Kenmare Resources earnings decline amid softer demand

Last week, Kenmare announced that Mr Carvill will step down from his role and the Board later this year. Pic: Jason Clarke

Irish mining company Kenmare Resources reported a sharp decline in earnings last year, driven by softer demand for mineral product and stabilised pricing.

The company, which operates one of the world’s largest ilmenite mines, Moma, in Mozambique, said it operated in a volatile environment last year as the Chinese economy slowed, and major conflicts erupted or continued in several parts of the world.

“The potential for instability is likely to extend into 2024, with both the USA and Russia holding elections during the year, in addition to approximately 70 other countries, including Mozambique,” the company said.

However, Kenmare Resources suggested it expects a rebound in demand this year as supply chain inventories are lower and need to be replenished.

Outgoing managing director Michael Carvill said Kenmare is “on track to achieve its annual production guidance, although production is still expected to be second half weighted.” 

In its annual results, the company posted earnings before interest, taxes, depreciation, and amortisation (Ebitda) of $220m (€202.4m) for 2023, a 26% plunge on the previous year following a period of outperformance.

The company also reported a 12% in mineral product revenues to $437m, reflecting lower production volumes and shipments due to poor weather conditions and softer pricing.

Last week, Kenmare announced that Mr Carvill will step down from his role and the Board later this year.

He founded the company in 1987 and built it into a top quartile producer with a 7% global market share. A process to find his successor and manage the transition is underway.