London, March 25th (Argus) - Kenmare Resources, a mining company focused on business in Mozambique, stated in its annual performance report released today that due to the severe market conditions, it will lay off 15% of its workforce at the Moma Titanium Mine.
Due to the uncertain outlook for titanium ore prices, the revenue expectations were lowered, and the latest assessment with the Mozambican government regarding the renewal terms of the Moma mine mining license also had an impact. Kenmare simultaneously announced the suspension of the 2025 final dividend payment and the provision of $301.1 million in asset impairment.
Due to the investment in the upgrading project of the wet processing plant A at the Moma Mine, the group's net debt increased to $159 million by the end of 2025, six times that of the previous year. This plant mainly produces heavy mineral concentrates such as titanium iron ore, zircon, and rutile.
During the operation of the 2025 project, continuous integration problems occurred, resulting in a decline in production, which in turn affected sales.
Due to the reduction in shipment volume, the company's earnings before interest, taxes, depreciation, and amortization (EBITDA) in 2025 dropped to $58 million, a significant 63% decline compared to the previous year. Despite stable demand, the oversupply in the market still dragged down the prices of titanium iron ore and zircon, further compressing the company's cash flow.
The "Moma Project Implementation Agreement" (the legal contract regulating the company's mineral processing and export business) signed by Kenmare and the Mozambican government expired in 2024. The company stated that it applied to restart this agreement in 2022, and the renewal negotiations are still ongoing. After the meeting in mid-February this year, the negotiations have made constructive progress.
As of the end of the first quarter of 2026, although there are still problems in the production end, the wet processing plant A has stabilized at a designed ore processing capacity of 3,500 tons per hour. The current shipment rhythm is in line with the 2026 performance guidance expectations, and the company has optimized its capital management by consuming finished product inventories.
