Kenmare Resources (KMR) AI Stock Analysis

• Market Cap: £200.74M
• Dividend Yield: 7.39%
• Average Volume (3M): 146.98K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.63
• Revenue Growth: 6.65%
• EPS Growth: -159.09%
• Country: UK
• Employees: 1,761
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): -0.82
• Shares Outstanding: 89,228,165
• 10 Day Avg. Volume: 99,650
• 30 Day Avg. Volume: 146,983
• PEG Ratio: -0.11
• Price to Book (P/B): 0.31
• Price to Sales (P/S): 0.86
• P/FCF Ratio: 49.04
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £387.50
• Price Target Upside: 42.99% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 11.9
• Revenue Forecast (FY): £26.91B

• Rating: 56 Neutral
• Price Target: 296.00p ▲(9.23% Upside)

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.

Positive Factors

Strong Equity Position

A high equity ratio indicates a strong financial foundation, reducing reliance on debt and enhancing long-term stability and resilience.

Prudent Leverage Management

Low leverage enhances financial flexibility and reduces risk, allowing the company to better withstand economic fluctuations and invest in growth.

Cash Generation Capability

Strong cash generation relative to net income suggests efficient operations and the ability to fund investments and dividends, supporting long-term growth.

Negative Factors

Declining Revenue

Continued revenue decline indicates potential market share loss or demand issues, which could impact long-term growth and profitability.

Decreasing Profit Margins

Shrinking profit margins suggest rising costs or pricing pressures, which can erode profitability and limit the ability to invest in future growth.

Significant Cash Flow Challenges

Diminished free cash flow limits the company's ability to fund operations, pay dividends, and invest in growth, posing long-term financial risks.

Kenmare Resources Business Overview & Revenue Model

Company Description

Kenmare Resources plc is a mining company focused on the exploration and production of mineral sands. It operates primarily in Mozambique, where it extracts and processes titanium minerals, including ilmenite and rutile, as well as zircon. The company's flagship operation is the Moma Titanium Minerals Mine, which is one of the largest of its kind in the world. Kenmare Resources is committed to sustainable practices and aims to deliver value to its shareholders while contributing positively to the local communities and environment.

How the Company Makes Money

Kenmare Resources generates revenue primarily through the sale of titanium minerals, specifically ilmenite, rutile, and zircon. The company operates a vertically integrated business model that encompasses mining, processing, and marketing these products to various industries, including the paint, plastics, and titanium dioxide sectors. Key revenue streams include the sale of ilmenite, which is used in the production of titanium dioxide pigment, a significant component in coatings and plastics. Rutile and zircon are also sold to industries that produce ceramics and high-performance materials. Additionally, Kenmare has established long-term contracts and partnerships with customers, which provide stable demand for its products and contribute to consistent revenue generation. The company’s operational efficiency and cost management strategies further enhance its profitability.

Kenmare Resources Financial Statement Overview

Summary

Kenmare Resources shows a mixed financial performance with strong equity and leverage positions but faces declining revenue and profitability margins. Significant challenges in cash flow generation are evident, despite a robust operating cash flow to net income ratio.

Income Statement

The company exhibited declining revenues over the last three years, with a 9.53% decrease from 2022 to 2023 and a further 9.54% decrease from 2023 to 2024. Gross profit margin has decreased from 46.27% in 2022 to 22.99% in 2024, indicating increased cost efficiency challenges. The net profit margin also declined from 39.18% in 2022 to 15.65% in 2024, suggesting reduced profitability. Despite these challenges, Kenmare Resources maintains a reasonable EBIT margin of 21.51% in 2024.

Balance Sheet

Kenmare Resources holds a strong equity position with an equity ratio of 88.68% in 2024. The debt-to-equity ratio is low at 0.07, indicating prudent leverage management. However, the return on equity has decreased significantly from 18.67% in 2022 to 5.59% in 2024, reflecting declining efficiency in generating returns for shareholders.

Cash Flow

The company experienced a significant drop in free cash flow from 2022 to 2024, falling from €149.55 million to €7.24 million. The operating cash flow remains relatively stable, with a slight increase in 2024. However, the free cash flow to net income ratio dropped considerably, highlighting challenges in converting earnings into available cash. The operating cash flow to net income ratio is robust at 2.46 in 2024, which is a positive indicator of cash generation capability despite declining profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	417.32M	414.75M	458.48M	525.99M	455.94M	243.75M
Gross Profit	86.80M	95.38M	163.55M	243.29M	160.93M	64.64M
EBITDA	138.72M	154.75M	223.75M	296.42M	210.89M	75.31M
Net Income	-50.22M	64.89M	130.98M	206.03M	128.53M	16.74M
Balance Sheet
Total Assets	1.24B	1.31B	1.26B	1.25B	1.16B	1.14B
Cash, Cash Equivalents and Short-Term Investments	46.51M	56.68M	71.05M	108.27M	69.06M	87.24M
Total Debt	129.64M	79.25M	49.39M	80.36M	150.28M	149.16M
Total Liabilities	189.04M	148.24M	117.88M	145.29M	230.07M	242.26M
Stockholders Equity	1.05B	1.16B	1.14B	1.10B	930.64M	900.50M
Cash Flow
Free Cash Flow	-112.78M	7.24M	86.66M	149.55M	87.46M	-68.18M
Operating Cash Flow	105.68M	159.83M	153.19M	209.42M	147.81M	71.17M
Investing Cash Flow	-218.46M	-152.59M	-66.54M	-59.87M	-60.34M	-139.35M
Financing Cash Flow	99.00M	-21.60M	-123.88M	-109.73M	-100.97M	72.77M

Kenmare Resources Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 271.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:KMR, the sentiment is Negative. The current price of 271 is above the 20-day moving average (MA) of 251.87, above the 50-day MA of 262.42, and below the 200-day MA of 325.40, indicating a bearish trend. The MACD of -8.85 indicates Positive momentum. The RSI at 33.29 is Neutral, neither overbought nor oversold. The STOCH value of 12.58 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:KMR.

Kenmare Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GFM	68 Neutral	£411.46M	62.97	3.23%	―	-32.18%	-58.29%
ECOR	66 Neutral	£270.95M	-11.57	-6.87%	1.75%	-63.09%	-253.25%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
JLP	61 Neutral	£95.96M	―	―	―	―	―
KMR	56 Neutral	£200.74M	―	-4.64%	7.39%	6.65%	-159.09%
SOLG	41 Neutral	$735.68M	-15.60	-27.65%	―	―	1.86%

Kenmare Resources Corporate Events

Kenmare Resources Updates on WCP A Project and 2025 Guidance

Kenmare Resources has provided an update on its Wet Concentrator Plant A (WCP A) upgrade project and 2025 production guidance. The company has installed new high-capacity dredges and a feed preparation module, achieving nameplate capacity intermittently. However, commissioning challenges have led to lower production rates, prompting a revised 2025 production guidance of 870,000 to 905,000 tonnes of ilmenite. Despite these challenges, Kenmare expects to meet shipment commitments through existing inventory and anticipates no impact on sales. The transition to the Nataka ore zone, crucial for long-term production, is on track, with the capital cost estimate unchanged at $341 million.

Kenmare Resources Announces Board Restructuring and New Appointment

Kenmare Resources has announced the appointment of Ekaterina (Katia) Ray as an independent Non-Executive Director and member of the Remuneration Committee. Katia Ray brings extensive experience in the mining industry, having worked with major companies like Rio Tinto and Anglo American. This appointment is part of a broader board restructuring, which includes the retirement of Graham Martin and the appointment of Elaine Dorward-King as Senior Independent Director. These changes are expected to strengthen Kenmare’s board and support the company’s long-term success.

Kenmare Resources Faces Production Challenges Amid Plant Upgrades

Kenmare Resources reported a challenging Q3 2025, with production impacted by the upgrade of its Wet Concentrator Plant A, leading to lower ilmenite output. Despite these challenges, the company remains on track to meet its 2025 production and cost guidance, although ilmenite production is expected to be at the lower end of the forecast. The global market conditions remain difficult, with one customer unable to take contracted volumes, but demand for zircon remains strong. The company is also focusing on extending its Implementation Agreement with the government and has increased security measures at the Moma mine following a theft incident.

Kenmare Resources Advances Wet Concentrator Plant A Upgrade

Kenmare Resources has successfully connected two new dredges and a new feed preparation unit to its Wet Concentrator Plant A (WCP A) at the Moma Titanium Minerals Mine, initiating the commissioning process. This upgrade is crucial for transitioning to the Nataka ore zone, which holds 70% of Moma’s Mineral Resources, ensuring production for over 20 years. The project, with a capital cost of $341 million, aims to manage higher slimes content and enhance mining rates, with full ramp-up expected by the end of 2025.

Kenmare Resources Reports Fatal Incident at Moma Mine

Kenmare Resources reported a tragic incident at its Moma Titanium Minerals Mine in Mozambique, where a police officer was fatally assaulted during a theft at the mine’s water pump station. The company is cooperating with local authorities in the investigation and is enhancing security measures at the site. This incident underscores the challenges of maintaining safety and security in resource extraction operations, impacting both the company’s operations and its commitment to safety.

Kenmare Resources Advances Wet Concentrator Plant A Upgrade

Kenmare Resources has initiated an upgrade of its Wet Concentrator Plant A (WCP A) at the Moma Titanium Minerals Mine in Mozambique. This upgrade involves connecting new dredges and a feed preparation unit to facilitate mining in the Nataka ore zone, which holds 70% of Moma’s mineral resources. The project, with a capital cost of $341 million, aims to secure long-term production and improve mining rates by managing higher slime levels in the ore. Production has paused for three to four weeks to complete the upgrade, but the company remains on track to meet its 2025 production and cost guidance.