Weaker market conditions and lower production pushed Mozambique-focused titanium and zircon producer Kenmare Resources into an adjusted first-half loss, although improving zircon demand and stronger recent production have brightened the outlook for the remainder of 2026.
The company, which operates the Moma Titanium Minerals Mine in northern Mozambique, reported revenue of US$149.1 million for the six months ended June 2026, down 11% from US$167.7 million in the corresponding period last year. Adjusted loss after tax stood at US$34.1 million, compared with an adjusted profit after tax of US$6.1 million a year earlier. The deterioration came as total operating costs increased 16% to US$174.7 million from US$150.5 million, while lower average realised prices for Kenmare’s products further constrained margins. Moma produces ilmenite, rutile and zircon, which are used in a range of industrial applications including paints, plastics and ceramic tiles.
“Weak market conditions for our products, combined with the slower than expected commissioning of Wet Concentrator Plant (WCP) A, continued to impact Kenmare’s financial performance in H1 2026. However, with a strengthening zircon market and the capital expenditure for the WCP A upgrade project now substantially complete, the outlook is slightly improved,” said Tom Hickey, Managing Director at Kenmare.
He said demand for the company’s products remained stable despite the weaker pricing environment, with a healthy order book for the third quarter. In addition, he noted that the company remained on track to achieve its 2026 shipment guidance, which remains a key performance metric for the year. “We expect to achieve our annual operating and capital cost guidance, although softer than expected ilmenite production in H1 led us to moderate our 2026 guidance to approximately 800,000 tonnes, instead of more than 800,000 tonnes previously,” stated Hickey.
He added, “Pleasingly, production has improved in July and early August, due to a strong performance by WCP B and steady progress at WCP A.” Heavy Mineral Concentrate (HMC) production fell 34% to 442,200 tonnes during the first half, largely due to a forecast 26% decline in ore grades as WCP A approached the end of its Namalope mine path. Finished product production declined 14% to 430,100 tonnes, reflecting lower HMC production and processing volumes. Shipments, however, increased 14% to 555,600 tonnes, supported by the drawdown of finished product stockpiles and consistent transshipment performance.
The performance highlights the operational and market pressures facing Moma as Kenmare progresses the WCP A upgrade while navigating weaker pricing across key mineral sands markets. Hickey concluded by stating that the company had also continued constructive engagement with the Government of Mozambique over Moma’s Implementation Agreement during the first half of the year, with significant progress made in recent weeks on key outstanding issues. With production improving into the third quarter and capital expenditure on the WCP A upgrade substantially complete, Kenmare enters the second half with a stronger operational position despite the challenging market environment.
