Kenmare clashes with Mozambican tax authority over Moma mine terms

Kenmare Resources ( (GB:KMR) ) has shared an update.

Kenmare Resources has warned that Mozambique’s Tax Authority is unilaterally seeking to impose new terms on its processing and export operations at the Moma mine, despite ongoing negotiations to renew its Implementation Agreement. The company says the authority has moved to restrict VAT and customs exemptions and requested higher royalty payments, actions Kenmare argues conflict with its contractual rights and previous government assurances.

The dispute centres on an Internal Resolution adopted by Mozambique’s Council of Ministers in 2025, which would accelerate royalty increases, revoke Kenmare’s Industrial Free Zone status and narrow tax and customs exemptions. Kenmare says these measures could materially damage its economics and liquidity by adding tax burdens, working capital strain and banking restrictions, and it is now urgently engaging with the government while preparing for possible international arbitration and talks with lenders over any covenant implications.

Kenmare has previously offered significant concessions, including higher royalties, withholding taxes and additional capital and community investments, to secure a 20‑year renewal on agreed terms. Management maintains it prefers a negotiated settlement after decades of cooperation with the Mozambican state and local communities but indicates it may be forced to enforce its rights through arbitration if no timely agreement is reached.

The most recent analyst rating on (GB:KMR) stock is a Hold with a £254.00 price target. To see the full list of analyst forecasts on Kenmare Resources stock, see the GB:KMR Stock Forecast page.

Spark’s Take on GB:KMR Stock

According to Spark, TipRanks’ AI Analyst, GB:KMR is a Neutral.

Kenmare Resources’ overall stock score is primarily influenced by its mixed financial performance and bearish technical indicators. The high dividend yield provides some support, but the negative P/E ratio and recent safety incident at the Moma Mine present significant risks.

To see Spark’s full report on GB:KMR stock, click here.

More about Kenmare Resources

Kenmare Resources is a leading global producer of titanium minerals and zircon, operating the Moma Titanium Minerals Mine in northern Mozambique. Listed in London and Dublin, the group supplies titanium feedstocks to customers in more than 15 countries, with Moma accounting for about 6% of global titanium feedstock production used in paints, plastics and ceramic tiles.

Average Trading Volume: 89,438

Technical Sentiment Signal: Sell

Current Market Cap: £224.2M

Learn more about KMR stock on TipRanks’ Stock Analysis page.