H1 Loss Reported
Kenmare Resources Reports H1 Loss on Weak Markets, Citing Improving Outlook and Production Recovery.
Key Points
Basic and diluted loss per share from continuing operations in H1 2026 were USD 0.38, compared with USD 1.06 loss per share a year earlier.
Renewal negotiations with the Mozambican government on the Implementation Agreement progressed, clarifying financial and investment intentions.
Total cash operating costs for 2026 are now expected in the range of $215–225 million, about 7–12% lower than 2025.
The revolving credit facility was upsized by $30 million to $230 million, strengthening financial flexibility; net debt stood at about $175.8 million at period end, with around $31 million in cash.
Zircon market strengthening supported the near-term outlook, and production showed signs of improvement in July and early August as WCP B performed strongly and WCP A progress continued.
Kenmare Resources posted a net loss of $34.1 million in the first half of 2026, a sharp reversal from its earlier performance, as weak ilmenite and zircon prices squeezed revenue to $149.1 million — down from $167.7 million a year ago, according to MarketScreener.
The Irish miner, which operates the Moma titanium minerals mine in Mozambique, also faced delays at its Wet Concentrator Plant A. Still, management pointed to a firming zircon market and stronger July and August production as reasons for cautious optimism heading into the second half.
Revenue Fell as Titanium Prices Stayed Depressed
Revenue dropped roughly 11% year-over-year to $149.1 million, MarketScreener reported. Weak global pricing for ilmenite — a titanium mineral used in paint and aerospace coatings — was the main culprit. Zircon prices, used in ceramics and chemicals, also remained soft through the first six months of the year.
The company reported a basic and diluted loss per share of $0.38 from continuing operations. That was an improvement on the $1.06 loss per share recorded in the same period last year, according to Yahoo Finance. Cash operating costs fell too, offering some partial offset to the revenue pressure.
WCP A Delays and Trimmed Production Guidance Weigh on Outlook
Commissioning delays at Wet Concentrator Plant A — one of the key processing units at Moma — hurt output in H1. As a result, Kenmare cut its 2026 ilmenite production guidance to roughly 800,000 tonnes. The company kept its shipments guidance unchanged and said it still aims to hit its cost targets, Watchlist News reported.
Total cash operating costs for 2026 are now expected between $215 million and $225 million. That is 7% to 12% lower than 2025 levels. Meanwhile, WCP B — the plant's second concentrator — performed strongly, and management said progress at WCP A continued through July and early August.
Revolving Credit Upsized as Net Debt Climbs to $175.8 Million
Kenmare upsized its revolving credit facility by $30 million, bringing it to $230 million total. The move was designed to strengthen financial flexibility amid softer earnings. No dividends were paid during the period, Yahoo Finance noted.
Net debt rose to about $175.8 million by the end of June, with only around $31 million in cash on hand. The higher debt load reflects increased capital spending tied to the WCP B upgrade and ongoing commissioning work. Management framed the credit expansion as a buffer while the company works through its investment cycle.
Zircon Recovery and Mozambique Talks Offer Cautious Hope
Kenmare said the zircon market showed signs of strengthening heading into Q3. The company's order book for the third quarter supports a modestly positive near-term view. Production in July and early August improved, driven by strong WCP B output, according to Watchlist News.
On the regulatory front, renewal talks with the Mozambican government over the Implementation Agreement — the legal framework governing the Moma mine — made progress. Kenmare said discussions clarified both its financial obligations and future investment intentions. The company also highlighted ongoing cost reduction and sustainability efforts as it navigates a difficult market environment.
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