then lastly, on trusted business, our governance continues to improve, and this has been recognized by ECOVADIS this year. On the ground, to support the safety of the operation and the people there, we’re making sure that all employees involved in security take part in Voluntary Principles training.

Speaker #5: Moving to the next slide, I'll talk to the production. The highlights of the half were the strong demand for the new product called Zertide.

Ben Baxter: The highlight of the H1 was the strong demand for the new product, called ZirTi. 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 we did in Q2. Right now, production is improving 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 C. Finished products were down 14% year on year. That was really down to the lower HMC production that I have mentioned. However, it was boosted by the concentrates production.

Speaker #5: 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 #5: And also the pause to dry mining that took place that we did in Q2. Right now, production is improving, as we expect it to do through the second half of the year, and that's supported by the fact that WCPA continues to make steady improvements.

Speaker #5: And also, we're having very strong performance from the other plants, particularly from WCPP. Finished products were down 14% year-on-year, and that was really due to the lower HMC production.

Speaker #5: That I've mentioned. However, it was boosted by the concentrates production. And the concentrates production was up 599% year-on-year, and that's principally due to this new product, Zertide.

Ben Baxter: The concentrates production was up 599% year-on-year, and that is principally due to this new product, ZirTi. We prepared 102,000 tons of this former tailing, and converted it to saleable product during H1, and 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. There is a remaining 17,000 ton stock holding of our ilmenite product that remains in Malaysia, awaiting sale.

Speaker #5: We prepared 102,000 tons of this former tailings and converted it to saleable product during the first half of the year. We'll continue to draw down those stocks with sales during the second half.

Speaker #5: Shipments are our main principal KPI metric for the year. They were up 14% year-on-year, and that's because of our focus on drawing down the stocks that we had.

Speaker #5: And this is supported by the consistent transshipment performance to meet demand through the first half. We drew down 128,000 tons of product stockpiles and our ilmenite stocks on site.

Speaker #5: And now, what we would say is normalized levels. There is a remaining 17,000-ton stockholding of our ilmenite product that remains in Malaysia awaiting a sale.

Speaker #5: So overall, we've got improved production through into the early part of this half, and that's giving us the confidence around our ilmenite production, which is expected to be approximately 800,000 tons for the full year.

Ben Baxter: Overall, we have got improved production into the early half 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 profile. We have spent USD 23 million in H1, of which 12 was an accrual coming from 2025. We expect to only spend USD 7 million in H2 as we spend capital on the preparations for the transition to WCP A. Our performance though has been underwhelming so far. We have not got to the nameplate capacities that we had expected to in Q2.

Speaker #5: On to the next slide, and 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 #5: 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 #5: 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 #5: 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 an hour.

Ben Baxter: 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. We had a dredge winch braking system. That has been approved, and orders are placed, and we expect to commission the new system in Q4.

Speaker #5: 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 #5: 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 tailings storage facility.

Speaker #5: 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 #5: In order to strengthen the consistency of the feed that we can get into the plant, we had a dredge winch braking system. That has been approved.

Speaker #5: And we are now at orders of place, and we expect to commission the new system in Q4. But we also do have remaining issues around the pumping system performance.

Ben Baxter: 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. 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. 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 H2.

Speaker #5: And that's 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 in when reliability fails.

Speaker #5: But overall, we've seen throughputs and utilizations increase through Q2 into Q3. And we've taken an approach to make our improvement profile a more realistic forecast through the rest of this year.

Speaker #5: And that was incorporated into our guidance statement. I'll also talk a little bit, on the next slide—slide 17—about our selective mining operations and our expectations to increase production from those units in the second half of the year.

Speaker #5: You'll recall that SMO1 has been making a really valuable HMC contribution at particularly low capital cost, and it's been delivering to expectation. That's prompted us to design and order a second SMO, which will be SMO2.

Ben Baxter: 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 tons per hour SMO2 in place. Construction of the first phase has just started, and that will be for 500 tons per hour. It is expected to be commissioned in Q4 of this year, and phase two will follow on in 2027. With that, I will pass on to Cillian, who is going to deliver the market update.

Speaker #5: That's it. We'll have some upgrades on it, based on the knowledge and the learnings that we've had with SM01. And those design improvements will be brought into place to eventually have a 1,000-ton-per-hour SM02 in place.

Speaker #5: 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 #5: 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.

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

Cillian Murphy: Thanks, Ben, and good morning, everyone. Let us start really on this slide. The H1 of this year was 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 kind of clearly impacting pricing in the first half was the freight. So, 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 Zertai demand and strong Zertai sales, kind of resulted in the steeper gradient of lower average prices across all products as the product mix worsens in the first half.

Cillian Murphy: That, coupled with the strong ZirTi demand and strong ZirTi sales, resulted in the steeper gradient of lower average prices across all products as the product mix worsens in the H1 and results to those sales. Zircon is the bright spot. We saw stronger zircon price in the H1 across all of our products, and that accelerated in the Q2. As we said previously, we see that more of a supply constraint issue rather than an improvement in demand. If we move to the next slide. We will 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 said previously, we see that as more of a supply constraint issue rather than an improvement in demand.

Speaker #1: So, if we move to the next slide, then I want to talk about the supply, and really, the reason we've seen the weaker prices, we believe, 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 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, and 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 the 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 it 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, yeah. 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 supported the drawdown of stocks and the third-party 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 the 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 a 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 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 of both chloride pigment and of 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 and push more of our ilmenite towards. 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. As a result, we see solid order book for the third quarter.

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. Look, those positive demand trends continue into Q3. Obviously, we have to compete on price.

Speaker #1: But the demand is there. As a result, we see a solid order book for the third quarter. One point probably important to make is, in the first half, as we were drawing down stocks, that was predominantly IP2.

Cillian Murphy: One point probably important to make is in the H1 as we were drawing down stocks, that was predominantly IP 2, 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 the third quarter. Finally, just to touch, because 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.

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.

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

Speaker #1: Finally, just to touch on what Ben mentioned. On our stockpile in Malaysia, we have title to it. We understand that the sales process is ongoing.

Speaker #1: We're in discussions with the potential buyer, and we would hope to be a supplier to that plant in the future. So, yes, we hope to see that conclude quickly.

Cillian Murphy: 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. And with that, I will pass back to Tom.

Speaker #1: And the plant restarting, 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 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. Of course, we have a keen focus as well on achieving all the other metrics and particularly the continued ramp-up of WCP A 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 maintain 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 on all of those areas. And if we look more generally at 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 in the H1 to achieve operating cost improvements, as James said, and 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—or 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. I think that's been something we've done well in the first half.

Speaker #2: 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.

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. Excuse me, our customers, and 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

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

Speaker #2: And our suppliers – excuse me, our customers – and our customers stay with us a long time. Many of them 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. 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-plus years in Mozambique.

Tom Hickey: work for the next 20 years plus in Mozambique. So thanks very much for your time this morning. We will now move to Q&A and take any questions you might have.

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

Speaker #1: 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.

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 investor dashboard. Katharine, 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 #1: 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 from our investor dashboard.

Speaker #1: I'm Catherine. At this point, if I may, I'll hand over to you to chair the Q&A, and I'll pick up from Tom at the end.

Speaker #1: Thank you.

Speaker #3: 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: Maybe Ben will 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.

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

Speaker #2: But Ben, would you like to provide a bit more color?

Speaker #4: 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 the grades came down this year.

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, and you saw in the table on the slide there that we have an increase of 1,500 tonnes per hour of SMO capacity to try and offset that grade shortfall. 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 #4: Because of that, and that will be and that will be the same next year. So I think that's a main consideration there. But to try not to set that, we have the SMO capacity that we need to bring further in place.

Speaker #4: And you saw in the table that we've got on the slide there that we have an increase of 1,500 tons per hour of SMO capacity to try and offset that.

Speaker #4: 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 #1: 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 Grant. Is there a price level where you expect oversupply in the ilmenite market to diminish?

Speaker #2: I mean, 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.

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

Speaker #2: One thing we should emphasize is they're very dependent on diesel as our 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 #4: 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.

Cillian Murphy: Yeah. Okay. I think that is 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. So that is an indication we are 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 are not seeing new announcements, I think we are also not seeing the restart of those. That is because they probably would have needed higher prices, but it is not coming back online at the moment because it is not profitable to do so. So I think we are getting there, but no clear sign yet that there has been sufficient product taken out of the market that is going to swing it in the near term.

Speaker #4: I really heard in these concentrate producers, 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 #4: 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 #4: 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 #1: The next question—well, a few questions—come from Pete Malin-Jones at Pearl 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 Peter Mallon-Jones at Peel Hunt. First question, how much further cost-cutting performance can we expect in H2 on H1?

Speaker #2: So, closely, 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, and the more tons we produce, the more electricity we'll consume.

James McCullough: Yeah. Closely, obviously. There is a couple of things that I see as potential headwinds, which is just as we ramp up production, obviously, we will consume more electricity. The more tonnes we produce, the more electricity we will consume. So that will be a headwind. Against that, we will 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 would not be expecting that there would be significant other cost areas that we will be able to get big benefit out of in the H2. But I think it will be a series of incremental benefits across all the different categories. 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: So that'll be a headwind. Against that, we'll be looking to continue the programs that we've put in place across all the different cost categories.

Speaker #2: So, I think I would expect that we'll be able to offset that, and I wouldn't be expecting that there would be significant other cost areas where 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 #4: Yeah, I mean, we haven't changed our guidance, so there's a message in that as well.

Tom Hickey: Yeah. We have not changed our guidance, so there is 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. That guidance was 215 to 225 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 215 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 #1: Next question, also from Pete Malin-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 Peter 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 #1: 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.

James McCullough: Yeah. I think Cillian touched on that. Okay, maybe I will let you develop a little bit more.

Speaker #4: Yeah, so 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 will guide on the H2 prices. We have said we have got 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. It is not an increase in price. It is really product mix driven, particularly in Q3, that we can see at the moment.

Speaker #4: Freight will come into it. But I suppose what we are seeing is that H2 will have a better product mix—an ultimate product mix. And that is supportive for pricing.

Speaker #4: But we're not seeing a step up in prices in the second half on the same product as the first half. So it's not an increase in price.

Speaker #4: It's really product mix-driven, particularly in Q3 that we can see at the moment. Yeah, I think that probably answers it.

Tom Hickey: Yeah, I think that probably answers it.

Speaker #1: Third question from Pete Malin-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 Peter 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 #1: Is that the single biggest factor in releasing increased asset utilization?

Speaker #4: It's certainly one of the big ones. To get the utilizations up, I think that you're looking at sort of between 10 and 15 percent—it's my rough answer to that—in terms of how much extra utilization we will get out of the plant.

Ben Baxter: It's certainly one of the big ones to get the utilization 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. 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 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've gone up already by a good 10%. As I said, there's some steady progress. But before we talk too much about those, I'm looking for August and September to really bed those numbers in and be able to be more sure about them.

Speaker #4: But there are also the 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 would be with the manufacturer right now.

Speaker #4: 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 #4: 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 and be able to be more sure about them.

Speaker #4: Then we get to the winch brake changeout, hopefully in the earlier part of Q4 rather than the later part of Q4. And we'll sort of bed that in by the end of the year.

Ben Baxter: Then we get to the winch brake change out in hopefully in the earlier part of Q4 than later part of Q4, and we'll 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. Yes, there's more tons to come. I'm confident that those things can be remedied. Where it's 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 #4: 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 #4: So yes, there's more tons 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 #4: Because, in some cases, those pumping system challenges have not yet been resolved.

Speaker #1: 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 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?

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 of 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 momentum 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 know 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 am sorry I cannot be more definitive, but we have had a couple of false starts on this over the last year or year and a half, and I do not want to promise something that really is not within our control to do.

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

Speaker #1: The next question comes from Charles Lamport-Bale at Fortified Securities. Given the mixed results for H1 and the 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?

Katharine Sutton: The next question comes from Charles Lamport-Beale at Fortified Securities. Given the mixed results for H1 and promising outlook for H2 in 2027, do you expect the USD 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 that?

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

Speaker #4: I think we touched on that earlier, Rich.

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 in June.

James McCullough: Yeah. Thanks, Charles. Look, at the moment, we have not drawn, nor do we have plans to draw the additional 30 million. So 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 we had shipped tons to did not pay. That was 9 million. And now we have recovered substantially all of that. But equally, we need the 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, and renewal of HME fleet and that sort of thing. So it gives us more flexibility. And look, as you noted, it is a very uncertain market, and we are 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 had shipped tons to and didn't pay.

Speaker #2: That was $9 million, and now we've recovered substantially all of that. But equally, we need the flexibility to be able to do that, and to make some of the investments that have been 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: We're still working through the WCPA upgrade. As we've said, we expect and need the WC upgrades to continue so we can see those improvements that Ben has mentioned, to see those added in, and to start to see the tons come out.

Ben Baxter: As we've said, we expect and we need the WCP A upgrade to continue to see those improvements that Ben has mentioned, to see those bedded in and to start to see those tons come out, and as Kieran's 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. But that's the nature of being in the industry. At the moment, quite comfortable. But we're always looking at making sure we're prepared for anything that's coming down the track.

Speaker #2: And as Killian has gone through, we’re beginning 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 what 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 #4: Yeah. Well, I suppose maybe just to say that the step-up, or the increase, wasn't to address and identify the need. It was 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 #4: To reflect the volatility and uncertainty that's around at the moment.

Speaker #1: Please provide some colour on development CapEx going forward for the rest of 2026 and 2027.

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

Speaker #4: Okay, I'll take that one. So, we've said in this release that we will spend about $7 million in the second half of this year.

Ben Baxter: Okay. I'll take that one. We said in this release that we would spend about $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 at, and also electrical infrastructure. 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, 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. And of course, many things are being done under warranty at the moment, so they're not reflecting as a cost to the project.

Speaker #4: 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 at, and also electrical infrastructure.

Speaker #4: 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 #4: 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 #4: And of course, at the moment, many things are being done under warranty, so they're not reflecting as a project cost. Looking into 2027, it's a little bit more of the same.

Ben Baxter: Looking into 2027, it is a little bit more of the same. I do not have it to hand here, but in our prelim results that we published in March, there is a curve that showed 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 have been looking at 2027 to see where we could reduce some of those commitments, and certainly that is 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 prelim results presentation, you will see the curve of spend that is expected.

Speaker #4: I don't have it to hand here, but in our preliminary results that we published in March, there is a curve that showed that we have quite a tail in the development cost project.

Speaker #4: 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 we certainly have been looking at 2027 to see where we could reduce some of those commitments.

Speaker #4: 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 #1: What cost quartile do you sit in?

Katharine Sutton: What cost quartile do you sit in?

Speaker #4: 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: Well, I think we have talked in the past about where we want to be. I think probably at the moment, we are sitting in or around the midpoint, and 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, and I think what we have 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. So look, I think we are comfortable that we are working hard to be as efficient as we can be and to survive through cycles because of the long life of our assets.

Speaker #4: 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 #4: And I think what we've emphasized—and Killian talked about earlier—was, certainly over the last couple of years, the Chinese concentrate producers have lower operating capital costs.

Speaker #4: 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 #4: 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. And 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 are talking about assets with much shorter lives.

Speaker #1: Now, the question is in a similar vein. Where would Kenmare be on the global cash cost curve once Metacare 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 DIA?

Speaker #2: Yeah. Look, Tom mentioned the cost curve is moving around quite a lot, and certainly has evolved significantly over the last, well, 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 are now seeing Q1 of the cost curve largely occupied by ilmenite miners for whom TIO2 is a by-product, which means that we are looking at Q2 really as where we would like to get to in the context of the overall industry cost curve. That is 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 DIA, 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 the cost curve of mineral sands producers.

Speaker #2: When Metacare is up and running, and under the terms of the IA—as I think Tom said—we would be looking at being somewhere in the middle of Q2. That would be where we would be.

Speaker #4: Assuming nothing else changes. Assuming nothing else changes. Yeah.

Speaker #1: Please give some colour 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 markets you are in. Why are the prices down? Is it a supply or demand issue?

Speaker #4: Killian, do you want to take on that? I think we've covered it on the slides, but probably before we’re talking about some of the key factors.

Tom Hickey: Cillian, do you want to answer some of that? I think we have covered it on the slides, but probably it is worth talking about some of it with the feedback here.

Speaker #3: Yeah. Look, from our perspective, we see it as mostly supply. We see the increase of production of aluminite in China and this new trend of shipping concentrate 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 concentrates into China as adding a lot of supply to the market, 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 would give a boost. Demand isn't bad, but it's not as good as it could be, and we would expect it to improve. I think the primary reason for prices being down is an oversupply mostly concentrated in China.

Speaker #3: And that's a 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 #3: 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 #1: 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 #4: Thanks. Maybe I'll start with that, and James can 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: Thanks. Maybe I'll 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'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. I think that 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 #4: 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 #4: 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 #4: 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 #4: As we navigate the next number of months and see how the market evolves, certainly from where we stand now, maybe the easiest way to say it is that the reasons why we suspended our pause for dividend in the first quarter of this year haven't changed.

Tom Hickey: Certainly from where we stand now, maybe the easiest way to say it is the reasons why we suspended our Q1 dividend in the first quarter of this year hasn't changed, and until they do, I think we'll have to assume that that will remain the case.

Speaker #4: And until they do, I think we'll have to assume that that role remains the case.

Speaker #1: 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?

Tom Hickey: I don't think we do, but the market. It's 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's happening in the market and what their expectations should be. 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. I think as I said at the outset, we've a lot of things that we want to achieve this year, and I think we've made really good progress. Worked really hard on it. Our shipments have been good. We're making progress on WCPA, albeit slower than we might have thought or liked at the start of the year.

Speaker #4: 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.

Speaker #4: It's worth noting, for example, that one of our peers, Aluka Resources in Australia, reported this morning. And if you read their commentary, it's pretty much exactly the same as ours.

Speaker #4: So, 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've made really good progress.

Speaker #4: It's worked really hard on it. Our shipments have been good. We're making progress on some of these EPA, albeit slower than we might have thought or liked at the start of the year.

Speaker #4: 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're making progress on our implementation agreement. 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. As the market recovers, and as Cillian 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: As the market recovers—and as Killian said, maybe there are some signs that it will, although we're not seeing it today—as the market recovers, our commentary will reflect that.

Speaker #1: 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?

Speaker #4: 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, but 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 #4: 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 a price cycle has turned.

Speaker #4: 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 #4: 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, that Kenmare will perform well over coming years, assuming our markets recover.

Speaker #1: That was the final question. Turning back to you, Tom.

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

Speaker #4: Okay, listen, thank you all. That was a good range of questions. I think we've had good feedback on the results today. We've done a lot.

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

Speaker #4: But we've quite a bit more to do in the second half of the year, and we'll continue to report on that. And obviously, as ever, if you have any queries, questions, or anything you'd like to follow up on, or omitted to question us on, please get in touch.

Speaker #4: We'd be delighted to respond and help you in any way we can. Thanks. Thank you all, and have a good day.

Speaker #1: 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.

Operator 2: Fantastic. Thank you all once again for investors today. Could I please ask investors now to close this session, as you will now be automatically redirected to provide your feedback which will help the company.

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