15th Oct 2025 12:23
(Alliance News) - Kenmare Resources PLC on Wednesday reported drops in production of minerals for the third quarter, although it still expects to meet full-year expectations.
In response, the stock was down 2.3% at 298.00 pence around midday in London.
The Dublin-based producer of titanium minerals and zircon, which operates the Moma Titanium Minerals Mine in northern Mozambique, said its excavated ore output totalled 9.0 million tonnes for the third quarter of 2025. This was down 19% from 11.1 million tonnes the previous year.
Heavy mineral concentrate production fell 16% to 298,400 tonnes from 355,400 tonnes, "due primarily to lower excavated ore volumes related to [the WCP A mining plant's] production pause to allow upgrade work to take place". HMC processed fell to 21% on-year 282,800 tonnes.
Ilmenite production fell 19% to 209,000 tonnes, primary zircon production fell 16% to 12,300 tonnes, and rutile production dropped 38% to 1,800 tonnes.
Concentrates production, including mineral sands concentrate, tumbled 58% to 21,300 tonnes from 13,500 tonnes.
Shipments fell 25% to 227,400 tonnes from 302,700 tonnes. This was "due to reduced shipping capacity because the Peg transshipment vessel was in dry dock during Q3 but returned to Moma in late September," Kenmare said.
The firm said pricing for its products, as expected, continued to decline during the quarter as the market remains over-supplied. Demand, however, was "stable", although for mineral sands products it softened.
"Q3 was an important quarter for the Wet Concentrator Plant (WCP) A upgrade project, with commissioning of the new dredges and new feed preparation module commencing," Managing Director Tom Hickey commented. "The upgraded plant is on track to achieve its nameplate capacity by the end of 2025."
Also looking ahead, Kenmare still expects to achieve its full-year production and cost guidance, which Hickey said is "subject to the ramp up of WCP A progressing to schedule".
However, the company also expects ilmenite production of 930,000 to 960,000 tonnes, towards the lower end of the guidance range. Hickey said this is "due primarily to the upgrade work starting later in Q3 than expected".
He continued: "Global market conditions remain challenging and one of Kenmare’s customers has indicated that it will be unable to take its contracted volumes in Q4.
"Besides this, demand for our products remains in line with expectations, with strong, high-value zircon sales volumes expected in Q4.”
By Emma Curzon, Alliance News reporter
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