Kenmare Resources reported first-half 2026 free cash flow of $6.1 million before development capital expenditure, despite a 26% year-over-year drop in average selling prices to $242 per tonne. The Mozambique-based titanium minerals producer attributed the result to a 14% increase in total shipments to 555,600 tonnes and a 12% reduction in total cash operating costs to $109.6 million.
Revenue declined 16% to $134.5 million from $160.1 million in the same period of 2025, reflecting lower realized prices for ilmenite and zircon. Ilmenite prices fell 29% to $203 per tonne, while primary zircon prices declined 17% to $1,100 per tonne. Adjusted EBITDA totaled $4 million, down from $47 million in H1 2025, with an EBITDA margin of 4%. The company reported an adjusted loss after tax of $34 million, compared with a profit of $6 million a year earlier.
Operational adjustments included a 34% reduction in heavy mineral concentrate production to 442,200 tonnes and a 39% decline in ilmenite output to 273,100 tonnes. However, concentrates production surged 599% to 135,700 tonnes, exceeding full-year guidance of 81,000 tonnes in the first half alone. Total finished product production fell 14% to 430,100 tonnes. Managing Director Tom Hickey described market conditions as "tough" while highlighting the long-term resource base at the Moma operation, which holds over 100 years of mineral resources at current production rates.
Cash and liquidity stood at $31.0 million, with net current assets exceeding $135 million. Net debt increased to $175.8 million from $158.8 million at year-end 2025, partly due to $23.1 million in development capital expenditure on the Wet Concentrator Plant A upgrade. The company also drew down $23.7 million from finished product inventories. The banking syndicate expanded the revolving credit facility from $200 million to $230 million, with $30 million undrawn at period-end.
CFO James McCullough noted the facility expansion "recognizes the quality, scale, and future potential of Moma." The WCP A upgrade, with a total cost of $341 million, is more than 85% complete and is expected to reach nameplate capacity of 3,500 tonnes per hour. The company maintained full-year 2026 cost guidance of $215–$225 million and projected development capital expenditure of approximately $30 million, with sustaining capital also expected around $30 million.
