Kenmare Resources (JEVA) Q2 2026 Earnings Report

Balanced: the company demonstrated strong operational and financial discipline (safety record, shipment growth, 12% reduction in cash operating costs, successful commercialization of a new ZrTi product, inventory-led liquidity and constructive financing support). However, material commodity price declines (average price −26% y/y), weak profitability (EBITDA ~$4M; loss after tax $34M), WCP A commissioning shortfalls (throughput below nameplate), inventory NRV hits, and elevated net debt are significant negatives. Management maintained guidance for shipments and highlighted constructive progress on the WCP A remediation and government implementation agreement, but market oversupply and cost headwinds create continued near-term uncertainty.

Guidance reiterated that Kenmare is on track to deliver 1.1 Mt of shipments in 2026, with ilmenite production modestly adjusted to ~800,000 t for the full year after H1 shipments of 555,000 t (up ~13–14%); H1 saw strong ZrTi take-up (over 80,000 t sold and ~102,000 t of tailings converted), concentrates rising to ~20% of tonnes sold (17% of revenue), and a finished‑product inventory drawdown of ~128,000 t. Prices remain weak: average realized price $242/t (ilmenite $203/t, zircon ~$1,100/t), while costs improved with total cash operating costs down ~12% to just under $110m in H1 (unit cash cost $255/t) and full‑year cash cost guidance around $215–225m. Financially EBITDA was $4m in H1, loss after tax $34m, net debt rose to ~$176m (from ~$159m), banks upsized the RCF by $30m to $230m, cash flow before development CapEx was $6.1m, and development CapEx was $23m in H1 (including $12m accrual) with only ~$7m expected in H2. Operationally WCP A averaged ~2,800 t/h vs 3,500 t/h nameplate (dredge/pump and winch brake works targeted for Q4), and management expects further production support from SMO capacity growth (SMO2 planned to reach 1,000 t/h with a 500 t/h Phase 1 commissioning in Q4).