TRANSFORMING
RESOURCES INTO
OPPORTUNITY FOR ALL
ANNUAL REPORT AND ACCOUNTS 2024
Kenmare’s purpose
Transforming
resources into
opportunity for all
Learn more about
Kenmare’s business model
on pages 12 to 13
Learn more about
Kenmare’s value chain
on pages 14 to 15
Learn more about
Kenmare’s purpose
on pages 2 to 3
KENMARE RESOURCES PLC
We
CARE
We
GROW
We
EXCEL
KENMARE’S GUIDING PRINCIPLES INFORM
HOW THE COMPANY DELIVERS ITS PURPOSE
Read more about
Kenmare’s culture
on pages 128 to 129
Who Kenmare is
Kenmare Resources plc is one of the
world’s largest producers of titanium
minerals. Listed on the London Stock
Exchange and Euronext Dublin, the
Company operates the Moma Titanium
Minerals Mine, which is located on
the north east coast of Mozambique.
Kenmare’s mineral sands products are
key raw materials ultimately consumed
in everyday “quality-of-life” items
such as paints, plastics and ceramic
tiles. The Moma Mine has been in
production for 18 years and Kenmare
has a long-standing commitment to
being a responsible corporate citizen.
What Kenmare does
Kenmare’s production in 2024
accounted for approximately 6% of
global titanium feedstocks, supplying
over 25 customers operating in
more than 15 countries. The Mine
has Mineral Resources sufficient to
support production for more than
100 years at current rates.
How Kenmare does it
Kenmare has three mining ponds where dredges
mine titanium-rich sands. Three to five percent
of the ore contains valuable heavy minerals,
which are removed and separated at its Mineral
Separation Plant into four final products: ilmenite,
zircon, rutile and concentrates. These products
are then loaded onto ocean-going vessels at its
dedicated port facility. After mining, Kenmare
rehabilitates the land, and it is progressively
returned to local communities. Kenmare is proud
of its low environmental impact, with hydro-
electric power providing half of its overall energy
requirements and over 90% of its electrical power
consumption, and with no toxic chemicals used
in its operations.
Kenmare’s 2024 Annual Report complies with the Irish legislation implementing
the European Commission’s Corporate Sustainability Reporting Directive (CSRD).
This report looks at the Company’s performance on a number of different topics. It provides an analysis of Kenmare’s financial and operating
performance, reports on progress against the Company’s strategic goals, and gives an overview of Kenmare’s ESG performance and priorities,
which are discussed in greater detail in the 2024 Sustainability statement.
For more information visit:
www.kenmareresources.com
Kenmare Resources Plc
@KenmareResourcesplc
@KenmareRes
Read Kenmare’s
KMAD REPORT 2024
2024 HIGHLIGHTS
Lost Time Injury Frequency Rate
0.06
Per 200,000 hours worked
Scope 1 carbon emissions
59,046
Tonnes CO
2
e
Production of finished products
1,115,300
Tonnes
Shipments of finished products
1,088,600
Tonnes
Revenue
$414.7m
EBITDA
$157.1m
Profit after tax
$64.9m
Dividend per share
USc32.0
Business overview
Highlights 1
Kenmare at a glance 2
Strategic report
Chairman’s statement 6
Managing Director’s statement 8
Kenmare’s products 10
Kenmare’s business model and strategy 12
Kenmare’s value chain 14
Kenmare’s strategic priorities 16
Market report 20
Key Performance Indicators 24
Operating review 28
Mineral Reserves and Resources 32
Financial review 34
Sustainability statement 38
– General disclosures 39
– Environment 50
– Social 74
– Governance 89
– Assurance report 99
Principal risks and uncertainties 102
Viability statement 112
Governance
Governance at a glance 116
Board of Directors 118
Executive Committee 120
Corporate governance report 122
Nomination Committee report 136
Sustainability Committee report 139
Audit & Risk Committee report 142
Remuneration Committee report 148
Annual report on remuneration 151
Directors’ report 161
Group financial statements
Statement of Directors’ responsibilities 168
Independent auditor’s report 169
Consolidated statement of
comprehensive income 175
Consolidated statement of financial position 176
Consolidated statement of changes in equity 177
Consolidated statement of cash flows 178
Notes to the consolidated financial statements 179
Company financial statements
Parent Company statement of financial position 214
Parent Company statement of changes in equity 215
Notes to the Company financial statements 216
Other information
Shareholder profile 226
Glossary – alternative performance measures 227
Glossary – terms 229
General information 233
32
Kenmare’s purpose in
action
Read about Kenmare’s globally
significant Mineral Resources..
74
Kenmare’s purpose
in action
Read about Kenmare’s safe and
engaged workforce.
117
Kenmare’s purpose
in action
Read about Kenmare’s strong
corporate governance.
CSRD Sustainability Statement disclosures
BUSINESS OVERVIEW
01
Kenmare Resources plc
Annual Report and Accounts 2024
The word “opportunity” can mean different things to different stakeholders.
Kenmare wants to create the opportunity for its employees and people living in the
Moma Mine’s host communities to gain new skills and knowledge, as well as prosperity.
“Opportunity” also relates to customers, contractors, companies in Kenmare’s supply
chain, Government and other partners forming favourable new business partnerships. For
shareholders, the “opportunity” could be to benefit from a good investment.
KENMARE AT A GLANCE
>76,500
Hours of training for
employees in 2024
116
KMAD-funded
micro-businesses in operation
by the end of 2024
9bnt
Kenmare’s Mineral
Resources
1,771
People employed by
Kenmare
The word “resources” relates to Mineral Resources and is also associated with human resources and
financial resources. Kenmare transforms mineralised sand into finished products, but the Company
is focused on other types of transformation too, such as through skills transfer to its employees
and the economic development of its host communities through the Kenmare Moma Development
Association (KMAD).
Kenmare is committed to delivering its purpose of
‘Transforming resources into opportunity for all’.
Employees throughout the Company participated in workshops to formulate the new corporate
purpose during 2024 and to ensure it resonates with Kenmare’s identity and its aspirations.
It was important that the purpose translates well into Portuguese, the official language of Mozambique
and the first language of the majority of the Company’s employees at the Moma Mine. When a
visitor comes to Moma, one of the first sights they see is a large banner with Kenmare’s purpose:
Transformando recursos em oportunidade para todos.
02
Kenmare Resources plc
Annual Report and Accounts 2024
$3.0m
Investment by KMAD in 2024
$28.6m
2024 dividend distribution
The words “for all” highlight how generating value for all
stakeholders is central to the business. The themes of
inclusivity and interconnectedness are at the heart of
Kenmare’s purpose.
03
Kenmare Resources plc
Annual Report and Accounts 2024
BUSINESS OVERVIEW
STRATEGIC
REPORT
“Kenmare’s purpose of ‘Transforming
resources into opportunity for all’
means we have a commitment to create
broad, sustainable value from natural
resources. It speaks to the Company’s
aim of harnessing the potential of
these resources not just for profit, but
as a means to drive positive change,
offering benefits that extend across
communities, employees, shareholders,
and society, especially in the places
where we are operating.”
ELIANO PAZ SABINO
Mine Planning Engineer
04
Kenmare Resources plc
Annual Report and Accounts 2024
`
Chairman’s statement 6
`
Managing Director’s statement 8
`
Kenmare’s products 10
`
Kenmare’s business model and strategy 12
`
Kenmare’s value chain 14
`
Kenmare’s strategic priorities 16
`
Market report 20
`
Key Performance Indicators 24
`
Operating review 28
`
Mineral Reserves and Resources 32
`
Financial review 34
`
Sustainability statement 38
`
General disclosures 39
`
Environment 50
`
Social 74
`
Governance 89
`
Assurance report 99
`
Principal risks and uncertainties 102
`
Viability statement 112
CONTENTS
05
Kenmare Resources plc
Annual Report and Accounts 2024
STRATEGIC REPORT
“THE THEME OF
TRANSITION WAS A
CONSTANT IN 2024,
MARKING AN EXCITING
NEW CHAPTER IN
KENMARE’S HISTORY.”
ANDREW WEBB
Chairman
2024 was a year of significant
leadership transition for
Kenmare, marking an exciting
new chapter in our company’s
history. Tom Hickey was
appointed as Managing Director
in August, following two years
as Financial Director. Tom
succeeded Michael Carvill, who
founded Kenmare and served as
Managing Director for almost
four decades with distinction.
The theme of transition has been a constant
throughout the year, particularly with the
significant progress made on the upgrade of
our largest mining plant, Wet Concentrator
Plant (WCP) A, ahead of its relocation to
the large Nataka ore zone. Mining Nataka
will secure production at the Moma Mine for
decades to come, ensuring we continue to
deliver value for all stakeholders.
Although our operations performed
strongly and we continued to advance
our sustainability objectives, the year has
presented its challenges, with a weaker
product market and political unrest in
Mozambique, including in the areas around
Moma. We are deeply grateful for the
continued dedication of our employees at
site and the support of our other partners in
Mozambique, including our host communities.
Upgrade of WCP A and
transition to Nataka
In June 2024, the Board approved the final
part of the Definitive Feasibility Study for the
WCP A upgrade, relating to infrastructure.
The total capital cost for the project remains
in line with previous estimates of $341 million
and we are focused on precise execution and
robust financial discipline.
The upgrade of WCP A and its transition
to Nataka will not only underpin Moma’s
production for future decades but it will
also ensure that we remain a competitive
and resilient player in the global titanium
minerals sector. The project has been
engineered to retain Kenmare’s low-cost
position, which will allow us to generate
strong cash flow throughout the commodity
price cycle, thereby enhancing the long-term
sustainability and profitability of the business.
Shareholder returns
The Board is pleased to recommend a 2024
final dividend of USc17.00 per share (2023:
USc38.54), which brings the total dividend for
2024 to USc32.00 per share (2023: USc56.01).
Since 2019, we have returned approximately
$295 million to shareholders through
dividends and share buy-backs (including the
final dividend).
The majority of the remaining capital
investment for the WCP A upgrade and
transition is scheduled to be incurred
during 2025 and we will continue to balance
our investment in the business with our
commitment to making shareholder returns
and retaining a strong balance sheet.
Sustainability
In 2024, Kenmare is reporting for the
first time in accordance with the Irish
transposition of the European Union’s
Corporate Sustainability Reporting Directive
(CSRD). Over the past year, the Board has
engaged closely with the CSRD process
to ensure that our reporting accurately
reflects the full scope of our environmental,
social, and governance performance, as
well as the risks and opportunities related
to sustainability. This process has involved
extensive collaboration between the Board,
the Executive Committee, the team at
Moma, and our external advisors to ensure
that we meet the rigorous standards of the
CSRD, while also reinforcing our dedication
to responsible business practices and
transparency.
In 2024 we achieved our lowest-ever All
Injury Frequency Rate of 0.93 per 200,000
hours worked, a testament to our rigorous
safety protocols. We also exceeded our target
of reducing emissions by 12% by the end of
2024, relative to our 2021 baseline. This was
primarily achieved through our investment in
the Rotary Uninterruptible Power Supply in
2021, which has reduced Moma’s reliance on
diesel-powered generators.
ANDREW WEBB
Chairman
Kenmare Resources plc
Annual Report and Accounts 2024
06
CHAIRMAN’S STATEMENT
Implementation
Agreement
We look forward to the extension
of Kenmare’s rights under Moma’s
Implementation Agreement being concluded
in an orderly manner, which will provide a
solid foundation for future investment. We
will continue to engage constructively with
the Government of Mozambique and in the
meantime, we are processing minerals and
exporting final products as normal. The
mining operations are subject to a separate
legal regime under which no extension is
required until 2029.
Board development
and effectiveness
As part of the leadership transition in 2024,
we saw Michael Carvill step down after 38
years from both his executive role and his
position on the Board. Tom Hickey was
appointed to succeed Michael, following
a thorough process by the Nomination
Committee, involving internal and external
candidates. Having previously served on the
Board in his capacity as Financial Director,
Tom is now the sole Executive Director,
ensuring alignment between executive
leadership and Board oversight.
Following Tom’s transition to Managing
Director, in December 2024 we announced
the appointment of James McCullough as
our new Chief Financial Officer, who will be
joining the Company on 1 May 2025. James
brings a wealth of technical, financial and
strategic expertise, having previously served
as General Manager – Group Strategy at Rio
Tinto plc.
As part of our commitment to strong
governance, the performance of the Board
is reviewed annually. In 2024 the Board
decided that a deferral of the external Board
performance review until 2025 would be
beneficial, given the significant leadership
changes during the year. As a result, in
late 2024, a Board performance review was
carried out internally. The review found that
the Board, Committees and Chair performed
effectively during 2024 but suggested
changes to Board meeting papers and
structure. These will be incorporated, where
appropriate, into the Board objectives for
2025 and an action plan.
Outlook
As we announced on 6 March 2025 in
response to press speculation, Kenmare
received a non-binding proposal from a
consortium consisting of Oryx and Michael
Carvill regarding a possible all cash offer
for the Company. The most recent proposal
received was at a price of 530 pence per
Kenmare share. The Board considered
the terms of the consortium’s proposal
and unanimously rejected it on the basis
that it undervalued our business and its
future potential. However, to facilitate the
improvement of the financial terms of its
proposal, Kenmare has now provided the
consortium with access to limited due
diligence information. We will provide further
updates on the possible offer as appropriate.
We are acutely aware that we are living
through uncertain times, with an increasingly
complex geopolitical landscape and a
challenging global economic backdrop. These
factors present a degree of unpredictability
that can affect all aspects of our business
from our operations to the market. However, I
remain optimistic about Kenmare’s future. We
have a strong, capable team, a tier-one asset,
and a market-leading position in the industry.
Our continued success will also be driven
by our commitment to our purpose of
“Transforming resources into opportunity for
all.” We will continue to live up to this purpose
in the years ahead as we strive to deliver
value for all stakeholders, including our
employees, host communities, shareholders,
customers and other partners, both in
Mozambique and globally.
Acknowledgements
In closing, I would like to extend my thanks
to everyone who has contributed to
Kenmare’s continued success over the past
year. I am grateful to my colleagues on the
Board for their strategic insight, as well as
to Kenmare’s employees and contractors
for their professionalism and expertise. Our
operations are deeply embedded in the
villages surrounding Moma, and I would like
to express my sincere appreciation to the
local communities for their ongoing support
and partnership.
To our shareholders and other valued
stakeholders, thank you for your trust and
confidence in Kenmare. As we move forward
into another year, we do so with a shared
commitment to delivering on our strategic
objectives and making a positive impact for
all. I am confident that, with the strength of
our team and the resilience of our business
model, we will continue to navigate the
challenges ahead and seize the opportunities
that lie before us.
ANDREW WEBB
Chairman
Read more about
Kenmare’s strategy
on pages 16 to 19
Read more about
Kenmare’s new purpose
on pages 2 to 3
USc32.0
2024 full dividend
per share
12%
Emissions target exceeded
in 2024, relative to 2021
baseline
07
Kenmare Resources plc
Annual Report and Accounts 2024
STRATEGIC REPORT
It is with great pleasure that
I present my first Managing
Director’s statement, following
my appointment in August
2024. It is a privilege to
succeed Michael Carvill, whose
leadership of Kenmare for 38
years saw it grow from a pure
exploration business to occupy
a leading position in the global
mineral sands industry.
During 2024 we articulated a clear purpose
for the Company: ‘Transforming resources into
opportunity for all.’ The purpose statement was
developed through an extensive consultation
process involving employees at all levels of
the business. It encapsulates our commitment
to using our extensive Mineral Resources,
financial strength, and experienced team
to create value for all stakeholders, from
employees and communities to shareholders,
customers and host Government.
2024 was a year of strong operational
performance. We exceeded the midpoint
of our ilmenite production guidance and
achieved the upper end of guidance for all
other products. We also made significant
progress on the project to upgrade our largest
mining plant, Wet Concentrator Plant (WCP)
A, and transition it to the Nataka ore zone. The
project budget remains in line with previous
guidance of $341 million, with commissioning
of the plant’s new module and the two new
higher-capacity dredges to begin in Q3 2025.
Despite weaker market conditions, we
delivered a solid financial performance.
EBITDA was $157.1 million, with a strong
EBITDA margin of 40%, in line with our
expectations. The Board is recommending a
dividend of USc32.00 per share for 2024.
Nonetheless, 2024 had its difficulties, with
the October general election in Mozambique
leading to protests and disruption across the
country, including near Moma. Despite these
challenges, the resilience and dedication of
our team on site was unwavering, and I would
like to extend my sincere thanks to them.
As we announced on 6 March 2025, Kenmare
received an unsolicited proposal from a
consortium comprising Oryx Global Partners
and Michael Carvill regarding a possible all
cash offer for the Company. We will update
the market on this approach in line with the
Irish Takeover Rules, however throughout
this process, our focus continues to be on
safe and efficient delivery in our day-to-day
operations and development projects.
Safety
Safety remains our highest priority and I am
pleased to report that we continued to improve
our safety performance in 2024. In December,
we achieved two million hours worked without
a Lost Time Injury and in mid-March 2025
this increased to four million hours. Our Lost
Time Injury Frequency Rate for the year
improved to 0.06, compared to 0.15 in 2023,
and we achieved our lowest-ever All Injury
Frequency Rate of 0.93, reflecting our strong
safety culture and the success of the “Trabalho
Seguro” or “Safe Work” campaign.
However, we were deeply saddened by
two fatalities that occurred during the
year. The first fatality was found to be
the consequence of criminal behaviour,
resulting in prison sentences for those found
responsible. The second fatality was outside
of the Company’s direct area of operation,
where the Development Projects team
were transporting a pontoon by road to the
Mine under escort. Tragically, a member of
the public was hit by the moving convoy.
Both incidents were fully investigated and
were deemed non-recordable according
to the International Council on Mining and
Metals safety accounting principles that we
use. Ensuring the safety and wellbeing of
everyone associated with our activities is a
priority for Kenmare and we are focused on
improvement in 2025 and beyond.
Sustainability
A personal highlight of 2024 was attending
the Long Service Awards Ceremony at
Moma in September, where nearly 400 team
members were recognised for their 10, 15, 20,
25, and even 30 years of service.
Kenmare has always had a strong commitment
to our host communities. We established the
Kenmare Moma Development Association
(KMAD) over 20 years ago and 2024
“OUR PURPOSE WILL
CONTINUE TO GUIDE
US AS WE STRIVE TO
CREATE SUSTAINABLE
VALUE FOR ALL
STAKEHOLDERS.”
TOM HICKEY
Managing Director
TOM HICKEY
Managing Director
Kenmare Resources plc
Annual Report and Accounts 2024
08
MANAGING DIRECTOR’S STATEMENT
highlights included commencing construction
of a district hospital and providing funding for
28 new small businesses.
On the environmental front, we are proud to
have exceeded our target of a 12% reduction in
our emissions (Scope 1 & 2) between 2021 and
2024. We have now set 2030 targets, including
a 30% reduction in our emissions, relative to a
2021 baseline, which put us firmly on the path
to achieve our Net Zero ambition by 2040.
Operational performance
In 2024 we produced over one million tonnes
of ilmenite; this achievement was supported by
record excavated ore volumes due to improved
mining conditions that allowed throughputs
to reach their highest ever annual rates. We
also exceeded the upper end of the guidance
ranges for all other products, benefitting from
improved recoveries.
Shipments rose by 4% in 2024 compared to
2023, driven by consistently strong customer
demand and increased production. As part
of our continued focus on margin expansion,
we shipped a new concentrates product
on a trial basis in Q3, which is being sold
commercially in 2025.
Capital projects
2024 saw significant progress on the upgrade
of WCP A, ahead of its transition to the
Nataka ore zone, which hosts approximately
70% of Moma’s nine billion tonnes of Mineral
Resources. The principal components of the
new WCP A module were on site by year-end,
including the upfront desliming circuit, surge
bin, and screens, and the module is expected
to be commissioned in Q3. Work on the two
new higher capacity dredges is progressing
well, with fabrication due to complete in Q2, and
commissioning expected in Q3. Construction
of the Tailings Storage Facility began in Q1
and it is due to be commissioned in Q4. We
expect to see production benefits from Q4
and by year-end 2025 we anticipate to have
incurred more than 75% of the capital cost of
$341 million.
Kenmare also introduced a new Selective
Mining Operation (SMO) in 2024 and it
is already contributing to production for
2025. The SMO is designed to produce
approximately 50,000 tonnes of Heavy Mineral
Concentrate per annum and will support
ilmenite production in 2025 at levels broadly in
line with 2024, despite the downtime for WCP
A required to facilitate the dredge replacement
and plant upgrade. Due to its simple, modular
design, the capital expenditure for the SMO is
forecast to be less than $6 million.
Product market
In 2024, demand for Kenmare’s products
remained resilient, supported by strong
pigment production in China and Europe and
the continued growth of the titanium metal
market. However, pricing was impacted by
an increase in the supply of concentrates
to China, leading to a 14% decrease in our
average price received.
While the titanium minerals market saw
positive demand trends, the zircon market
remained challenging in 2024 due to
weakness in the Chinese market.
Despite these short-term pressures, titanium’s
strategic importance continues to grow. Several
regions, including Europe and the United States,
have designated it as a critical mineral. The
Company’s high product quality, diverse product
suite and long mine life make us a preferred
partner, including for new customers signed in
early 2025, and ensures we are well-equipped to
manage market fluctuations.
Implementation
Agreement
In connection with the Implementation
Agreement extension, Kenmare has been
discussing certain modifications to the
applicable investment regime to obtain
the agreement of the Government of
Mozambique, notwithstanding Kenmare’s
clear right to such an extension. Although
the proposal described in the Company’s
2024 Preliminary Results announcement
was not approved by the Mozambican
Council of Ministers, Kenmare continues to
engage constructively with the Government
while reserving the right to safeguard its
contractual entitlements via all means,
including international arbitration, if an
agreement cannot be reached. Although the
original expiry date was 21 December 2024,
the Ministry of Industry and Commerce
provided confirmation that Kenmare’s existing
rights and benefits remain in full force and
effect pending conclusion of the extension
process.
Outlook and
acknowledgements
As 2025 progresses, we see strong demand
for our products continuing, enabling us to
generate strong cash flow even during periods
of weaker pricing. This resilience in our business
model will be critical as we continue to execute
our important development projects.
We are excited to welcome James McCullough
as our new Chief Financial Officer, who will be
joining Kenmare on 1 May 2025. James brings
a wealth of technical, financial, and strategic
experience, with keen financial discipline being
particularly important as we progress our
capital programme.
On a personal note, I would like to express
my sincere thanks for the support and
encouragement I have received during my
first seven months as Managing Director and
I look forward to continuing to work alongside
such a talented and committed team. I
would also like to extend my gratitude to
our shareholders, customers, and partners in
Mozambique for their continued support.
Our purpose of ‘Transforming resources into
opportunity for all’ will continue to guide us
as we strive to create sustainable value for all
stakeholders. Together, we are well-positioned
to navigate the future with confidence and
I look forward to the continued success of
Kenmare in the years to come..
TOM HICKEY
Managing Director
Read more about Kenmare’s
sustainability strategy
on pages 40 to 41
Read more about Kenmare’s
development projects
on pages 28 to 31
$157.1m
EBITDA in 2024
09
Kenmare Resources plc
Annual Report and Accounts 2024
STRATEGIC REPORT
1
%
3
%
P
A
P
E
R
7
%
P
L
A
S
T
I
C
S
2
5
%
P
A
I
N
T
S
A
N
D
C
O
A
T
I
N
G
S
5
6
%
O
T
H
E
R
8
%
Pharmaceuticals
Electronic
equipment
Household
equipment
Packaging
Books
Toys
Furniture
Cosmetics
House paints
& coatings
Industrial paints
& coatings
Car paints
& coatings
Ship paints
& coatings
Home
furnishings
Clothing
Newspapers
& magazines
Stationery
7Mt
Titanium dioxide
pigment consumption
88%
TITANIUM
DIOXIDE
PIGMENT
4%
WELDING APPLICATIONS
AND OTHER
8%
TITANIUM
METAL
8.5Mt
OF TITANIUM
DIOXIDE UNITS
PRODUCED
GLOBALLY
Kenmare has two core product streams: titanium feedstocks (ilmenite and
rutile) and zircon, which is a zirconium mineral. Ilmenite is the Company’s
primary product, typically representing more than 70% of revenue.
Kenmare also produces a small quantity of monazite, which is a mineral
containing rare earth elements, as part of a mixture of products in a
concentrate.
Titanium and zirconium minerals are known for imparting the qualities of
whiteness and opacity in the products in which they are consumed. These
products can be found in many areas of everyday life.
Titanium feedstocks
The production of titanium dioxide pigment accounts for almost 90% of the
demand for titanium feedstocks, such as ilmenite and rutile, with smaller
quantities used to produce titanium metal and welding electrode fluxes.
In 2024, global titanium feedstock production generated revenue of $5.3 billion
and the titanium dioxide pigment industry generated revenue of approximately
$20.0 billion.
USES OF TITANIUM MINERALS
TITANIUM DIOXIDE PIGMENT CONSUMPTION
1.01Mt
Ilmenite produced by
Kenmare In 2024
6%
of global titanium
feedstock production
Kenmare Resources plc
Annual Report and Accounts 2024
10
KENMARE’S PRODUCTS
19%
PRIMARY
ZIRCON
6%
CONCENTRATES
2%
RUTILE
73%
ILMENITE
$392.1m
MINERAL
PRODUCT
REVENUE
REVENUE BY PRODUCT
F
O
U
N
D
R
Y
1
2
%
R
E
F
R
A
C
T
O
R
Y
1
7
%
C
E
R
A
M
I
C
S
4
8
%
Z
I
R
C
O
N
I
A
A
N
D
Z
R
C
H
E
M
I
C
A
L
S
2
1
%
2
%
O
T
H
E
R
Sanitary ware
Surface tops
Dentistry
Floor tiles
1.2Mt
Zircon
consumption
Zircon
Zircon sand is an important feedstock to a wide range of industries, of which
the ceramics sector is the largest consumer, due to zircon’s brilliant whiteness.
Zircon is also used in refractory, foundry and chemical applications, which are
essential to modern manufacturing.
In 2024, the zircon sand supply sector generated revenue of approximately
$2.2 billion, with Europe and Asia being the largest markets.
Ilmenite is Kenmare’s primary product,
representing 73% of revenue in 2024.
The relative percentages of the different
products sold change with the pricing of
the commodities as well as the volumes of
shipments made, which can vary from one
period to the next.
ZIRCON CONSUMPTION
Read more about
Kenmare’s product markets
on pages 20 to 23
50.5kt
Zircon produced by
Kenmare in 2024
6%
of global zircon
production
11
Kenmare Resources plc
Annual Report and Accounts 2024
STRATEGIC REPORT
Purpose: Transforming resources into opportunity for all
Operate responsibly:
`
Prioritising health and safety, managing environmental impacts, and creating
shared prosperity for host communities
Deliver long-life, low-cost production:
`
A globally significant titanium minerals deposit - Moma’s mine life exceeds
100 years
`
A market-leading position, accounting for 6% of global titanium feedstocks
Allocate capital efficiently:
`
Delivering significant shareholder returns: 20-40% of profit after tax dividend
policy; approximately $295 million returned to shareholders since 2019
`
A strong balance sheet - funding shareholder returns and capital programme
Kenmare’s unique value
proposition centres on
environmentally responsible
practices, showcasing
a robust track record in
sustainability, innovation, and
technological integration.
Mine planning
Mining is scheduled using Proved
and Probable Ore Reserves.
Mining and
rehabilitation
Mineralised sands
are mined by
dredges before the
area is rehabilitated.
Concentrating
The Wet
Concentrator Plants
produce Heavy
Mineral Concentrate
(HMC).
Processing and
separation
The Mineral Separation
Plant processes HMC
and produces ilmenite,
rutile, zircon and
concentrates.
Vision
To be a leading titanium
minerals producer with a
consistent low cost profile
Strategy
Operate
responsibly
Deliver long-life,
low-cost
production
Allocate capital
efficiently
Values
Integrity
Commitment
Accountability
Respect
Excellence
Kenmare's
PURPOSE
Transforming resources
into opportunity
for all
Export
Finished products
are exported by sea
to customers around
the world.
INPUTS
BUSINESS MODEL & STRATEGY
Intellectual capital
`
Geology
`
Metallurgy
`
Product market expertise
`
Country knowledge
Human capital
`
>1,700 employees and >1,370 contractors.
Their skills and expertise, plus the culture of
the Company, contribute to Kenmare’s three
strategic pillars
`
97% of employees are located at the Moma
Mine and 3% at corporate offices
Social licence to operate
`
The Kenmare Moma Development Association
(KMAD) implements development initiatives
benefitting the ~55,000 community members
who are directly or indirectly impacted by
the Mine
`
Foundation agreements with the Government
of Mozambique allow the Mine to operate and
provide fiscal stability
`
Relationships with suppliers support Kenmare’s
safe delivery of production
`
Relationships and contracts with Kenmare’s
customers and the market reputation of the
Company’s products help to drive revenues
Natural capital
`
>40 million tonnes of ore are excavated to
create Kenmare’s products
`
254,398,145 m
3
of freshwater are used to
process the products and 90% is re-used
Financial capital
`
$200 million Revolving Credit Facility in place
`
$341 million capital cost estimate for Wet
Concentrator Plant A upgrade and transition
What Kenmare does
Kenmare Resources plc
Annual Report and Accounts 2024
12
KENMARE’S BUSINESS MODEL AND STRATEGY
SBM-1
BUSINESS MODEL & STRATEGY 2030 GOALS VALUE CHAIN
Operational and financial:
`
Optimise operational efficiency by increasing
production to fully utilise the capacity of the
Mineral Separation Plant
`
Maintain Kenmare’s consistent low-cost
profile
`
Retain Kenmare’s market-leading position
by continuing to build and maintain strong
customer relationships in growth markets
for the Company’s products
`
Continue to allocate capital efficiently,
balancing shareholder distributions with
funding investment in growth
`
Deliver development projects to secure
future production and cash flow from Moma
Environmental:
`
30% reduction by 2030
(Net Zero (Scope 1 & 2) by 2040)
`
On track to deliver 15% Net Gain in
biodiversity
`
85-90% water re-use
`
Assure tailings are aligned and audited to
GISTM
2
/GTMI
3
Social:
`
Zero workforce fatalities; 20% YoY reduction
on LTIFR vs three-year rolling average
`
22% female representation in workforce
`
Gender parity in leadership
`
25% Mozambican leadership
`
KMAD outcomes audited
`
Increase local procurement
Governance:
`
Ensure on-site suppliers achieve 85%
compliance with Supplier Code of Conduct
`
Gain external assurance of public security
forces upholding Voluntary Principles on
Security and Human Rights
Customers
`
25 customers operating in
15 countries including China, Europe,
India and the US
REVENUE BY DESTINATION
21%
EUROPE
15%
USA
26%
ASIA
(EXCL. CHINA)
37%
CHINA
$392.1m
MINERAL
PRODUCT
REVENUE
Figures may not add due to rounding.
Communities
`
KMAD, the not-for-profit association
funded by Kenmare, invests ~$3-4 million
per annum on discretionary social
development programmes focused on
livelihoods and economic development,
healthcare development, education
development, and improving access to
water and sanitation
End products
`
Kenmare’s high-quality mineral sands
products, ilmenite, zircon, rutile and
concentrates, are key raw materials
ultimately consumed in everyday
“quality-of-life” items, such as paints,
plastics, ceramic tiles, household
equipment, electronic equipment,
packaging, books, cosmetics and
pharmaceuticals. According to TZMI’s
research, Kenmare’s carbon intensity is
one of the lowest in the industry.
1
No revenues from coal, oil, gas, chemicals, controversial
weapons, tobacco
2
Global Industry Standard on Tailings Management
3
Global Tailings Management Institute
SUSTAINABILITY IMPACTS,
RISKS AND OPPORTUNITIES
SBM-3
Kenmare has identified
through the Double Materiality
Assessment the following
topics. Some of these are
aligned to the Corporate
Sustainability Reporting
Directive (CSRD)’s defined
European Sustainability
Reporting Standards (ESRS)
and some are specific to
Kenmare - more information
is available about these on
pages 44 to 47. The ESRSs are
labelled according to whether
they are an Environmental (E),
Social (S) or Governance (G)
related topic.
Positive impacts
S1 Staff training and
development
S1 Diversity and inclusion
Potential negative impacts
E2 Pollution
E4 Biodiversity
S1 Kenmare labour practices
S1 Measures against violence
and harassment
S3 Land-related impacts
Risks and opportunities
E1 Climate change
E1 Energy efficiency
E3 Water stewardship
S1 Health and safety
S1 Human rights
G1 Bribery and corruption
Kenmare topic: Tailings
storage
Kenmare topic: Social licence
to operate
Kenmare topic:
Socio-economic development
13
Kenmare Resources plc
Annual Report and Accounts 2024
STRATEGIC REPORT
KENMARE WORKFORCECUSTOMER WORKFORCE SUPPLY CHAIN WORKFORCE
Downstream Own operations
Supply chain / Upstream
Electricity generation
(hydropower)
5
8
9
10
15
Employment opportunities
and skills development in
Mozambique
Relocation of
some houses
6
7
Land clearance
1
12
16
5
10 1
12
16
5
10
15
Delivering on agreements with Kenmare’s customers, including:
Titanium dioxide pigment producers –
pigment used to make paint, paper, plastics
and other ‘quality-of-life’ items
Titanium sponge producers - titanium sponge
used to make titanium metal products in sectors
such as aircraft, space, defence, industrial,
medical, and sporting markets (golf clubs)
The remaining 4% is used in
welding applications
Ceramics producers - ceramics are used to
make end products such as kitchen/bathroom
tiles and sanitary ware
MINING
1
2
6
12
3
4
5
7
8
9
14
15
Evaluation
The mine plan is
designed
Mining
Dredging takes place
Wet Concentrator
Plant (WCP)
The first processing stage
Dune
Rehabilitation
Heavy Mineral
Concentrate
HMC is pumped to
the Mineral Separation
Plant (MSP)
Materials for energy
generation
Mining of minerals
and metals
Supplier
management
Wildlife habitats
Kenmare Resources plc
Annual Report and Accounts 2024
14
KENMARE’S VALUE CHAIN
SBM-1
SBM-3
Kenmare’s value chain helps
the Company to create a
competitive advantage by
delivering the most value for all
stakeholders, while maintaining
disciplined cost management.
It also shows where Kenmare’s
material sustainability-related
impacts, risks and opportunities
occur across the Company’s full
value chain.
Strategy key
E
A healthy natural environment
S
Thriving communities
A safe and engaged workforce
G
Trusted business
High impact, financially material
1
E1 Climate change
2
E3 Water stewardship
3
Kenmare topic Tailings storage
4
Kenmare topic Social licence to operate
High impact, financially less material
5
S1 Health and safety
6
E4 Biodiversity
7
S3 Land-related impacts
8
S1 Diversity and inclusion
9
S1 Training and development
10
S1 Human rights
11
Kenmare topic Socio-economic
development
12
E1 Energy efficiency
13
G1 Bribery and corruption
Low impact, financially less material
14
S1 Measures against violence and
harassment
15
S1 Labour practices
16
E2 Pollution
5
9
10
13
Supply chain workforce
1
Fabrication of
equipment used
in mining and
processing operations
in Mozambique and
worldwide
1
Fabrication of consumables
used in mining and
processing operations in
Mozambique and worldwide
11
Taxes and royalties
paid to Government
of Mozambique
11
Investment into
community
development
initiatives
1
16
Customer vessels transporting
products around the world
1
12
16
5
10 1
12
16
5
10
15
Delivering on agreements with Kenmare’s customers, including:
Titanium dioxide pigment producers –
pigment used to make paint, paper, plastics
and other ‘quality-of-life’ items
Titanium sponge producers - titanium sponge
used to make titanium metal products in sectors
such as aircraft, space, defence, industrial,
medical, and sporting markets (golf clubs)
The remaining 4% is used in
welding applications
Ceramics producers - ceramics are used to
make end products such as kitchen/bathroom
tiles and sanitary ware
PROCESSING
1
2
12
3
4
5
8
9
14
15
STORAGE AND EXPORT
Wet High Intensity
Magnetic Separation
Magnetic, gravity
and electrostatic
separation
Product storage
warehouse
Conveyor,
jetty and
transshipment
vessels
Ocean-going
bulk carrier
The vessels transport
the products to
a deep water
transshipment point
10 km offshore
Transport
Rare Earth Elements (REEs) including
monazite contribute to the energy
transition in permanent magnets in wind
turbines and electric vehicle motors
15
Kenmare Resources plc
Annual Report and Accounts 2024
STRATEGIC REPORT
KENMARE’S VISION IS
TO BE A LEADING
TITANIUM MINERALS
PRODUCER WITH
A CONSISTENT
LOW‑COST PROFILE
The Company will deliver this vision through
its strategy and its commitment to being
a responsible corporate citizen. Kenmare’s
strategy is built around the three pillars of:
1) Operating responsibly
2) Delivering long-life, low-cost production
3) Allocating capital efficiently
Key Performance Indicator (KPI) key
Lost Time Injury
Frequency Rate (LTIFR)
EBITDA
Greenhouse Gas
(GHG) emissions
Profit after tax
Gender
diversity
Total capital
expenditure
Production of
finished products
Net cash/(debt)
Shipments
Shareholder
returns
Cash costs
Return on
Capital Employed
Risk key
Strategic risks Operational risks
Financial risks
1
Permitting, licensing
and Government
agreement risk
2
Country risk
3
Geotechnical risk
4
Weather conditions
5
Uncertainty over
physical characteristics
of the orebody
6
Loss of production
due to power supply
and transmission
interruption
7
Asset damage or loss
8
Health, Safety and
Environment
9
Material misstatement
in the Ore Reserves &
Mineral Resource table
10
IT security risk
11
Development project risk
12
Industry cyclicality
13
Customer and/or
market concentration
14
Foreign currency risk
15
Unanticipated cost
inflation
16
Kenmare Resources plc
Annual Report and Accounts 2024
KENMARE’S STRATEGIC PRIORITIES
Long-term priorities
Kenmare is focused on:
`
Maintaining a safe and engaged workforce
`
Supporting thriving communities
`
Protecting a healthy natural environment
`
Being a trusted business
Performance in 2024
Kenmare’s Lost Time Injury Frequency Rate improved to 0.06 per
200,000 hours worked in 2024, compared to 0.15 in 2023, and
Kenmare achieved its lowest ever All Injury Frequency Rate of
0.93. Highlights of the year for the Kenmare Moma Development
Association (KMAD) included commencing the construction
of a new district hospital, which will be supported by the three
community health centres previously built by KMAD, and the
construction or repair of a further three water supply systems.
Kenmare also exceeded its target of reducing emissions (Scope
1 & 2) by 12% by the end of 2024, compared to a 2021 baseline,
primarily through its investment in the Rotary Uninterruptible
Power Supply and improved efficiencies in the Mineral
Separation Plant.
Outlook for 2025
Kenmare intends to build on the strong safety performance
achieved in 2024 and to continue to provide opportunities for the
development of its workforce in 2025. Construction of phase one
of the new district hospital is expected to be completed by KMAD
in mid-2025 as well as connecting the villages of Naholoco and
Cabula to the national power grid to enable access to electricity.
The Company also plans to build a river crossing between
Pilivili and Mpuitine, upgrading a key access point to the city
of Nampula. Kenmare intends to finalise its Biodiversity Offset
Management Plan to deliver 15% Net Gain in biodiversity and seek
Government approval on its application for the protected legal
status of the endangered and endemic Icuria forest. To progress
its decarbonisation goals, the Company also plans to investigate
other opportunities to reduce its carbon emissions.
OPERATE RESPONSIBLY
Sustainability is central to Kenmare’s business. The Company has a proven commitment to being
a trusted corporate citizen during its almost 40-year history and it aims to continually improve its
environmental, social, and governance performance. Kenmare’s sustainability strategy, comprised
of four strategic priorities, ensures it maximises value and creates opportunities from the Moma
Mine for the benefit of all stakeholders.
0.93
All Injury Frequency Rate per
200k hours worked
Case study:
BIODIVERSITY OFFSET
MANAGEMENT PLAN
Biodiversity underpins the stability of ecosystems, providing many
of the essential ingredients for human life, such as clean air, water
and fertile soil. Forests, wetlands and oceans act as carbon sinks,
absorbing CO
2
and mitigating global warming. Biodiversity also
contributes an estimated $44 trillion to the global economy by
supporting agriculture, fisheries, medicine and tourism. During
2024, Kenmare began the development of its Biodiversity Offset
Management Plan (BOMP) to deliver a 15% Net Gain in biodiversity,
targeting material progress towards this goal by 2028. The BOMP
was developed in line with the Government of Mozambique’s
Ministerial Diploma 55 and involved extensive public consultation.
Kenmare will work to obtain approval for its BOMP in 2025. It will
undergo further iterations to finalise the quantification of indirect
and cumulative impacts.
Links to KPIs Links to risks
1
8
17
Kenmare Resources plc
Annual Report and Accounts 2024
STRATEGIC REPORT
Long-term priorities
Kenmare is focused on:
`
Unlocking the value of Moma’s nine billion tonnes of
Mineral Resources, initially through the transition of Wet
Concentrator Plant (WCP) A to the Nataka ore zone
`
Delivering consistent ilmenite production, with 20+ years’
mine life visibility
`
Maintaining a low-cost profile
Performance in 2024
HMC production in 2024 was 1,446,600 tonnes, broadly in
line with 2023 (1,448, 300 tonnes). 2024 represented a new
annual record for excavated ore volumes, which were up 7%
year-on-year (YoY). This partially offset the 5% decrease in ore
grades YoY, as WCP A approaches the end of its mine path
in Namalope. Total cash operating costs were $243.6 million,
up 7% YoY, due primarily to increased staff costs as a result of
increased headcount and wage rates and higher power costs.
By year-end 2024, all of the principal components for the
WCP A upgrade project were at Moma and 75% of the project
budget of $341 million was committed.
Outlook for 2025
Production in 2025 is anticipated to be in line with 2024.
The WCP A upgrade project is advancing to schedule, with
commissioning expected to begin during Q3. It will then begin
its transition to Nataka. The new Selective Mining Operation
is expected to support Kenmare’s ability to maintain 2024
production levels despite the planned downtime for WCP A
required to connect the new module and the dredges to the
plant. Total cash operating costs in 2025 are anticipated to be
broadly in line with 2024 at $228-252 million.
>100 years
Moma’s mine life
Deliver long-life, low-cost production
Kenmare is the world’s largest supplier of ilmenite and the Moma Mine is one of the largest titanium
minerals deposits in the world. The Company has a consistently low-cost profile, allowing it to
generate strong cash flow at all stages of the commodity price cycle. With over 100 years of Mineral
Resources at its current production rate, Kenmare has significant potential for growth when market
conditions are right.
Case study:
WCP A UPGRADE
Nataka is the largest ore zone in Moma’s portfolio and mining
this area is key to securing production from Moma for decades
to come. Kenmare is upgrading its largest mining plant, WCP
A, ahead of its transition to Nataka from late 2025. This work
includes installing a new module with an upfront desliming
circuit and two new higher-capacity dredges. Work on the
WCP A upgrade advanced significantly during 2024 and the
total capital cost of the WCP A upgrade and transition to
Nataka remains on budget at $341 million, including $52 million
contingency, which will principally be incurred between
2024 and 2027. Kenmare is funding the capital cost of this
project through existing cash, operational cash flows and its
$200 million Revolving Credit Facility.
Links to KPIs Links to risks
1
2
3
5
6
7
9
11
12
13
14
15
Kenmare Resources plc
Annual Report and Accounts 2024
18
KENMARE’S STRATEGIC PRIORITIES
CONTINUED
Long-term priorities
Kenmare is focused on:
`
Maintaining a strong and flexible balance sheet
`
Continuing to make robust shareholder returns
`
Developing value accretive growth opportunities
Performance in 2024
Since 2019, Kenmare has made $295 million of shareholder
distributions, including the 2024 final dividend. Total dividends
in 2024 are $28.6 million, representing 40% of profit after tax
on an adjusted basis, at the upper end of the dividend policy.
The Company had net debt of $25.0 million at year-end and
supported by ongoing cash generation, available current
assets and its $200 million Revolving Credit Facility, Kenmare
remains well-capitalised to fund the WCP A capital project and
its dividend programme.
Outlook
The Company continues to be focused on making shareholder
returns, balanced with the necessary investment in the
long-term future of the business. Following the completion
of the upgrade work, WCP A will begin its transition to the
Nataka ore zone and the capital invested in this project will
secure future production from Moma. In addition, Kenmare’s
corporate development team continues to assess potential
opportunities for organic and inorganic growth.
Allocate capital efficiently
Kenmare continuously assesses the best ways to deploy the capital generated from its activities to
ensure it creates value for all stakeholders. A strong balance sheet provides the platform to fund
the Company’s capital requirements, while a dividend policy was established in 2018 to provide
returns to shareholders. The Company also undertakes occasional share buy-backs. Additionally,
Kenmare works hard to uncover, assess and develop value accretive projects to deliver growth.
$28.6m
2024 dividend distribution
Case study:
SELECTIVE MINING
OPERATION
During 2024, Kenmare invested in a Selective Mining Operation
(SMO). This new small-scale dredge-mining and concentrating
operation will enable mining in peripheral areas of Moma’s
Mineral Resources that are not accessible by the larger WCPs or
existing dry mining operations. The SMO is expected to produce
approximately 50,000 tonnes of HMC per annum, supporting
Kenmare’s ability to deliver ilmenite production in 2025 that is
broadly in line with 2023 and 2024 levels, despite the planned
downtime required for the WCP A upgrade. Commissioning of
the SMO commenced in late January 2025 and the project is on
budget, with a capital cost of less than $6 million.
Links to KPIs Links to risks
1
2
6
7
11
12
13
14
15
19
Kenmare Resources plc
Annual Report and Accounts 2024
STRATEGIC REPORT
MARKET REPORT
A summary of the marketplace
Kenmare’s shipments increased by 4% in 2024, reflecting consistently strong customer demand
for the Company’s products and higher production volumes. Demand for Kenmare’s ilmenite in
the beneficiation market grew again in 2024, partially supported by further growth in titanium
metal. However, the average price received decreased by 14% compared to 2023, as expected, due
to increased supply outweighing demand in the short-term. Nevertheless, customers continued
to favour Kenmare’s high-quality products and stability of supply, which supported sales of the
Company’s products throughout 2024 and this is continuing in 2025. Kenmare was also pleased to
sign two new long-term supply agreements in early 2025. The Company believes the fundamentals
for its products are strong, due primarily to medium- and long-term supply constraints within the
titanium feedstocks industry and the favourable characteristics of its products.
The macroeconomic
environment
Global demand for titanium feedstocks
reached a record high during the year,
supported by strong demand from emerging
markets such as Latin America and Asia
(excluding China). The titanium metal market
also continued to consume significant
quantities of titanium feedstocks due to its
growing production.
Titanium feedstock demand remains closely
linked to global economic growth and the
urbanisation of emerging markets. Despite
some volatility in 2024, global growth
continued at approximately 3% per annum,
although emerging economies grew at a
faster pace.
While China reported strong headline gross
domestic product (GDP) growth, the housing
market was very weak in 2024, resulting in
low domestic demand for titanium pigment.
Despite this, significant pigment capacity has
been built in China in recent years and, as a
result, Chinese pigment producers exported
record tonnes in 2024. While the European
Union’s (EU’s) anti-dumping duties reduced
Chinese exports to Europe, China increased
its exports to other regions, such as other
Asian countries, largely offsetting this impact.
Pigment production in Europe increased
significantly in 2024, as producers responded
to the reduced availability of Chinese
pigment. Both trends supported demand for
Kenmare’s ilmenite during the year.
In 2025, lower interest rates in major
economies are expected to bolster economic
growth, particularly in the construction and
manufacturing sectors, while emerging
markets continue to see strong growth.
However, geopolitical instability, protectionist
trade measures, and supply chain disruptions
- especially in key shipping routes - will
remain challenges.
20
Kenmare Resources plc
Annual Report and Accounts 2024
Kenmare’s products
FINISHED PRODUCT
SALES
H2
23
H1
23
H2
22
H2
24
H1
24
H1
21
H2
21
H1
22
Price (FOB $/t)
Volumes (’000 tonnes)
600
400
200
0
800
600
400
200
0
Titanium feedstocks
Kenmare supplies approximately 6% of global
titanium feedstocks through its ilmenite, rutile
and concentrates products. Titanium feedstocks
are “quality-of-life” minerals, with consumption
increasing as urban populations grow and
disposable income rises. Titanium minerals have
been classified as critical minerals by the EU and
the United States of America (USA) as they are
consumed to produce titanium pigment (accounting
for approximately 88% of demand) and titanium
metal, and are also used in the welding market.
Titanium pigment is used for its opacity and
brightness and currently has no substitutes of
comparable quality. Kenmare introduced a new
product to the market on a trial basis in Q3 2024: a
concentrate containing ilmenite, zircon, monazite
and rutile. The Company intends to sell it on a
commercial basis from 2025 onwards, with 25,000
tonnes included in Kenmare’s 2025 concentrates
production guidance.
Zircon
Kenmare is the fifth
largest supplier of zircon
globally through its sales
of four different products
containing zircon. The
ceramics industry accounts
for approximately half
of global zircon demand,
where it is the preferred
raw material due to its
unmatched opacifying
qualities, high refractive
index, and high melting
point. Zircon is also used in
the refractory and foundry
industries and zirconia
chemicals. Like titanium
minerals, zirconium is listed
as a critical mineral in the
EU and the USA.
Rare Earth Elements
(REEs)
Kenmare supplies REEs
through concentrates
products containing
monazite. Like Kenmare’s
other products, REEs are
listed as critical minerals in
the EU and USA. They are
consumed in permanent
magnets crucial to fast-
growing markets, such as
those for electric vehicles
and wind turbines.
2024 REVENUE
BY PRODUCT
19%
PRIMARY
ZIRCON
6%
CONCENTRATES
2%
RUTILE
73%
ILMENITE
$392.1m
MINERAL
PRODUCT
REVENUE
Key product markets information
ILMENITE
SALES
H2
23
H1
23
H2
22
H2
24
H1
24
H1
21
H2
21
H1
22
Price (FOB $/t)
Volumes (’000 tonnes)
400
300
200
100
0
800
600
400
200
0
STRATEGIC REPORT
21
Kenmare Resources plc
Annual Report and Accounts 2024
Kenmare’s markets in 2024
Titanium feedstocks
Demand for titanium feedstocks rebounded in
2024, following two years of decline, driven by
growth in both the titanium pigment and metal
markets. However, supply increased to meet
demand, resulting in prices of ilmenite and
rutile softening in 2024 compared to 2023.
Kenmare saw strong demand from the
beneficiation market again in 2024, with more
production capacity added, particularly in
China. The Company’s ilmenite remains a
preferred product for beneficiation due to
its low impurities. The titanium metal market
also grew strongly again and Kenmare
increased its sales to this market in 2024,
with the Company estimating that greater
than 20% of its ilmenite is consumed in the
titanium metal sector.
New titanium feedstock supply in 2024
primarily came from heavy mineral concentrate
being shipped to China for separation into
final ilmenite, rutile and zircon products.
Chinese producers in Mozambique remain the
largest supply component but there was also
increased supply from Sierra Leone, Indonesia
and Nigeria. The vast majority of these
concentrates are consumed in China, which
adds competition in the region.
Demand for titanium feedstocks is expected
to be steady in 2025 as the pigment market
continues its recovery, while the drivers for
titanium metal demand also look positive.
Kenmare is seeing healthy demand for
its ilmenite in H1 2025 from all regions
and end-markets.
Zircon
The zircon market faced another challenging
year in 2024, with minimal demand growth
and sufficient supply. This resulted in softer
prices in 2024 compared with 2023.
Demand for zircon has been hindered by weak
housing markets in developed economies,
particularly China, resulting in lower ceramics
demand for the past couple of years. There
were positive signs in the zircon market
in early 2024, with Kenmare’s customers
experiencing higher demand than in 2023,
which resulted in some price increases.
However, demand weakened again in H2 2024
and competition increased. Lower-quality
products entering the market gained market
share, reducing prices throughout the industry.
Kenmare’s zircon marketing strategy is to
form long-term partnerships in the industry.
As a result, the Company was able to sell
all of its zircon production in 2024. In China,
Kenmare’s customers produce high-quality
products from the Company’s concentrates
and have confidence that Kenmare can offer
stable supply due to Moma’s mine life of over
100 years.
In 2025, zircon demand is expected to
increase, with India being a particularly
strong growth market. While supply remains
sufficient to meet current demand, major
zircon producers continue to limit their
supply, which should support pricing.
Rare Earth Elements
Despite significant pricing volatility
throughout 2024, the long-term fundamentals
for monazite remain strong. The year began
with a downturn in monazite prices, as China
increased its production in order to reduce
global prices. Although there was a partial
recovery in Q3, market conditions weakened
again towards the end of the year. This
reduces the viability of new mines coming
into production, potentially curtailing the
influx of new supply into the mineral sands
market and supporting future pricing.
10
20
30
40
50
60
70
80
60% TREO (RMB/t)
Q1–16
Q3–16
Q1–17
Q3–17
Q1–18
Q3–18
Q1–19
Q3–19
Q1–20
Q3–20
Q1–21
Q3–21
Q1–22
Q3–22
Q1–23
Q3–23
Q1–24
Q3–24
MONAZITE PRICE
TITANIUM FEEDSTOCKS
MARKET SHARE
6%
KENMARE
94%
OTHER
ZIRCON
MARKET SHARE
25%
CHINA
27%
OTHERS
6%
KENMARE
42%
“BIG 3”
PRODUCERS
MINERAL SANDS CONCENTRATE
REVENUE SPLIT
8%
TITANIUM
25%
ZIRCON
67%
RARE EARTH
ELEMENTS
>20%
Kenmare ilmenite
consumed by titanium
metal market
Kenmare Resources plc
Annual Report and Accounts 2024
22
MARKET REPORT
CONTINUED
Medium- to long-term market opportunities
1. Increased production capacity for chloride slag
`
Chloride slag production capacity from independent producers is expected
to increase over the next three years
`
There is strong demand for high-quality, high-volume ilmenite from
dependable sources to feed this production process
`
Kenmare’s ability to provide a long-term supply of high-grade ilmenite means
that this product receives a price premium, supporting the Company’s
market-leading position
2. Growth in demand for titanium metal
`
Titanium metal’s superior strength-to-weight ratio (it is 43% lighter than
steel) positions it as a key sustainable material
`
Titanium is increasingly being integrated into aircraft manufacturing to
improve fuel efficiency due to its lightness compared to other traditional
materials like steel
`
There is potential for titanium applications to expand into other transport
sectors
`
Kenmare’s ilmenite is critical in the manufacture of key titanium metal
production inputs like chloride slag and synthetic rutile
Key trends in Kenmare’s markets
1. Pigment production growth in
China
In 2024, pigment production in China reached
record levels, growing by 14% year-on-
year. Despite the European Commission
proposing anti-dumping duties, Chinese
pigment exports remained robust due to
their competitive pricing, with producers
expanding market opportunities in Asia.
Meanwhile, European producers increased
their production in response to reduced
Chinese pigment availability, further
bolstering demand for Kenmare’s ilmenite as
they sought alternative sources.
2. Growing ilmenite supply from
concentrates
202320222021 20242018 2019 2020
‘000 Ti02 Units
1,000
900
800
700
600
500
400
300
200
100
0
The supply of concentrates in the global
market continued to increase in 2024, up
5% on 2023. This growth is largely facilitated
by new suppliers leveraging the excess
existing processing capacity in China, where
demand for these raw materials remains high.
Approximately 80% of this concentrates
supply came from Mozambique, however
supply also increased from other regions,
including Australia, Sierra Leone, and Nigeria.
3. Increased demand for ilmenite
suitable for beneficiation
202320222021 202420182017 2019 2020
Volume (kt)
600
500
400
300
200
100
0
The capacity for beneficiation, a process that
improves the economic value of a mineral
by removing waste minerals, has expanded
significantly in recent years. With chloride
slag production projected to increase by 11%
over the next three years, there is heightened
demand for high-quality ilmenite suitable for
this process. Kenmare’s ilmenite, known for
its low calcium oxide (CaO) and magnesium
oxide (MgO) content, meets these
requirements, making it a preferred choice
for producers. Consequently, the Company’s
ilmenite commands a premium price.
4. India’s growing influence on
the zircon market
Zircon consumption is increasing rapidly in
India, with a projected compound annual
growth rate (CAGR) of 5.14% to 2028,
significantly outpacing the global market
average CAGR of 2.68%. This robust growth
is being driven by sectors such as ceramics
and foundries, where it accounted for 11% and
10% of global demand in 2024, respectively.
However, despite this rising demand, India
remains a relatively small producer of zircon,
presenting a substantial opportunity for
foreign suppliers. Kenmare is supplying the
Indian zircon market through its mineral
sands concentrate product.
23
Kenmare Resources plc
Annual Report and Accounts 2024
STRATEGIC REPORT
Kenmare uses various financial and non-financial performance measures to help evaluate the ongoing
performance of its business.
Linked to the Group’s strategic objectives, the following measures are considered by management to be some of the most important in evaluating
Kenmare’s overall performance year-on-year.
Strategic key performance indicators
LOST TIME INJURY FREQUENCY
RATE (LTIFR)
GHG EMISSIONS GENDER DIVERSITY
0.06
(per 200k hours)
59,057
tonnes CO
2
e
17.43%
0.09
0.15
0.03
0.25
2220 21 23 24
0.06
66,513
57,141
70,437
59,521
2220 21 23 24
59,057
14.5
16.0
12.5
10.6
2220 21 23 24
17.43
DESCRIPTION
Measures the number of injuries per 200,000
hours worked at the Mine, which results in time
lost from work.
PERFORMANCE
Two Lost Time Injuries (LTIs) were recorded in
the 12 months to 31 December 2024, compared
to five in 2023, resulting in an improved rolling
12-month Lost Time Injury Frequency Rate
(LTIFR) of 0.06 per 200,000 hours worked
(31 December 2023: 0.15). In 2024, Kenmare
achieved its lowest ever All Injury Frequency
Rate of 0.93 per 200,000 hours worked.
Improved safety awareness has been promoted
by the delivery of leadership accountability
programmes; improvements to the “permit to
work” programme, hazard identification and
risk assessment protocols; and the ongoing
“Trabalho Seguro” (“Safe Work”) initiative.
OUTLOOK
Kenmare is committed to continual
improvement. In 2025, the Group will reinforce
its safety culture through strong safety
leadership, as well as continuing to improve
its hazard identification and risk assessment
practices. In mid-March 2025, Kenmare was
pleased to pass four million hours worked
without an LTI.
DESCRIPTION
Measures total Scope 1 and 2 Greenhouse Gas
(GHG) emissions. Kenmare acknowledges the
human contribution to climate change and aims
to reduce emissions from its already low carbon
intensity operations.
PERFORMANCE
Kenmare’s Scope 1 GHG emissions increased
by 3% in 2024, primarily due to increased
Mineral Separation Plant (MSP) diesel usage.
However, the Group exceeded its target of
reducing Scope 1 and 2 emissions by 12% by
year-end 2024, relative to the 2021 baseline.
OUTLOOK
Diesel emissions are forecast to increase in
2025, but Kenmare is working to offset these
with energy efficiency projects.
Kenmare has an ambition to achieve Net
Zero on its Scope 1 & 2 emissions by 2040,
through the decarbonisation of its operations.
Kenmare’s Climate Transition Plan is set out on
pages 50 to 60.
DESCRIPTION
Measures the percentage of female employees
at the Moma Mine. Kenmare recognises the
benefits to its business of supporting diversity,
equity, and inclusion for long-term sustainable
success.
PERFORMANCE
Kenmare is working to increase the number of
women in its workforce. At year-end, 17.43% of
Mine employees were women, compared with
16% in 2023.
OUTLOOK
By year-end 2025 ,Kenmare aims to increase
female representation within its Moma
workforce to 18.5%. The Group will progress its
structured programme to increase diversity,
including initiatives such as its target of 90%
of Technical Development Department training
candidates to be women.
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Kenmare Resources plc
Annual Report and Accounts 2024
KEY PERFORMANCE INDICATORS
Operational key performance indicators
PRODUCTION OF FINISHED
PRODUCTS
SHIPMENTS CASH COSTS
1,115,300
tonnes
1,088,600
tonnes
$243.6m
1,200,800
1,091,500
1,228,500
840,500
2220 21 23 24
1,115,300
1,075,600
1,045,200
1,285,300
853,100
2220 21 23 24
1,088,600
218.7
228.1
195.7
160.3
2220 21 23 24
243.6
DESCRIPTION
Provides a measure of production from the Mine
and is defined as finished products produced by
the mineral separation process (in tonnes).
PERFORMANCE
Heavy Mineral Concentrate (HMC) production
was broadly in line with 2023, although 2024
represented a new annual record for excavated
ore volumes, which were up 7% from 2023. The
increased ore volumes were partially offset by a
5% decrease in ore grades as Wet Concentrator
Plant (WCP) A approaches the end of its mine
path in Namalope. Finished product production
increased by 2% in the year. Ilmenite production
benefitted from improved recoveries and higher
ilmenite content in the HMC processed. There
was 17% increase in rutile production in 2024
due to improved recoveries following circuit
improvements. A new concentrates product
produced on a trial basis in 2024 will be sold
commercially in 2025.
OUTLOOK
In 2025, HMC production, and consequently
production of finished products, is expected to be
in line with 2024. HMC production is expected to
be at a consistent level throughout the year with
grades expected to be stronger in H1 than H2,
however excavated ore volumes are expected to
increase in H2 largely due to the commissioning
of the two new dredges at WCP A.
DESCRIPTION
Provides a measure of finished product
volumes shipped to customers during the
period (in tonnes).
PERFORMANCE
Shipment volumes in 2024 were 1,088,600
tonnes, a 4% increase compared to 2023,
supported by increased production of finished
products and benefitting from consistently
strong customer demand.
OUTLOOK
Shipment volumes are expected to increase in
2025 and exceed production. This performance
will be supported by higher year-end finished
product inventories of 287,200 tonnes (2023:
259,100 tonnes).
DESCRIPTION
Eliminates freights costs and non-cash costs to
identify the actual cash outlay for production
and, as production levels increase or decrease,
highlights operational performance by
providing a comparable cash cost per tonne of
finished product produced over time.
PERFORMANCE
Total cash operating costs increased by 7%
in 2024, compared to 2023. This was due to
higher operating costs, mainly due to increased
staff costs as a result of greater staff numbers
and wage rates and higher power costs. Cash
operating costs per tonne cost increased by 5%,
benefitting from the 2% increase in production
of finished products.
OUTLOOK
Total cash operating costs are anticipated to
be broadly in line with 2024. Cash operating
costs per tonne are likewise expected to remain
broadly in line with 2024 as production remains
similar year-on-year.
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Risk key
Strategic risks Operational risks Financial risks
1
Permitting, licensing
and Government
agreement risk
2
Country risk
3
Geotechnical risk
4
Weather conditions
5
Uncertainty over physical
characteristics of the
orebody
6
Loss of production due
to power supply and
transmission interruption
7
Asset damage or loss
8
Health, Safety and
Environment
9
Material misstatement
in the Ore Reserves &
Mineral Resource table
10
IT security risk
11
Development project risk
12
Industry cyclicality
13
Customer and/or
market concentration
14
Foreign currency risk
15
Unanticipated cost
inflation
Links to strategic priorities
Operate responsibly
Deliver long-life, low-cost production Allocate capital efficiently
25
Kenmare Resources plc
Annual Report and Accounts 2024
STRATEGIC REPORT
Financial key performance indicators
EBITDA PROFIT AFTER TAX TOTAL CAPITAL EXPENDITURE
$157.1m $64.9m $154m
298.0
220.3
214.2
75.7
2220 21 23 24
157.1
206.0
131.0
128.5
16.7
2220 21 23 24
64.9
59.9
69.7
60.3
141.5
2220 21 23 24
154
DESCRIPTION
Eliminates the effects of financing, tax and
depreciation to allow assessment of the
earnings and performance of the Group.
PERFORMANCE
EBITDA decreased by 29% compared to 2023.
This was the product of a 10% decrease in
mineral product revenue, as a result of a 14%
decrease in average price received, and total
cash operating costs increasing by 7%. It was
partially offset by a 4% increase in shipment
volumes.
OUTLOOK
Kenmare expects to generate strong EBITDA
in 2025 based on production guidance and
anticipated product pricing.
DESCRIPTION
Measures how well Kenmare is managing costs,
increasing productivity and generating the
most profit from its assets. It is also the basis
on which the Group’s dividend payout ratio is
assessed.
PERFORMANCE
Profit after tax in 2024 was down 50% on
2023 as a result of lower revenues and higher
operating costs in the financial year.
OUTLOOK
The Group believes the fundamentals for
future earnings remain strong, due primarily
to medium- and long-term supply constraints
within the titanium feedstocks industry
supporting a strong commodity market outlook.
DESCRIPTION
Provides the amount spent by the Group on
additions to property, plant and equipment in
the period.
PERFORMANCE
Capital expenditure increased significantly in
the year, with $102 million spent on the upgrade
work for WCP A ahead of its transition to the
Nataka ore zone. $8m related to studies and
the remaining $44 million related to various
other capital additions.
OUTLOOK
Expenditure on development projects and
studies is expected to be approximately
$155 million in 2025, with $150 million relating
to the WCP A project. The WCP A project
remains on budget, with a total cost estimate of
$341 million. Improvement projects are expected
to cost $16 million in 2025 and relate to a
number of initiatives, including upgrades to the
MSP and the anticipated purchase of a second
Selective Mining Operation (SMO).
Sustaining capital costs in 2025 are expected
to be approximately $29 million. Included in
sustaining capital in 2025 is the planned five-
yearly dry-dock of the Peg, one of Kenmare’s
transshipment vessels.
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Kenmare Resources plc
Annual Report and Accounts 2024
KEY PERFORMANCE INDICATORS
CONTINUED
Financial key performance indicators
NET CASH/(DEBT) SHAREHOLDER RETURNS RETURN ON CAPITAL EMPLOYED
($25.0m) $28.6m 7%
25.7
20.7
(85.0)
(67.4)
2220 21 23 24
(25.0)
51.5
50.0
82.7
11.0
2220 21 23 24
28.6
32.1
30.0
20
13
15
3
2220 21 23 24
7
DESCRIPTION
Total cash and cash equivalents less bank
loans and lease liabilities are a measure of the
Group’s financial leverage and an indication of
how Kenmare is managing its balance sheet
and capital structure.
PERFORMANCE
Kenmare finished the year with net debt of
$25.0 million (2023: net cash $20.7 million). This
comprised $56.7 million (2023: $71.0 million) of
cash and cash equivalents, debt of $80.4 million
(2023: $48.8 million), and lease liabilities of
$1.3 million (2023: $1.5 million).
OUTLOOK
Net debt is forecast to increase in 2025 as the
Group invests in the plant and infrastructure
required for the upgrade of WCP A ahead of its
move to Nataka. Net debt is expected to reduce
during 2026 as capital expenditure declines
significantly and operating cash flow is applied
to reduce debt.
DESCRIPTION
Shareholder returns comprise dividends and
share buy-backs.
PERFORMANCE
Shareholder returns in respect of 2024 were
$28.6 million, representing 40% of profit after
tax once adjusted to exclude non-recurring
items. Shareholder returns comprised an
interim dividend of $13.4 million and a final
dividend of $15.2 million, totalling $28.6 million.
The 2024 final dividend is to be approved by
shareholders at the Annual General Meeting.
OUTLOOK
Kenmare will maintain a target dividend payout
ratio of 20%-40% of underlying profit after tax,
as part of its strategic priority to allocate capital
efficiently.
Additional capital returns will be considered
against upcoming capital requirements
(particularly the upgrade and transition of WCP
A to Nataka), maintaining a strong balance
sheet, and market conditions.
DESCRIPTION
Return on Capital Employed (ROCE) is defined
as operating profit expressed as a percentage
of the average capital employed. ROCE is a
measure of the profits generated in the year in
comparison to the capital investment that has
been made in the Company.
PERFORMANCE
The Group’s ROCE decreased by 46% in 2024
compared to 2023, driven by lower earnings in
the year.
OUTLOOK
Kenmare will continue to focus on maximising
returns from the Moma Mine over the short-,
medium- and long-term. The Group will also
maintain its disciplined and rigorous approach
and invest capital only in projects that Kenmare
believes will deliver returns that are well above
its cost of capital.
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STRATEGIC REPORT
Risk key
Strategic risks Operational risks Financial risks
1
Permitting, licensing
and Government
agreement risk
2
Country risk
3
Geotechnical risk
4
Weather conditions
5
Uncertainty over physical
characteristics of the
orebody
6
Loss of production due
to power supply and
transmission interruption
7
Asset damage or loss
8
Health, Safety and
Environment
9
Material misstatement
in the Ore Reserves &
Mineral Resource table
10
IT security risk
11
Development project risk
12
Industry cyclicality
13
Customer and/or
market concentration
14
Foreign currency risk
15
Unanticipated cost
inflation
Links to strategic priorities
Operate responsibly
Deliver long-life, low-cost production Allocate capital efficiently
27
Kenmare Resources plc
Annual Report and Accounts 2024
Introduction
The health and safety of Kenmare’s workforce
is the Company’s highest priority. Safety
performance improved significantly in
2024, with a Lost Time Injury Frequency
Rate of 0.06 (2023: 0.15), due to two Lost
Time Injuries in 2024 compared to five in
2023. This improvement was as a result
of the “Trabalho Seguro” (“Safe Work”)
initiative, which focuses on risk management,
leadership accountability for safety, standards
of work and improved planning for safety.
The Company reported two fatalities during
the year, although both were deemed non-
recordable under the International Council on
Mining and Metals accounting principles due
to the nature of the incidents. The Company
will develop the Trabahlo Seguro initiative
further in 2025 to continue to enhance
Kenmare’s safety culture both amongst its
workforce and with its contractors.
Despite weather impacts on operations
beyond expectations in H1 2024, a strong
H2 improved the annual outcomes, with
ilmenite production exceeding the mid-point
of guidance and all co-products exceeding
the upper end of the guidance range. Heavy
Mineral Concentrate (HMC) production
was second-half weighted due to improving
grades and this allowed the Mineral
Separation Plant (MSP) to run at close to
capacity in H2.
The Wet Concentrator Plant (WCP) A
upgrade work progressed significantly in
2024, advancing from Definitive Feasibility
Study (DFS) and into the execution phase.
The project will move Kenmare’s largest
mining plant into the Nataka ore zone,
which hosts the majority of Moma’s nine
billion tonnes of Mineral Resources. The
plant upgrade work will enable consistent
performance at nameplate capacity and
manage the slimes challenges that have
inhibited production in recent years.
The operational focus in 2025 is on safe
delivery of production and ensuring the
significant WCP A project delivers on
schedule and in line with budget.
Mining
HMC production in 2024 was 1,446,000
tonnes, on par with 2023 (1,448,300 tonnes).
Record excavated ore volumes were
achieved (41,248,000 tonnes), up 7% on
2023 (38,549,000 tonnes), due to improved
mining conditions that allowed throughputs
to reach their highest ever annual rates
(5,478 tonnes per hour (tph)). This offset the
forecast reduction in grade across the mining
operations, driven by WCP A approaching the
end of its mine path in Namalope, with grades
decreasing from 4.4% Total Heavy Minerals
(THM) in 2023 to 4.2% THM in 2024.
Power reliability
Power reliability improved in 2024, particularly
in the dry season from April to December.
This was largely as a result of the installation
by Electricidade de Moçambique (EdM) of
a 400kv line into the northern Mozambique
network, which increased both capacity and
resilience. In addition, Moma’s synchronous
condenser or “dip doctor” continued to
perform well and eliminated approximately
80% of the dips and spikes in power supply to
the Mine during the year, continuing to bring
significant value to the business. The Rotary
Uninterruptible Power Supply (RUPS) also
provided substantial benefits to the MSP in
2024 by seamlessly providing power during
outage events and contributing to smooth
operations and consistent recoveries in
this plant.
Wet Concentrator Plant A
Slimes remained a significant operational
challenge at WCP A in 2024, impacting
throughputs and recoveries. This effect was
compounded by a descending mine path,
BEN BAXTER
Chief Operations Officer
“2024 WAS A
STRONG YEAR
FOR KENMARE,
SAFER THAN
EVER BEFORE.”
BEN BAXTER
Chief Operations Officer
HIGINO JAMISSE
Moma Mine General Manager
72
70
73
63
20222020 2021 2023 2024
69
MINING OVERALL UTILISATION (%) MINING RECOVERY (%)
87.8
86.6
88.9
91.6
88.7
20222020 2021 2023 2024
Kenmare Resources plc
Annual Report and Accounts 2024
28
OPERATING REVIEW
resulting in additional settled slimes moving
forward to the dredges and being recirculated
into the concentrator. Consequently,
throughputs at WCP A were limited to
2,675 tph (2023: 2,700 tph), despite existing
processing capacity to run at average rates of
3,250 tph. There were improvements on spiral
recoveries at WCP A, rising from 83% to 87%,
however, losses of valuable heavy minerals
in the feed preparation process due to high
slimes limited the beneficial effect. The
negative impact of slimes is expected to ease
during 2025 once the new upfront desliming
circuit is operating, as part of the WCP A
upgrade in preparation for mining Nataka.
Wet Concentrator Plant B
WCP B performed well in 2024 with improved
utilisation, throughputs and recoveries
offsetting an expected 13% drop in head feed
grade. Mining in wetland areas saw particular
improvements compared to 2023, following
significant pre-mining earthworks to divert
the Mualadi River and remove surface root
matter and changes implemented to WCP B’s
screening to prevent buried roots reaching
the plant. Grade predictions for the year
were as expected, overcoming the shortfall
experienced in 2023.
Dry mining continued to be eliminated at
WCP B in 2024 as dredge mining was able
to deliver sufficient volumes of ore. However,
it will return in 2025 to take advantage
of material where the mining base is too
elevated for the mining pond to deliver
optimal results.
Wet Concentrator Plant C
WCP C’s performance improved significantly
from Q2 2024 onwards. Difficulties previously
experienced with an uneven mining base
were overcome and for the remainder of
the year the plant operated in excess of its
nameplate capacity of 500 tph, averaging
533 tph for the year (2024: 433 tph). In 2025,
the plant is expected to take advantage
of favourable mining conditions on the
periphery of the Namalope deposit in areas
that WCP B could not previously reach due to
its larger size.
Mining outlook
Production in 2025 is expected to be at
similar levels to 2024. The average grade
is expected to be approximately 4% THM,
as a consequence of the lower grades
encountered at WCP B as well as declining
grades for the last years of WCP A’s current
mine path. Excavated ore is expected to
increase and offset the planned grade drop,
benefitting from the operation of the new
upfront desliming circuit and the installation
of the two new higher-capacity dredges at
WCP A and the incorporation of the Selective
Mining Operation (SMO).
Processing
Total finished products in 2024 were
1,115,300 tonnes, a 2% increase compared to
2023 (1,091,400 tonnes), due to increased
production of ilmenite and rutile and the
addition of a new concentrates product.
Production was largely in line with HMC
delivery during the year, and was hence
second-half weighted.
For 2024, ilmenite production was 1,008,900
tonnes, exceeding the mid-point of the
guidance range of 950,000 to 1,050,000
tonnes. Production of all co-products of
zircon, rutile and concentrates exceeded the
upper end of guidance.
Ilmenite production in 2024 increased by 2%
compared to 2023 (986,300 tonnes), due to
improved ilmenite content in the HMC and
a 1% improvement in ilmenite recoveries.
Zircon production was 50,500 tonnes, down
1% on 2023 (51,100 tonnes), with a build-up
of intermediate stocks towards year-end
that will be drawn down in 2025, benefitting
production. Rutile production improved by
17% to 9,800 tonnes in 2024 (2023: 8,400
tonnes), following circuit improvements that
strengthened recoveries.
Production of concentrates was again at
record levels in 2024 at 46,300 tonnes, up 1%
on the 2023 record of 45,700 tonnes, due to
the sale of 3,200 tonnes of a new concentrates
product marketed as ZrTi. This was well
received in the market and expectations are to
sell 25,000 tonnes in 2025. Since this product
is the amalgamation of former tailings streams,
with a low marginal cost, it is a positive margin
expansion initiative.
Shipping
Shipments in 2023 were 1,088,600 tonnes,
a 4% increase compared to 2023 (1,045,200
tonnes). Shipments were impacted
by weather disruptions and reduced
transshipment conveyor availability in H1
2024. Hence stockholdings of final products
did not fall as much as expected, despite
a strong H2 shipping performance. The
transshipment vessels performed well
through the year, and the Peg will be sent
to dry dock for five-yearly class certification
in 2025. Despite this, shipment volumes are
expected to exceed production in 2025.
Read more about Kenmare’s
safe and engaged workforce
on pages 74 to 82
ILMENITE PRODUCED (MT)
72
70
73
63
1.09
0.99
1.12
0.76
1.01
20222020 2021 2023 2024
ZIRCON PRODUCED (T)
72
70
63
58,400
51,100
56,200
43,200
50,500
20222020 2021 2023 2024
RUTILE PRODUCED (T)
72
70
73
8,900
8,400
8,900
6,000
9,800
20222020 2021 2023 2024
Read more about
Kenmare’s markets
on pages 20 to 23
Read more about
Kenmare’s value chain
on pages 14 to 15
29
Kenmare Resources plc
Annual Report and Accounts 2024
STRATEGIC REPORT
Shipments during the year comprised 989,000 tonnes of ilmenite, 51,600 tonnes of primary
zircon, 7,400 tonnes of rutile and 40,600 tonnes of concentrates. A total of 47 ocean-going
vessels visited Moma’s dedicated port facilities during 2024.
2025 guidance
Kenmare’s 2025 guidance for production is as follows:
PRODUCTION UNIT 2025 GUIDANCE ACTUAL 2024
Ilmenite tonnes 930,000–1,050,000 1,008,900
Primary zircon tonnes 47,500–54,000 50,500
Rutile tonnes 9,000–10,000 9,800
Concentrates
1
tonnes 63,000–69,000 46,100
1
Concentrates include secondary zircon, mineral sands concentrate and the new concentrates product, ZrTi.
Production of all finished products in 2025 is
expected to be at similar levels to 2024, with
increased mining rates offsetting falling ore
grades. Consequently ilmenite production
in 2025 is expected to be between 930,000
tonnes and 1,050,000 tonnes, the lower end
of guidance extended as a precautionary
measure to account for the increased
uncertainty around the execution of the WCP
A upgrade project.
Total cash operating costs in 2025 are
anticipated to be broadly in line with
2024 at $228-252 million. Expenditure
on development projects and studies is
expected to be approximately $155 million,
including $150 million relating to the WCP
A upgrade project and preparations for
mining in Nataka. Improvement projects
are expected to cost $16 million in 2025
and include the cost of a second SMO.
Sustaining capital costs are expected to be
approximately $29 million, including the cost
of the planned five-yearly dry docking of the
Peg transshipment vessel.
Development projects
WCP A upgrade and transition to
Nataka
WCP A is the largest of Kenmare’s three
WCPs and Nataka is the largest ore zone
within Moma’s portfolio. Transitioning WCP A
to Nataka will unlock the majority of Moma’s
Mineral Resources and secure production
from Moma for decades to come.
The DFS for the WCP A upgrade and Nataka
transition was completed in H1 2024, and
the project was approved by the Board for
execution. Key elements of the project include:
`
New dredges – construction of two
high-capacity dredges with auxiliary
hydro-guns capable of delivering in
excess of 4,500 tph of run of mine feed.
The fabrication of the dredges is expected
to be completed by the contractor
in the Netherlands in Q2 2025 and
commissioned at Moma in Q3 2025
`
New upfront desliming circuit – by the end
of 2024, all of the principal components of
the new feed preparation module, which
includes the upfront desliming circuit,
were at Moma. The construction of the
new module is progressing, although there
is a risk of delay to commissioning to later
in Q3 2025. The existing trommel screens
and surge bin will be replaced with
vibrating screens and a new surge bin, as
well as adding desliming feed cyclones.
Following this work, 3,250 tph of deslimed
feed will be delivered to WCP A’s rougher
spirals
`
Design of a Tailings Storage Facility
(TSF) – the TSF will replace the current
paddock slimes settling system, further
increasing WCP A’s ability to efficiently
manage higher slimes levels at Nataka.
The resettlement action plan (RAP), which
focuses on providing alternative farmlands
for the affected community was approved
in Q4 2024, allowing construction to start.
Commissioning is expected in Q4 2025,
although it is currently ahead of schedule
Following these upgrades, the majority of
WCP A will be new equipment. The higher
capacity dredges remove the need for
supplementary dry mining and the TSF will
eliminate the paddock slimes settling system,
both reducing WCP A costs and simplifying
the operation to ensure Kenmare retains its
low-cost profile.
The capital cost estimate for the project
remains $341 million, with $93 million incurred
during 2023 and 2024, $150 million expected
to be incurred in 2025 and the remaining
$98 million to be spent between 2026 and 2028.
WCP B upgrade
The DFS for the upgrade of WCP B and all
identified optimisation workstreams are
now complete. While the studies confirmed
attractive returns, the more recent, less
capital intensive opportunity to expand
concentrator capacity via the SMO is
prompting the Company to revisit its
approach to increasing production.
The first SMO continues to ramp up,
and learnings will inform the design and
deployment of a second SMO plant, for which
$6 million has been estimated and is reflected
in the 2025 capital cost guidance. The
second SMO is expected to utilise dry mining
equipment to feed its plant. The capacity
and precise capital cost requirement will be
refined through Q2 2025.
Furthermore, the Company plans to adopt
a phased strategy to de-bottleneck WCP
B during the next three years, leveraging
existing dry mining equipment in the near
term and potentially repurposing a redundant
dredge from WCP A. This approach is
expected to lower capital intensity and
optimise capacity, while incorporating the
learnings from the DFS.
Selective Mining Operation
Kenmare has introduced a new small-scale
dredge-mining and concentrating operation,
or SMO, to enable mining in peripheral areas
of Moma’s Mineral Resources. These areas
are low in slimes, high in grade and not
accessible by the larger WCPs or existing dry
mining operations. Due to the free-flowing
nature of the ore to be mined and the simple,
modular design of the operation, the capital
expenditure is anticipated to be less than
1.01Mt
Ilmenite production in 2024
<$6m
Project budget for
Selective Mining Operation
Kenmare Resources plc
Annual Report and Accounts 2024
30
OPERATING REVIEW
CONTINUED
NAMALOPE
NATAKA
MUALADI
NAMPULA
Mineral
Separation
Plant
PILIVILI
Conveyor
and jetty
Previously
mined area
km
0 2 4 6 8
C
A
B
Moma Mine
Maputo
Mozambique
MAPUTO
AFRICA
MOZAMBIQUE
$6 million. This is a small investment that
is expected to add approximately 50,000
tonnes per annum of HMC production. The
SMO supports Kenmare’s ability to deliver
ilmenite production in 2025 that is broadly in
line with 2023 and 2024 levels, despite the
planned downtime for WCP A required to
facilitate the replacement of the dredges and
the upgrade of the plant.
The SMO’s commissioning schedule was
impacted by the wet season, however the
concentrator plant is proving to be reliable
and product quality and recoveries are
exceeding expectations. Dredge optimisation
is now required to achieve consistent
tonnage delivery.
Outlook
2024 was a strong year for Kenmare’s
operations, safer than ever before, and with
production targets achieved or beaten. 2025
outcomes will build on this with the key
challenge being the completion of the WCP
A upgrade and its integration into day-to-day
operations. Key areas of focus are project
management to deliver the upgrade on time
and on budget, and efficient commissioning
and ramp-up. The upgrade and transition of
WCP A to Nataka secures a long and efficient
mine life for Kenmare’s largest plant, with
mine path visibility for the next 20 years.
Finally, Kenmare will continue to develop its
sustainability credentials in 2025. This will
be centred on the Company’s new purpose
statement of ‘Transforming resources into
opportunity for all’, which supports continued
focus on the development of employees, of
whom 97% are Mozambican and over 17%
are women. Kenmare will also continue to
work closely with its host communities to
further strengthen its licence to operate. The
unrest throughout Mozambique following the
national elections, including in the area close
to Moma, has highlighted that the Company’s
ability to operate safely, securely and with
the support of local people is central to the
sustainable development of the business and
the region. The strong finish to the year is
testament to the hard work and dedication
of all of the team at Moma throughout 2024,
and particularly during the short period of
increased volatility caused by these protests,
for which the Board and management
team would like to express their sincere
appreciation.
STRATEGIC REPORT
31
Kenmare Resources plc
Annual Report and Accounts 2024
l
km
0 10 20 30
Nampula
Province
NAMPULA
NAMETIL
MOGINCUAL
QUINGA
ANGOCHE
NATAKA
MOMA
LARDE
Zambézia
Province
153C
Quinga
North
270C
Congolone
and Marrua
735C
Mineral Lease
NAMALOPE
MUALADI
PILIVILI
MPUITINE
Moma Mine
Maputo
Mozambique
MAPUTO
The map shows exploration licences and mining
concessions held by the Group:
Introduction
Moma is a globally significant titanium
minerals deposit, with almost nine billion
tonnes of Mineral Resources (including Ore
Reserves). This includes 199 million tonnes
(Mt) of ilmenite, which is equivalent to
over 100 years of production at the current
production rate, plus the co-products of
zircon, rutile and concentrates.
The Moma deposit benefits from abundant
fresh water, no overburden, a robust ore
grade and attractive products that do not
have to be upgraded before being used.
This gives the Company the ability to mine,
concentrate and separate its products with
relatively low capital and operating costs,
in part due to more than 90% of electricity
consumed being derived from low-cost
hydroelectric power. Kenmare also operates a
dedicated port facility adjacent to the Mineral
Separation Plant (MSP), which allows for
the shipment of products to customers at
minimum cost.
Summary of Ore Reserves and
Mineral Resources
The total proved and probable Ore Reserves
in the Namalope, Pilivili, and Nataka mining
concessions are estimated at 1,391 million
tonnes (Mt) grading 3.2% Total Heavy
Minerals (THM). This represents 36.5Mt
ilmenite (grading 2.6%), 2.3Mt zircon (grading
0.16%), and 0.75Mt rutile (grading 0.054%), as
at 31 December 2024.
The total Mineral Resources (excluding
Ore Reserves) held by the Group under
a combination of mining concessions is
estimated at 7.5 billion tonnes, grading 2.6%
THM. This breaks down to 162Mt ilmenite
(grading 2.2%), 11Mt zircon (grading 0.14%)
and 3.5Mt rutile (grading 0.047%), as at
31 December 2024. Details are set out in the
Ore Reserves and Mineral Resources table on
page 33.
The map below shows exploration licences
and mining concessions held by the Group.
The Namalope deposit continues to be
mined by Wet Concentrator Plant (WCP) A
and WCP C. The Pilivili deposit continues to
be mined by WCP B. Reductions in the Ore
Reserve statement relate to depletion from
mining in 2024 and dredge path revisions
that were made during the year to optimise
the mine plan.
At year-end 2024, the Namalope Ore
Reserves comprised 46Mt of ore,
representing 1.0Mt contained ilmenite
(grading 2.2%), 0.06Mt zircon (grading 0.14%)
and 0.23Mt rutile (grading 0.05%). A further
14,264 metres (m) of drilling was undertaken
at Namalope in 2024 to improve: orebody
knowledge, comprising mineral fractionation
sampling for 2025 and Q1 2026 mine paths
(for WCP A); further drilling of identified ore
at the transition path to Nataka that could
be exploited by supplementary dry mining
to feed WCP A; core penetration test (CPTu)
drilling to provide increased information
relating the orebody hardness (3,584m); and
for ground water aquifer exploration drilling
(348m).
Nataka is the largest ore zone within Moma’s
portfolio, representing approximately 70%
of Moma’s total Mineral Resources. The
final part of the Definitive Feasibility Study
for Nataka and associated infrastructure
was concluded in H1 2024, with the Ore
Reserve status further updated from the Pre-
Feasibility Study (PFS). Additional geological
interpretation and mine path optimisation of
the transition channel links the end of the
Namalope mine path and the established
Nataka 20-year mine path. At year-end 2024,
Nataka comprised Probable Ore Reserves
of 1,240Mt, representing 33Mt of contained
ilmenite (grading 2.6%), 2.03Mt zircon
(grading 0.16%) and 0.66Mt rutile (grading
0.05%).
At year-end 2024, the Pilivili Ore Reserves
comprised 105Mt, representing 2.9Mt of
contained ilmenite (grading 2.8%), 0.19 Mt
zircon (grading 0.18%) and 0.07Mt rutile
(grading 0.066%). The 2024 Pilivili drilling
programme (14,459m) focused on improving
orebody knowledge and CPTu drilling to
provide increased information relating to
orebody hardness (2,563m) in the south
western high dunes beyond the wetlands of
Pilivili.
Work is continuing on a PFS for the
Congolone ore zone, supported by ongoing
infrastructural, social and environmental
32
Kenmare Resources plc
Annual Report and Accounts 2024
MINERAL RESERVES AND RESOURCES
l
km
0 10 20 30
Nampula
Province
NAMPULA
NAMETIL
MOGINCUAL
QUINGA
ANGOCHE
NATAKA
MOMA
LARDE
Zambézia
Province
153C
Quinga
North
270C
Congolone
and Marrua
735C
Mineral Lease
NAMALOPE
MUALADI
PILIVILI
MPUITINE
development programmes close to
Congolone. The Congolone Mineral
Resources comprised 352Mt of ore,
representing 8.5Mt of contained ilmenite
(grading 2.4%), 0.7Mt zircon (grading
0.19%) and 0.2Mt rutile (grading 0.06%). No
additional drilling activities were undertaken
in 2024.
The Marrua ore zone remains classified as
an Inferred Mineral Resource. It comprises
100Mt of ore at 2.9% Total Heavy Minerals.
As it is a deposit adjacent to Congolone, it
has been included in the development of the
Congolone PFS.
The Mpuitine ore zone remains classified as
an Inferred Mineral Resource and comprised
477Mt, representing 11.4Mt of contained
ilmenite (grading 2.4%), 0.6Mt zircon (grading
0.12%) and 0.2Mt rutile (grading 0.04%).
There were no reverse circulation drilling
activities undertaken in Nataka, Mualadi,
Mpuitine, Congolone, Marrua or the Quinga
North deposits during 2024.
Mineral Resources are additional to Ore
Reserves. Estimates for the Namalope, Nataka
and Pilivili Ore Reserves and the Namalope,
Nataka, Congolone, Pilivili, Mualadi, Mpuitine
and Marrua Mineral Resources comply
with the Australasian Code for Reporting of
Exploration Results, Mineral Resources and
Ore Reserves (JORC Code) 2012 edition. Table
1 documentation for these Ore Reserves and
Mineral Resources can be found at found at
www.kenmareresources.com. Estimates for the
Quinga North Mineral Resource were prepared
and first disclosed under the 2004 edition of
the JORC Code. These have not been updated
to comply with the JORC Code 2012 edition
on the basis that the information has not
materially changed since it was last reported.
The competent person for the Namalope,
Nataka and Pilivili Ore Reserves and Mineral
Resources and the Congolone, Mualadi,
Mpuitine and Marrua Mineral Resources is
Sonsiama Kargbo (MAusIMM and MAIG).
Sonsiama is an employee of Kenmare
and takes part in the Kenmare Resources
plc Restricted Share Plan. Sonsiama has
sufficient experience relevant to the style
of mineralisation and type of deposit under
consideration and to the activity that he is
undertaking to qualify as Competent Person
as defined in the JORC Code 2012 edition.
Sonsiama gives consent to the inclusion
in this report of the matters based on their
information in the form and context in which
it appears.
The following table sets out Kenmare’s Ore Reserves and Mineral Resources as at 31 December 2024:
ZONES CATEGORY
SAND
(MT)
%
THM*
%
ILMENITE
IN THM
%
ILMENITE
IN SAND
% RUTILE
IN SAND
%
ZIRCON
IN SAND
THM
(MT)
ILMENITE
(MT)
RUTILE
(MT)
ZIRCON
(MT)
RESERVES
Namalope Proved 30 3.0 81.6 2.5 0.06 0.15 0.9 0.8 0.0 0.0
Namalope Probable 15 2.8 57.6 1.6 0.04 0.12 0.4 0.3 0.0 0.0
Pilivili Proved 43 3.5 81.7 2.8 0.07 0.19 1.5 1.2 0.0 0.1
Pilivili Probable 62 3.3 81.4 2.7 0.06 0.18 2.0 1.7 0.0 0.1
Nataka Probable 1,240 3.1 83.7 2.6 0.05 0.16 39.0 32.6 0.7 2.0
TOTAL
RESERVES
Proved and
Probable 1,391 3.2 83.2 2.6 0.054 0.16 43.9 36.5 0.75 2.3
RESOURCES CATEGORY
SAND
(MT)
%
THM*
%
ILMENITE
IN THM
%
ILMENITE
IN SAND
% RUTILE
IN SAND
%
ZIRCON
IN SAND
THM
(MT)
ILMENITE
(MT)
RUTILE
(MT)
ZIRCON
(MT)
Congolone Measured 216 3.2 81.0 2.6 0.07 0.21 6.8 5.5 0.1 0.4
Namalope Measured 117 3.4 81.0 2.7 0.06 0.19 3.9 3.2 0.1 0.2
Pilivili Measured 30 2.7 81.0 2.2 0.05 0.15 0.8 0.7 0.0 0.0
Namalope Indicated 66 2.8 70.4 2.0 0.05 0.14 1.8 1.3 0.0 0.1
Congolone Indicated 134 2.7 79.4 2.2 0.06 0.16 3.6 2.9 0.1 0.2
Nataka Indicated 2,101 2.8 82.1 2.3 0.05 0.15 59.4 48.7 1.0 3.2
Pilivili Indicated 95 2.9 81.2 2.3 0.06 0.16 2.7 2.2 0.1 0.2
Mualadi Indicated 483 2.4 81.7 2.0 0.04 0.13 11.7 9.5 0.2 0.7
Congolone Inferred 2 1.9 77.5 1.4 0.04 0.10 0.0 0.0 0.0 0.0
Pilivili Inferred 30 2.5 79.2 2.0 0.05 0.14 0.8 0.6 0.0 0.0
Mualadi Inferred 573 2.2 81.8 1.8 0.04 0.12 12.6 10.3 0.2 0.7
Nataka Inferred 3,043 2.5 82.4 2.1 0.04 0.13 77.3 63.7 1.3 4.1
Mpuitine Inferred 477 2.7 89.5 2.4 0.04 0.12 12.8 11.4 0.2 0.6
Marrua Inferred 100 2.9 0.0 0.0 0.00 0.00 2.9 0.0 0.0 0.0
Quinga North Inferred 71 3.5 80.0 2.8 0.14 0.28 2.5 2.0 0.1 0.2
TOTAL
RESOURCES
7,538 2.6 81.2 2.2 0.047 0.14 199.7 162.1 3.5 10.7
THM is Total Heavy Minerals, of which ilmenite (typically 82%), rutile (typically 1.8%) and zircon (typically 5.3%) total approximately 89%. Tonnes and grades have been rounded and hence
small differences may appear in totals. Mt represents million tonnes.
33
Kenmare Resources plc
Annual Report and Accounts 2024
STRATEGIC REPORT
Overview
In 2024, employees at various
levels of the Group developed
a new purpose statement for
Kenmare of, ‘Transforming
resources into opportunity
for all.’ Kenmare’s financial
resources are a critical element
of its ability to fulfil this purpose
and during the year, Kenmare
used its strong cash generation
and healthy balance sheet to
progress investments central
to the long term future of the
business and make significant
shareholder distributions.
Kenmare generated EBITDA of $157.1 million
(2023: $220.3 million) and profit after tax of
$64.9 million (2023: $131.0 million) in 2024,
despite facing both weaker product markets
and increased operating costs. The business
continued to generate strong cash flow and
secured a $200 million Revolving Credit
Facility (RCF). In combination, this supported
dividend payments of $48.1 million and
investments of over $150 million into capital
projects, primarily for the upgrade of the
Group’s largest mining plant, Wet Concentrator
Plant (WCP) A, ahead of its transition to the
Nataka ore zone. While the Group finished
the year with net debt of $25.0 million, in line
with expectations, Kenmare remains able to
comfortably fund its dividend programme
and capital projects for 2025 and beyond.
The Board is recommending a full year 2024
dividend of $28.6 million, at the upper end of
the payout range of 20-40% profit after tax,
once adjusted for non-recurring items, and the
Group remains focused on executing the WCP
A project on time and in line with the budget of
$341 million.
Revenue
Kenmare generated revenue of $414.7 million
in 2024, down 10% year-on-year (YoY)
($458.5 million). This was driven by a 14%
reduction in the average price received for
Kenmare’s products offset by higher shipping
volumes, which were 4% up on 2023.
Total shipments during the year amounted
to 1,088,600 tonnes (2023: 1,045,200 tonnes)
and comprised 989,000 tonnes of ilmenite,
51,500 tonnes of primary zircon, 7,400 tonnes
of rutile, and 41,000 tonnes of concentrates.
Ilmenite revenue amounted to $291.6 million
in 2024, down 7% YoY (2023: $315.1 million),
due to a 5% increase in shipment volumes
offset by and a 12% price decrease to
$295 per tonne (2023: $336 per tonne).
Primary zircon revenue decreased by 11% to
$70.9 million (2023: $79.6 million) due to an
11% price decrease. Freight revenue in 2024
increased to $22.7 million (2023: $21.4 million),
reflecting higher volumes shipped and higher
average freight rates during the year, in line
with global shipping trends.
Kenmare Resources plc
Annual Report and Accounts 2024
34
FINANCIAL REVIEW
Operating costs
Total cash operating costs rose by 7% to
$243.6 million (2023: $228.1 million). This was
driven primarily by increased labour costs as
a result of higher headcount and pay rates
and senior management transition costs. The
Group incurred higher demurrage costs as a
result of poor weather conditions impacting
on loading. Cash operating costs per tonne of
finished product increased by 5% to $219 per
tonne in 2024 (2023: $209 per tonne) due
to the increased total cash operating costs
but benefitting from the higher production
volumes.
Finance income and costs
The Group recognised finance income of
$3.6 million in 2024 (2023: $5.9 million),
consisting of interest on bank deposits.
Finance costs were $10.8 million (2023:
$11.1 million), including loan interest of
$3.8 million (2022: $7.9 million); transaction
costs on debt financing consisting of
$0.5 million for the RCF entered into in
March 2024; and $0.9 million amortisation of
the previous debt facility transaction costs.
There were letter of credit arrangement
and factoring fees of $2.6 million (2023:
$1.5 million), lease interest of $0.1 million
(2023: $0.1 million), commitment fees of
$2.1 million (2023: $0.9 million), and unwinding
of the discount on the mine closure provision
of $0.7 million (2023: $0.7 million).
Tax
The tax charge for the year amounted
to $17.2 million (2023: $18.9 million). The
majority of this tax charge is payable by the
Group’s mining subsidiary, Kenmare Moma
Mining (Mauritius) Limited (KMML), in
Mozambique. KMML Mozambique Branch
had taxable profits of $27.7 million (2023:
$34.1 million), resulting in an income tax
expense of $9.7 million being recognised
(2023: $11.7 million). The income tax rate
applicable to taxable profits of KMML
Mozambique Branch is 35% (2023: 35%).
2024 results
The key financial metrics were as follows:
PRODUCTION 2024 2023
FY CHANGE
%
Mineral product revenue ($ million) 392.1 437.1 -10%
Freight revenue ($ million) 22.7 21.4 6%
Total revenue ($ million) 414.7 458.5 -10%
Finished products shipped (tonnes) 1,088,600 1,045,200 4%
Average price per tonne ($/t) 360 418 -14%
Average ilmenite price per tonne ($/t) 295 336 -12%
Average zircon price per tonne ($/t) 1,376 1,552 -11%
Total operating costs
1,2
($ million) 325.6 303.3 7%
Total cash operating cost
1
($ million) 243.6 228.1 8%
Cash operating cost per tonne of finished product($/t)
1
219 209 5%
EBITDA ($ million)
1
157.1 220.3 -29%
Profit after tax ($ million) 64.9 131.0 -50%
Net (debt)/cash ($ million)
1
(25.0) 20.7 -221%
Full year dividend per share (USc) 32.0 56.0 -43%
1
Additional information in relation to these Alternative Performance Measures (APMs) is disclosed in the glossary.
2
Depreciation is included in total operating costs.
OPERATING COSTS 2024 2023
FY CHANGE
%
Cost of sales 319.4 294.9 8%
Administrative expenses 6.2 8.4 (26%)
Total operating costs 325.6 303.3 7%
Freight charges (22.7) (21.4) 6%
Total operating costs less freight charges 302.9 281.9 7%
Non-cash costs
Depreciation (67.9) (65.2) 4%
Expected credit losses (0.2) – 100%
Share-based payments (3.6) (3.3) 9%
Mineral products inventory movements 12.4 14.7 (16%)
Total cash operating costs 243.6 228.1 7%
Finished product production (tonnes) 1,112,300 1,091,500 2%
Cash operating cost per tonne of finished product ($/t) 219 209 5%
35
Kenmare Resources plc
Annual Report and Accounts 2024
STRATEGIC REPORT
The Company, Kenmare Resources plc,
had taxable profits of $53.5 million (2023:
$89.2 million), resulting in an income tax
expense of $5.1 million (2023: $7.2 million).
There was an under-provision in the prior
year of $2.3 million (2023: $nil) recognised in
the year.
Earnings per share
Basic earnings per share (EPS) in 2024
amounted to $0.73 per share (2023: $1.41 per
share). On a diluted basis, EPS amounted
to $0.71 per share (2023: $1.37 per share).
The EPS figures are calculated on the
basis of the weighted average number of
shares in issue during the year of 89,228,161
(2023: 93,126,115).
Dividends
Profit after tax was $64.9 million in 2024
(2023: $131.0 million), a 50% decrease
YoY, primarily due to lower revenues and
increased operating costs. The Board is
recommending a final dividend of USc17.0
per share, which is subject to shareholder
approval at the Annual General Meeting
(AGM). This would give a full year dividend
of USc32.0 per share for 2024, which is at
the upper end of the payout range of 20-
40% profit after tax, after adjustment for
non-recurring items. The financial statements
do not reflect this final dividend.
Cash flows
Kenmare’s business is highly cash generative
and delivered $191.5 million from operations in
2024 (2023: $178.5 million). This 7% increase
was driven by selective use of invoice
discounting to manage debtor balances and
timing of payments. The Group’s balance
sheet remains strong, with multiple sources
of liquidity to support operations, capital
investments and shareholder returns.
Working capital movements provided
$30.5 million (2023: used $45.3 million)
in 2024, of which $34.0 million (2023:
$29.5 million) related to decreased
year-end receivables as a result of invoice
discounting. There was an increase of
intermediate and finished mineral products
of $13.5 million (2023: $15.1 million) due to
increased production and lower shipments
volumes than planned, due to poor weather
conditions and maintenance requirements
in Q1 2024; this was partly offset by
increased year-end payables of $8.0 million
(2023: $0.3 million). The Group made debt
interest and commitment fee payments of
$7.3 million (2022: $8.3 million), tax payments
of $25.4 million (2023: $21.1 million) and paid
letter of credit arrangement and factoring
fees of $2.6 million (2023: $1.5 million).
Investing activities of $152.6 million (2023:
$66.5 million) represented additions to
property, plant, and equipment as discussed
further below.
Shareholder returns in 2024 totalled
$48.1 million (2023: $86.6 million). They
were comprised of the final 2023 dividend
of USc38.54 per share (2023: USc43.33)
totalling $34.7 million and the 2024 interim
dividend of USc15.0 per share (2023: USc17.5)
totalling $13.4 million. In 2024, the Group
entered into a $200 million RCF and incurred
transactions costs of $2.9 million (2023: $nil).
The Company’s Employee Benefit Trust
purchased $3.2 million of shares during the
year (2023: $6.2 million) for satisfaction of the
exercise of Kenmare Resources plc Restricted
Share Plan (KRSP) awards. Lease repayments
of $0.3 million (2023: $0.3 million) were made
during the year, relating to the rental of the
Group’s Dublin and Maputo offices.
Kenmare finished 2024 with cash of
$56.7 million (2023: $71.0 million), with this
reduction mainly due to the management
of debt drawdown timings as part of overall
working capital management.
USc32.0
2024 dividend per share
~$295m
Shareholder distributions
made since 2019
Kenmare Resources plc
Annual Report and Accounts 2024
36
FINANCIAL REVIEW
CONTINUED
Balance sheet
In 2024, there were additions to property,
plant, and equipment of $153.8 million
(2023: $69.7 million). Additions consisted
of $8 million (2023: $18.2 million) on Pre-
Feasibility and Definitive Feasibility Studies
for the transition of WCP A to the Nataka ore
zone and the WCP B upgrade, $102 million
(2022: $22.8 million) on payments relating to
upgrades for WCP A required for mining in
Nataka, and $43.8 million (2023: $28.7 million)
for various other capital additions.
The mine closure provision decreased by
$4.0 million in 2024 (2023: $0.2 million
increase) and now stands at $14.3 million
(2022: $17.5 million). This movement was due
to the increase in the discount rate to 4.8%
(2023: 4.0%). Capital disposals amounted to
$6.2 million (2023: $9.8 million), principally
relating to Heavy Mobile Equipment and old
accommodation camp buildings and related
fittings.
The Group conducted an impairment review
of property, plant, and equipment at year-end
and the key assumptions of this review are
set out in Note 11 of the financial statements.
No impairment provision is required as a
result of this review.
Working capital was $184.5 million at year-
end (2023: $214.4 million). Working capital
balances decreased in the year reflecting the
combined effect of lower debtor balances
arising from softer product pricing and
selective invoice discounting.
Inventory at year-end amounted to
$112.8 million (2023: $99.3 million), consisting
of intermediate and finished mineral products
of $70.8 million (2023: $58.4 million) and
consumables and spares of $42.0 million
(2023: $40.9 million). Closing stock of finished
products at the end of 2024 was 287,200
tonnes (2023: 259,100 tonnes). Closing stock
of Heavy Mineral Concentrate at the end of
2024 was 14,100 tonnes, compared with 16,700
tonnes at the start of the year. The increase in
finished products inventory at year-end was
largely due to lower shipments volumes than
planned in 2024 as a result of poor weather
conditions and maintenance in Q1 2024.
Trade and other receivables amounted
to $119.5 million (2023: $153.6 million), of
which $91.5 million (2023: $127.4 million)
related to trade receivables from the sale
of mineral products and $27.9 million (2023:
$26.2 million) was comprised of prepayments
and other miscellaneous debtors. All
receivables are current, and no customer
balances were considered credit impaired
at 31 December 2024. In addition, while an
expected credit loss of $0.2 million (2023:
$0.04 million) was recognised during the year,
the Group has never suffered a bad debt.
Cash and cash equivalents decreased
by $14.4 million (2023: decrease of
$37.2 million) during the year and at
31 December 2024 amounted to $56.7 million
(2023: $71.0 million).
Trade and other payables amounted to
$47.8 million (2023: $38.6 million). There
was a tax asset amounting to $1.3 million
(2023 liability: $6.9 million), reflecting higher
preliminary tax paid in the year relative to the
year-end tax provisions.
On 4 March 2024, the Group entered into
a new five-year $200 million RCF with its
existing lenders Absa Bank, Nedbank, Rand
Merchant Bank and Standard Bank. The
facility supports Kenmare’s planned capital
programme. At year-end, total debt amounted
to $78.0 million (2023: $47.9 million).
Accounting policies
The financial statements have been prepared
in accordance with International Financial
Reporting Standards (IFRS) adopted by
the European Union; therefore, the Group
financial statements comply with Article 4
of the IAS Regulation. The Parent Company
financial statements have been prepared in
accordance with Financial Reporting Standard
101 Reduced Disclosure Framework (FRS 101).
The Group and Parent financial statements
have also been prepared in compliance with
the Companies Act 2014 of Ireland.
The Group’s material accounting policies
and details of the significant accounting
judgements and critical accounting
estimates are disclosed in Note 1 to the
Group’s financial statements. The Executive
Committee is considered the Chief Operating
Decision Maker of the Group. Information
on the operations of the Moma Titanium
Minerals Mine in Mozambique is reported to
the Executive Committee for the purposes
of resource allocation and assessment
of segment performance. The Executive
Committee reports to the Board on the
performance of the Group.
Financial outlook
With 2025 well underway, demand for
Kenmare’s products continues to be strong.
While product pricing has been impacted by
increased supply from concentrates producers,
the medium- and long-term fundamentals
for the Group’s products remain solid. This is
due primarily to emerging supply constraints
within the titanium feedstocks industry and
the favourable characteristics of Kenmare’s
products.
The execution of the WCP A upgrade and its
transition to Nataka are key focuses for the
year, supported by keen financial discipline.
The project budget remains in line with
previous cost estimates at $341 million, with
$150 million expected to be incurred in 2025.
By the end of Q1 2025, 77% of the project
budget was committed and as construction of
the key components of the WCP A upgrade is
completed, including the two new dredges, the
new module and the Tailings Storage Facility,
the project will be progressively de-risked.
The Group remains able to comfortably fund
the WCP A project through existing cash
resources and debt facilities and operational
cash flows.
Approximately $295 million has been
returned to shareholders since 2019 via
a combination of dividends and share
buy-backs, including the 2024 final dividend.
The Group recognises the importance
of maintaining a clear capital allocation
framework to guide its investment decisions,
govern its gearing levels and give insight into
the principles that will govern shareholder
returns both during and after periods of
significant capital investment. Together,
these guidelines will assist in delivering on
the Company’s purpose of, ‘Transforming
resources into opportunity for all.’
Read more about Kenmare’s
capital projects
on pages 28 to 31
Read more about
Kenmare’s strategic
priorities on pages 16 to 19
Read more about
how Kenmare is a trusted
business
on pages 89 to 92
Read more about
Kenmare’s new purpose
on pages 2 to 3
37
Kenmare Resources plc
Annual Report and Accounts 2024
STRATEGIC REPORT
CSRD
SUSTAINABILITY
STATEMENT
`
General disclosures
39
`
Environment
50
`
Social
74
`
Governance
89
`
Assurance report
99
CONTENTS
Kenmare Resources plc
Annual Report and Accounts 2024
3838
Kenmare Resources plc
Annual Report and Accounts 2024
This sustainability statement is prepared for
the purpose of section 1596 (1) to (11) of the
Companies Act 2014 and with reference to
the ESRS issued by the European Financial
Reporting Advisory Group (EFRAG). All the
data points included in the E, S and G sections
have been assessed as material according to
the Company’s double materiality assessment
(DMA). Please see the pages below for
information on the DMA’s scope, limitations
and methodology. All greenhouse gas data
points (GHG scope 1, 2 and 3) are reported
based on the Greenhouse Gas Protocol.
The Directors of Kenmare have provided
information to, and consulted with,
employees’ representatives at the
appropriate level in relation to this
sustainability statement and the means
of obtaining and verifying the information
herein. The opinion of the employees’
representatives has been communicated,
where applicable, to the Directors.
BP-1
Measurement basis
Accounting for climate change as an
accounting policy has been applied
consistently in the financial year under
review and for comparative figures.
Consolidation
The data and scope of the sustainability
statement are consolidated according to the
same principles as the financial statements
on page 167 onwards. The consolidated
quantitative ESG data relates to Kenmare and
subsidiaries controlled by Kenmare.
Kenmare’s materiality assessment of impacts,
risk and opportunities extends to its upstream
(supply chain) and downstream (customer)
value chain. Kenmare’s policies, actions and
targets extend to its upstream value chain
only. Kenmare engages with its customers
through their due diligence programmes,
which include responding to EcoVadis,
completing sustainability questionnaires and
hosting site-based audits. A summary of the
Company’s sustainability supplier due diligence
programme can be found on page 91. Kenmare
plans to engage on key sustainability matters
with customers from 2025 onwards.
Kenmare’s definition of short, medium, and
long-term horizons aligns with those defined
by ESRS 1, namely:
`
Short-term: aligns with Kenmare’s
financial reporting year
`
Medium-term: from the end of the
reporting year up to five years (i.e. 2030)
`
Long-term: more than five years
The short-term time horizon is linked to
annual financial planning, medium-term
is aligned with the five-year Sustainability
Strategy and is informed by the financial
three-year viability period. The long-term
horizon considers the Company’s long-term
risks and opportunities and associated goals,
such as its Net Zero ambition and long-term
mine plans.
Omissions
Kenmare has omitted information from
this Sustainability Statement relating to E5
Resource use and circular economy and S4
Consumers and end consumers, as these were
not deemed material because of the Double
Materiality Assessment. S2 Workers in the value
chain, is potentially material, but insufficient
engagement, except for on health and safety, is
currently undertaken on the ESRS sub-topics
with the Company’s supply chain workers.
Supply chain health and safety data is reported
under S1 Own workforce. The sub-topic under
G1 of Animal Welfare is not considered material
and has been omitted.
Basis for preparation
and limitations
It should be noted that during the
process of compiling the Sustainability
Statement, a limited number of internal
control weaknesses were noted regarding
sustainability data collection and reporting.
However, this did not lead to any material
changes in disclosures and Kenmare believes
it has effectively captured all relevant data.
Kenmare has commenced a programme
of improvements in this area, including the
introduction of a new data platform in 2025.
Kenmare included Scope 3 Category 10,
Processing of sold product, emissions
for the first time in its Scope 3 emissions
boundary. In prior years it had estimated
and published this category of emissions
outside the boundary of Kenmare’s GHG
inventory. Work was undertaken in 2024 to
refine and enhance the accuracy of this data
source with a specialist consultancy, The
Green House, and therefore a high level of
confidence is attributed to its accuracy.
Kenmare collects primary or direct data for all
of the ESRSs with the exception of E1, where
some data under Scope 3 relies on third-
party data. This includes Scope 3 Category
10, Processing of sold product, the most
material source of emissions, where emissions
factors from EcoInvent were used and
adapted according to the titanium content
of Kenmare’s product. The datasets are
representative of the downstream processing
stages that are likely to occur, and no proxy
datasets were required.
Where country-specific values were not
available, for example slag-processing in
the United States, existing datasets were
adapted to make them more geographically
representative. This involved changing the key
process energy inputs, an accepted practice,
within Life Cycle Assessment and carbon
footprinting. Emission factors were calculated
using the IPCC 2013 impact assessment
methodology (Fifth Assessment Report global
warming potentials).
The resulting value chain data for indirect
sources uses publicly available emissions
factors and follows recommended practices
set by the GHG Protocol. No further actions
to improve this accuracy have been deemed
necessary at this time. Emissions factors will
be updated in line with EcoInvent releases.
Restatements
There have been no material restatements
in the sustainability disclosures from the
financial year ended 31 December 2023.
However, updated emissions factors and IPCC
AR6 GWPs have been applied to the relevant
categories of Scopes 1 and 3.
It should be noted that direct data for E2
Pollution is currently limited to the reporting
year 2024 and is restricted to pollutants
emitted to water.
Other reporting
frameworks
Kenmare aligns its tailings management
reporting to the Global Industry Standard on
Tailings Management (GISTM), its security
practices to the Voluntary Principles on
Security and Human Rights (VPSHR), its
biodiversity reporting to the Mozambique
Ministerial Diploma on Biodiversity Offsets
and its tax reporting to the Extractive
Industry Transparency Initiative (EITI). Other
reporting frameworks that inform Kenmare’s
disclosures include UN Global Compact,
Sustainable Development Goals, GRI, SASB
and ICMM standards.
External review
This Sustainability Statement has undergone
a limited assurance review performed by
Baker Tilly Ireland. Please see the assurance
provider’s opinion on page 99.
39
Kenmare Resources plc
Annual Report and Accounts 2024
STRATEGIC REPORT
SUSTAINABILITY STATEMENT
BP‑1 GENERAL BASIS FOR PREPARATION
GENERAL
ENVIRONMENT SOCIAL GOVERNANCE
Kenmare aims to achieve a balance between the needs of Moma’s host communities, conserving the environment, providing meaningful work
and employment for Kenmare’s employees and generating economic returns. Kenmare aims to deliver value to all stakeholders, set out in the
mission statements of the four strategic sustainability pillars below.
Kenmare’s sustainability strategy builds on the Company’s track record of sustainable development during its 18-year production history. The
status of progress towards the Company’s targets for 2025, set in 2021, is referenced below. The Company set new medium-term targets for
2030, which are also set out below. Kenmare’s sustainability strategy considers the major macro and national sustainability themes that are
likely to influence Kenmare’s operations and provide either risks or opportunities that the business needs to consider, including: the global focus
and urgent need to tackle climate change and reverse the loss of biodiversity; socio-economic issues relating to a young, aspiring and growing
Mozambican population; and the increasing focus on due diligence of sustainability impacts in the supply chain and wider value chain.
ENVIRONMENT
A HEALTHY NATURAL
ENVIRONMENT
OVERVIEW MATERIAL ISSUES
Kenmare focuses on reducing greenhouse gas emissions from its operations, ensuring
the business is resilient to climate-related risks, and can capitalise on opportunities
related to the transition to a low-carbon economy. It works to minimise or mitigate the
impacts of mining operations on the environment through its progressive rehabilitation
programme, water stewardship, biodiversity offset management plan, decarbonisation
plans and minimising waste to landfill.
`
Climate
`
Energy
`
Water stewardship
`
Biodiversity
`
Tailings storage
MISSION MEDIUM TERM 2025 TARGETS (SET 2021) STATUS 2030 TARGETS
To create a positive
environmental legacy
`
Progress against climate targets: 12% emissions reduction by
2024 and preparation of a Climate Transition Plan
`
30% emissions reduction
by 2030 (Net Zero (Scope
1 & 2) by 2040)
`
On track to deliver 15%
Net Gain of biodiversity
as outlined in Biodiversity
Offset Management Plan
`
Maintain water reuse
between 85-90%
`
Assure tailings are
aligned and audited to
GISTM/GTMI
`
Support designation and protection of Icuria forest as a
sustainable community forest
`
Balanced post-mining land use programme providing food
security and biodiversity
`
Complete implementation of water reuse infrastructure. Water
accounting in alignment with ICMM guidelines
`
No reportable tailings releases
`
No significant findings from six-monthly geotechnical audit of
tailings storage
SOCIAL
SAFE AND ENGAGED
WORKFORCE
OVERVIEW MATERIAL ISSUES
Protecting the safety of Kenmare’s employees, suppliers and contractors is of
the utmost importance. Kenmare takes a proactive approach to managing safety,
identifying major risks and sharing lessons to continuously improve performance.
Kenmare’s ability to attract, retain and motivate a diverse, high-calibre and localised
workforce is at the heart of its success and sustainability as a business.
`
Health and safety
`
Diversity and inclusion
`
Staff training and
development
`
Labour practices
`
Measures against violence
and harassment
MISSION MEDIUM TERM 2025 TARGETS (SET 2021) STATUS 2030 TARGETS
To sustain a safe, healthy
and engaged workforce
`
Measurably reduce malaria
`
Zero workforce fatalities; 20%
Y-o-Y reduction on LTIFR Vs
3 year rolling average
`
Increase female
representation in
workforce to 22% and
achieve gender parity
senior leadership
`
Increase Mozambican
representation in senior
leadership to 25% (from 16%)
`
20% females in Moma workforce
`
Engaged workforce, as measured by survey and <3%
voluntary turnover
`
95% of employees having a development plan and knowing
what they need to do to ready themselves for their next
position
Kenmare Resources plc
Annual Report and Accounts 2024
40
SUSTAINABILITY STRATEGY AND 2030 GOALS
SOCIAL
THRIVING
COMMUNITIES
OVERVIEW MATERIAL ISSUES
Kenmare is privileged to be able to use its presence in Moma to support the economic
and social prosperity of local communities. The Company seeks to operate in a
safe, inclusive, and transparent way and engage openly with communities directly
or indirectly affected by mining operations. Kenmare is committed to listening to
communities’ concerns and priorities, and constructively resolving any differences in a
transparent manner.
`
Socio-economic
development
`
Land-related impacts
`
Social licence to operate
MISSION MEDIUM TERM 2025 TARGETS (SET 2021) STATUS 2030 TARGETS
To increase the prosperity of
Kenmare’s host communities
`
Increased procurement with Mozambican suppliers
`
Audit KMAD programmes
and ensure all projects
have measurable
outcomes
`
Grow Mozambican supplier
spend as a proportion of
overall opex to 38% (2030)
from 35% (2024)
`
Identify strategic projects
and partnerships to
meaningfully grow local
procurement
`
Quantifiable improvement in:
− Repayments of micro-loans issued to communities
− Pupil literacy and numeracy
− Water quality at community boreholes
`
Progress against relevant Sustainable Development Goals
GOVERNANCE
TRUSTED
BUSINESS
OVERVIEW MATERIAL ISSUES
Kenmare is a trusted business accountable for its actions and commitments and
supports transparent disclosure. Employees recognise their personal and collective
responsibility in upholding Kenmare’s business integrity. Kenmare’s high standards
are set out in corporate policies and the laws and regulations of Ireland, the UK and
Mozambique. Kenmare works with suppliers to ensure high sustainability standards
are upheld.
`
Bribery and corruption
MISSION MEDIUM TERM 2025 TARGETS (SET 2021) STATUS 2030 TARGETS
To drive improved ethics and
transparency in the business
and supply chain
`
External risk assessment of anti-bribery and corruption (ABC)
risks in business and supply chain
`
Further external risk
assessment of ABC risks in
business and supply chain
`
Continue to ensure on-
site suppliers achieve
an average of 85%
compliance with Kenmare’s
Supplier CoC
`
Further external assurance
of public security forces
upholding the VPSHR
`
On-site suppliers achieving an average of 85% compliance
with Kenmare’s Supplier Code of Conduct
`
External assurance of public security forces upholding the
Voluntary Principles on Security and Human Rights
ICMM (International Council on Mining and Metals) | GISTM (Global Industry Standard on Tailings Management) | GTMI (Global Tailings Management Institute)
Key
Achieved / Good progress In progress Not achieved
41
Kenmare Resources plc
Annual Report and Accounts 2024
STRATEGIC REPORT
GENERAL
ENVIRONMENT SOCIAL GOVERNANCE
Kenmare measures progress against this strategy via its Environmental, Social and Governance (ESG) Scorecard, which forms part of both staff
and Executive incentive schemes. Kenmare’s performance against its 2024 ESG Key Performance Indicators (KPIs) is summarised below. The
ESG KPIs which form part of the Executive Directors’ annual bonus award and which you can read about on pages 152 and 153, scored 20.13%
out of the maximum of 25%. Kenmare’s 2024 and 2025 targets are set out together with its sustainability strategy on pages 40 and 41.
ENVIRONMENT
A HEALTHY NATURAL
ENVIRONMENT
2024 TARGETS STATUS 2024 PERFORMANCE
Climate
`
Deliver 12% emissions reduction by 2024
`
Prepare Climate Transition Plan targets for
Board approval
`
15% emissions reduction target achieved
`
Climate Transition Plan approved by the Board
Land management
`
Slimes additioning Target 30 Ha / Stretch 50
hectares
`
Define detailed plan for wetland rehabilitation
`
Deliver 203 Ha of rehabilitated post-mined land
`
30.8 hectares covered with slimes additioning
`
Wetland Rehabilitation Plan defined, species
propagation in progress
`
207.3 Ha of rehabilitated land achieved
`
Legal application for Icuria forest as a
protected area to Administração Nacional das
Áreas de Conservação (ANAC), the national
conservation agency
`
Biodiversity Offset Management Plan (BOMP)
submitted to government
`
BOMP budget and implementation partner
identified
`
Icuria forest application was submitted
to ANAC
`
BOMP submission is now projected to happen
in 2025
`
Five-year BOMP implementation budget
finalised
`
APAIPS identified as one of the key partners to
implement BOMP
MISSION
Water Stewardship
`
Maintain 90% water re-use
`
90% water re-use maintained
Tailings management
`
GISTM alignment across existing paddocks
and future Isoa TSF by end 2024, ready for
external progress audit in 2025
`
In-path Paddock Systems: Achieved 78%
compliance by Q4
`
Tailings Storage Facility (TSF): Achieved 62%
compliance by Q4
SOCIAL
SAFE AND ENGAGED
WORKFORCE
2024 TARGETS STATUS 2024 PERFORMANCE
`
20% LTIFR reduction relative to three-year
average (0.09)
`
33% reduction against three-year rolling
average, with 2024 LTIFR at 0.06
`
10% AIFR reduction against three-year
average (1.39)
`
33% reduction against three-year average, with
2024 AIFR at 0.93
`
10% reduction of malaria cases per 200k hours
worked Vs a 3-year rolling average (34.62)
`
29% reduction against three-year average, with
24.67 malaria cases per 200,000hrs
MISSION
`
Complete Vector Control study; develop action
plan for CISM/ local government approval
`
Vector Control study completed and
implementation plan for the recommendations
is under development
`
17.5% female representation at the Moma Mine
(2023: 15.79%)
`
17.43% female representation at the
Moma Mine
Kenmare Resources plc
Annual Report and Accounts 2024
42
2024 ESG SCORECARD PERFORMANCE
SOCIAL
THRIVING
COMMUNITIES
2024 TARGETS STATUS 2024 PERFORMANCE
`
3% increase in local procurement
(operating expenditure excluding electricity
and diesel)
`
9% increase in local procurement, however, a
1% year-on-year decrease as a proportion of
total opex (including spend with international
suppliers)
`
Set up framework for micro businesses
to provide services to Kenmare. Establish
two new businesses to provide services to
Kenmare
`
Onboarding NGO educational partner, train
them in new teaching techniques and create
new baseline of educational performance prior
to intervention
`
Continue the roll out of Certeza
1
to additional
villages
`
Framework finalised. New businesses
established: scrap dealer and laundry for PPE
and camp bedding
`
Education programme: 500 pupils finalised
program that brought 37% and 26%
improvement on literacy and numeracy rates in
grade 3 pupils, respectively
`
Certeza
1
rolled out to three villages;
methodology and monitoring protocols well
established
MISSION
GOVERNANCE
TRUSTED
BUSINESS
2024 TARGETS STATUS 2024 PERFORMANCE
`
Compliance with Kenmare’s Supplier Code of
Conduct: 80% compliance for international
suppliers and 60% compliance with local
suppliers
`
Local suppliers assessed achieved 62%
alignment
`
International suppliers assessed achieved 76%
alignment
MISSION
1
Point-of-use water treatment product developed to provide safe drinking water in regions with limited access to clean water
Key
Achieved / Good progress In progress Not achieved
43
Kenmare Resources plc
Annual Report and Accounts 2024
STRATEGIC REPORT
GENERAL
ENVIRONMENT SOCIAL GOVERNANCE
IRO-1
Kenmare’s 2024 Double Materiality Assessment (DMA)
methodology builds on materiality reviews undertaken since
2020 and is aligned with the European Union (EU) Materiality
Assessment Implementation Guidance. Kenmare’s previous materiality
assessments used two dimensions to assess materiality: (1)
‘stakeholder importance’, which assessed impacts on our stakeholder
groups and environment (inside-out), and (2) ‘strategic importance’,
which assessed impacts and risks to our business (outside-in).
Kenmare’s starting point was management’s mapping of sustainability
issues relevant to our business model and value chain, building on
impacts that Kenmare had identified in previous assessments. In 2024,
Kenmare also conducted a financial assessment (outside-in) of the
sustainability-related risks its business is exposed to. Where possible,
the effects of those matters were quantified and supplemented with
qualitative assessments. The financial assessment considers the
context of Kenmare’s organisation, business operations, and activities
to determine which of the material European Sustainability Reporting
Standards (ESRSs) the Company should report to. The following
pages provide a summary of the results of our double materiality
assessment and the process we have applied. More information on
the DMA is available at www.kenmareresources.com/sustainability.
A. Initial mapping of material
issues relevant to business model
and value chain
`
Management conducted a review
of the business model and value
chain and completed an initial
mapping of potential material
issues.
D. Financial materiality
`
Risks were assessed for their
potential financial impact,
according to specific scenarios.
The financial risks were evaluated
based on short, medium, and
long-term timeframes.
E. Materiality outputs and ESG
indicators
`
Topics were mapped in a matrix
and the relevant indicators for
monitoring and performance
management were determined by
the material topics.
B. Stakeholder identification and
engagement
`
Stakeholders were identified and
engaged to secure their input on
ESRS defined topics.
`
Subject matter experts were
interviewed to understand
the wider value chain Impacts
Risks and Opportunities (IROs).
CSRD draft sector guidance,
International Council of Mines
and Metals’ (ICMM) Mining
Principles and SASB’s Metals and
Mining Sustainability Accounting
Standard were taken as proxies for
the wider industry material issues.
C. Impact materiality
`
A list of issues was mapped
against Kenmare’s Risk Register.
Issues were categorised as IROs.
`
The ‘scale’, ‘scope’, and
‘irremediable character’ were
assessed in the scoring of the
‘severity’ of topics.
Double Materiality Assessment outcome
The outcome of Kenmare’s DMA process aggregates the impacts
and financially material risks for each ESRS topic, and shows that E1
Climate Change, E3 Water Stewardship, Tailings Storage and Social
Licence to operate are Kenmare’s highest-impact and most financially
material topics. The climate risks within E1 are closely linked to our
strategic efforts to decarbonise Kenmare’s direct operations and
ensure the resilience of operations to the direct physical effects of
climate change. The water risks within E3 highlight the dependency
of Kenmare’s business on freshwater resources for dredge mining.
Tailings Storage is a principal risk for the business due to the
geotechnical risks associated with the storage of non-commercial
mineral sands. To date, tailings have been stored in paddocks,
however from 2025, this risk increases when the Company will
establish its first permanent Tailings Storage Facility.
Finally, Kenmare’s Social Licence to operate relates to the impact
of mining operations on the local communities and in turn the
Company’s need for their acceptance of those operations, highlighting
the importance of socio-economic development opportunities for
those communities.
The impact and financial materiality assessment carried out by
management identified eight risks, and one opportunity, six potential
negative impacts and two actual positive impacts, as set out above
and in more detail opposite. Further work will be undertaken in
future years to ensure Kenmare is not overlooking additional
material opportunities, which are currently under-represented in this
materiality review.
Kenmare Resources plc
Annual Report and Accounts 2024
44
DOUBLE MATERIALITY ASSESSMENT
High impact, financially material
1
E1 Climate Change Risk
2
E3 Water Stewardship Risk
3
Kenmare topic Tailings Storage Risk
4
Kenmare topic Social Licence to operate Risk
High impact, financially less material
5
S1 Health and safety Risk
6
E4 Biodiversity Impact
7
S3 Land-related impacts Impact
8
S1 Diversity and inclusion Impact
9
S1 Training and development Impact
10
S1 Human rights Risk
11
Kenmare topic Socio-economic development Opportunity
12
E1 Energy efficiency Risk
13
G1 Bribery and corruption Risk
Lower impact, financially material
None
Low impact, financially less material
14
S1 Measures against Violence and Harassment Impact
15
S1 Labour Practices Impact
16
E2 Pollution Impact
Non-material topics
E5 Resource use and circular economy
S4 Consumers and end-users
G1 Animal Welfare
Note that S2 Workers in the value chain is likely to be a material topic,
however, Kenmare does not currently have sufficient data on its
supply chain to conclude this is the case or report on this ESRS.
Impact materiality
Financial Materiality
High
HighLow
Low
5
6
7
8
910
11
12
13
1
2
3
4
14
15
16
DMA governance
Kenmare’s Board and Executive Committee
had oversight on the development, process,
and outcomes of the DMA. Specifically, the
Audit and Risk Committee reviewed the
qualitative assessments made in the DMA,
and its alignment to ESRS and completeness
of the IROs identified in the context of
its relevance; faithful representation;
verifiability; and understandability. The
Sustainability Committee reviewed the
assessments considering its understanding
of the material sustainability impacts, risks
and opportunities managed at the Mine
and across the value chain, building on
materiality reviews undertaken in prior
years. Kenmare’s Executive Committee
identified and evaluated the IROs managed
at the Mine and across the value chain, and
scored their impact and financial materiality,
more information on which can be found in
sections C and D overleaf.
Strategy key
E
A healthy natural
environment
S
Thriving Communities
A safe and engaged workforce
G
Trusted Business
SBM-3
45
Kenmare Resources plc
Annual Report and Accounts 2024
STRATEGIC REPORT
GENERAL
ENVIRONMENT SOCIAL GOVERNANCE
DMA process
A. Initial mapping of material
issues relevant to business
model and value chain
Kenmare’s management reviewed its
business model and value chain and mapped
the relevant sustainability topics across
its direct operations and value chain. This
mapping exercise was informed by input
from Site-based leadership, topic specialists,
internal audit, the Executive Committee and
Sustainability Committee. Management’s
view of the value chain was informed
through its experience of engaging with and
managing tier 1 suppliers and customers and
its wider knowledge and understanding of
the industry. Topics defined by the ESRSs,
as well as those defined outside CSRD
were considered. Management also drew
on information from independent studies
commissioned by or governing Kenmare’s
operations, as well as industry best practice.
B. Stakeholder identification
and engagement
Building on the stakeholder engagement
process that has taken place since the
inception of the mine and the establishment
of KMAD in 2004, Kenmare considered
the most relevant stakeholders and those
most impacted by its business model and
operations. Input was gathered directly from
stakeholders via standardised quantitative
surveys where respondents were asked to
score the relevance of topics (aligned to the
CSRD ESRSs). Qualitative interviews were then
conducted with representatives from each
stakeholder group. Respondents were asked
to provide context and insight on the survey
findings and share their thoughts on the
reasons why issues had scored particularly
highly as well as highlighting any topics
the survey did not cover. The findings were
documented and reviewed by management.
Separately, interviews with subject matter
experts who have an oversight of the wider
value chain were undertaken. Kenmare also
used the Draft CSRD mining sector guidance,
SASB’s Metals and Mining sustainability
accounting standard and ICMM guidance as
proxies for identifying the most material issues
within Kenmare’s value chain.
C. Impact Materiality
Kenmare’s management considered both
the stakeholder engagement findings and
its internal list of sustainability matters in
the context of the Company’s activities
and business relationships, value chain and
affected stakeholders. It then categorised
the topics as Impacts, Risks or Opportunities
(IROs), taking into account the scale and
scope of the impact, whether the issue can
be remediated, the likelihood of occurrence,
and the financial magnitude (for risks
and opportunities). In line with the ESRS
guidance, three parameters of ‘scale’, ‘scope’,
and ‘irremediable character’ were used in the
scoring of the ‘severity’ of Kenmare’s impacts:
`
When scoring ‘scale’, the extent of the
impact on the environment or people and
post risk mitigation was assessed.
`
When scoring ‘scope’, how widespread the
impact would be, based on parameters
such as the number of sites, employees,
or financial spend related to the impact,
was assessed.
`
When scoring ‘irremediable character’, the
difficulty of reversing any damage in terms
of cost and time horizon was assessed. For
potential impacts, an additional parameter
of ‘likelihood’ was scored.
Management also considered the IROs across
various time horizons and highlighted where
the IRO was most prevalent: upstream in the
supply chain, directly in our own operations, or
downstream in the customer value chain.
Management also considered the time
horizon when the IRO was most likely to
impact the business: short, medium or long
term and these are set out below in section E.
Sustainability Matters covered in topical ESRS.
Sustainability topics and sub-topics that
were not relevant to our business model
were omitted from the review. ESRS E5:
Resource use and circular economy was
excluded because Kenmare’s business model
is centred on resource extraction (mineral
sands) rather than processing recycled
materials or engaging in circular economy
models. Circular economy principles are
relevant for industries that rely heavily on
material reuse (such as manufacturing and
consumer goods); however, they have limited
applicability in extractive industries where
raw material production is the core activity.
Given that Kenmare does not produce
recyclable end products and that the nature
of its resources (e.g. mineral ore bodies) are
largely non-renewable, the Company’s direct
role in advancing circular economy initiatives
is minimal. Kenmare has no revenue
streams from resource recovery, secondary
materials, or circular economy initiatives.
Circular economy considerations therefore
do not present a significant financial risk or
opportunity that could materially impact the
Company’s financial performance, access to
capital, or investor decision making in the
short to medium term. Additionally, while
mine rehabilitation is essential to Kenmare’s
environmental strategy, this is addressed
under E4 Biodiversity and S3 Land Use,
rather than Circular Economy. For these
reasons, Resources and Circular Economy
has been excluded from Kenmare’s Double
Materiality Assessment, as it does not
present a significant financial impact on its
business nor a material environmental or
social impact within our operational scope.
Kenmare’s material waste product, tailings,
are covered under a Kenmare defined
topic: Tailings Storage in E2 Pollution.
ESRS S4: Consumers and end-users
were omitted because Kenmare serves
business customers, not end-users or
consumers (these are our customers’
customers), therefore, S4 was deemed not
applicable. The sub-topic of animal welfare
within G1 was excluded as Kenmare is not
involved in animal husbandry, handling
etc. in its standard operations and the
Company cannot take responsibility for the
communities’ management of animal welfare.
Kenmare omitted the anticipated financial
effects of E1 Climate Change, E2 Pollution,
E3 Water and marine and E4 biodiversity
under the transitional provisions. Separately,
S2 Workers in the Value Chain will likely be
considered material once sufficient insight
and information is gathered to support this
and therefore will form part of future ESRS
reporting. Kenmare reports data on the
Health and Safety of its contractors under
S1 Own Workforce. Additionally, Kenmare
conducts supply chain due diligence
covering potential impacts, risks and
opportunities in the Company’s supply chain,
which is outlined under G1 Business Conduct.
D. Financial materiality
Kenmare evaluated the potential
financial impact of the identified risks
and opportunities. Scenarios of how the
risk (or opportunity) could manifest were
set out. Those scenarios focused on the
consequences of lost or reduced production
arising from the occurrence of the selected
risk or, as in the case of climate risk, the
investment required to mitigate or eliminate
emissions from operations. Of the risks
identified, the following were deemed
financially material: Climate Change, Water
Stewardship and Tailings Storage. The
reason why these topics are all considered
financially material is because they have
Kenmare Resources plc
Annual Report and Accounts 2024
46
DOUBLE MATERIALITY ASSESSMENT
CONTINUED
E. Sustainability matters covered in topical ESRS
IRO-2
DMA TOPIC
TIME
HORIZON CATEGORY
POSITIVE/
NEGATIVE
OWN OPERATIONS/
VALUE CHAIN
ACTUAL/
POTENTIAL
IMPACT PAGE
Environment
E1
Climate Change
Climate mitigation
Risk Both 56
Climate adaptation
Risk Both 51
Energy
Risk Kenmare 59
E2
Pollution
Pollution
Impact Value chain Potential 61
E3
Water and marine resources
Water Stewardship
Risk Kenmare 65
E4
Biodiversity and
ecosystems
Biodiversity
Impact
Kenmare Potential 68
Tailings storage
Risk Kenmare 64
Social
S1
Own Workforce
Human rights
Risk Both 73
Health and Safety
Risk
Both 74
Diversity and Inclusion
Impact Kenmare Actual 76
Training and development
Impact Kenmare Actual 77
Labour practices
Impact Kenmare Potential 77
Measures against violence
and harrassment
Impact Kenmare Potential
78
S3
Affected Communities
Social licence to operate
Risk Kenmare 84
Land-related impacts
Impact Kenmare Potential 85
Socio-economic development
Opportunity Kenmare 86
Governance
G1
Bribery and Corruption
Risk Both
88
Key:
Time horizon: Positive/Negative:
Short-term (reporting year) Positive
Medium-term (end of reporting year up to five years, i.e. 2030) Negative
Long-term (more than five years)
the potential to have a significant financial
impact depending on how long they impact
operations and how quickly the impact
can be rectified. The following risks were
deemed less financially material: Health and
Safety, Biodiversity, Bribery and Corruption,
Energy Efficiency and Human Rights in
the supply chain. The reason these topics
are all considered to be less financially
material is because if the impacts or risks
are realised, they have the potential to do
significant reputational harm, however, will
not necessarily stop operations.
47
Kenmare Resources plc
Annual Report and Accounts 2024
STRATEGIC REPORT
GENERAL
ENVIRONMENT SOCIAL GOVERNANCE
EMPLOYEES AND UNIONS
IMPORTANCE OF ENGAGING
Kenmare believes that its employees are critical
to its success and that a partnership approach
is vital to achieving business objectives. The
Company provides competitive remuneration
and invests in professional and personal
development, while providing a safe and healthy
working environment.
WAYS IN WHICH KENMARE ENGAGES STAKEHOLDERS AND HOW
ENGAGEMENT IS MONITORED
`
Facilitates quarterly union meetings
`
Undertakes quarterly performance and feedback meetings with
employees
`
Undertakes bi-monthly departmental “focal point” meetings
`
Engages union representatives constructively on collective
bargaining issues
`
Supports networking forums such as the Kenmare Women in Mining Forum
`
Operates an independent whistleblowing service
`
Publishes regular Toolbox Talks, Company newsletters, hosts town hall
meetings and undertakes staff engagement surveys
SIGNIFICANT TOPICS RAISED
`
Training and development opportunities
`
Remuneration
`
Working conditions
`
Labour rights
`
Human rights
`
Health and safety
KENMARE’S RESPONSE AND ACTIONS TAKEN
`
Leadership development training programme
`
Female representation in mine workforce reached 17.43%, with 30%
female senior management
COMMUNITIES
IMPORTANCE OF ENGAGING
Kenmare values its relationship with host
communities highly. The Company’s
stakeholder engagement plan is updated
annually and reflects the changing dynamics
in the relationship between the Mine and host
communities.
WAYS IN WHICH KENMARE ENGAGES STAKEHOLDERS AND HOW
ENGAGEMENT IS MONITORED
`
Hosts formal bi-monthly and informal ad hoc community meetings to
understand and discuss host communities’ concerns and priorities
`
Supports community radio stations to inform the community of
Kenmare and KMAD’s activities
`
Conducts Environmental, Social and Health Impact Assessments to
identify potential positive and negative impacts of the Mine’s activities
`
Operates grievance mechanisms to address community concerns and
maintain a grievance register
`
KMAD hosts Local Working Group community meetings annually and
publishes a quarterly newsletter
SIGNIFICANT TOPICS RAISED
`
Respect for local values and traditions
`
Socio-economic development
`
Employment and procurement opportunities
`
Land rehabilitation
`
Community well-being
KENMARE’S RESPONSE AND ACTIONS TAKEN
`
Public security personnel receive external training on the Voluntary
Principles on Security and Human Rights (VPSHR)
`
Phase 1 construction of the new district hospital in Larde underway
`
$1.3 million generated by KMAD-sponsored micro-businesses
SUPPLIERS
IMPORTANCE OF ENGAGING
Kenmare has approximately 750 active suppliers.
Around half of these are in Mozambique,
including 10% from the province of Nampula in
which the Company operates. The other half
is made up of international suppliers, including
South Africa and Europe.
WAYS IN WHICH KENMARE ENGAGES STAKEHOLDERS AND HOW
ENGAGEMENT IS MONITORED
`
Manages contractors
`
Undertakes supplier sustainability due diligence audits and site visits
`
Hosts supplier forums, workshops, meetings and training
`
Operates an independent whistleblowing service
SIGNIFICANT TOPICS RAISED
`
Working conditions
`
Labour rights
`
Human rights
`
Health and safety
`
Security
KENMARE’S RESPONSE AND ACTIONS TAKEN
`
Safety audits and safety training
`
Supplier Code of Conduct due diligence: Local suppliers assessed
achieved 62% alignment; international suppliers assessed achieved
76% alignment
SBM-2
Kenmare has constructive long-term relationships with all of its stakeholders.
Responsibility for stakeholder engagement is embedded across the business, including the Board, the Executive Committee, site leadership,
community liaison teams, the Kenmare Moma Development Association (KMAD), contractors, and all representatives of the business. With a life
of mine of over 100 years, it is essential that the Company’s engagement with its stakeholders is open and collaborative, supporting the lasting
success of the business. Kenmare uses appropriate mechanisms to interact with its stakeholders, provide them with information and learn about
their interests and concerns.
Kenmare Resources plc
Annual Report and Accounts 2024
48
STAKEHOLDER ENGAGEMENT
GOVERNMENT AND REGULATORS
IMPORTANCE OF ENGAGING
Kenmare complies with applicable laws and
regulations and ensures that Mozambique
shares in the benefits of the Moma Mine. The
Company maintains a proactive dialogue with
national, district and provincial government so
they are well-informed of the Mine’s activities.
WAYS IN WHICH KENMARE ENGAGES STAKEHOLDERS AND HOW
ENGAGEMENT IS MONITORED
`
Directs engagement with local, provincial and national government
authorities regarding mining rights, environmental issues and
permitting
`
Provides monthly, quarterly and annual reports to the Ministry of
Mineral Resources and Energy
`
Provides an annual report to the Ministry for Land and Environment
`
Provides quarterly report to the District Authorities
`
Provides a Portuguese summary of Kenmare’s Annual Report to all
government departments
SIGNIFICANT TOPICS RAISED
`
Compliance with applicable laws and
regulations
`
Employment opportunities and labour rights
`
Health and safety
`
Environmental stewardship
`
Licences and permitting
`
Taxation and royalties
KENMARE’S RESPONSE AND ACTIONS TAKEN
`
Publication of a Portuguese version of the Company website
`
Donations of medical equipment to support the regional health service
SHAREHOLDERS AND LENDERS
IMPORTANCE OF ENGAGING
Kenmare’s shareholders are the owners of
the business and their continued support is
critical. They provide the capital to develop and
expand operations responsibly and sustainably
and consequently, Kenmare needs to ensure it
continues to deliver both a compelling investor
proposition and is able to meet debt obligations
as they fall due.
WAYS IN WHICH KENMARE ENGAGES STAKEHOLDERS AND HOW
ENGAGEMENT IS MONITORED
`
Attends investor conferences
`
Hosts webinars and group presentations
`
Organises one-on-one meetings and roadshows
`
Hosts site visits
`
Participates in interviews with the investment press
`
Directs dialogue at the Annual General Meeting
`
Produces corporate materials including announcements, Company
website, Annual Report and social media profiles
SIGNIFICANT TOPICS RAISED
`
Operating and financial performance
`
Growth strategy
`
Capital expenditure projects
`
Product markets
`
Environmental, social and governance (ESG)
performance
KENMARE’S RESPONSE AND ACTIONS TAKEN
`
Dividends were $48.5m in 2024
`
Site visit held for investors and analysts in January 2025
`
Fourth Sustainability Report published in 2024
`
Disclosures to Carbon Disclosure Project (CDP) Climate (B) and
Water (A-)
CUSTOMERS
IMPORTANCE OF ENGAGING
Kenmare believes in building stable, long-term
relationships based on mutually beneficial terms
with customers. Kenmare works in collaboration
with its whole value chain, in striving to meet
the Company’s ethical, environmental and safety
standards.
WAYS IN WHICH KENMARE ENGAGES STAKEHOLDERS AND HOW
ENGAGEMENT IS MONITORED
`
Industry association forums, e.g. TZMI, TDMA
`
Face-to-face customer site visits
`
Hosts site visits
SIGNIFICANT TOPICS RAISED
`
Kenmare’s ESG performance (ESG due
diligence through their supply chains)
`
Product quality
`
Radiation composition and controls
KENMARE’S RESPONSE AND ACTIONS TAKEN
`
Third-party product quality verification
`
ISO verification of laboratory
`
Participation in EcoVadis with ‘Committed’ scoring
49
Kenmare Resources plc
Annual Report and Accounts 2024
STRATEGIC REPORT
GENERAL
ENVIRONMENT SOCIAL GOVERNANCE
E1 SBM-3
Extreme weather is a principal
risk of the Company. Mozambique, where
Kenmare’s single asset is located, has
historically been vulnerable to extreme
weather events, in particular cyclones,
flooding and extreme heat, which are being
exacerbated by climate change. In extreme
weather conditions, there is a risk of loss of
life and physical damage to operating assets,
which may impact mining operations. Heavy
rain and flooding can also impact supply
logistics to and from the Mine.
Kenmare is using 2021 as its baseline year
and its first short-term emissions reduction
target was a 12% reduction in Scope 1
and 2 emissions by 2024 relative to this
baseline. This target was exceeded with the
achievement of a 15% reduction. Kenmare
established its first Climate Transition Plan in
2024, which sets a new medium-term (2030)
target and embeds the aim to achieve Net
Zero by 2040 across Scope 1 and 2 emissions.
E1-2
Policy related to climate
mitigation and adaptation
Kenmare’s Climate and Energy Policy outlines
the ways in which Kenmare works to address
its climate-related risks through:
Climate change mitigation:
`
establishing a Climate Transition
Plan (CTP) to reduce operational
GHG emissions, with the ambition to
align medium-term targets to limiting
global emissions to 1.5°C above pre-
industrial levels, as recommended by
the Intergovernmental Panel on Climate
Change (IPCC);
`
working towards climate neutrality across
Scope 1 & 2 (market-based) by 2040, and
actively contributing to reducing value
chain emissions (Scope 3);
`
actively researching, reviewing, and
deploying decarbonisation technologies
to displace fossil diesel; prioritising
projects which are Net Present Value
positive or neutral;
`
using an internal carbon price to direct
investments towards less carbon-
intensive solutions; and
`
offsetting hard-to-abate emissions,
prioritising opportunities through nature-
based solutions.
Climate change adaptation:
Embedding mitigation of climate change
risks in Kenmare’s strategy and decision
making on capital allocation, including:
`
Stress-testing the business and
operations to ensure its resilience to
different climate scenarios;
`
increasing the resilience of Kenmare’s
operations to physical climate risks and
the responsiveness of the business
strategy to evolving climate-related
transition risks and opportunities; and
`
supporting local communities to increase
their resilience to climate change through
cyclone-proof social infrastructure and
climate smart agricultural practices.
Energy security and efficiency:
Securing stable and cost-effective low
carbon electricity and fuel supplies, by:
`
driving energy efficiency across
operations;
`
introducing new technology, equipment,
and work practices;
`
developing an Energy Management
System that is aligned with the principles
of ISO-50001;
`
managing energy using strategic energy
management (SEM) principles, which
seek continual improvement of energy
performance over the long term;
`
setting and delivering against short,
medium and long-term energy
performance targets; and
`
investing in clean sources of electricity,
and building on Kenmare’s investment
in a 170km power line to connect to
Mozambique’s hydro-electricity power.
MATERIAL TOPICS
TOPICS
`
E1 Climate change mitigation
`
E1 Climate change adaptation
`
E1 Energy
KEY POLICIES
`
Climate and energy policy
TARGETS
1
`
2024: 12% reduction on Scope 1
and 2 relative to 2021 baseline
`
2030: 30% reduction on Scope 1
and 2 relative to 2021 baseline
`
2030: 45% reduction on mining
intensity (excavated ore) relative
to 2021 baseline
`
2040: Net Zero on Scope 1 and 2
KEY ACTIONS
`
Climate Transition Plan
`
Supplier engagement
`
Customer engagement
1
Scope 2 targets are based on market-based
calculation
Kenmare Resources plc
Annual Report and Accounts 2024
50
HEALTHY NATURAL ENVIRONMENT
ESRS E1 CLIMATE
Climate and energy strategy
Strategic goals
Energy security
OBJECTIVE
`
To secure stable, reliable, cost-effective, low-
carbon, electricity and fuel supplies
PLANNED ACTIONS
`
Investigation into alternative power sources, including
upgrades and additional lines connecting to the
Mozambican power grid
`
Set energy efficiency targets
Decarbonising operations
OBJECTIVE
`
To invest in technologies that increase
efficiency and reduce usage of fossil fuels
`
To explore low carbon, economically viable
technologies to displace diesel
`
To achieve sustainable cost and efficiency
improvements in energy use
`
To restore land-based carbon and biodiversity,
to deliver a net positive impact
PLANNED ACTIONS
`
Achieve 30% carbon reduction target by 2030
`
Undertake biofuels pilot study in 2025
`
Deliver partial electrification of driers in the Mineral
Separation Plant
`
Develop MSP moisture-management strategies
`
Pilot electrification of all vehicles (heavy and light)
according to their market availability and suitability for the
Mine’s applications and conditions
`
Eliminate diesel powered reheaters through upgrading of
ilmenite A circuit in MSP
Adaptation
OBJECTIVE
`
To enhance the resilience of operations to
physical climate risks
`
To help communities adapt to, and mitigate,
physical climate-related impacts
PLANNED ACTIONS
`
Upgrade infrastructure to become more cyclone resilient
`
Provide cargo nets to cover critical buildings and
community infrastructure to provide protection during
severe weather events
`
Improve use of transshipment fleet
`
Increase number of cyclone-proof key community buildings
MATERIAL TOPIC: CLIMATE MITIGATION
E1-1
Transition Plan for climate change
mitigation
The Board and management have set a
medium-term decarbonisation target of 30%
reduction by 2030 from a 2021 baseline.
Kenmare will maintain its ambition to achieve
Net Zero for its operational (Scope 1 & 2)
emissions by 2040, also from a 2021 baseline.
Kenmare aims to reduce GHG emissions
per tonne of excavated ore by 45% by 2030.
Kenmare’s absolute medium-term target is not
aligned with limiting global warming to 1.5°c;
however the carbon intensity target related
to excavated ore and the longer-term target
of Net Zero by 2040 for direct emissions are
aligned with this low carbon pathway.
The (absolute) 2030 target reflects several
challenges:
1. Decarbonising the Company’s operations
is challenging due to its already low
carbon intensity. Independent research,
conducted by TZMI
1
, shows Kenmare has
one of the lowest carbon intensity per tonne
of product, placing it in the lowest quartile
of carbon emitters in the industry.
2. Kenmare may face capital and liquidity
constraints as it continues to invest
in new infrastructure required to mine
the Nataka ore body and as the Mine
transitions through a lower-grade ore
body to reach Nataka, which will result in
lower production and, therefore, revenues.
3. Kenmare faces regulatory challenges
associated with importing biodiesel,
following the introduction of a
Mozambican biofuels regulation in 2023.
Imported biodiesel would be required to
displace fossil diesel as currently there
are no domestically available supplies.
E1-3
Climate Transition Plan
decarbonisation levers and key actions
1. Increasing energy efficiency across all
operations
2. Transitioning from fossil-fuel to clean-
electric powered mining methods
3. Electrification of fossil fuel powered
equipment (stationary and mobile)
4. Integration of alternative low-carbon fuels
(biofuels)
5. Increasing the availability of renewable
energy sources
Kenmare does not expect a linear reduction
in GHG emissions between now and its
stated target years, 2030 and 2040. It is
more likely there will be increases and
decreases year-on-year. Kenmare will
communicate progress against these targets
annually.
1
Titanium Feedstock Producers Cost Study 2023.
51
Kenmare Resources plc
Annual Report and Accounts 2024
STRATEGIC REPORT
GENERAL
ENVIRONMENT
SOCIAL GOVERNANCE
Kenmare’s journey
towards Net Zero
MEDIUM‑TERM TARGETS LONG‑TERM AMBITION
By 2030 reduce by
30%
Scope 1 and 2 absolute
emissions*
By 2030 reduce by
45%
Scope 1 and 2
intensity-based emissions
tCO
2
e/tonne of excavated ore
1
By 2040 ambition to achieve
Net Zero
Scope 1 and 2
2
emissions
1
Compared to a 2021 baseline.
2
Market-based calculation.
Kenmare Resources plc
Annual Report and Accounts 2024
52
HEALTHY NATURAL ENVIRONMENT
ESRS E1 CLIMATE CONTINUED
1) Increasing energy efficiency across
all operations
In 2025, Kenmare will develop an energy
management system in accordance
with the ISO-50001 standard. Efficiency
improvement projects will focus both on
process and on the benefits of investing in
new technologies. Process-based energy
efficiency, such as moisture management,
is good operational practice and, therefore,
falls under the scope of day-to-day
operational performance. Technological
energy-efficiency projects, which involve the
deployment of new technologies, such as the
Rotary Uninterruptible Power Supply (RUPS),
fall within the scope of the decarbonisation
portfolio.
2) Transitioning from fossil fuel to clean
electric-powered mining methods
Following the upgrade of Wet Concentrator
Plant A in 2026, Kenmare will transition from
diesel-intensive dry mining, using Heavy
Mobile Equipment, to electrically-powered
dredge mining. This will reduce emissions
by approximately 5,000 tCO
2
e per annum.
However, this will be offset by the use of
diesel-powered Selective Mining Operation
(SMO) plants from the end of 2024 as a
solution to monetise smaller, hard-to-access
areas of the orebody and maximise orebody
utilisation at Moma.
3) Electrification of fossil-fuel-powered
equipment (stationary and mobile)
Kenmare intends to partially replace diesel-
generated heat with electrically-generated
heat in the Mineral Separation Plant (MSP). In
2024, the MSP’s five driers and two reheaters
accounted for 48% of Kenmare’s total Scope
1 diesel consumption. The driers currently
use diesel to generate a temperature of
600 degrees Celsius, to dry the wet Mineral
Concentrate, so it can be separated into
different products. This project will reduce
the diesel required by the Ilmenite A and B
and Rutile driers by using electrical heaters
to pre-heat the air inputs. This will result in a
reduction of 5,000 tCO
2
e, or 7% of Kenmare’s
baseline emissions. It will be piloted before
full implementation and will require 1MW of
electrical power from the grid. The design
phase started in 2024, with procurement
and fabrication in 2025, and commissioning
expected in 2026. Due to limited availability
of grid electricity, the modules will be
designed to accommodate dual fuel energy
inputs (electricity and diesel).
4) Integration of alternative low carbon
fuels
In 2024, Kenmare began a pilot to test the
integration of biodiesel into its operations.
However, in 2023, the Mozambican
government introduced a regulation
prioritising the domestic sourcing of biofuels.
While biodiesel represents a readily available
technology to support decarbonisation
operations, imported biodiesel is currently
not an economic proposition. Kenmare is
investigating a project to develop biodiesel
in Mozambique. Feasibility studies will start
in 2025. Domestically produced biodiesel
represents a potential opportunity to not
only decarbonise operations but align
with the government’s goals of integrating
biofuels into fossil fuel consumption and
create socio-economic opportunities
through investment in the agricultural
sector. However, due to the level of risk
and uncertainty Kenmare has not currently
included this intervention in its emissions
reduction plans.
5) Increasing availability of renewable
energy sources
Kenmare uses hydro-electric power supplied
by Mozambique’s national electricity company,
Electricidade de Moçambique (EdM), from the
Cahora Bassa Dam power station. Between
2005 and 2007, Kenmare invested in building
170km of power lines from Nampula to Moma,
to connect to Mozambique’s hydro-electric
power. This provides over 98% of Kenmare’s
electricity requirements.
Kenmare's decarbonisation pathway
The graph above sets out the projected 30% decrease in emissions as Kenmare implements the levers on the x axis. The 2% increase reflects
projected baseline emissions if no decarbonisation levers were implemented.
0
10
20
30
40
50
60
70
80
-22
-20
-18
-16
-14
-12
-10
-8
-6
-4
-2
0
70
67
57
63 64
68 66
72
73
72
2021
2022
GHG emissions (kt CO
2
eq)
2023 2024 2025 2026 2027 2028 2029 2030
-2
-11 -11 -11
-15
-18
-20
-21 -21
-11 -11 -18 -11 -11-11
0
-3
-1
-5
-1
-5
-3
-2
-5
-3
-2
-5
-3
0
0
0
0 0
RUPS
Electrification Ilmenite B Drier Dry mining stoppage Electrification Illmenite A Drier LDV Electrification
-30%
-+2%
53
Kenmare Resources plc
Annual Report and Accounts 2024
STRATEGIC REPORT
GENERAL
ENVIRONMENT
SOCIAL GOVERNANCE
In the future, there is a potential risk that
EdM may not be able to meet all of Kenmare’s
electricity supply requirements. In addition,
as the overall electrical load at Moma grows,
electrical losses in the transmission line
from Nampula to Moma will also increase,
which will result in higher electricity costs.
It may, therefore, be necessary for Kenmare
to procure and/or invest in green electricity
sourced from wind, solar PV and battery
storage. Investment of this nature could also
unlock opportunities for electrification of
equipment, that currently depends on diesel,
such as excavators, articulated dump trucks
and Light Duty Vehicles.
Kenmare is actively investigating
partnerships with independent power
producers for potential solar and battery
energy storage systems located near the
Mine. The aim is to provide additional clean
electrical power to supplement the hydro-
electrical grid power to ensure competitively
priced electricity for the future. The
integration of renewable power sources
is also expected to improve the quality of
power received from the EDM network.
Scope 3 emissions
Emissions from customers’ processing of
sold product (Category 10) are Kenmare’s
most material category of Scope 3 emissions.
This data was calculated using product sales
information, region where product streams
are processed (China, Europe, North America,
or Rest of World) and processing method
(sulphate or chloride processing). Emissions
factors published by EcoInvent were
applied to the product volume segmented
by processing method and geography. In
2025, Kenmare will begin to engage with
customers to highlight the importance of
climate mitigation and adaptation to its core
strategy and to increase its understanding of
emissions throughout the value chain.
Emissions from upstream and downstream
transportation from the shipping of product,
are Kenmare’s second most material source
of Scope 3 emissions. These represent 76%
of Scope 3 emissions excluding Category 10,
but only 2% of Scope 3 emissions including
Category 10. The International Maritime
Organisation (IMO) has set net zero targets for
the global shipping sector, targeting a 20-30%
reduction by 2030, and a 70-80% reduction by
2040, relative to a 2008 baseline.
Kenmare is recording details of the CO
2
intensity per nautical mile travelled by each
chartered vessel. All ships are now required
to report the CO
2
e intensity per nautical mile
under IMO requirements. Kenmare is using
this information to set minimum thresholds
for the GHG rating of the vessels it uses.
Kenmare has approximately 750 suppliers and
purchased goods and services and capital
goods represents 11% of Scope 3 emissions,
excluding Category 10, and 0.3% of Scope 3
emissions, including Category 10. Kenmare
will target its top 25 suppliers, representing
30% of spend, to improve the data quality
of these two categories of Scope 3 using
direct engagement, educational webinars and
guidance documents.
Kenmare’s capital expenditure required
to implement 2030 targets was approved
by the Audit & Risk Committee in April
2024 and is summarised below. Potential
costs associated with the initiation of a
new biodiesel project in Mozambique are
excluded.
DECARBONISATION PROJECTS TOTAL
Partial electrification of Ilmenite
A and B Partial electrification of
Ilmenite A and B $6m
Electrification of reheaters $2m
LDV electrification $1m
Total $9m
These costs are spread across the five-year
period, with $1.5 million capital expenditure
allocated to decarbonisation projects in
2025. There are no anticipated additional
operating expenditures associated with
the CTP.
In 2024, Kenmare purchased a Selective
Mining Operation (SMO) plant, which will be
in operation in 2025 and have a 10-year life.
A second SMO is likely to be purchased in
2025. These two plants, together with their
dredges, cost approximately $6 million each.
These diesel-powered plants, together with
the Mineral Separation Plant, Heavy Mobile
Equipment and Transshipment vessels, are
locking in future GHG emissions. However,
Kenmare is investigating all options for
integrating biodiesel and electrifying diesel
equipment.
Kenmare has no significant capital
expenditure for coal, oil or gas-related
economic activities.
Kenmare is not excluded from EU Paris-
aligned benchmarks.
Kenmare’s transition plan is embedded in and
aligned with the Company’s overall business
strategy and financial planning through the
following mechanisms:
`
integration in annual risk register review;
`
financial assessment of material
sustainability risks, including physical and
transition climate risks;
`
integration in annual capital expenditure
and operating cost budgeting process;
`
shadow carbon price applied to capex
evaluation and financial modelling; and
`
integration of ESG targets in both
executive remuneration and senior
manager incentives.
As set out on page 125 the CTP has been
approved by Kenmare’s Board of Directors,
Executive Committee and site leadership
team. The monthly Steering Committee
chaired by the Chief Operations Officer
monitors the execution of the CTP.
Decarbonisation targets are tracked quarterly
by both management and the Sustainability
Committee. The Sustainability Committee
receives a minimum of two annual updates
on the CTP and the Audit & Risk Committee
reviews and approves the CTP’s associated
risks and capital and operating expenditure
plans.
The remuneration for Kenmare’s management
team includes a 25% component allocated
to the achievement of sustainability KPIs.
Of that, 5% is weighted towards achieving
a decarbonisation target. For 2024, the KPI
targeted a 12% Scope 1 and 2 (market-based)
emissions reduction by 2024 relative to a
2021 baseline, which was achieved. This was
achieved through investing in the RUPS
equipment, which provides power during
power dips throughout the stormy season
in Mozambique. Additionally, efficiency
improvements were made to the Mineral
Separation Plant. For 2025, the KPI will
include specific deliverables tied to Kenmare’s
medium-term (2030) emissions reduction
target, including feasibility studies for the
drier electrification project and studies for
the deployment of solar and wind-based
power. Decarbonisation targets are included
in management’s remuneration to ensure that
the key risk of climate mitigation is prioritised.
In 2023, a Decarbonisation Manager was
appointed and, in 2024, an Energy Manager
was appointed.
Kenmare Resources plc
Annual Report and Accounts 2024
54
HEALTHY NATURAL ENVIRONMENT
ESRS E1 CLIMATE CONTINUED
E1 IRO-1
MATERIAL TOPIC: CLIMATE ADAPTATION
Mozambique is amongst the top ten countries
that are most vulnerable globally to the
impact of climate change and natural hazards
1
.
Mozambique’s vulnerability to climate change
is a function of its location and geography:
large areas of the country are exposed to
tropical cyclones, droughts (every three to
four years) and river/coastal storm surge
flooding. More than 60% of the population
lives in low-lying coastal areas, where intense
storms from the Indian Ocean and sea level
rise put infrastructure, coastal agriculture, key
ecosystems and fisheries at risk. Increasingly
unpredictable rainfall patterns and temperature
changes disrupt planting and harvesting cycles,
risking smallholder farmers’ food security.
Rising temperatures and flooding increase the
prevalence of diseases like malaria and cholera.
Kenmare is working to increase the resilience
of its operations, its workforce, supply chains
and neighbouring communities to the threat
of extreme weather events. When existing
community infrastructure is damaged by
extreme weather, Kenmare undertakes repair
works, which ensure they are resilient to
Category 4 cyclones. This is also the case
for newly built community infrastructure.
This work has provided most communities
with a safe place where they can take shelter
during a cyclone. KMAD’s sponsorship of a
Conservation Agriculture (CA) programme,
in which over 600 community farmers
participate aims to teach techniques to
improve farmers’ crop yields and better
protect them from drought, flooding and
disease.
In 2024, Kenmare increased the resilience of its
electrical energy infrastructure to flooding from
storms and cyclones by reinforcing the base of
the pylon holding the 110 KV power line running
from Nampula to the Mine. Annual flooding had
over the years eroded the Meluli River bank,
close to one of the pylons and a 100-metre
protection barrier was built. A second barrier of
500 metres is due to be completed in 2025.
To assess the growing threat of climate
change and the necessary adaptation
strategies to be developed in response,
Kenmare updated its physical climate risk
assessment in 2024, informed by research
undertaken by external sustainability
consultants. For analysis of physical risk,
Kenmare assessed two of the IPCC’s Shared
Socioeconomic Pathways (SSPs) as follows:
SSP 1‑2.6: LOW‑CARBON SCENARIO SSP 8.5: WORST CASE OR BUSINESS‑AS‑USUAL
WARMING BY 2100: 1.3‑2.3ºC WARMING BY 2100: 3.3‑5.7ºC
Characteristics
Sustainability-Oriented Development: Assumes a shift toward sustainable
development, with emphasis on equity, environmental protection and
international cooperation.
Global Cooperation: Countries prioritise policies that promote renewable
energy, education and low-carbon technologies.
Reduced Inequalities: Socioeconomic disparities narrow as low-income
regions experience significant development.
Population Growth: Global population growth slows, peaking by mid-century
and then declining.
Energy Transition: Rapid deployment of renewable energy sources like wind,
solar and hydropower, replacing fossil fuels.
Land Use: Sustainable land management practices reduce deforestation and
support biodiversity conservation.
Lifestyle Changes: Societal shifts toward less resource-intensive lifestyles,
including changes in consumption patterns and urban planning.
Characteristics
Economic Growth: Rapid economic and technological development driven by
a focus on fossil fuels as the primary energy source.
Energy-Intensive Growth: High reliance on coal, oil, and natural gas to fuel
economic expansion, with slower adoption of renewable energy technologies.
Globalisation: Strong emphasis on global markets and free trade, with uneven
progress in addressing inequalities.
Population Growth: Population stabilises and declines in some regions after
mid-century, consistent with high-income, industrialised societies.
Energy Use: Energy demand surges due to rapid industrialisation, urbanisation,
and economic growth.
Land Use: Significant land conversion for urban and agricultural expansion,
leading to habitat loss and reduced biodiversity.
Technological Innovation: Focuses on fossil fuel technologies, with slower
adoption of clean energy solutions.
Environmental Impact: Severe consequences for ecosystems, extreme
weather events, and sea-level rise.
EMISSIONS TRAJECTORY (2.6 W/M²) EMISSIONS TRAJECTORY (8.5 W/M²)
Mitigation Efforts: Greenhouse gas (GHG) emissions are aggressively
reduced, peaking around 2020 and declining thereafter.
Carbon Dioxide Removal (CDR): Techniques such as afforestation and
carbon capture and storage are used to help achieve net-negative emissions
later in the century.
Global Temperature Increase: Limiting global warming to, approximately,
1.5°C above pre-industrial levels by 2100, consistent with the goals of the Paris
Agreement.
High Greenhouse Gas Emissions: No significant efforts are made to curb
emissions, leading to a concentration of greenhouse gases (GHGs) in the
atmosphere.
Carbon Intensity: Energy and industrial processes remain heavily carbon
intensive.
Global Temperature Increase: Warming exceeds 4°C above pre-industrial
levels by 2100, posing severe risks to ecosystems, human systems and
biodiversity.
MPLICATIONS AND CHALLENGES
Climate Risks: Reduced but ongoing risks of extreme weather, sea level rise,
and biodiversity loss requiring continuous monitoring and mitigation.
Economic and Social Costs: High upfront investment in clean energy and
infrastructure, with challenges in managing the transition from fossil fuels.
Adaptation Needs: Strengthening climate-resilient infrastructure, agriculture,
and coastal protection to minimise residual risks.
IMPLICATIONS AND CHALLENGES
Climate Risks: Drastic temperature increases lead to more frequent and
severe heatwaves, droughts and flooding events.
Economic and Social Costs: Rising costs from climate impacts, including
damage to infrastructure, agriculture and human health.
Adaptation Needs: Limited attention to adaptation and mitigation results in
substantial global challenges for resilience and disaster management.
1
World Bank: Country Climate and Development Report: Mozambique.
55
Kenmare Resources plc
Annual Report and Accounts 2024
STRATEGIC REPORT
GENERAL
ENVIRONMENT
SOCIAL GOVERNANCE
The hazards assessed align with the EU
Taxonomy climate hazard classifications,
referenced in CSRD ESRS E1 (Climate
Change) standard. These hazards
included changing temperature, wind,
and precipitation patterns. Five hazards
deemed as not relevant to the review were
excluded, including permafrost thawing and
avalanches. The data points analysed included
the mean and maximum daily temperature,
human heat stress and warm spell duration,
mean daily wind speed, maximum tropical
cyclone wind speed, water seasonal variability,
maximum one-day rainfall, the WRI’s water
stress forecast and number of consecutive dry
days. Two-time horizons, 2030 and 2050, were
evaluated for each scenario. Kenmare’s physical
risk analysis considered eight locations, four
of which were all key operational areas within
the Mine concession. The remaining four were
Nampula city, the location of Kenmare’s regional
office; Maputo, the location of Kenmare’s
country headquarters; the Cahora Bassa Dam,
the source of Mozambique’s hydroelectric
energy; and Johannesburg, a major logistics
hub from which staff, suppliers, visitors and
goods are transported to the Mine. The results
of the resilience analysis showed that the key
hazards of cyclones, temperature rise, and
flooding and droughts had all increased since
the last assessment. Below is a summary
of the updated climate resilience scenario
analysis.
Extreme weather events have been a principal
risk for the Company since 2009. Kenmare
has robust mitigation controls including
emergency preparedness plans to increase
the resilience of our people, operations, and
communities in the event of extreme weather.
Secondary physical risks include storm
surges, flooding, and extreme heat. The most
significant transition risk remains regulatory
pressure to deliver a science-aligned Climate
Transition Plan. As outlined above, Kenmare’s
current Climate Transition Plan does not
meet this requirement; however, the Company
will endeavour to exceed this target and
work towards closer alignment with a 1.5°c
temperature pathway.
The transition to a low-carbon economy also
presents opportunities to market Kenmare’s
relatively low-carbon intensity products to
climate-conscious customers; reduce operational
costs through increasing energy efficiency; and
a low, but growing, demand for titanium minerals
products in low-carbon technologies.
Climate change risks and opportunities
IPCC’s Shared Socioeconomic Pathways
CLIMATE CHANGE‑RELATED RISKS
TIMEFRAME SCENARIO SENSITIVITY
SHORT MEDIUM LONG
LOW
CARBON
BUSINESS
AS USUAL
Physical risks
Cyclones • ••• ••••
Storm surges • ••• ••••
Flooding • •• ••
Extreme heat • •• •••
Transition risks
Investor expectations on decarbonisation • •••• •••
Net impact of climate regulations
(carbon pricing etc)
• •••• •••
Climate change-related opportunities
Energy transition positively impacting titanium
demand
• •• •
Demand for lower carbon products • •• •
KEY
High likelihood
•••••
••••
•••
••
•
Low likelihood
Anticipated onset of
risk or opportunity.
Estimated full
impact of risk or
opportunity
•
Kenmare Resources plc
Annual Report and Accounts 2024
56
HEALTHY NATURAL ENVIRONMENT
ESRS E1 CLIMATE CONTINUED
E1-6
Greenhouse Gas emissions
SCOPE CATEGORY 2021 2022 2023 2024
Scope 1 (tonnes CO
2
e) Diesel Usage 64,358 61,377 53,062 53,932
– MSP (Plant) 30,223 27,861 25,832 26,069
– Heavy Mobile Equipment 15,670 15,914 18,243 21,389
– Transshipment Vessels 2,673 3,021 2,881 2,967
– Diesel Generators 11,566 9,524 1,198 1,006
– Company Vehicles 2,091 2,232 1,469 982
– Unallocated 636 962 1,769 775
– Shore Services 1,499 1,863 1,670 744
Other Fuel Usage 238 218 191 222
Fugitive Gasses 5,164 4,212 3,404 4,062
Waste – – 769 830
Total Scope 1
1
(tonnes CO
2
e) 69,760 65,809 57,427 59,046
Scope 2 (tonnes CO
2
e) Purchased electricity, Market-based – – – 11
Scope 2 (tonnes CO
2
e) Purchased electricity, Location-based 16,540 18,628 18,896 21,260
Scope 3 (tonnes CO
2
e) Category 1: Purchased Goods and Services
2
6,741 10,855 12,833 8,737
Category 2: Capital Goods – 1,865 655 6,091
Category 3: Fuel- and Energy-related Emissions
3
15,137 14,432 12,479 19,517
Category 4: Upstream Transportation Emissions 35,870 34,296 34,510 33,111
Category 5: Waste Generated in Operations 12 18 19 25
Category 6: Business Travel 100 1,015 1,317 1,794
Category 7: Employee Commuting 588 921 2,278 1,804
Category 9: Downstream Transportation Emissions 82,796 66,772 47,346 61,035
Category 10: Processing of Sold Goods – – 3,934,587 4,024,868
Total Scope 3
(tonnes CO
2
e) 141,243 130,173 4,046,024 4,156,982
Total Scopes 1, 2 and 3 Scope 2 - Market-based 211,003 195,982 4,103,451 4,216,041
Scope 2 - Location-based 227,543 214,611 4,122,347 4,237,288
Emissions Intensity Revenue (Scope 1 tCO
2
e per 1,000 USD) 0.1659 0.1321 0.1246 0.1424
Production
(Scope 1 tCO
2
e per tonne of ore excavated) 0.00177 0.00164 0.00149 0.00143
Production
(Scope 1 tCO
2
e per tonne of finished product) 0.0567 0.0548 0.0526 0.0531
Net Revenue used to Calculate Carbon Intensity (USD) 420,550,000 498,339,000 460,881,150 414,746,629
Percentage of Scope 1 GHG emissions under regulated
emission trading schemes 0% 0% 0% 0%
1
Historical Scope 1 emissions were recalculated using updated emission factors and GWPs.
2
Year-on-year variability in emissions is attributed to boundary changes. During 2024 contractor fuel purchases were outsourced (data not available).
3
From 2024, both fuel and electricity upstream emissions have been included (previously only fuel-related upstream emissions were reported).
57
Kenmare Resources plc
Annual Report and Accounts 2024
STRATEGIC REPORT
GENERAL
ENVIRONMENT
SOCIAL GOVERNANCE
95.5%
PROCESSING OF
SOLD PRODUCTS
6.9%
REFRIGERANTS
1.4%
WASTED GENERATED
IN OPERATIONS
0.4%
OTHER FUEL
COMBUSTION
91.3%
DIESEL
COMBUSTION
46.2%
DOWNSTREAM
TRANSPORTATION
EMISSIONS
25.1%
UPSTREAM TRANSPORATION
EMISSIONS
14.8%
FUEL AND
ENERGY-RELATED
EMISSIONS
6.6%
PUCHASED GOODS
AND SERVICES
1.4%
BUSINESS TRAVEL
1.4%
EMPLOYEE COMMUTING
4.6%
CAPITAL GOODS
0.02%
WASTE GENERATED
IN OPERATIONS
2024 GHG Emissions
2024 Scope 1 Emissions
2024 Scope 3 Emissions excl. Processing of Sold Goods
Scope 1
Scope 3
1.4%
SCOPE 1
3.1%
SCOPE 3 EXCL.
PROCESSING
OF SOLD GOODS
Breakdown of Scope 1, 2
1
and 3 emissions
2024 GHG emissions accounting
As highlighted under Basis for preparation
and limitations on page 39, updated emissions
factors and IPCC AR6 GWPs have been
applied to the relevant categories of Scope 1,
2 and 3 resulting in a restatement of historical
emissions.
In 2024, emissions from diesel consumption
increased by 2% in 2024 compared to 2023.
This increase was driven by a 7% increase in ore
excavated. This led to a 17% increase in diesel
consumed by heavy mobile equipment for face
preparation and post-mining rehabilitation.
There was also a 1% increase in diesel used in
the MSP. The 1.9% increase in final products
resulted in a 3% increase in diesel consumption
within shipping via the transshipment vessels.
2024 also saw an increase in refrigerant gases.
An increased number of employees, resulted
in more air-conditioning being installed,
contributing to usage of R410A which is used
mainly within the mine camp. In addition, mobile
equipment using refrigerants were used more
than in 2023 due to the increased production.
Waste generated for Kenmare’s operated
landfill increased by 7% compared to 2023.
Scope 2 location-based emissions increased
by 13% due to a 3.5% increase in electricity
consumption compared to 2023, driven by the
electrically powered ore excavation from the
Wet Concentrator Plants.
In 2024, Kenmare moved Scope 3, Category
10: Processing of Sold Goods into the
boundary of its Scope 3 emissions reporting.
The Company has disclosed estimated
emissions from this source for the past
two years, but has worked with a specialist
third-party to increase confidence in the
accuracy of this reporting. Emissions from
Category 10 represent the greatest source
of emissions and significantly increase the
Company’s reported indirect emissions.
To the Company’s knowledge, there have
been no significant events or changes in
circumstances that occurred for entities
in Kenmare’s value chain in the reporting
period. Kenmare procures 100% hydro-
electric power from EdM; the Company’s
market-based Scope 2 emissions are
therefore zero. Kenmare receives written
annual confirmation that the electricity it
purchases is hydro-electrically generated
and is bundled with the zero carbon
environmental attributes. The percentage of
Scope 3 emissions calculated from primary
data in 2024 was 0.2% (6.3% excluding
Category 10, Processing of Sold Goods).
Scope 3 categories included in Kenmare’s
inventory are listed in the table on page 57.
E1-7 Kenmare did not purchase or originate
any carbon removals in 2024.
1
Market-based emissions.
Kenmare Resources plc
Annual Report and Accounts 2024
58
HEALTHY NATURAL ENVIRONMENT
ESRS E1 CLIMATE CONTINUED
E1-5
Total energy usage (MWh)
ENERGY TYPE
1
2021 2022 2023 2024
Mine: fossil-fuel energy (non-renewable) 241,081 229,894 198,754 201,141
Head office: grid energy (non-renewable) – – – 24
Total non-renewable energy 241,081 229,894 198,754 202,165
Mine: grid energy (renewable) 207,719 233,923 237,293 245,691
Head office: grid energy (renewable) 17 27 25 –
Total renewable energy 207,736 233,950 237,318 245,691
Total energy 448,817 463,844 436,072 447,857
Proportion of renewable energy (%) 46.3% 50.4% 54.4% 54.9%
1
Historical emissions were recalculated using updated heating values.
MATERIAL TOPIC: ENERGY EFFICIENCY
This topic relates to the energy efficiency of
Kenmare’s operations to ensure it remains
stay within the available grid capacity
and to avoid turning on diesel generators.
Kenmare’s grid electrical power comes
from Electricidade de Moçambique (EdM),
Mozambique’s national energy company,
which sources most of its power from
Hidroelectrica de Cahora Bassa’s (HCB)
hydroelectric dam. EdM confirms annually
that the grid electrical power it supplies
to Kenmare is 100% hydroelectrically
generated. Kenmare focuses on increasing
energy efficiency across all operations and
increasing the availability of renewable
energy sources.
E1-4
Targets
In its 2024 ESG Scorecard, Kenmare targeted a 12% emissions reduction (Scope 1) relative to a 2021 baseline and the submission of a Climate
Transition Plan (CTP) with targets for Board approval. A 15% emissions reduction was achieved in 2024 and the CTP, summarised on pages 51-
56, was approved by the Board.
SCOPE 1 & 2* TARGET SCOPE 2* TARGET SCOPE 3 TARGET
By 2030, reduce by 30%
Scope 1 and 2 absolute
emissions (relative to 2021
baseline).
By 2030, reduce by 45%
Scope 1 and 2 intensity-
based emissions tCO
2
e/
tonne of ore excavated
(relative to 2021 baseline).
In 2025, complete feasibility
study for a 20MW solar
plant at site and progress to
tender stage.
In 2025, Kenmare will target
the top 25 companies (30%
of spend) – with the aim of
improving the data quality of
Categories 1 and 2.
E1-8
Carbon pricing
Kenmare is in the process of integrating its
shadow carbon price into its Authorisation
for Expenditure (AFEs) process. The shadow
carbon price used for 2024 was determined
by the cost premium of biodiesel compared
to fossil diesel, which equated to $116/tonne
of CO
2
. The closest regional carbon price is
South Africa, which implemented a carbon
tax in 2019, starting at $8.3 per tCO
2
e, with
planned increases to encourage emissions
reductions. 91% of all Scope 1 emissions
are covered by the carbon price in the
budgeting process. This covers diesel usage
while refrigerant gases, LPG and Petrol are
excluded. No Scope 2 emissions are covered
by the shadow carbon price, as given
Kenmare purchases 100% of its electrical
energy from green energy sources. No Scope
3 emissions are currently covered by the
shadow carbon price.
There are no disclosures in the financial
statements that use carbon pricing
estimates. Property, plant and equipment
are depreciated over their useful life on a
straight-line basis, or over the remaining
life of the mine (if shorter) or on a unit of
production basis.
The dredges, WCPs and MSPs are powered
by electricity. Diesel power is used in the
SMOs, heavy and light mobile equipment, in
dryers within the MSP, the marine vessels,
as well as back-up generators. As detailed
above Kenmare is looking at ways to replace
this diesel usage with an alternative lower-
carbon power source, but it is not anticipated
that this will result in a change in the useful
life of existing assets.
The cash-generating unit for the purpose
of impairment testing is the Moma Titanium
Minerals Mine. The cashflow forecasts
include the additional operating and capital
costs required to meet it climate transition
plans. These plans use the carbon price to
determine their net present values, a key
factor in the investment assessment.
The Group had not undergone any mergers
or acquisitions (M&A) in the year.
* Market-based emissions.
59
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Annual Report and Accounts 2024
STRATEGIC REPORT
GENERAL
ENVIRONMENT
SOCIAL GOVERNANCE
EU Taxonomy
On review of the EU Taxonomy Regulation (EU) 2020/852, Kenmare
concluded that none of its economic activities are Taxonomy eligible.
Kenmare is obliged to report annually on its Taxonomy-aligned
activities and to disclose turnover and expenditure relating to its
activities which are classified as environmentally sustainable. It first
determines whether any of its activities are eligible to qualify as a
sustainable activity i.e. whether the economic activity substantially
contributes to at least one of the six abovementioned environmental
objectives of the Taxonomy regulation. However, only Technical
Screening Criteria for the first two environmental objectives – Climate
Change Mitigation and Adaptation – have been formally identified by
the EU so far.
If an activity qualifies as a sustainable activity, a review must be
undertaken to ensure it aligns with the Taxonomy Regulation. The
activity could have attributes that nullify its positive contribution.
To ascertain if activities which qualify as ‘eligible’ activities are also
Taxonomy ‘aligned’, an activity must satisfy the following three criteria.
Substantially contribute to one of the six economic activities in line
with the Technical Screening Criteria (TSC).
Do-no-significant-harm (DNSH) in relation to the other
environmental objectives.
Comply with Minimum social safeguards (MSS) as described in
the Taxonomy Regulation.
In 2024, Kenmare had no activities regarded as eligible for taxonomy
alignment. Procurement of renewable energy and the Mine’s rehabilitation
activities were considered, but discounted for the following reasons:
Renewable energy: this was discounted as only construction or
operation of electricity generation facilities that produce electricity from
hydropower are aligned/eligible, not the procurement of energy from
this source.
Rehabilitation: this was discounted as the taxonomy’s definition of
Afforestation is planting, deliberate seeding or natural regeneration
on land that, until then, was under a different land use or not used.
Afforestation implies a transformation of land use from non-forest
to forest, in accordance with the Food and Agriculture Organisation
of the United Nations (‘FAO’) definition of afforestation. Although
Kenmare’s rehabilitation programmes are legal under Mozambican
law, the Company cannot scientifically prove that it puts back (net)
more carbon and biodiversity to the land than was there before mining
activities began.
2024
(US MILLION) TURNOVER CAPEX OPEX
Aligned eligible activity – – –
Eligible and not-aligned activity – – –
Non-eligible activity 414.7 152.6 243.6
Total 414.7 152.6 243.6
Aligned eligible activity 0% 0% 0%
Eligible and not-aligned activity 0% 0% 0%
Non-eligible activity 100% 100% 100%
2023
(US MILLION) TURNOVER CAPEX OPEX
Aligned eligible activity 0% 0% 0%
Eligible and not-aligned activity 0% 0% 0%
Non-eligible activity 100% 100% 100%
Kenmare awaits the sector guidance for mining to determine whether
its products may be eligible and aligned under the Taxonomy
Regulation. Kenmare’s products include Titanium Dioxide (TiO
2
)
and a monazite-rich mineral sand concentrate, which includes rare
earth elements (REEs), both of which Kenmare believes have a role
to play in the transition to a low-carbon economy. TiO
2
enhances the
durability and sustainability of construction products and buildings
through its resistance to heat, ultraviolet degradation, and weathering.
Consumption of raw materials as well as waste production is reduced
with lower maintenance requirements. In plastics, TiO
2
pigment helps
to protect and extend product lifetime, reducing plastic waste. TiO
2
in
paint also has a high refractive capability, reflecting heat generated
by the infrared rays of the sun. TiO
2
paints applied to the surfaces of
buildings and roofs can, therefore, help to reduce heat build-up and
avoid air conditioning requirements.
Titanium metal represents a small proportion (4-5%) of the total market
for Kenmare’s titanium feedstocks; however, demand for titanium metal
in low-carbon technologies, such as geothermal, nuclear and solar
is growing. In addition, Rare Earth Elements (REEs) are essential for
permanent magnets in wind turbines and electric vehicle motors. In a
scenario in which temperature increases are limited to 1.5°C due to the
rapid decarbonisation of the economy, the projected growth up to 2050
for these metals is 60% for Titanium metal and 80% for REE relative to
a business-as-usual case, where temperature increases continue their
current trajectory.
Kenmare Resources plc
Annual Report and Accounts 2024
60
HEALTHY NATURAL ENVIRONMENT
ESRS E1 CLIMATE CONTINUED
Addressing the Task Force on Climate-related Financial Disclosures (TCFD) recommendations
Climate-related disclosures on governance, strategy and risk
management, as well as metrics and targets, are integrated into this
report, as set out below. These disclosures are consistent with the
four thematic areas, 11 recommended disclosures and “Guidance for
All Sectors” set out in the October 2021 guidance “Implementing the
Recommendations of the Task Force on Climate-Related Financial
Disclosures”. To aid readers, the key climate-related disclosures can
be found here:
GOVERNANCE PAGE NUMBER
Describe the Board’s oversight of climate-related risks and opportunities. 116, 118-122, 126, 127, 130, 133, 137 139, 141, 142 , 146,
148, 151
Describe management’s role in assessing and managing climate-related risks and
opportunities.
106
STRATEGY
Describe the climate-related risks and opportunities the organisation has identified
over the short, medium, and long term.
51, 56
Describe the impact of climate-related risks and opportunities on the organisation’s
businesses, strategy, and financial planning.
181
Describe the resilience of the organisation’s strategy, taking into consideration different
climate-related scenarios, including a 2°C or lower scenario.
55-56, 106
RISK MANAGEMENT
Describe the organisation’s processes for identifying and assessing climate-
related risks.
55-56
102-103
Describe the organisation’s processes for managing climate-related risks. 106
Describe how processes for identifying, assessing and managing climate-related risks
are integrated into the organisation’s overall risk management.
102-103
METRICS AND TARGETS
Disclose the metrics used by the organisation to assess climate-related risks and
opportunities in line with its strategy and risk management process.
24, 40, 42, 56
Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 Greenhouse Gas (GHG)
emissions and the related risks.
57-59
Describe the targets used by the organisation to manage climate-related risks and
opportunities and performance against targets.
24, 40, 42, 154-155
61
Kenmare Resources plc
Annual Report and Accounts 2024
STRATEGIC REPORT
GENERAL
ENVIRONMENT
SOCIAL GOVERNANCE
Mineral sands mining causes relatively
low levels of pollution as it does not use
explosives, or toxic chemicals in the mining
or the initial separation process. As mineral
sands are usually mined in shallow, surface-
level deposits, rehabilitation is simpler
and quicker than for underground or hard
rock mines. Small quantities of non-toxic
chemicals are used in the processing of
sewage and laboratory testing. Kenmare
does not consider pollution to be a material
topic with regards to direct operations,
however, the Company acknowledges its
historical and current reporting in this area
is insufficient to demonstrate this is the
case. Kenmare anticipates that once its
management approach and reporting has
been matured, this topic will be considered
immaterial for its direct operations.
Conversely, this is a topic material in the
value chain, however, as outlined below,
Kenmare foresees collection of pollution-
related data to be challenging.
MATERIAL TOPIC: POLLUTION
Pollutants involved in
customers’ processing of TiO
2
The use of chemicals by Kenmare’s customers
to process the mined product in the value
chain is extensive. The energy-intensive
smelting of TiO
2
via sulphate or chloride
processes generates significant CO
2
emissions.
The chloride process produces hazardous
pollutants such as calcined coke, chlorine
gas, iron chloride, and acidic residues, which
are harmful to the environment. Sulphate
processes use sulphuric acid, creating acidic
waste (e.g. iron sulphate) which risks creating
soil and water pollution if poorly managed.
Titanium metal processing requires reacting
slag with chlorine gas, carbon and heating
to 900°C. Zircon processing involves size
reduction, chemical and thermal treatment
with high temperatures and coke to extract
silica. Collecting data from customers on the
processing of sold goods will be a challenging
process due to several factors: the intellectual
property relating to each customer’s
processing methodology and the fact that
customers may use multiple suppliers and
cannot disaggregate the inputs and outputs
relating to Kenmare’s specific product.
E2-1
E2 IRO-1
Policy related to pollution
To identify actual and potential pollution-
related impacts, risks and opportunities,
Kenmare carries out an Environmental and
Social Impact Assessment (ESIA) out before a
project begins. This assessment is then used
to develop an Environmental Management
Plan, which manages potential impacts and
risks. In accordance with environmental
regulations, two public consultations are
carried out during the ESIA process. If
chemicals are procured for use within the
Mine (e.g. Sewage treatment plant, laboratory
sampling/analysis, etc), approval from the
EHS department is required first. They will
determine the potential impact and create
a management plan to mitigate any adverse
environmental incidents or recommend not
proceeding with the purchase.
Kenmare’s Environmental Policy is an integrated
environmental resources policy encompassing
biodiversity, air, water, marine, land, waste, and
Tailings Storage Facilities. Kenmare manages
potential and actual pollution of air, water and
soil through the mitigation hierarchy.
The Policy requires the quantification
of emissions of relevant pollutants from
stationary equipment, including Total
Particulate Matter (PM)
1
, nitrogen dioxide
(NO
2
) and sulphur dioxide (SO
2
). For air
quality, metals, carbon monoxide and Ozone,
Dust fallout, SO
2
, NO
2
, Volatile Organic
Compounds, and PM are monitored to
minimise fugitive emissions to protect
human health and the environment. The
Company will minimise environmental risks
in purchasing, handling, storage, disposal,
clean-up and circular use of all chemicals,
substances, materials, and containers,
including hazardous substances and
radiation. The Policy sets out legal and
disclosure requirements that must be met
and ensures that environmental risk and
emergency procedures are developed and
maintained and made widely available in the
training of employees.
The Environmental Policy does not
currently cover the downstream value chain.
However, Kenmare’s supplier sustainability
due diligence process obtains information
about suppliers including whether they
are ISO 14001 certified, whether they have
environmental emergency response plans
in place and whether they produce or use
hazardous materials, and the controls they
use to manage these.
1
Particulate Matter less than 10 micrometres in diameter (PM10) and less than 2.5 micrometres in diameter (PM2.5).
MATERIAL TOPICS
TOPICS
`
E2 Pollution
`
Tailings Storage
KEY POLICIES
`
Environmental policy
`
Environmental Monitoring
Procedure
`
Supply Chain Code of Conduct
TARGETS
E2-3
Ensure operations are 95%
compliant with government and best
practice standards (IFC, WHO etc)
for pollution to air and water
KEY ACTIONS
`
Supplier engagement
`
Transition to ISO 14001 in 2025/6
Kenmare Resources plc
Annual Report and Accounts 2024
62
HEALTHY NATURAL ENVIRONMENT
ESRS E2 POLLUTION
E2-2
Actions
To check the Mine is meeting ambient air
quality standards, a monthly internal air-
monitoring programme measures at multiple
locations on site. It carries out third-party
annual air quality monitoring of PM10, PM2.5,
metals, carbon monoxide, Volatile organic
compounds (VOCs), NO
2
, SO
2
, ozone and
formaldehydes.
A full range of water quality standards are
monitored monthly (sampled internally and
analysis conducted by an ISO 17025 certified
laboratory and on a monthly basis through
the internal laboratory). Additional water
quality baseline studies are conducted as
applicable, under the ESIA process. Water
quality monitoring is also undertaken,
such as marine and wetland water quality
surveys by third-party specialists on biennial
basis. Based on the outcomes of the ESIA,
different monitoring needs may arise, and are
monitored accordingly, thus deploying any
adaptive management practices to cater for
any residual risk.
Sampling and reporting of dust in all
hazardous areas is conducted regularly, with
immediate action taken when levels reach
the statutory limit. The full set of objectives,
actions and monitoring programmes are
set out in Kenmare’s Pollution Risk Control
Procedure. Key actions in this procedure are:
`
regularly checking all drains are clear and
free flowing;
`
disposing of solid and liquid wastes and
all chemicals in accordance with relevant
procedures;
`
ensuring all waste oil recovery systems
function properly;
`
ensuring that spill contingency facilities
and procedures are in place and that all
significant chemical spills are reported
and dealt with;
`
ensuring no hazardous products are
stored on bare ground and any semi-
permanent storage of hazardous
products, including oil, conforms to
international standards and is over 100
metres from any water courses;
`
storing all chemicals in designed, locked
storage areas, with segregation of
potentially reactive substances;
`
storing diesel on hard standing surfaces
with seated drainage systems in bunded
tanks that will retain all fluids if the tank fails.
Measures are in place to contain any spills
and enable drainage to an interceptor;
`
securely fencing all fuel storage areas to
prevent unauthorised access, which is
monitored daily and serviced and cleaned
weekly;
`
collecting all oily and contaminated
waters from vehicle refuelling and
maintenance yards in separation tanks,
separating them with a skimmer, and
inspecting interceptors weekly;
`
disposing of oil from tanks by an
approved third-party; and
`
minimising dust generation through the
use of vegetation, using defined haulage
routes and vehicle speed limits and
spraying roads with water.
Kenmare’s staff are trained to ensure they
are aware of the relevant requirements of
the Company’s procedures. In addition,
specific training is required in the handling
and/or storage of hazardous materials (this
includes refuelling operations); identification
of contaminated land; and spill containment/
clearance techniques for emergency
response.
Kenmare requires all suppliers to confirm
adherence to its Supplier Code of Conduct
in which they have to demonstrate their
commitment to protecting the environment
and working responsibly and sustainably.
Suppliers must:
`
support a precautionary approach to
environmental challenges;
`
have an environmental policy or
commit to complying with Kenmare’s
Environmental and Climate Policies
including managing spillages or product
release;
`
comply with applicable environmental
legislative requirements and relevant
guidelines when providing goods or
services to Kenmare; and
`
collaborate with Kenmare to identify
opportunities for environmental
improvement with a focus on reducing
energy consumption, greenhouse gas
emissions and raw water consumption
They are also expected to reduce use of
hazardous materials, air pollution, manage
waste effectively and protect biodiversity.
Kenmare has set a KPI for 2025 to ensure
operations are 95% compliant with
government and best practice standards
(IFC, WHO etc) for pollution to air and water.
Kenmare is currently developing a Strategic
Environmental Objectives Planning,
Monitoring and Reporting procedure with
the aim to define operating modalities
and associated responsibilities for setting
environmental objectives, implementing
environmental programmes, monitoring, and
reporting the environmental performance in
the framework of Kenmare activities.
This procedure defines how environmental
objectives shall be established, monitored
and how actions shall be implemented for the
achievement of these objectives. Additionally,
it provides guidelines on the environmental
monitoring and reporting process, including
schedules and forms to be used for collating
environmental data, to ensure:
`
consistent information-gathering using
common template forms and reporting
systems;
`
completeness and accuracy of
environmental data collection by common
definitions and technical guidance;
`
the traceability of collection
methodologies used; and
`
that the activities performed, results
and costs are communicated in line with
Kenmare planning schedule.
The procedure also defines the modalities
for measuring and monitoring the main
characteristics of Kenmare activities and
their potential effects on the environment in
all workplaces.
Monitoring of air quality is incorporated
into the overall environmental monitoring
programme and is validated annually by an
independent air quality specialist.
Internal air monitoring for 2024 was
incomplete due to equipment failure and an
unstable situation following the Presidential
election, resulting in community protests.
This was also the reason an independent
study, which is normally conducted on annual
basis, was not conducted at the end of 2024.
The results of the internal 2024 air quality
monitoring undertaken throughout the
year Mine-wide, the results indicated six
exceedances for PM10 and 14 exceedances
for PM2.5 against the IFC 24-hour 100 ug/
m
3
and 50 ug/m
3
limit. Air quality campaigns
conducted internally and by third parties will
occur in 2025.
63
Kenmare Resources plc
Annual Report and Accounts 2024
STRATEGIC REPORT
GENERAL
ENVIRONMENT
SOCIAL GOVERNANCE
MSP Stack Emissions testing
Kenmare contracted SGS Moçambique to
perform stack emissions testing throughout
all its stationary emissions sources.
Emissions of CO, CO
2
, NO, NO
2
and NOX in
mg/Nm
3
were successfully measured from
the diesel generators, RUPS and Baghouse
Exhaust Stacks. The test results compared
with the IFC guideline values, showed:
`
the diesel generators emit NO
2
levels
which fall within levels considered
acceptable by the IFC standards;
`
the minimum and maximum SO
2
concentrations emitted by the generators
ranged from 76.17 to 222.37 mg/Nm³
falling within the levels considered
acceptable by IFC Standards;
`
the PM concentrations emitted by
the generators fall well below the IFC
guideline value and below the USEPA
recommended value of 50 mg/Nm³ for
controlling emission of PM in baghouse
systems; and
`
SO
2
was not detected at the Baghouses
Exhaust Stacks.
Water quality
The 2024 water quality monitoring for treated
effluents, for the period of January to October,
indicated compliance with Kenmare-adopted
standards for the majority of parameters.
Exceptions included some exceedances for
some months at the camp, MSP, and sewage
treatment plants. These exceedances were
for total coliforms, oil and grease, suspended
solids, mercury, trihalomethane formation
potential, aluminium, manganese, ammonium
ion, chlorides and total hardness.
Soil quality
Kenmare’s ESIA does not trigger a need for
any survey on soil quality Mine-wide, except
for soil contaminated with hydrocarbons
undergoing bioremediation process and
treated soil quality is assessed accordingly.
As a response to spillages of hydrocarbons
to the ground, which can lead to soil
contamination, 6.3m
3
of contaminated
soil was sent for bioremediation, with,
approximately, 6m
3
of this soil submitted for
treatment. Prior to repurposing of treated
soils, they are sampled and analysed for
pH, Calcium, Potassium, Magnesium, and
total petroleum hydrocarbons – TPH
(Gasoline Range Organics and Diesel
Range Organics) in an external accredited
laboratory. Sampling results revealed TPH
below detection limits, which shows that the
bioremediation process was successfully
completed. After soils are declared free from
hydrocarbons contamination, they are used
in the landfill for covering of non-recyclable
waste, although they can also be used for
rehabilitation.
It should be noted that direct data for E2
Pollution is currently limited to the reporting
year 2024 and is restricted to pollutants
emitted to water. Pollutants to air will be
reported in 2025, however the ESIA process
does not identify pollutants to soil as material
and therefore soil pollution will not be
reported on.
Substances of concern or very
high concern
Kenmare’s review of materials procured
and the emissions that leave its facilities
against the list in Article 59(1) of Regulation
(EC) No 1907/2006 and Part 3 of Annex VI
to Regulation (EC) is in progress and the
Company will report on its findings in its
2025 Sustainability Statement.
E2-4
Pollution of water
POLLUTANT EMITTED INTO WATER
Hydrofluoric acid 2.5 kg
Sodium hypochlorite 19,013 kg
Calcium hypochlorite 11,221 kg
Other phosphoric acid 4.7 kg
Kenmare Resources plc
Annual Report and Accounts 2024
64
HEALTHY NATURAL ENVIRONMENT
ESRS E2 POLLUTION CONTINUED
MATERIAL TOPIC: TAILINGS STORAGE
Tailings are residues created as part
of mining and processing operations.
Kenmare’s operations currently contain
most of the tailings in the mining void. This
generally does not involve the construction
of semi-permanent raised containment
embankments, except in the case of a valley
crossing. These containment areas are
known as paddocks and drying cells and
store material that does not contain ilmenite,
zircon, rutile, or monazite.
Kenmare takes a risk-based approach to the
management of paddocks and drying cells.
The tailings strategies aim to safely contain
the tailings under all circumstances and
consider the topography of the site, rainfall,
seismic activity, mineral characteristics and
proximity to people. This complies with
the Mozambican National Regulation for
Tailings Dams.
Kenmare uses a multi-layered approach
to ensuring the structural integrity of the
tailings facilities and safeguarding the
surrounding environment.
Kenmare’s tailings storage facilities (TSF) are
regulated and permitted, and comply with
local laws and licences. Kenmare identifies
geotechnical risk as a principal risk, and
this is actively managed through site and
corporate risk registers. Additional internal
risk management protocols include risk-
focused surveillance systems and processes,
internal geotechnical risk reporting, and
tailings and water management meetings.
Actions
Tailings Management and Transition to
Permanent TSF at WCP A
In 2024, the Company continued its
commitment to maintaining the structural
integrity of its tailings facilities and
safeguarding the surrounding environment
through a multi-layered management
framework. This approach included rigorous
inspection protocols conducted daily,
monthly and biannually. These inspections
evaluated berm stability, paddock and
mine face safety, and overall tailings
management, with assessments carried out
by both in-house geotechnical experts and
independent, internationally recognised
geotechnical consultants.
Key initiatives in 2024 focused on achieving
technical compliance, enhancing emergency
response planning and establishing a robust
governance and compliance framework.
Notable steps included appointing key
personnel to critical governance roles
under the Global Industry Standard on
Tailings Management (GISTM), such as the
Accountable Executive and Engineer of
Record. The appointment of an Independent
Senior Reviewer is due to be made by Q1
2025. The WCP A is scheduled to transition
to a permanent Tailings Storage Facility
(TSF) in 2025, designed and constructed
to meet international standards, including
GISTM. This facility underscores the
Company’s dedication to excellence in
tailings management. Comprehensive
technical assessments, such as Dam Break
Analysis and Seismic Testing, have been
conducted to ensure its robust design
and operational resilience. Additionally, an
external compliance audit is planned to
evaluate progress in aligning current and
future facilities with GISTM standards.
Targets
2024 TARGET 2024 PROGRESS
Achieve GISTM alignment across existing paddocks and future
Isoa TSF by year-end 2024, ready for the external progress audit
in 2025.
`
In-path Paddock Systems: Achieved 78% compliance by Q4
`
Tailings Storage Facility (TSF): Achieved 62%
compliance by Q4
2025 TARGET
Conduct GISTM audit; have <5 major findings.
No reportable tailings releases.
No significant findings from the six-monthly audit.
65
Kenmare Resources plc
Annual Report and Accounts 2024
STRATEGIC REPORT
GENERAL
ENVIRONMENT
SOCIAL GOVERNANCE
MATERIAL TOPIC: WATER STEWARDSHIP
Dredge mining relies on significant volumes
of continuous freshwater use. Most of this
water is recirculated. Kenmare currently
achieves a 90% water reuse rate. Kenmare
uses no chemicals in the mining process and,
therefore, does not pollute water bodies. Due
to the distribution of water boreholes and
proximity to wetlands and coast, silting and
water flow changes can occur. Despite the
Mine being situated in an area not considered
water-stressed, given the dependency of
the mining process on freshwater, it must be
highlighted as a risk to operations.
Kenmare’s mining operations have limited
direct impact on marine resources. It controls
the transfer of product from land to customer
cargo vessels via two transshipment vessels.
In the value chain, cargo vessels impact
marine life, with vessels travelling from
Mozambique to 15 countries globally. This
impact has not been measured due to the
significant distances travelled, large bodies
of water, and the complexity of determining
the impact of Kenmare or Kenmare customer-
chartered vessels relative to the global cargo
shipping traffic. No part of Kenmare’s direct
operations or value chain involves water
discharges to oceans or the extraction or use
of marine resources.
Water is essential to mining operations. It is
primarily used in the mining and processing of
heavy mineral concentrates (HMCs), in tailings
deposition, dust suppression, and for drinking
and sanitation. Surface water and boreholes
supply fresh water to artificial ponds, where
dredgers use water to cut into the ore at the
pond’s base, causing the mineralised sand to
slump into the pond from where it is pumped
into a wet concentrator plant (WCP).
Neither the mining nor processing operations
at Moma use toxic chemicals. Therefore,
operational water losses through seepage,
which return to the underlying aquifers and
adjacent surface water systems as baseflow,
do not affect the ambient groundwater
or surface water quality. Mining water is
released into surface water systems through
“finishing ponds”, which are used to settle fine
suspended solids prior to it being released.
Kenmare’s direct operational impact on the
marine environment is limited to the effect
of transferring its product from a shore-
based jetty to chartered cargo ships via
transshipment vessels. Kenmare’s operations
lie within the Primeiras and Segundas
Environmental Protected area, and it conducts
regular monitoring to ensure its own local,
short-range shipping operations are not
adversely impacting the marine environment.
E3-1
E3 IRO-1
Policy related to water
Kenmare’s Environmental Policy is an
integrated environmental resources policy
which covers water and marine issues as
well as all other environmental aspects of its
operations. Water and marine associated risks
and opportunities are managed by:
`
establishing performance targets, and
regularly reviewing and tracking progress
to amend water management processes as
part of adaptive management practices;
`
maintaining a team of appropriately
qualified and experienced employees to
implement and ensure compliance with the
environmental policy and make Kenmare’s
employees aware of the importance of
environmental management; and
`
managing purchasing, handling, storage,
disposal, clean-up and, where possible, re-
use of all chemicals, substances, materials,
and containers, including hazardous
substances and radiation, to minimise
environmental risks.
The policy sets out Kenmare’s commitment
to sustainable stewardship of natural
resources, including water and marine
resources, and covers the scope of the
Company’s operations. While the value
chain is not directly covered by the policy,
capacity-building processes for suppliers
will be implemented to ensure they provide
responsible environmental management.
The policy deals with water treatment through
its commitment to preventing, mitigating,
restoring, rehabilitating and/or offsetting the
negative residual impacts of mining activities,
while enhancing positive impacts, such as
improving biodiversity post-mining within
Kenmare’s sphere of influence.
The WRI Aqueduct™ tool shows that the
water extracted for the Mine is in an area
identified as having low baseline water
stress. Projections to 2040 indicate there
will continue to be similar levels of low water
stress. Therefore, Kenmare does not have a
policy for operating in an area of water stress.
Kenmare uses community consultation
to partner with host communities and
stakeholders to promote environmental
awareness. This includes participating in the
MATERIAL TOPICS
TOPIC
`
ESRS E3 Water and Marine
Resources
KEY POLICIES
`
Environmental policy
`
Supply Chain Code of Conduct
TARGETS
`
90% water reuse rate
KEY ACTIONS
`
Implementation of water reuse
infrastructure projects
Kenmare Resources plc
Annual Report and Accounts 2024
66
HEALTHY NATURAL ENVIRONMENT
ESRS E3 WATER AND MARINE RESOURCES
preservation and enhancement of biodiversity,
support for climate adaptation and resilience,
while respecting local needs, traditions and
values. Separately, KMAD, the not-for-profit
association funded by Kenmare, supports
projects to increase access to clean drinking
water for host communities. Kenmare’s policy
commitments on water are delivered through
its Water Stewardship Strategy, outlined below.
Water Stewardship Strategy
1. Watershed management – to secure water
supply for current and future operations
while protecting and enhancing other water
uses. This is implemented through site-wide
water balance, environmental monitoring
and surface water and groundwater
modelling to measure the current and
projected operational water demand and
provide an understanding of surface water
and ground water systems.
2. Impact mitigation – to proactively
mitigate environmental and social impacts
associated with the abstraction, use and
discharge of water and to enhance water
use opportunities.
3. Operational performance – to use the site-
wide water balance to manage water as an
asset, by working to improve performance
and compliance with all commitments in the
strategy.
4. External engagement – to collaborate
and engage externally on water policy,
management, and challenges in
Mozambique to create shared value.
5. Internal collaboration – to support
coordination across all water management
activities in the business.
Tracking the effectiveness of
policy and strategy
To track the effectiveness of its Environmental
Policy on water management and water
strategy Kenmare conducts the following:
`
collection and analysis of rainfall, stream
flow, groundwater levels and abstraction
volumes which are input into the site-wide
water balance. Kenmare’s water balance
model was designed in partnership with
the Sustainable Minerals Institute from The
University of Queensland and uses GoldSim
to simulate water-demand scenarios;
`
predictive surface water and groundwater
modelling to proactively identify water-
related impacts to both support ongoing
access to water for operational use and
to consider the impact of water use on
communities and ecosystems. These
are then used to improve future water
management and address any predicted
impacts. Proposed solutions are then put
forward in community meetings as part of
the ESIA process for expansion projects.
The results of the community engagement
and the water management proposals are
submitted to the relevant authorities during
the ESIA; and
`
ongoing adaptive management of the water
resources to adjust the water abstraction
volumes from specific water sources or to
adjust mitigation measures where required.
Water-related impacts are also discussed in
regular community meetings and reported
to the relevant authorities.
Water risk and opportunity
management
Water-related risks:
`
Flooding due to cyclones.
`
Water supply shortfall in a drought year
(defined as having 760mm mean annual
precipitation), which is predicted to occur
every five years.
`
Saline intrusion due to the wellfield
proximity to the coast.
`
Additional projected water demand
associated with the management of
increased slimes within the Namalope
and Nataka orebodies and increased
production resulting from the upgrades of
WCP A and WCP B.
Water-related opportunities:
`
Optimising mining pond levels to minimise
mining seepage losses.
`
Reducing ground water pumping rates by
optimising water abstraction from finishing
ponds and surface water sources, reducing
risk of saline intrusion.
`
Recovery of mining-related seepage losses
to meet the 2024 target of 90% water reuse.
`
Enhancing local water sources for improved
sustainable abstraction.
E3-2
Actions
In 2024, Kenmare took the following actions to
manage water resources:
1. Optimise the mining pond levels to
minimise mining seepage losses
Mining dredge pond water levels and mine
paths were optimised to minimise mining pond
seepage losses, reducing the water makeup
demand. High-pressure monitor guns were
installed on the dredgers to allow for a higher
mining face above the mining pond water level
reducing the pond level.
2. Water recovery and reuse throughout
the mining process
Finishing ponds and sumps were established
downgradient of the operational mining ponds
at WCP A at Namalope and WCP B at Pilivili,
to intercept and reuse mining seepage and
tails losses to minimise the raw water demand
on local resources. Efforts were also made to
enhance the recovery of the Mineral Separation
Plant’s (MSP) reject water. These actions help
to meet Kenmare’s water reuse target.
3. Enhancement of existing water
sources
Action was taken to improve the availability
of existing local water sources to cater for
periods of peak operational water demand.
Initial vegetation clearance at Lake Mavele
to improve access to water from this source
improved water supply to 650 m
3
/hr (2023: 400
m
3
hr). The Namalope wellfield is currently being
extended to increase sustainable abstraction.
Abstraction from the Mualadi River at Pilivili
was increased to 20% as part of the adaptive
management process.
E3-3
Targets and metrics
In 2024, total water volume used in the mining
operations was 254,398,145 m
3
. Of this,
231,362,928 m
3
was reused. The remaining
difference of 23,035,217 m
3
consists of water
makeup that is required for water consumed
within the mining operations, groundwater
seepage losses from the mining ponds and
tailings/paddocks and for losses due to
evaporation.
Kenmare’s target for 2024 was to maintain
the level of water reuse at 90%, which was
achieved. The Company’s medium-term
target for 2030 is to maintain water reuse
between 85-90%. This is to accommodate
potential greater slimes management losses
or seepage as operations at WCP A transition
from Namalope to the new Nataka orebody
and similarly as WCP B transitions from Pilivili to
South Mualadi.
The material risk relating to water is of potential
insufficient water supplies to service the Mine
and processing facilities. Kenmare mitigates
this risk through the extensive access to the
borefield, the water reuse target of 90%, its
water modelling and forecasting provided by
third-party consultants and maintaining a site-
wide water balance.
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STRATEGIC REPORT
GENERAL
ENVIRONMENT
SOCIAL GOVERNANCE
10,104,205 m
3
Total water storage at beginning of period
2,584,870 m
3
Change in water storage
12,689,075 m
3
Total Water Storage at end of period
Water storage 2024
8,218,742 m
3
Total water consumption
Zero
Water Consumption in areas at
water risk, including areas of
high water stress
8,218,742 m
3
Water Consumption in areas not
at water risk
Total water consumption
Water intensity ratio
0.56m
3
/ton
Water intensity ratio
23,035,217 m
3
Total water volume withdrawn
41,247,714 tons
Total tonnage of ore extracted
WATER
WITHDRAWN
Volume in cubic metres
23,035,217 M
3
WATER
DISCHARGED
Volume in cubic metres
14,816,475 M
3
TOTAL WATER
VOLUME USED
254,398,145 M
3
WATER
REUSED/RECYCLED
90.9%
SURFACE WATER
8,001,056 M
3
SEAWATER
0 M
3
GROUNDWATER
15,034,161 M
3
THIRD-PARTY WATER
0 M
3
SURFACE WATER
0 M
3
SEAWATER
0 M
3
GROUNDWATER
12,470,821 M
3
OTHER WATER
(EVAPORATION)
2,345,654 M
3
E3-4
2024 Water performance
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Annual Report and Accounts 2024
68
HEALTHY NATURAL ENVIRONMENT
ESRS E3 WATER AND MARINE RESOURCES CONTINUED
E4-5
The Moma Mine is situated within
Mozambique’s 735C concession, which
partially overlaps with the Primeiras e
Segundas Islands Protected Area (PSEPA),
an area rich in biological diversity. PSEPA
was designated an Environmental Protection
Area in 2012, with the aim of preserving
the physical and environmental integrity
of the habitat in the coastal and marine
areas. Based on the assessment of priority
species and ecosystems, in line with national
legislation and international guidelines, the
following ecosystems were identified within
the Moma Mine’s concession including areas
in and around the PSEPA: coastal forest,
palm savannah, coastal dune thicket, Miombo
woodland, wetlands, rivers and mangroves.
Dredge and dry mining involve the clearing
of vegetation ahead of the mine path. The
mined land is degraded over the short
term. Topsoil is removed and stored for
post-mining rehabilitation and vegetation
is removed and left for communities to
use for firewood. Kenmare’s Environmental
Management Plans, which comply with
Mozambican Environmental regulations,
require the Company to restore the land
through rehabilitation.
Most of the land Kenmare mines has already
been modified by communities through
subsistence-level farming, including slash
and burn agriculture.
In 2022, Mozambique introduced the
Biodiversity Offset Diploma 55 stipulating
No Net Loss (and 15% Net Gain of critical
habitats) of biodiversity for projects of
the Moma Mine’s scale, and Kenmare has
developed its first five-year Biodiversity
Offset Management Plan (BOMP) for
2023-2028.
Mining activities, including exploration, active
mining/dredging operations, processing,
transport (including shipping) and deposition
of mineral waste, have both a direct and
indirect impact. Opportunities related to
biodiversity in a mining environment focus
on the full implementation of the mitigation
hierarchy.
Actual and potential impacts on biodiversity
and ecosystems at the Moma Mine are
identified through the Environmental and
Social Impact Assessment (ESIA) and
Biodiversity Offset Management Plan
(BOMP) in compliance with the Ministerial
Diploma 55. Both processes involve
extensive public consultations. Kenmare’s
Operational Environmental Management
Plans (OEMPs) and BOMP define the
required implementation of the mitigation
hierarchy to achieve no net loss or net gain
in compliance with the Biodiversity Offset
Diploma 55 and are based on the impacts,
risks and opportunities identified in the ESIA
and other specialist studies.
E4 IRO-1
Impacts, risks, opportunities and
dependencies on biodiversity and ecosystem
services were identified through the ESIA,
BOMP and other supporting studies,
including those related to business and
society and the key material topics are listed
below. Kenmare has not yet assessed the
resilience of its upstream or downstream
value chain to biodiversity and ecosystem
related risks but aims to do so over the next
two years.
`
Fresh water supply: the Mine relies on the
ongoing availability of sufficient quantities
of freshwater for mine processing
activities and the risks and controls
around this are covered in E3 water and
marine.
`
Regulation of natural hazards: the
foredune structure along the coastal
front of the 735C concession, and
mangrove forests of the Mualadi, protects
the coastline, communities and mining
infrastructure from storm surges.
`
Erosion control: vegetation stabilises
the dunes, safeguarding communities
and employees and enabling mining of
adjacent areas without risk of collapse.
`
Natural resources: communities depend
on ecosystem services such as farmland
for growing crops, timber for buildings,
furniture-making and firewood, wild-
growing foods, medicinal plants and
freshwater for drinking, cooking and
washing.
`
Restoring and enhancing nature:
implementation of the mitigation
hierarchy, in particular avoidance and
restoration, is used to improve natural
resources and access to environmental
assets and ecosystem services.
Prior to the start of mining activities affected
communities are consulted on the potential
impact on shared biological resources and
ecosystems, including through the ESIA public
consultation, and two public consultations on
the draft BOMP took place in 2024.
These consultations include exploration
of the potential impacts on those
communities, opportunities to participate
in alternative livelihood programmes, and
potential negative impacts associated with
moving farmlands located in biodiversity
conservation areas to alternative areas.
MATERIAL TOPICS
TOPIC
`
E4 Biodiversity and ecosystems
KEY POLICIES
`
Environment policy
TARGETS
`
15% Net Gain of biodiversity
`
Rehabilitation targets
KEY ACTIONS
`
Biodiversity Offset
Management Plan
`
Rehabilitation Plan
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ESRS E4 BIODIVERSITY
GENERAL
ENVIRONMENT
SOCIAL GOVERNANCE
Kenmare’s double materiality assessment
sets out how input from communities
was used in assessing the Company’s
sustainability impacts. The Thriving
Communities section sets out details of
Kenmare’s regular and specific engagement
programme with affected communities
on page 85. Feedback received during
public consultations, through grievance
mechanisms and other engagements, are
incorporated into the assessment processes.
Kenmare takes an avoidance-first approach,
wherever viable, through setting out
avoidance buffers and no-go areas around
sensitive biodiversity and ecosystem
features, including those of importance
to affected communities. Minimisation of
the Mine’s footprint is achieved through
project design and ongoing implementation
of the OEMP. Restoration occurs through
rehabilitating disturbed areas once mining
activities in that area have ended. Residual
impacts are offset to achieve no net loss or
net gain as set out in the BOMP.
It should be noted that current land-use
practices by the local population (for
example, slash-and-burn agriculture and
natural resource harvesting) have a strong
influence on the present state of biodiversity
within the project areas.
E4-1
Policy related to
biodiversity
Kenmare’s Environmental Policy covers
biodiversity, air, water, marine, land, waste
and Tailings Storage Facilities. Kenmare is
committed to operating in an environmentally
responsible manner from planning to
site relinquishment. It provides holistic
environmental management through
integration and alignment with its Stakeholder,
and Climate and Energy policies. The policy
applies to the Company’s operational scope
and, while value chain areas are not directly
included, capacity building processes will
be used to ensure responsible value chain
management. Additionally, Kenmare’s
Supplier Code of Conduct sets out the
minimum standards it expects of suppliers on
biodiversity protection.
Kenmare’s environmental policy covers
1
:
1. Direct impact drivers: on the Mine’s
area of influence and over the full life of
the Mine.
2. Impact on state of species: Kenmare’s
commitment to implementing the
mitigation hierarchy, aligning with
the goals of the Global Biodiversity
Framework and Sustainable Development
Goals to halt and reverse nature loss.
3. Impact on ecosystem extent and
condition: Kenmare’s commitment to
preventing negative residual impacts
or finding appropriate and additional
conservation actions. Additionally, the
mitigation hierarchy considers extent
and condition impacts and measures
to reduce negative and/or enhance the
positive impacts.
4. All (including material) impacts
and dependencies on biodiversity
and ecosystem services: integrated
consideration of biodiversity, water
and marine resources related to
dependencies, impacts, risks and
opportunities in business processes,
models, and practices.
Social consequences related to nature:
Kenmare’s Human Rights Policy outlines
its commitment to respecting the rights
of people in communities impacted by its
activities, including the right to water, land
and a safe environment. Kenmare will seek
to engage with them to identify potential
adverse impacts on human rights and take
appropriate steps to avoid, minimise and/or
mitigate them. Its Environmental Policy
sets out how it is partnering with host
communities and stakeholders to promote
environmental awareness and participate in
the preservation and enhancement of their
biodiversity, climate adaptation and resilience
needs, traditions and values through regular
community consultation.
Kenmare’s Environmental Policy covers
all aspects of biodiversity and ecosystem
services. This includes requirements for all
sites including those in sensitive areas. It also
uses the mitigation hierarchy for all activities
to address sustainable land, freshwater,
marine and transitionary areas management
and maintenance, as well as impacts on all
ecosystems, including forests, which are to
be assessed and managed.
E4-2
Actions
Kenmare is taking a number of actions
related to biodiversity and ecosystem
protection as part of its commitment to
sustainable mining practices and these are
set out in the table on page 70, but can be
summarised as:
1. ensuring sustainable stewardship of
the natural resources within Kenmare’s
sphere of influence by preventing,
mitigating, restoring, rehabilitating and/or
offsetting the negative residual impacts
of mining activities, while enhancing
positive impacts; and
2. aligning with the goals of the Global
Biodiversity Framework and Sustainable
Development Goals to halt and reverse
nature loss.
1
Kenmare’s policy does not currently support product
traceability
INDIRECT AND CUMULATIVE IMPACTS
Indirect impacts, also known as secondary
impacts, refer to effects on biodiversity
that occur because of an action, but are
not directly caused by it. These impacts
often arise later in time or at a different
location from the initial mining activity.
They can result from changes in land use,
human activities, or ecological interactions
triggered by mining and related
infrastructure.
Cumulative impacts refer to the combined
effects of multiple activities, both past
and present, that collectively impact
biodiversity over time. These impacts
can result from multiple small actions
that, when added together, create a
significant effect. They may also stem
from interactions between different
environmental pressures, such as habitat
loss, pollution, and climate change.
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HEALTHY NATURAL ENVIRONMENT
ESRS E4 BIODIVERSITY CONTINUED
Kenmare Nature Positive Strategy Action Plan Summary
KEY ACTION: AVOID PRIORITY BIODIVERSITY FEATURES THROUGH BUFFERS AND NO‑GO AREAS
OUTCOMES
Halting nature loss
by preventing mine-
related impacts on
priority biodiversity
features
SCOPE TIME HORIZONS
Short-term
PROGRESS AND OUTCOMES
`
Approach in place, further actions
being taken to ensure permanent
protection of these priority areas
ACTIVITIES
All planned mining and
related activities, as well
as social development
projects
AREA OF INFLUENCE
Direct and known
indirect
VALUE CHAIN
Direct operations
STAKEHOLDER GROUPS
Employees, contractors
and communities
KEY ACTION: ENSURE AVOIDED AND OFFSET AREAS ARE SUFFICIENTLY PROTECTED
OUTCOMES
Prevent third-party
impacts and ensure
permanent protection
through legal and
other instruments
to protect species,
enhance ecosystem
services, and promote
community resilience
SCOPE TIME HORIZONS
Medium- to
long-term
PROGRESS AND OUTCOMES
`
Legal processes and government
alignment underway
`
Three offset areas have been
identified in line with global and
national principles for offsetting
with a focus on conserving
endemic and threatened species
ACTIVITIES
Closure, offset and
community-related
activities
AREA OF INFLUENCE
Indirect and cumulative
VALUE CHAIN
Direct operations
STAKEHOLDER GROUPS
Communities, government
and other third parties
KEY ACTION: REHABILITATION AND RESTORATION OF MINE‑IMPACTED AND OFFSET AREAS
OUTCOMES
Reverse the loss of
nature by restoring
functionality,
species diversity
and abundance and
overall condition
SCOPE TIME HORIZONS
Medium- to
long-term
PROGRESS AND OUTCOMES
`
Progressive rehabilitation in place
and continuing
`
Community and own plant
nurseries in place and being
expanded
ACTIVITIES
Closure and offset
activities
AREA OF INFLUENCE
Direct and known
indirect
VALUE CHAIN
Direct operations
STAKEHOLDER GROUPS
Communities,
government and other
third parties
KEY ACTION: CREATING ALTERNATIVE LIVELIHOODS THROUGH AGROFORESTRY AND OTHER INITIATIVES
MINIMISING NATURE‑RELATED IMPACTS
OUTCOMES
Support the
reduction of regional
agricultural land use
impacts through
the incorporation
of sustainable
forestry practices,
also enhancing
food security and
socio-economic
opportunities.
SCOPE TIME HORIZONS
Short- to
medium-term
PROGRESS AND OUTCOMES
`
Integration of trees, livestock and
mud in a pilot study of a 12-ha area
has improved harvests
`
Decreased environmental impact
and increased diversity compared
to traditional farming practices
`
Opportunities for alternative
livelihoods (such as beekeeping
and forest rangers) have been
investigated and are in the
process of being established
ACTIVITIES
Closure and social
development activities
AREA OF INFLUENCE
Direct and known
indirect
VALUE CHAIN
Direct operations
STAKEHOLDER GROUPS
Communities
KEY ACTION: IMPROVING CONSERVATION ACTIVITIES THROUGH COMMUNITY AWARENESS AND EDUCATION ON SUSTAINABLE PRACTICES
OUTCOMES
Improved community
understanding and
appreciation of the
dependency on
biodiversity and
ecosystem services.
SCOPE TIME HORIZONS
Short-term
PROGRESS AND OUTCOMES
`
Education and capacity building
integrating traditional and
scientific approaches to land
management
`
Integration of communities in
biodiversity initiatives
ACTIVITIES
Closure, offset and
social development
activities
AREA OF INFLUENCE
Indirect and cumulative
VALUE CHAIN
Direct operations,
upstream value chain
STAKEHOLDER GROUPS
Communities
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ENVIRONMENT
SOCIAL GOVERNANCE
E4-3
Targets
Kenmare uses biodiversity offsets as part of
its action plans to address the environmental
impacts of its mining operations. Biodiversity
offsets are conservation actions designed
to compensate for the residual impacts
of development projects on biodiversity.
Kenmare’s environmental impact studies
predicted and quantified the residual
impacts that needed to be offset for the
entire life of the Mine. The BOMP sets
out the conservation measures that will
be implemented to achieve a net gain in
biodiversity or no net loss. These targets are
to be met at the end life of the mine, with
the schedule provided for over the next 35
years. The Biodiversity Offset Management
Plan (2023-2028) will demonstrate, on an
annual basis, that Kenmare is implementing
biodiversity restoration actions and that
these are effective in ensuring the area is on
track for recovery in line with the anticipated
gains (i.e. in a stable and improving
condition).
The baseline for Kenmare’s Biodiversity
Offset Management Plan is proposed to be
2019. Although Diploma 55, published in
2022, is not legally retrospective, a decision
was made by the Company to consider
residual impacts incurred since 2019, since
that year represents a pre-mining baseline
for all areas within the 735C concession
(including future planned mining areas)
with the exception of Namalope, which has
insufficient historical baseline data and was
authorised without requirements to adhere
to the full extent of the mitigation hierarchy
until later years.
The components of these targets that
align with the Kunming-Montreal Global
Biodiversity Framework include aligning with
and providing a plan to reduce biodiversity
loss (Target 1) contribution to expanded
conservation areas for the offset sites
selected (Target 3), restoration both on
site and at the offset sites (Target 2 and
11), avoiding further loss of key biodiversity
features through avoidance and mitigation
measures including in terms of the creation
of alternative livelihoods and post-mining
land uses (Targets 6, 7, 8, 10) and improving
the sharing of information, integrating local
communities and inclusion of traditional
knowledge (Targets 13, 14, 20, 21 and 22).
A holistic metric of hectare equivalents
is used to describe both the extent and
condition of ecosystems and the impact
of mining operations on biodiversity loss.
The table below provides the following
information to arrive at the offset
requirements:
`
Ecosystem functional groups (EFG)
are defined in line the IUCN Global
Ecosystem Typology
5
which correspond
with the local and regional vegetation
groups and ecosystems, ensuring
equivalency (like-for-like) gains.
`
The Loss extent is the area affected
by the mining and related activities,
including a 100m buffer to account for
indirect impacts.
`
The Functional loss considers the
relative condition and functionality
of the ecosystem assessed before
mining (baseline), during mining (to
determine mitigation measures) and
after rehabilitation activities have
been completed, with the latter used
to inform offset requirements. The
total area affected is multiplied by the
EFG condition, resulting in a hectare
equivalents (ha-eq) value. The condition
is assessed using the InVEST habitat
Quality Range and will be further
enhanced using local studies.
`
The Offset target calculates the
biodiversity gain required, based on
the Functional loss, to consider Key
Biodiversity Areas or Critical habitats,
which need to achieve a 15% Net Gain.
Tropical/Subtropical dry forest and
thicket are considered Critical habitat due
to their potential to support species of
conservation concern.
Kenmare’s 2024 ESG Scorecard included
following biodiversity-related KPIs:
1. for the legal application of the Icuria
forest to be a protected area to be
submitted;
2. for the Biodiversity Offset Management
Plan to be submitted;
3. for the BOMP budget and implementation
partner to be identified; and
4. rehabilitation of the post-mined land.
Kenmare successfully applied for the
Icuria forest to be declared a protected
area and is still awaiting a decision from
the Administração Nacional das Áreas
de Conservação (ANAC). With regards to
the BOMP submission, it conducted two
public stakeholder engagements; however,
there are still outstanding issues for the
community relating to crop compensation
and alternative livelihoods before the BOMP
can be finalised and submitted. As part
of the BOMP development, a budget was
defined and ANAC was identified as one of
the BOMP’s implementation partners. See
page 87 for the rehabilitation targets.
Biodiversity Offset Targets
ECOSYSTEM FUNCTIONAL GROUP LINKED VEGETATION COMMUNITY
LOSS EXTENT
(HA)
FUNCTIONAL
LOSS (HA‑EQ)
OFFSET TARGET
(HA‑EQ)
Coastal shrublands and grasslands Coastal dune thicket 371.2 258.77 297.58
Seasonal floodplain marshes Wetlands 102.02 75.7 85.02
Tropical/subtropical dry forests and thickets Icuria coastal forest 148.87 88.79 102.11
Totals 622.09 423.26 484.71
5
Keith et al., 2020.
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HEALTHY NATURAL ENVIRONMENT
ESRS E4 BIODIVERSITY CONTINUED
Kenmare’s nature transition plan overview
FOUNDATIONS IMPLEMENTATION ENGAGEMENT
Objectives and scope:
`
To support the Environmental and
Human Rights Policies
`
Scope includes business model
and value chains, direct operations,
including direct and known indirect
areas of influence
`
Value chain capacity building
underway to enable assessment and
Inclusion
Financing Strategy:
`
Embedded into business model
including specific budget
commitments for biodiversity and
rehabilitation
Priorities:
`
Ongoing implementation of the
mitigation hierarchy
`
Finalisation of the Biodiversity Offset
Management Plan (BOMP) and
implementation of offsets
Activities and decision-making:
`
Biodiversity largely integrated into
direct operations including life of
mine budgeting considerations
`
Capacity building to enable
value chain assessments and
implementation underway
Policies and conditions:
`
Environmental and Human Rights
Policies in place and embedded into
business processes
Products and services:
`
Ensure sustainability and resilience
of the mining operations and
surrounding communities
Regional and other engagement:
`
Engagement with all affected local
and indigenous communities
`
Key role players for implementation:
Primeiras e Segundas Environmental
Protection Area (PSEPA)
`
Local, Provincial and National
Government
`
Collaboration and engagement with
Non-governmental organisations
and research institutions
Industry and value chain:
`
Knowledge-sharing initiatives
`
Value chain capacity building
underway, including:
`
Initial survey
`
Training and awareness
METRICS AND TARGETS GOVERNANCE
`
Metrics and indicators for drivers of nature change in line with
ICMM, COP, TCFD and other regulatory requirements
`
Metrics and indicators for the state of nature using on site
and GIS·based indices and indicators to inform hectare
equivalents per ecosystem type
`
Includes measurement and targets related to dependencies,
opportunities risks and impacts
`
Covers all operations and provides specific targets for
different mining areas
Measurement of delivery on targets
`
Progress on implementation of BOMP activities
`
Progress towards No Net loss and Net Gain targets
Roles and responsibilities:
`
Assigned and defined internally with performance
expectations
`
Agreements in place with external parties with clear roles and
responsibilities, with performance criteria
Skills and culture:
`
Internal and external training and awareness
`
Capacity building in association with other organisations
`
Training end awareness in communities and within the
value chain
The table above provides an overview of Kenmare’s Nature transition plan and has been based on the guidance provided by the Taskforce
on Nature-related Financial Disclosures (TNFD, 2024). It includes an overview of the foundational components (scope, priorities and finance
strategies), the key processes involved in implementation, the engagement framework with local and other stakeholders, measurement and
monitoring through defined metrics and targets, and the governance requirements to implement the transition plan. Ultimately the aim of the
transition plan is to support both local and international legal, and other requirements towards Kenmare’s contribution to a nature positive future
that considers net gain in biodiversity, information and benefit sharing as related to biological resources, which, in turn, ultimately supports the
Global Biodiversity Framework across multiple of its targets and goals.
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STRATEGIC REPORT
GENERAL
ENVIRONMENT
SOCIAL GOVERNANCE
Kenmare’s success as a business is wholly
dependent on engaged and effective
employees who uphold the Company’s values
of Integrity, Commitment, Accountability,
Respect and Excellence. Kenmare’s
employees are integral to delivering the
Company’s strategy and business model. Its
policies outline the commitments Kenmare
makes to ensure it provides a safe and
rewarding working environment to support
its employees to reach their full potential.
Mining presents inherent safety risks to the
workforce. The improper use of machinery,
poor maintenance, technical failure of certain
equipment or failure to meet and maintain
appropriate safety standards could result
in significant injury, loss of life or significant
negative impact on the surrounding
environment and/or communities. Health,
Safety and Environment (HSE) is a principal
risk of the Company, which you can read
more about on page 108.
Kenmare communicates and engages with
its employees regularly to address any
concerns, mitigate negative impacts and
identify opportunities for improvement in
working practices.
Kenmare respects employees’ right to
freedom of association and collective
bargaining without interference and freedom
from discrimination. 76% of the Company’s
Mozambican workforce are members of the
trade union, SINTICIM. Kenmare engages
in proactive and transparent dialogue with
trade unions.
As at 31 December 2024, there were 1,771
employees, (December 2023: 1,708). 98%
of these are based at the Mine, with the
rest located either in Kenmare’s regional or
country head office of Nampula and Maputo,
or its corporate office in Dublin, Ireland or
satellite offices in the UK and China. All
employees have permanent or long-term
contracts; Kenmare has no employment
contracts on zero hours.
The key material risks affecting the
Company’s own workforce lie in health and
safety, given the potentially dangerous
work mining involves, and the need to avoid
negative impacts on human rights.
Kenmare’s processes and policies mean that
it has a low risk of incidents involving the
use of forced or compulsory labour in its
workforce. This risk is greatest in the wider
community, where Kenmare supports the
development of micro and small enterprises,
as well as its wider supply chain.
Kenmare provides significant leadership,
resources and focus to mitigate safety risks
to its own workforce.
The topics of diversity and Inclusion,
staff training and development, measures
against violence and harassment and
labour practices are all managed through
the commitments outlined in Kenmare’s
Employment policy, focused leadership
action and employee communication.
Kenmare indirectly employs 1,376 contractors
(as of December 2024), who are working
for suppliers on-site at the Moma Mine.
Kenmare extends the health and safety
policies, procedures and programmes to
those contractors. However, the Company
does not collect data on other aspects of its
workers in the value chain relating to working
conditions, equal treatment and opportunities
for all, or other work-related rights. Kenmare
does assess alignment of its suppliers against
its policies through a supplier due diligence
programme, which you can read more about
under G1 Business Conduct on page 91.
MATERIAL TOPIC: HUMAN RIGHTS
S1-1
Policy related to human rights
Kenmare is committed to upholding human
rights in its own operations, in the companies
it works with, and in the communities where
it operates. Kenmare’s approach is outlined
in its Human Rights policy, Stakeholder
Engagement policy, Business Ethics policy,
and Supplier Code of Conduct, which can be
found on the Company’s website.
All Kenmare’s policies are approved by
the Board of Directors. Kenmare respects
key international human and labour rights
standards included in the International Bill of
Human Rights, the Universal Declaration of
Human Rights, the UN Guiding Principles on
Business and Human Rights and the OECD
Guidelines for Multinational Enterprises, and
the International Labour Organisation’s (ILO)
Declaration on Fundamental Principles and
Rights at Work. Its policy on human rights
explicitly prohibits forced and child labour
and commits to providing employees with a
work environment free from discrimination.
The policy prioritises health and safety and
respects employees’ right to freedom of
association and collective bargaining.
MATERIAL TOPICS
TOPICS
`
S1 SBM-3
ESRS S1
Own Workforce
`
Human rights
`
Health and safety
`
Diversity and inclusion
`
Staff training and development
`
Measures against violence and
harrassment
`
Kenmare’s labour practices
KEY POLICIES
`
Employment policy
`
Human Rights policy
`
Talent management programme
`
Conditions of employment
`
Whistleblowing procedure
`
Supply Chain Code of Conduct
TARGETS
`
Safety
`
Gender diversity
`
Localisation
KEY ACTIONS
`
Trabalho Seguro campaign
`
Incident management procedure
`
Training and development
programmes
`
Implementing feedback from the
staff engagement survey
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Annual Report and Accounts 2024
74
SAFE AND ENGAGED WORKFORCE
ESRS S1 OWN WORKFORCE
Kenmare ensures that adequate
management systems are in place to identify,
prevent, mitigate and remedy any potential
adverse human rights impacts, whether they
are related to the Company’s own workforce,
value chain workers, or affected communities.
In cases where Kenmare identifies potential
adverse human rights impacts, the Company
has processes in place to address them
promptly and effectively.
S1-4
Actions
Speak up mechanisms
Employees and contractors are encouraged
to speak up if they observe behaviour that
they believe does not meet Kenmare’s ethical
standards. There are several grievance and
whistleblowing options to enable them to
raise concerns with management. Employees
also have access to a confidential external
reporting line, Safecall, where any grievances
or concerns can be reported anonymously.
Investigations into Safecall whistleblowing
cases are conducted separately from the
management involved in the case. Issues
raised are tracked and followed through and
feedback is provided. Read about Kenmare’s
community grievance mechanism on pages
85 and 86.
Training
Employees are required to undertake annual
training on Kenmare’s policies, including the
Human Rights policy. The public security
forces policing the Company’s operations
receive training twice a year in the Voluntary
Principles in Security and Human Rights.
Training is also provided on preventing
bullying and sexual harassment to ensure all
employees have the same understanding of
the Company’s approach.
Kenmare’s commitment to open two-way
communication with employees is detailed in
the staff engagement section on page 79.
MATERIAL TOPIC: HEALTH AND SAFETY
S1-1
Policy related to health
and safety
Safe operations are a core pillar of the
Company’s approach to sustainability
and are central to the decision making
at every stage of its activity. Kenmare is
committed to preventing and mitigating any
safety incidents and their impacts, and to
identifying and capturing opportunities to
deliver positive improvements in safety.
Kenmare’s health and safety governance
includes input from management and
employee committees, which carefully
manage strategic and tactical health and
safety risks and opportunities at all levels of
the business.
Kenmare’s leadership aims to ensure each
employee and contractor returns home safely
at the end of each shift and the Company’s
top priority is to strive for a zero-harm working
environment. Achieving this shared goal
depends on Kenmare employees’ commitment,
their engagement and awareness, training and,
ultimately, their behaviour.
Kenmare’s health and safety management
system is aligned to the principles of ISO
45001, but it has not yet been certified.
Kenmare is working to become ISO 45001
certified in 2026. The current health and
safety management system is audited by The
National Occupational Safety Association
(NOSA). It is a risk-based management
system, designed to anticipate and prevent
harm to people, assets and communities.
To ensure all staff are held accountable for
prioritising safety, health and safety metrics
are incorporated into the annual incentive
plan for Executives and employees. Safety
Key Performance Indicators (KPIs) of Lost
Time Injury Frequency Rate (LTIFR) and All
Injury Frequency Rate (AIFR) are monitored
regularly by the Executive Committee,
Sustainability Committee and the Board,
underlining the importance of safety
performance in the Company’s culture.
S1-4
Actions
Risk management
The Company’s hazard identification and
risk management framework uses Take 5,
General Task Assessment, permit to work
and detailed risk assessment processes.
This is backed up by critical audits and
monthly inspections. These check and
monitor that standards are being met.
Leaders undertake planned observations
of high-risk activities to provide coaching
in best practice. Formal investigations into
safety incidents take place with a focus on
learning lessons. The Company’s approach
was externally verified in 2024 and NOSA
awarded Kenmare, for a ninth consecutive
year, a five-star certification, reflecting the
Company’s continued commitment to safety
management and training.
Leadership
Leaders provide opportunities to meet
employees, listen to their health, safety and
environment challenges, and provide support
to address them.
In 2024, Kenmare initiated the “Trabalho
Seguro” campaign, a Portuguese phrase,
which translates to “Work Safely” or “Safe
job”, which is integral to the way both
employees and contractors conduct their
work. It focuses on four areas:
Authentic and courageous safety leadership
`
Collaborative safety culture: monthly
meetings and collaborative incident
investigations bring together employees
and contractors from EHS and Supply
Chain teams, as well as the single point
of contact, to address Health and Safety
matters collaboratively.
`
Inclusion and engagement: employees
and contractors actively participate in
our health and safety campaigns, and red
card work stoppage initiative, including
reward and recognition programmes to
reinforce positive safety behaviours.
`
Zero tolerance: Kenmare maintains a
zero-tolerance policy regarding alcohol
and drug use on site. To mitigate risks,
Kenmare has implemented robust
monitoring programmes for both
employees and contractors. Anyone found
under the influence of alcohol or drugs on
site will face an immediate suspension, be
blacklisted, and be permanently prohibited
from working at the Mine.
Focus on standards
`
Contractor and business partner
management procedure: Kenmare
has established a comprehensive
procedure, which outlines the roles and
responsibilities of both contractors and
Kenmare, with a focus on due diligence,
ethical labour practices, and robust health
and safety management. A risk-based
approach is employed to categorise
suppliers based on their scope of work.
`
Master safety file tripartite approval: the
contractor’s site-specific master safety
file is jointly signed off by the contractor’s
site management, Kenmare’s single point
of contact and the EHS Department to
ensure all parties understand and comply
with the requirements.
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STRATEGIC REPORT
GENERAL ENVIRONMENT
SOCIAL
GOVERNANCE
Planning for safety
`
Onboarding requirements: Kenmare
provides comprehensive safety induction
training and require all employees
and contractors to undergo medical
surveillance, baseline risk assessment
and safe operating procedures training.
This demonstrates the Company has a
competent workforce and supervision of
fit-for-use machinery and/or equipment.
This rigorous safety protocol is validated
through master file sign-off and site
establishment approval before any work
commences.
`
On-site compliance: employees and
contractors are subject to performance
monitoring, ongoing inspections and
critical task audits. Non-compliant
contractors receive non-conformance
notifications depending on the criticality.
Critical findings or persistent non-
compliance will result in suspension until
corrective actions are implemented and
a successful re-audit or presentation
to Kenmare Management is conducted.
Kenmare issued one non-conformance
to a supplier in 2024, after which the
supplier presented its corrective plan to
management. The implementation of the
plan was then monitored until all actions
were completed.
Visible Felt Leadership (VFL)
`
Increased field coaching time - Kenmare
demonstrates strong leadership
commitment to safety by prioritising
on-the-ground safety initiatives. This
includes increased field coaching time
for employees and contractors, where
leadership directly coaches them in the
practical application of Kenmare’s risk
management protocols.
A safety culture
A red card system empowers employees
and contractors to stop, address and report
unsafe acts and conditions. There is a system
of formal recognition of safe behaviours and
zero tolerance of breaches of golden rules.
The six golden rules, which have been in
place since 2017, remind employees of the
major fatality risks and mitigations on site,
and to efficiently risk assess their safety
behaviour in those different operational
contexts. The Company undertakes
continuous and targeted health and safety
campaigns to reinforce this work.
Safety training
Kenmare’s Heads of Departments,
Superintendents, safety officers and
training personnel take part in the
NOSA occupational health, safety and
environmental management system and
NOSA audit training programme.
Kenmare supervisors are trained in the
required competences of the SSTC (Safety
for Supervisors Training Course) provided by
NOSA, with the aim to ensure safety in the
workplace is managed at the right level of
international standards.
Improving employee health
Kenmare’s health education and wellness
programme, “Thrive”, aims to prevent chronic
diseases, such as diabetes, high blood
pressure and HIV-AIDS among its workforce.
Thrive provides advice on prevention and
raises awareness about the importance
of maintaining physical and mental health
through workshops with external speakers. In
2024, aerobics classes, football matches and
running clubs were added to the programme.
Reducing the risk of malaria
As the Mine is in a malaria endemic area,
Kenmare takes several steps to reduce the
risk to employees. It partnered with Centro
de Investigação em Saúde de Manhiça
(CISM), a Mozambican government medical
research institute, to conduct a vector
control study. The study findings resulted in
the following recommendations, which will be
implemented in 2025:
`
continuing with vector control and
entomological monitoring;
`
strengthening current indoor vector
control methods and evaluating their
effectiveness;
`
promoting the use of additional indoor
protective measures during high-risk
hours; and
`
implementing insecticide rotation
strategies to manage resistance.
Golden rules
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Annual Report and Accounts 2024
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ESRS S1 OWN WORKFORCE CONTINUED
MATERIAL TOPIC: DIVERSITY AND INCLUSION
S1-1
Policy related to diversity
and inclusion
Kenmare strives to develop a diverse and
inclusive culture and is working towards
improved gender representation across its
business. Its Employment policy sets out
its commitment to treating all employees
equally, regardless of sex, gender, gender
identity, sexual orientation, age, disability,
race or ethnicity, religious belief, social origin,
and tackling other forms of discrimination.
The Company provides equal opportunities
in recruitment, training and development and
fosters a culture that leverages Kenmare’s
employees’ different skills and traditions.
It has a strategy of increasing the number
of Mozambican nationals employed in the
workforce at all levels of seniority and targeting
increased gender diversity at all levels of the
organisation, including the Board of Directors.
S1-4
Actions
Providing attractive working
conditions for all
Kenmare is an employer of choice in the
Mozambican labour market. It attracts
experienced talent as well as graduates and
has a low turnover. This result is the product
of several initiatives, which include providing
development opportunities to all members of
the workforce.
Kenmare’s Talent Management Procedure
sets out the approach the Company takes to
identify, develop and retain talent within the
organisation. The procedure aims to identify
talent in a fair, consistent and transparent
way. It supports the development of talented
employees to ensure leadership succession
capacity and puts measures in place to retain
talent to ensure the continuity, stability and
sustainability of teams.
The geographical location of the Mine and
the nature of mine work mean there are
currently no employees with disabilities.
Increasing opportunities for women
Kenmare has a target of increasing the number
of female employees in the Moma workforce
to 22% by 2030 from 17.43% in 2024. Women
hold key management positions in operations,
mining, finance, health, safety and environment,
and as deputy country manager.
It has several programmes in place to address
cultural expectations that, historically, meant
few women have entered the Mozambican
mining industry and to expand the limited local
further education options for women. Kenmare
provides support to entry-level employees
and interns. These programmes include the
Female Heavy Mobile Equipment Development
programme, the Technical Development
Programme and internships. Kenmare also
supports, approximately, 33 graduates on
its Graduate Development Programme and
provides training to sponsored students and
other trainees. In total, approximately, 230
people are supported each year through
entry-level technical development and financial
support for training. The two-year Graduate
Development Programme provides on-the-job
training and development in junior roles across
all departments and has a target of recruiting
60% women. The Technical Development
Programme, involving a one-year placement in
technical departments has a target of recruiting
90% women. Kenmare also runs a Gender
Accelerated Leadership Programme, which, in
2024, included two women who have recently
been appointed to middle-management
positions.
To address the challenges women can face
in managing family life and the working
patterns in the Mine, the Company provides
two months’ maternity leave above the
three months legally required and flexible
rosters, which enable women to have shorter
rotation shifts in the first six months after
returning from maternity leave. Kenmare
recruits only female Heavy Mobile Equipment
operators, who experience has shown to
bring an improved safety record and have
demonstrated greater longevity in the role.
Localisation
Kenmare employs 97% Mozambican
staff in compliance with Mozambican
regulatory requirements. Lower levels of
the organisation are 100% Mozambican,
junior management sits at 98%, while middle
and senior management are 73% and 14%
Mozambican, respectively. Kenmare has
set a 2030 target to increase Mozambican
representation in senior management to 25%.
`
Leadership
accountability
`
Behaviour
standards
`
Physical standards
`
System standards
`
Risk management
`
Operational
planning
`
Operational control
`
Visible Felt
Leadership
AUTHENTIC AND
COURAGEOUS
SAFETY LEADERSHIP
FOCUS ON
STANDARDS
PLANNING
FOR SAFETY
INCREASED FIELD
COACHING TIME
PERFORMANCE EVALUATION IMPROVEMENT
THE YEAR OF TRABALHO SEGURO
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Annual Report and Accounts 2024
STRATEGIC REPORT
GENERAL ENVIRONMENT
SOCIAL
GOVERNANCE
MATERIAL TOPIC: STAFF TRAINING AND DEVELOPMENT
S1-1
Policy related to training
and development
Kenmare is committed to developing
its workforces’ skills and technical
competence. Its short-term organisational
strategy objective is to increase trainees’
work readiness and facilitate the career
progression of more employees in operator,
technical and specialist positions. Talent
management is the single most important
HR activity that ensures the long-term
sustainability of human capital and is given a
high priority in the Company.
S1-4
Actions
Training
In 2024, Kenmare invested $2.29 million to
provide 76,541 hours of training, equivalent
to an investment of $1,292 per person at the
Mine. Training is, primarily, focused on safety,
supervisory and leadership development,
and enhancing specialist skills. This is
provided in accordance with the findings
of a training needs analysis tool to identify
where the workforce training gaps are and to
identify appropriate actions in response to
particular or potential negative impacts on
the workforce.
All new Kenmare employees undertake an
induction programme that covers different
organisational, labour and safety topics and
they attend a plant-specific safety programme
before they start work. In addition, internal and
specific training programmes are offered to
ensure employees grow and work effectively
in their role.
A programme called “Full Role Delivery”,
which began in 2023, provides leadership
skills development training to all Heads
of Department and Superintendents
and Supervisors. At the time of the most
recent intake in October 2024, all Heads of
Department and Superintendents and 75%
of Supervisors had either completed this
training or had started in the most recent
intake. All new-hires or promotions into
these three job levels since October 2024
will be included in the next Full Role Delivery
Intake scheduled in 2025. Seven employees,
working in mechanical, electrical and
boilermaker trades, undertook a two-month
specialised vocational training programme.
An annual training calendar describes all
training courses planned and these are
tracked monthly. Post-training monitoring
with the line manager ensures the
effectiveness of the training.
Developing talent
Individuals’ performance against set KPIs is
used to allocate them to the talent growth
or retention pool. These pools are aligned
to specific developmental programmes.
Bi-annual talent review meetings review the
development of people and monitor progress.
MATERIAL TOPIC: LABOUR PRACTICES
S1-1
Policy related to labour
practices
The Company’s expectations and its
commitments to its employees on labour
practices are set out in its Employment Policy
and include requirements to comply with
relevant national laws and its employment
standards. Kenmare complies with laws
relating to applicable wage, work hours and
benefits. Its conditions of employment set out
maximum working hours and the Company
carries out checks to ensure no one under the
age of 18 is employed.
Kenmare respects employees’ right to
freedom of association and collective
bargaining without interference and freedom
from discrimination.
Kenmare’s values guide how employees
work together and treat each other. The
Company’s operations are carried out in
accordance with these values and the
Company empowers and encourages its
people to live by them in both their individual
roles and teams.
S1-4
Actions
Pay and benefits
S1-10
Kenmare complies with the minimum
wage requirement for all employees. In 2024,
entry-level wages at Kenmare were more
than double the rate set by the Government
and levels of pay are competitive with the
local labour market and wider industry. The
only exception are interns who are paid
an allowance in line with the Mozambican
minimum wage. During 2024, Kenmare had
30 remunerated interns, all of whom are
female, who the Company has sponsored on
their three-year technical vocational training
in electrical, mechanical or civil engineering
courses. If successful in their internships,
they will become full-time employees on a
starting salary that is competitive with newly
qualified technicians.
Employees in management levels can
take part in the Company’s share awards
scheme. The Company has also introduced
an improved medical scheme with more
options for its employees. In 2024, it also
implemented a funeral cover for employees
and families.
S1-11
Social protection
In addition to the social protection provided
by the Mozambican government to national
employees, the Company provides extra
support for all employees for sick leave,
employment injury or disability, and parental
leave and retirement provision.
Working with unions
The Company promotes an open dialogue
with the union, which has a full-time
representative on full pay. 76% of the
Company’s Mozambican workforce are
members of the trade union SINTICIM. The
General Manager and HR manager attend
quarterly and annual review meetings with
the union to negotiate salary rises and
conditions of employment. Trade union
representatives/focal points have monthly
meetings with each Kenmare department,
fostering proactive and transparent dialogue.
S1-2
Employee communication
A quarterly meeting with all employees
is hosted by the General Manager where
Company performance is discussed, both
operational and safety. Employees can also
apply to have 60-minutes with the General
Manager, a meeting that takes place once
a week. The ‘60 minutes with the General
Manager’ initiative allows employees to
meet in private with the General Manager
and discuss any critical issues and offer
suggestions on how to improve the business.
S1 SBM-2
Staff engagement survey
Kenmare recognises that strong employee
engagement leads to higher productivity,
longer tenures, and increased levels
of diligence and discretionary effort.
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Annual Report and Accounts 2024
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SAFE AND ENGAGED WORKFORCE
ESRS S1 OWN WORKFORCE CONTINUED
Kenmare conducted its biennial employee
engagement survey at the end of 2024, the
third such survey undertaken. Employees
display high levels of overall engagement
with 81% of employees showing positive
engagement and 42% expressing very strong
engagement; however there was a 2% drop
compared to the 2022 period. Despite this,
Kenmare’s engagement scores compare
favourably with research from Culture AMP
(2024) where engagement levels for the
industry averages 71%.
At Kenmare, drivers of higher engagement
include employee’s overall positivity,
fulfilment and meaningfulness of their work,
job challenge and autonomy in being allowed
to take ownership and accountability for their
results. They experience high levels of social
support, and the quality of leader relationship
is an important driver for creating a sense of
psychological safety.
Drivers of lower engagement include
dissatisfaction with opportunities for
development and growth and uncertain
job security, dissatisfaction with the
transparency and openness of the
Company’s communication. Employees also
registered a feeling of being overloaded by
their roles, although work-life balance has
improved.
S1-3
Remediation and channels to
raise concerns
There are a number of mechanisms for
employees to raise concerns, including
with their Line Manager, Department
Head or HR representative, or using the
independent confidential hotline or email
address. Investigations are carried out by the
Internal Auditor, or, where they are not able
to investigate it, they will consult the Chair
of Kenmare’s Audit & Risk Committee, an
Independent Non-Executive Director.
MATERIAL TOPIC: MEASURES AGAINST VIOLENCE AND HARASSMENT
S1-1
Policy related to measures
against violence and harassment
Kenmare’s Employment Policy sets out its
zero tolerance of any form of harassment or
bullying and it acts against any breaches of its
inclusive and respectful work environment.
The Kenmare Women’s Forum, established in
2019, gives female employees a direct line of
communication with management. The forum
also provides a safe space where they can
share advice and experiences and discuss any
challenges they may face in the workplace.
Following the 2021 sexual harassment
incident in Western Australia, unrelated to
Kenmare, and subsequent Parliamentary
inquiry into sexual harassment against
women in the mining industry, Kenmare ran
an internal management-led investigation
into bullying and harassment within
the Company. It used the 2022 and
2024 Employee Engagement survey to
quantitatively assess the prevalence of
harassment and bullying.
Compared to 2022, the 2024 survey showed
a decrease in reports of bullying, with 15% of
the employee population reporting they have
experienced bullying, 81% of whome are male
and 19% female. However, concerningly, there
was a 2% increase in sexual harassment,
with 5% of employees experiencing sexual
harassment, 63% of whom are male and 37%
female.
S1-4
Actions
Kenmare runs programmes to raise
awareness of what constitutes bullying and
harassment. alongside specialist induction
and refresher training. This has included
Toolbox talks on sexual harassment and
bullying, which are informal, small-group
discussions to clarify what constitutes as
sexual harassment. Separately, specific
employee groups have been engaged, such
as graduate trainees and Kenmare’s Womens’
Forum. This programme communicates
Kenmare’s zero tolerance of this behaviour,
as well as interventions to train employees on
what is and is not appropriate behaviour. The
Company is investigating the survey results
to better understand them and to determine
the best course of action going forward.
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STRATEGIC REPORT
GENERAL ENVIRONMENT
SOCIAL
GOVERNANCE
Targets and metrics
S1-6 CHARACTERISTICS OF EMPLOYEES FEMALE MALE TOTAL
Mozambique 304 1,436 1,740
Ireland 8 16 24
United Kingdom 2 3 5
China 1 1 2
Total 315 1,456 1,771
% of Total 17.8% 82.2%
1
Full-time employees are defined as employees on a permanent contract of employment.
S1-6 EMPLOYEE TURNOVER
Number of employees who left during the reporting period 101
Total number of employees at the end of the reporting period 1,771
Employee turnover rate 5.7%
S1-8 EMPLOYEES COVERED BY COLLECTIVE BARGAINING AGREEMENTS
Number of employees covered by collective bargaining agreements 1,349
Percentage of total employees covered by collective bargaining agreements 76%
SENIOR MANAGEMENT BY GENDER FEMALE MALE TOTAL
Number of senior management 11 26 37
% of senior management 30% 70%
S1-9 AGE DISTRIBUTION OF WORKFORCE
UNDER 30
YEARS
30 TO 50
YEARS
OVER 50
YEARS TOTAL
Headcount 295 1,243 233 1,771
% of total 17% 70% 13%
S1-13 EMPLOYEES RECEIVING PERFORMANCE REVIEWS BY GENDER FEMALE MALE TOTAL
Number of employees receiving performance reviews 58 277 335
% of total 17% 83%
AVERAGE TRAINING HOURS BY GENDER FEMALE MALE AVERAGE
Total 55 42 44
FEMALE MALE TOTAL
S1-15 EMPLOYEES ENTITLED TO TAKE FAMILY‑RELATED LEAVE 1,685
Number of employees that took family-related leave 46 231 277
% of employees that took family related leave 2.7% 13.7% 16.4%
Health and safety metrics
The following reported health and safety data is calculated using hours worked by the total workforce. Total workforce includes employees
(permanent, temporary, full-time and part-time; non-employees: independent contractors working for themselves); and other workers (all value
chain employees working on-site for their respective employers). In future reporting years, Kenmare will report separately on safety metrics for
employees only and for total workforce (including non-employees and other workers).
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SAFE AND ENGAGED WORKFORCE
ESRS S1 OWN WORKFORCE CONTINUED
S1-14 SAFETY DATA, EMPLOYEES
2024
Headcount - site 1,733
Fatalities as a result of work-related injuries and work-related ill health 0
1
Recordable work-related accidents (excluding fatalities) 4
Total recordable work-related accidents 4
Total hours worked by employees in the Company’s own workforce 4,151,754
Rate of recordable work-related accidents per 200,000 hours workers 0.19
Rate of recordable work-related accidents per 1,000,000 hours worked 0.96
Cases of recordable work-related ill health 1
Days lost to work-related injuries and fatalities from work-related accidents and work-related ill health and fatalities from ill health 122
1
In 2024, there were two non-recordable fatalities. See pages 8 and 140 for further information.
S1-5
Targets
The 2024 ESG Scorecard targeted:
1. 20% reduction in the Lost Time Injury Frequency Rate of LTIs per
200,000 hours worked relative to the three year rolling average. A
33% reduction was achieved with 0.06 LTIFR (v 0.09).
2. 10% reduction in the All Injury Frequency Rate of AIs per 200,000
hours worked relative to the three year rolling average. A 33%
reduction was achieved with 0.93 AIFR (v 34.92).
3. 10% reduction in malaria cases per 200,000 hours worked relative
to the three year rolling average. A 29% reduction was achieved
with 24.67 MCFR (v. 34.62).
4. Completion of the vector control study and development of an
action plan for CISM/ local government approval. While the Vector
Control study was completed, the plan for recommendations was
still under development at year end.
SAFETY DATA, EMPLOYEES, CONTRACTORS
2020 2021 2022 2023 2024
Hours worked (Employees + Contractors) 7,334,804 6,959,858 6,806,586 6,599,498 7,097,091
Lost Time Injuries (LTIs) 9 1 3 5 2
Fatalities – – – – –
Medical treatment injuries (MTI) 12 10 4 9 6
First Aid Injuries (FAIs) 38 51 31 27 25
All injuries
1
59 62 38 41 33
Total Recordable Injuries
2
21 11 7 14 8
Days lost to injury 780 473 356 561 216
All Injury frequency rate (AIFR) per 200,000 hours worked 1.61 1.78 1.12 1.24 0.93
All injury frequency rate (AIFR) per 1 million hours worked 8.04 8.91 5.58 6.21 4.65
Lost time injury frequency per 200,000 hours worked 0.25 0.03 0.09 0.15 0.06
Lost time injury frequency per 1 million hours worked 1.23 0.14 0.44 0.76 0.28
Total Recordable Injury frequency rate per 1 million hours worked 2.86 1.58 1.03 2.12 1.13
S1-5
Targets
The 2024 ESG Scorecard targeted 17.5% female representation and a stretch of 18%. By the end of 2024, the Mine’s workforce had 17.43% female
representation; therefore, the target was not achieved.
GENDER DIVERSITY
2023 2024
Board of Directors, Kenmare Resources plc 3 3
% Female 38% 38%*
Group Executive team members 2 2
% Female 22% 20%
People Leaders 6 6
% Female 27% 27%
Mozambique 265 302
% Female 16% 17%
Corporate 14 13
% Female 42% 42%
* In 2022, the Financial Conduct Authority (FCA) introduced regulations requiring listed companies to aim for at least 40% female representation on their boards. See page 137 for
further explanation on the Board’s diversity policy and approach.
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GENERAL ENVIRONMENT
SOCIAL
GOVERNANCE
S1-16 Compensation Metrics MOZAMBIQUE CORPORATE TOTAL
Gender pay gap
Gender pay gap median 17% 42% 20%
Gender bonus pay gap, median 28% 79% 40%
Gender pay gap
Gender pay gap mean 8% 57% 7%
Gender bonus pay gap, mean 28% 80% 40%
Gender bonus distribution
Proportion of women receiving bonus 78% 89% 78%
Proportion of men receiving bonus 90% 83% 89%
Managing Director versus median employee
Annual renumeration ratio 181:1
QUARTILE CALCULATIONS %MALE % FEMALE TOTAL
Lower pay quartile 75% 25% 488
Lower middle pay quartile 86% 14% 487
Upper middle pay quartile 86% 14% 484
Upper pay quartile 78% 22% 498
Total 1,957
This is the first year Kenmare is reporting
its gender pay gap and therefore it does
not have comparative historical data. The
gender pay gap is calculated from data at
31 December 2024 and includes gross salary,
bonus, benefits in kind, share options and
allowances. The median pay gap of 20% is
broadly in line with the extractives industry.
The mean pay gap of 7% is reflective of the
growing female representation at senior levels
of the Mine, particularly expatriate employees,
whose pay is higher than local Mozambican
employees.
The median and mean gap in bonuses paid
to men and women, which are both 40%,
reflects the 80% representation of men on the
Executive Committee, whose performance-
related bonus makes up a larger proportion of
their total compensation, relative to the rest of
the workforce.
The Managing Director (MD) to Median
Employee Pay Ratio compares the MD’s
compensation to the pay of the median
employee. This ratio is also based on data
at 31 December 2024. The MD to median
employee ratio is 181:1 As a mining entity in
Mozambique, Kenmare’s workforce primarily
consists of operational and labour-intensive
roles, which generally command lower wages
relative to Executive leadership positions.
The ratio is therefore largely a product of our
Mozambican employees occupying junior job
levels, requiring either less extensive technical
training or work experience. This, combined
with the comparatively lower wages in
Mozambique, reflects the larger ratio. Executive
pay is designed to attract and retain top talent
with the expertise needed to drive long-term
growth and ensure the company’s sustainability
in a highly competitive industry
Incidents of Discrimination
Kenmare maintains a grievance register
and Safecall whistleblowing line. While
Kenmare recorded several community-
related grievances in 2024, none were related
to human rights. In 2024, there were two
instances of bullying recorded on Kenmare’s
internal grievance register. In line with
Kenmare’s Employment Policy, the Company
does not tolerate gender-based harassment,
or any form of harassment or bullying.
Kenmare is committed to investigate and deal
with breaches of this policy in accordance
with its grievance and disciplinary processes,
treating allegations in confidence, and
protecting employees who raise a breach from
victimisation or detrimental treatment. There
were no Safecalls made in 2024.
S1-17 Work related grievances, incidents, and complaints
Total number of incidents of discrimination, including harassment
2
Number of complaints filed through channels for own workers to raise concerns (including grievance mechanisms) and, where
applicable, to the National Contact Points for OECD Multinational Enterprises
25
Total amount of fines, penalties, and compensation for damages because of incidents and complaints
0
Severe human rights impacts and incidents
Total number of severe human rights incidents connected to the company’s workforce
0
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Annual Report and Accounts 2024
82
SAFE AND ENGAGED WORKFORCE
ESRS S1 OWN WORKFORCE CONTINUED
The mining of the Namalope ore body within
the 735C concession began in 2007. It
straddles two districts within the province of
Nampula: Larde and Moma. The mining area,
and associated infrastructure, such as the
Mineral Separation Plant and warehouses,
jetty, air strip and camp, directly or indirectly
impact, approximately, 25,000 people from
5,900 families in Topuito locality, Larde
District. Topuito locality includes the villages
of Nathuco, Nataka, Mititicoma, Isoa, Tibane,
Cabula, Topuito, Naholoco and Mulimuni.
Mining began in the Pilivili and Mpaco
localities, Moma District in 2020, directly or
indirectly impacting, approximately, 29,600
people in 6,700 families living in the villages
of Pilivili, Epuire, Muolone, Mpuitine and
Namaize. The Mine has led to in-migration
over the last two decades.
When Kenmare plans to develop its
operations, an independent consultant
carries out an Environmental and Social
Impact Assessment (ESIA). The ESIA
guides operations and provides Kenmare
with an understanding of the effects on
local communities and sets out ways to
manage and address related impacts and
opportunities.
To ensure the perspectives of affected
communities are considered, public
consultations are undertaken, and the
outcomes are published.
A Resettlement Action Plan (RAP) sets
out the details how any displacement of
people will be managed. This plan is a
critical component of projects that involve
land acquisition, relocation or economic
displacement.
If the plans require the displacement of homes
and machambas (farmsteads), Kenmare
conducts extensive consultation with local
authorities and affected communities. This is
carried out in accordance with Mozambique’s
resettlement legislation, outlined in the
box opposite, and the IFC Performance
Standard 5 guideline. This ensures that
appropriate information is provided and that
those affected are consulted and informed
about the plans and receive fair and timely
compensation for loss of assets. The approach
provides adequate housing and security of
farming tenure at resettlement sites and aims
to improve the living conditions of people
being physically displaced.
Kenmare’s commitments to minimise
negative impacts, and ensure that affected
individuals or communities receive
adequate compensation and support are
set out in the RAP. This typically includes
livelihood restoration, construction of
new houses and associated community
infrastructure and relocation of graves,
where required. Arrangements are
made to provide compensation for the
temporary or permanent loss of farmland,
provision of alternative farmland, and
investments in community development and
agriculture. Other issues relate to access
to natural resources: trees for firewood and
construction, water for washing and fishing;
safe access routes to the sea through mining
areas; and socio-economic development
needs in education and healthcare etc. Once
the RAP is approved by the community and
local authorities, the plan for the Mine can be
implemented.
S3-1
Policy in relation to affected
communities
Kenmare’s Stakeholder Engagement policy
outlines the value it places on relationships
with all its key stakeholders. These include
employees, host communities, suppliers
and contractors, shareholders and
lending banks, customers, regulators and
governments. Kenmare is committed to
conducting its business to minimise risk and
maximise opportunities for stakeholders
and to communicating transparently, while
upholding the Company’s values. The
policy sets out how Kenmare will honour
this commitment by assessing, preventing,
mitigating, and remediating any material
negative impacts on affected communities
and working to achieve positive impacts.
This includes KMAD’s work to support
development and promote economic and
social well-being.
Kenmare meets relevant regulations and IFC
Performance Standards by establishing and
maintaining ongoing relationships with host
communities based on informed consultation
and participation throughout the life of the
operation. It commits to respecting host
communities’ environment, traditions, cultural
heritage and values. It provides an effective
mechanism to collect feedback and record
and address complaints or grievances from
host community members.
MATERIAL TOPICS
TOPICS
`
S3 SBM-3
S3 Affected communities
`
Land-related impacts
`
Kenmare topic: Socio-economic
development
`
Kenmare topic: Social licence to
operate
KEY POLICIES
`
Stakeholder Engagement Policy
`
Community grievance
management procedure
`
Crop compensation procedure
TARGETS
`
KMAD KPIs
`
Timely grievance resolution
KEY ACTIONS
`
Resettlement Action Plan targets
`
KMAD three-year action plan
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STRATEGIC REPORT
THRIVING COMMUNITIES
ESRS S3 AFFECTED COMMUNITIES
GENERAL ENVIRONMENT
SOCIAL
GOVERNANCE
Pilivili haul road
Mine infrastructures
Villages directly or indirectly affected within the Moma Mining concession
Kenmare engages openly and honestly with all key stakeholders using
appropriate communication tools and in a regular and timely way,
considering commercial requirements. Kenmare does not have any
specific policy provisions or engagement approaches for indigenous
peoples, as the predominant ethnic group in the localities where the
Mine operates is Macua, the largest ethnic group in Mozambique, who
are not defined as indigenous by the United Nations.
Kenmare’s Human Rights Policy outlines its commitments to respecting
the rights of people in communities impacted by its activities, including
the right to water, land and a safe environment. The Company engages
with people in host communities to identify potential adverse impacts
on human rights and takes appropriate steps to avoid, minimise and/or
mitigate them. These include access to natural resources, access to water
(through borehole infrastructure), employment, education and healthcare.
ENGAGEMENT ON RESETTLEMENT ACTION PLANS (RAPS):
`
A RAP involves at least four public consultations at the
local level:
– First public consultation: proposed project, its objectives,
relevance/importance of the project and its potential
impacts;
– Second public consultation: discuss and present alternative
resettlement sites;
– Third public consultation: present the draft RAP and budget
and implementation schedule; and
– Fourth public consultation: final RAP Notification:
Announcements for public consultations must be made
at least 15 days in advance to ensure adequate public
awareness and participation
`
Documentation: all technical reports related to the scoping
of the project must be made available to the public before
the consultations. This ensures transparency and allows
stakeholders to provide informed feedback.
`
Public participation report: a comprehensive report detailing
the public participation process, including all comments
and suggestions received, must be included in the final RAP
documentation.
`
Resettlement Action Plan: a RAP is defined through the
process of public consultation. This details the actions to be
delivered by Kenmare and the associated schedule, which
is then tracked quarterly through Local Working Group
meetings. The RAP includes maps of affected area, a list of
affected communities, maps of alternative resettlement sites, a
compensation plan, livelihood restoration plans, a budget and
implementation schedule, and designs of houses if physical
resettlement are required.
These provisions are outlined in Article 15 of Decree 31/2012,
which governs the RAP process in Mozambique. By adhering to
these requirements, Kenmare aims to promote transparency and
ensure that environmental and social considerations are integrated
into project planning and decision-making processes.
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THRIVING COMMUNITIES
ESRS S3 AFFECTED COMMUNITIES CONTINUED
MATERIAL TOPIC: KENMARE TOPIC: SOCIAL LICENCE TO OPERATE
Kenmare uses its engagement activities to
gain a full understanding of the impacts of
its mining activities on the lives of the people
living nearby. This ensures their priorities
are at the centre of operational decisions.
Kenmare manages its social licence to
operate through its proactive stakeholder
engagement; its discretionary investment
into social development programmes
via KMAD; ensuring it has an accessible
and well-understood grievance register
mechanisms and through the Company’s 10-
year strategic socio-economic development
plan. All of these programmes support the
Company in the face of external factors, such
as managing community relations in the
demonstrations following the Presidential
election in October 2024.
Kenmare has a participatory and partnership-
based approach to engagement and 20% of
the Company’s dedicated community relations
team are from the locality. The community
relations team all speak both the local language
of Macuua and the national language of
Mozambique, Portuguese. The team employs
various modes of communication ranging from
newsletters and noticeboards to bi-monthly
community meetings and the use of theatre,
cinema and radio.
The stakeholder engagement process
includes every demographic group in the
community. In addition to elders and village
chiefs, special consideration is given to
engaging with women’s groups, young
people and vulnerable people. These groups
are engaged with individually and separately
to the whole community meetings.
Kenmare uses Local Working Groups (LWG)
to liaise with the government, and host
communities. The LWGs play a key role
in monitoring the implementation of the
RAP and identifying new issues or areas
of community concern. They also facilitate
land compensation and hold meetings with
host communities to explain the process of
compensation and resettlement, as well as
supporting grievance management.
There are six LWGs across the 15 project-
affected communities. They meet bi-monthly
and include the District Administrator,
government representatives, Kenmare
management and other local representatives.
Formal community engagement meetings
take place every two months, and RAP
monitoring visits take place every six
months. Kenmare invites the LWG to visit
rehabilitation areas and any specific project
or activity that the community has concerns
about. Kenmare initiates ad hoc community
meetings when the operations teams need to
establish new access routes.
There are two community-led natural resource
committees covering 13 villages across the
Topuito and Pilivili localities, which are the
main points of contact for land rehabilitation
issues. Water and sanitation issues are
managed by separate specific committees.
Kenmare’s Head of Community, who
is also Deputy Country Manager, and
the community team have operational
responsibility for ensuring that the
engagements take place and that the results
inform Kenmare’s RAP and approach.
Kenmare assesses the effectiveness of its
engagement with affected communities
through positive leading indicators such as
numbers in impacted communities living in
their new houses and using their assigned
farmlands, as well as broader indicators that
are tracked through KMAD’s programmes.
Operational leading indicators include
remaining on schedule during the ESIA and
RAP process, enabling critical work paths
to be achieved. Negative lagging indicators
include the number of grievances registered
or work stoppages.
Kenmare identifies and makes specific
provision for vulnerable people affected by new
development projects and similiarly KMAD has
specific programmes to support vulnerable
people. Vulnerable people are defined as
those who by virtue of gender, ethnicity,
age, physical or mental disability, economic
disadvantage or social status may be more
adversely affected by displacement than
others. They may be limited in their ability
to claim or take advantage of resettlement
assistance and related development
benefits. They are identified through the
ESIA engagement process at the beginning
of a project and include women-headed
households, orphaned children, elderly people
living alone, disabled people, or people who
are chronically ill. Their perspectives are
sought through direct engagement and the
Community Liaison teams track their welfare
throughout the project lifecycle. These groups
continue to benefit from support programmes
through ongoing KMAD projects; if anyone
affected by physical disability are to be
physically resettled, Kenmare ensures the new
homes will have flexible access; and agricultural
areas that are more closely located to them are
identified.
The perspectives of indigenous peoples
are not sought since no communities
are categorised as indigenous within the
concession.
S3-3 Kenmare’s Standard Operating
Procedure for Community Grievances
ensures formal grievances from affected
communities, local authorities or interest
groups are registered and dealt with
promptly. Community members are
encouraged to lodge grievances at the
Community Relations Office. The Community
Relations Officer documents the grievance
and a response is provided within 15 days.
The response will include the next steps
and actions. If the complainant rejects
Kenmare’s resolution, they may consult
with the Local Community Committee, a
community-based governance body with
representation from the community leaders,
or Consultative Forum, a district level forum
to address issues that are raised at a village
level that remain unresolved. At these
forums, issues may be further discussed with
Community leaders and local authorities.
Kenmare’s General Manager is informed of
all new grievances on a weekly basis. The
community also regularly raise concerns
directly with the Company. Kenmare does
not tolerate any retaliation made towards
community members who raise grievances.
Kenmare’s Human Rights Policy outlines
its commitment to upholding human rights
in accordance with the International Bill of
Human Rights, the Universal Declaration of
Human Rights; the UN Guiding Principles on
Business and Human Rights and the OECD
Guidelines for Multinational Enterprises,
and the International Labour Organisation’s
Declaration on Fundamental Principles and
Rights at Work. In 2024, there were no cases
that breached the UN Guiding Principles on
Business and Human Rights.
Kenmare has a 10-year strategic plan that
aims to catalyse long-term socio-economic
development, ensuring both the impacts of
the Mine are leveraged as well as ensuring
the Company stimulates economies outside
of the Mine to not create over-dependence.
The plan includes development of key civil
infrastructure, plans for urban development,
creation of commercial agriculture and
ongoing investments into education provision.
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SOCIAL
GOVERNANCE
S3-4
Actions
Activities in the RAP aim to mitigate the
negative impacts associated with physical
and economic resettlement. However, the
RAP requires all new infrastructure to be
made from modern construction materials
(which provides more protection and comfort
for communities, relative to traditionally built
buildings), therefore this actually creates
an indirect opportunity for Kenmare to
improve the lives of communities through
its mining activities. RAP activities are
reviewed directly with affected communities
in regular community meetings. Additionally,
the Resettlement Committee (made up of
both District and National representatives)
undertakes biannual monitoring visits and
audits at the end of the RAP process to
confirm it has been correctly implemented.
IMPACTS, RISKS AND OPPORTUNITIES MITIGATING ACTIONS
Physical displacement
(loss of homestead)
`
In 2024, no alternative housing was required to be built; building of a new police post
completed
`
Lines of credit provided for community income-generating projects
`
Building of new school block and houses for teachers
Vulnerable people
`
Vulnerable people programme to provide extra opportunities and social programmes
Economic displacement
(loss of crops, fruit trees)
`
Alternative farmland identified, prepared, seeds and tools for establishing new crops
provided
`
Resettlement sites identified with fertile land for agricultural production, with one hectare
for each household, plus monetary compensation for food security while new crops are
established
`
A sustainable package of compensation includes seeds, a small shelter to minimise the
challenge of distance between homes and production area
`
The district government, in coordination with Kenmare, will organise to acquire a legal
landholding called a DUAT for each owner
`
Compensation for the loss of trees, based on government rates, plus three fruit tree saplings
granted to each household
Loss of church/place of worship
`
Construction of a new mosque was completed, and construction of a church started in the
resettlement neighbourhood
Loss of access to natural resources
(rivers and forest)
`
Resettlement site identified with conditions for agricultural production
`
Plan drawn up for the sustainable restoration of livelihoods
`
Provision of additional water supply sources, as part of the community development plan
Water and noise pollution
`
A management plan drawn up to mitigate the environmental impacts
`
Compensation package, which includes access to social infrastructures such as safe and
sustainable water sources
S3-5
Targets
In line with Kenmare’s community grievance
Standard Operating Procedure, the
community department targets a written
formal response to the person or persons
who raised the grievance within 30 days of
the date on which the grievance was logged.
Of the 25 grievances, sixteen were resolved
within 30 days, two were resolved within 60
days, four were closed out after 60 days and
three remained pending at the end of the
year. The main reason for the lengthy close-
out period was due to the complexity of the
issues, requiring field visits, and technical
solutions to be found requiring external
tender processes to procure the necessary
materials to address the grievance.
MATERIAL TOPIC: LAND‑RELATED IMPACTS
A material negative impact related to
Kenmare’s operations is the availability of land
for farming. Kenmare disturbs approximately
400 hectares of land per annum and targets
to rehabilitate the same amount of land as it
mines, although there is a lag of two-five years
before the land is prepared for returning to
communities. The mitigation measures for this
are fully detailed in the relevant RAPs. These
principally involve Government allocation
of new land for farming, providing cash
compensation for the lost crops, providing
seeds and tools for new farming plots and
improving access routes to new farming areas.
Additionally, Kenmare has been working to
improve the productivity of the land available
to communities through a Conservation
Agriculture programme, led by KMAD; as well
as a slimes additioning pilot and agroforestry
programmes, both led by Kenmare’s
environment team.
Conservation Agriculture techniques focus
on sustainable farming practices that
aim to improve soil health, increase water
efficiency, and reduce environmental impact
while enhancing crop yields. It involves the
following core principles: minimising soil
disturbance through avoiding or reducing
tillage to preserve soil structure; creating
permanent soil cover with vegetation or
mulch all year round, enabling the retention
of moisture; rotating crops and intercropping,
to enhance nutrient cycling.
Slimes additioning involves the reintegration
of slimes or fine clay particles back onto
the land through the rehabilitation process.
Slimes are separated during the initial mining
process and stored in paddocks, where they
dry out. Kenmare has conducted trials since
late 2023, which have proven slimes lead
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86
THRIVING COMMUNITIES
ESRS S3 AFFECTED COMMUNITIES CONTINUED
to better survival rates, and improved crop
yields through better soil moisture retention,
helping crops and trees survive the long
dry season. Trials monitored throughout
2024 conclusively found the application of
slimes to improve yields with three layers of
slimes increasing the yield of cowpea by 43
times, eight times for peanut, nine times for
pigeon pea, four times for velvet bean and
eight times for jack bean. Kenmare invested
in equipment to scale up the application of
slimes across future rehabilitation sites as
well as previously rehabilitated sites.
Agroforestry is a sustainable land
management approach that integrates trees,
shrubs, and crops on the same piece of land.
It mimics natural ecosystems by combining
agricultural and forestry techniques, creating
a multifunctional system that supports
production and environmental conservation.
Kenmare has been working with Instituto
de Investigação Agrária de Moçambique
(IIAM) the Agricultural Research Institute
of Mozambique to develop an approach
involving the planting of indigenous and
non-native fruit trees in six-metre by two-
metre grids, using the land between to
grow rows of crops; 17 different tree species
and nine different crops were provided to
communities, together with training from
IIAM and tools for planting.
S3-5
Targets
Kenmare’s key targets relating to land
impacts are the number of hectares
rehabilitated each year, the number of
farmers using Conservation Agriculture
techniques and the number of farmers using
agroforestry techniques.
TARGET 2024 TARGET 2024 PROGRESS
Number of hectares rehabilitated
(in preparation for hand back to the
community)
203 Ha
`
207.3 Ha
Number of hectares with slimes added
and integrated back into the post-
mined land
Target: 30 Ha
Stretch: 50 Ha
`
30.8 Ha achieved
Number of farmers using Conservation
Agriculture techniques
>600 farmers
`
627 farmers
MATERIAL TOPIC: KENMARE TOPIC: SOCIO‑ECONOMIC DEVELOPMENT
Kenmare has a key opportunity to improve the socio-economic development in the Larde and Moma Districts. Kenmare does this through
funding and overseeing the work of the Kenmare Moma Development Association (KMAD). The Company established KMAD as a not-for-profit
association in 2004 and it works with communities, local authorities and NGO partners to deliver development programmes and projects.
KMAD’s three-year strategic plan has four pillars:
1. LIVELIHOODS
AND ECONOMIC
DEVELOPMENT
Fostering the development
of local businesses as well
as the transfer of skills to
key local industries, such as
farming.
2. HEALTHCARE
DEVELOPMENT
Improving infrastructure
to ensure capacity
development, funding the
training of nurses, and
promoting healthy lives.
3. EDUCATIONAL
DEVELOPMENT
Support for educational
initiatives, including
the development of
infrastructure, vocational
training, and sponsored
scholarships.
4. WATER AND
SANITATION
Improving and expanding
existing water supply
systems, establishing
integrated water
management systems, and
promoting improved hygiene
and sanitation practices.
KMAD provides development programmes
in the Topuito, Pilivili and Mpaco localities.
Results of these projects are monitored
carefully and feedback from local
communities and lessons learned are
incorporated in the three-yearly renewal
of KMAD’s strategic plan. Kenmare’s social
development initiatives are set out in the
KMAD annual report. A detailed annual
activity plan is set out at the end of each
year and progress is discussed in community
meetings during the year. KMAD’s
three-year plans include recommended
metrics for measuring the effectiveness
of its development activities. In 2024, the
Company’s discretionary investment in
KMAD programmes totalled $3 million. The
Isoa RAP was the only RAP with outstanding
actions to be delivered in 2024. Opposite is
an overview of KMAD activities.
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Annual Report and Accounts 2024
STRATEGIC REPORT
GENERAL ENVIRONMENT
SOCIAL
GOVERNANCE
KMAD activities in 2024
HEALTH EDUCATION ECONOMIC LIVELIHOODS WATER & SANITATION
KEY ISSUE TO MITIGATE
`
Home births
`
Malaria
`
Access to medical treatment
by vulnerable people
`
Teacher capacity
`
Poor literacy and numeracy
`
Lack of jobs and income
generating opportunities
`
Poor agricultural outputs
`
Access to potable water
`
Water quality (related to
hygiene issues)
KMAD INTERVENTIONS
`
Qualified midwives in KMAD
health clinics
`
Anti-mosquito fogging
`
Malaria testing and treatment
`
Mobile clinic
`
Education programme to build
teacher capacity and improve
educational techniques
`
Micro-loan programme
`
Conservation Agriculture (CA)
programme
`
Capacity building for water
committees
TRACKING AND ASSESSING EFFECTIVENESS OF ACTIONS
`
26,500 consultations were
provided at the Mtiticoma
health clinic, 28,000
consultations were provided at
Pilivili Health Centre
`
Over 100 vulnerable people
received consultations at the
quarterly mobile clinics
`
Construction of phase 1
of Larde District Hospital
ongoing
`
New school blocks
constructed and delivered in
Nataka and Naholoco along
with school staff housing in
Naholoco
`
Distribution of over 11,000
school material kits
`
Intensive primary school
literacy and numeracy
programme
`
8 million Metical ($126,000)
provided in interest-free
loans, in conjunction with
technical training, to help local
entrepreneurs establish new
micro-businesses
`
28 new micro-businesses
funded (including five
vulnerable people led
businesses) in 2024, providing
an income or employment to
384 people.
A total of 116 small businesses
were in operation at year end,
generating revenues of over
$1.3 million
`
The Conservation Agriculture
(CA) programme continued
to be funded, supporting 627
farmers
`
New water systems in in
Mpuitine and Cabula along
with an upgrade to the Nataka
system
`
Construction started on new
Topuito and Namaize water
systems
S3-5
Targets
KMAD targets to complete all the
programmes identified in its three-year
strategic plan. By the end of 2024, the third
year of its 2022-2024 strategic plan, it had
implemented 91% of its programmes.
The 2024 ESG Scorecard targeted:
1. 3% increase in local procurement spend.
A 9% increase in operating expenditure
with Mozambican businesses was
recorded; however, this was set in the
context of a 1% annual decrease of local
procurement as a proportion of total
opex (including spend with international
suppliers).
2. Setting up a framework for micro
businesses to provide services to
Kenmare and establishing two new
businesses to provide services to
Kenmare. The framework was finalised,
and the following new businesses were
established: scrap dealer and laundry
service for Mine workers’ PPE and camp
bedding.
3. Onboarding NGO educational partner,
training them in new teaching techniques
and creating new baseline of educational
performance prior to intervention. The
education partner F&H was successfully
onboarded; 500 pupils finalised a
programme that delivered a 37% and 26%
improvement on literacy and numeracy
rates in grade 3 pupils, respectively.
4. Continuing the roll out of Certeza to
additional villages. Certeza was rolled out
to three villages and usage methodology
as well as monitoring protocols were
established.
Kenmare Resources plc
Annual Report and Accounts 2024
88
THRIVING COMMUNITIES
ESRS S3 AFFECTED COMMUNITIES CONTINUED
G1-1
Policy on business conduct
Kenmare is committed to upholding
the highest possible ethical standards.
The Company is committed to acting
professionally, fairly and with integrity in all
business dealings and relationships.
Kenmare’s Business Ethics and Human
Rights policies set out its standards and
outline how it manages impacts, risks and
opportunities relating to its business conduct
and corporate culture. Kenmare updated its
new purpose “transforming resources into
opportunities for all” in 2024.
Kenmare’s corporate culture is articulated
through its purpose, values and policies.
Company expectations on conduct
and standards are communicated to
Mozambique based employees when they
join the Company, in a week-long, face-to-
face and online induction programme. On
an annual basis existing employees are
required to complete a refresher training
course. These are reinforced through
ongoing communication and engagement
campaigns. In addition, Mozambique-based
employees must confirm in writing that
they have read the Business Ethics Policy,
understood it and will comply with it. The
majority of Kenmare’s workforce is literate,
but those that need support reading the
policies attend a team session where
their supervisor communicates the policy
content to them. Additionally, any conflicts
of interests disclosures are obtained from
new employees in Mozambique, as well as on
an annual basis for targeted departments.
Leadership also promotes a culture of
personal accountability and responsibility.
Kenmare evaluates its corporate culture
through the following mechanisms:
`
Biennial employee engagement survey
`
Reports on whistleblowing incidents
`
Participation in employee engagement
events
`
Board-led engagement through the
Non-Executive Director responsible for
workforce engagement
`
Employee participation in the discussion
of Kenmare’s updated purpose statement
Employees and contractors are encouraged
to speak up if they observe behaviour that
they believe does not meet the Company’s
ethical standards. Anyone with a connection
to Kenmare’s business can anonymously
report conduct that contravenes the law
or any of Kenmare’s policies using an
independent, external line (Safecall). This is
available 24/7 in several languages, including
Portuguese.
The Company is subject to legal
requirements under the Protected
Disclosures (Amendment) Act 2022 (the Irish
law transposing Directive (EU) 2019/1937)
regarding the protection of whistle-blowers.
Whistleblowers are protected from adverse
treatment and any employees who threaten
or retaliate against whistleblowers will face
disciplinary action. However, if Kenmare
concludes that a whistleblower’s concerns
are not genuine, they may be subject to
disciplinary action.
Investigations into Safecall whistleblowing
cases are conducted promptly,
independently and objectively. They
are investigated separately from the
management involved in the case. Reports
are dealt with by Kenmare’s internal auditor
and General Counsel, and in the case
of reports against those individuals by
the Company Secretary. All reports and
outcomes are presented to Kenmare’s Audit
& Risk Committee.
For details on the governance structures
overseeing Kenmare’s anti-corruption
policies, refer to pages 124-125.
MATERIAL TOPICS
`
G1 Business Conduct
`
Bribery and corruption
KEY POLICIES
`
Business Ethics Policy
`
Human Rights Policy
`
Supply Chain Code of Conduct
`
Whistleblowing procedure
TARGETS
`
External risk assessment of
ABC risks in business and
supply chain
`
Ensure on-site suppliers achieve
an average of 85% compliance
with Kenmare’s Supplier Code of
Conduct
`
External assurance of public
security forces upholding the
Voluntary Principles on Security
and Human Rights
KEY ACTIONS
`
Anti-bribery and corruption
(ABC) training
`
Implementation of improvement
plan following ABC review
`
Supply chain due diligence
programme
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Annual Report and Accounts 2024
STRATEGIC REPORT
TRUSTED BUSINESS
ESRS G1 BUSINESS CONDUCT
GENERAL ENVIRONMENT SOCIAL
GOVERNANCE
MATERIAL TOPIC: BRIBERY AND CORRUPTION
Kenmare complies with both Irish and
Mozambican laws on anti-bribery and
corruption, including the Irish Criminal
Justice (Corruption Offences) Act 2018. In all
its operations, it has zero tolerance of bribery
and corruption.
Bribery and corruption risks include both the
offering or receiving of a bribe or favour. On
this basis, Kenmare regards the functions
most at risk from bribery and corruption are
its procurement/supply chain, community
relations and human resources functions. In
addition, as the finance function is involved in
making all payments, it may face bribery and
corruption risks as well. All functions identified
as at risk are covered by the annual refresher
training programme and each of those
functions had a completion rate of over 95%
in relation to that training in 2024. The 5% who
did not complete the training were employees
who started the training but did not finish,
those on sick leave or maternity leave, or
employees who retired during the year.
The Company’s Business Ethics Policy is
published in both English and Portuguese and
is available both on the Company’s website,
the intranet and is available via employees’
line managers. Mozambique-based employees
are required to undertake annual refresher
training on business ethics, including relating
to bribery and corruption. Separately, online
training modules on business ethics, including
anti-bribery and corruption, are made
available to head office staff, the Executive
Committee and the Board of Directors.
G1-3
Actions
The action plans and resources in place to
manage Kenmare’s material impacts, risks
and opportunities related to corruption and
bribery include: ensuring accounting systems
are in place with authorisation limits and other
controls to mitigate fraud; the internal audit
function reviewing and testing systems and
controls with any fraud detected reported to
the Audit & Risk Committee (ARC) and Board
and appropriate action taken; provision of
the whistleblowing procedure and service,
with any matters reported investigated and
reported to the ARC and Board; exercise of
tight financial control with monthly report
analysis investigating any variances.
During 2024, Kenmare also commissioned
an external review of its policies, procedures
and controls in relation to anti-bribery and
corruption. It is reviewing the findings, and
will implement an improvement plan in 2025,
including the adoption of additional formal
policies and procedures and further training.
In 2024, there were no convictions or fines for
violation of anti-corruption and anti-bribery
laws. There were also no whistleblowing
calls registered either via Safecall or internal
channels. There have been no bribery and
corruption incidents that have come to the
Company’s attention outside of whistleblowing
channels. Through Kenmare’s sustainability
due diligence programme outlined below,
it is not aware of any incidents in the value
chain relating to bribery and corruption. There
have been no public legal cases regarding
corruption or bribery brought against
Kenmare and its workers.
G1-4 INCIDENTS OF BRIBERY AND CORRUPTION TOTAL
Total number of confirmed incidents of corruption or bribery
0
Number of confirmed incidents in which own workers were dismissed or disciplined for corruption or bribery-related incidents
0
Number of confirmed incidents relating to contracts with business partners that were terminated or not renewed due to
violations related to corruption or bribery
0
Number of convictions of violation of anti-corruption and anti-bribery laws
0
Amount of fines for violation of anti-corruption and anti-bribery laws
0
G1-5
Political contributions and
lobbying
Kenmare does not lobby government or
fund government programmes to achieve its
business goals. The Executive Committee
and Board of Directors oversee compliance
with this position. In 2024, there were no
financial or in-kind political contributions,
lobbying expenses, or membership fees
for lobbying associations. No members of
the Executive Committee or Board have
comparable positions in public administrative
bodies, including regulators.
Payments to government
1
Kenmare subscribes to the Extractive
Industries Transparency Initiative (EITI).
Established in 2002, it supports good
governance through the verification and
publication of payments by companies and
the use of government revenues derived
from the extractive industries. Since 2017, in
line with its reporting obligations under UK
and Irish law and regulation, and to the EITI,
Kenmare has provided annual disclosures
of the payments it makes to governments.
The Payments to Governments Reports
are available on Kenmare’s website. All
payments disclosed have been made to
national governments, either directly or
through a ministry or department of the
national government on a cash basis. The
Mozambican EITI Secretariat was established
in 2009 and Mozambique became an
EITI compliant country in 2012. Kenmare
continues to support the work of the
Mozambique branch of the EITI to promote
revenue transparency and accountability
in the extractive industry. Kenmare’s
Country Manager is a member of the Multi-
Stakeholder Group Co-ordinating Committee.
This Committee is chaired by the Minister
of Mineral Resources and Energy and meets
quarterly.
1
Disclosures under payments to government have not been assured by BTI as part of its limited assurance engagement over CSRD disclosures.
Kenmare Resources plc
Annual Report and Accounts 2024
90
TRUSTED BUSINESS
ESRS G1 BUSINESS CONDUCT CONTINUED
PAYMENTS $’000 2019 2020 2021 2022 2023 2024
MOZAMBIQUE
Mining royalty 3,180 3,627 4,200 5,699 5,674 5,940
Industrial Free Zone (IFZ) royalty 2,423 2,437 4,663 4,975 4,585 4,147
Payroll taxes 8,446 6,921 9,971 11,634 12,299 13,432
Corporation taxes 2,310 5,748 6,156 6,106 19,798 9,921
Withholding taxes 716 1,124 1,082 690 730 999
Licences 83 570 388 409 504 315
Total 17,158 20,427 26,460 29,513 43,590 34,754
IRELAND
Payroll taxes 2,678 2,495 2,628 2,638 2,193 3,854
Corporation taxes 7 267 128 4,354 1,102 6,382
Total 2,685 2,762 2,756 6,992 3,295 10,236
UK
Payroll taxes 207 302 524 568 894 728
Total payment to governments 20,050 23,491 29,740 37,073 47,779 45,718
G1-2
Management of relationships with suppliers
Kenmare has a dual objective of increasing the proportion of Mozambican suppliers and ensuring all suppliers comply with its sustainability
standards. To support this, Kenmare uses the following due diligence process for the Moma Mine.
Supplier sustainability due diligence process
Registration
portal
OPTIONAL
`
Supplier self-registers
`
Suppliers can review
Kenmare Policies
and Supplier Code of
Conduct (SCC) and
are notified of relevant
tenders
Due diligence screening
MANDATORY
`
Database screening for
sanctions, politically
exposed persons,
criminal databases and
adverse media issues
Supplier Code of conduct
MANDATORY
`
Suppliers self-declare
adherence to Supplier
Code of Conduct
`
Suppliers sign ‘No
conflict-of-interest
declaration’
Questionnaire
and audit
TARGETED
`
Largest suppliers (top
50% of spend) and
all on-site suppliers
complete questionnaire
and are audited at
supplier premises
This aims to:
`
ensure suppliers and contractors meet Kenmare’s sustainability standards;
`
manage Kenmare’s social, environmental and governance risks in the supply chain; and
`
build capacity among local companies so they can compete with international suppliers and increase the proportion of local content.
Supplier Code of Conduct
The Supplier Code of Conduct was
introduced in 2022. The code is available
on Kenmare’s website in English and
Portuguese, and all suppliers must confirm
they meet its requirements. Compliance
is assessed via an online survey annually.
On-site contractors present a higher risk
in terms of potential breaches of Kenmare
policies given their direct exposure to and
influence over operations. In 2024, 39 on-site
contractors provided goods and services to
Kenmare’s operations. Kenmare identifies
other high-risk suppliers by assessing the
nature of the service provided and contract
value. Those higher-risk suppliers’ premises
are visited once every two years to check
policies are in place and review evidence of
strategies and action plans and tracking of
relevant metrics and KPIs.
Suppliers can use Kenmare’s Moma
supplier pre-registration portal to register
their interest and confirm they will comply
with Kenmare’s policies. A third-party
screening tool checks successful suppliers
for sanctions, politically exposed persons,
criminal records and adverse media. There
are also checks to ensure the supplier’s
business is financially viable and has strong
business ethics. Supplier accounts with no
activity for 18 months or more are put on
hold and checked again before they are
considered for contracts. Kenmare works
to ensure contractors meet the Company’s
expectations on health and safety and
provides an induction to all those working at
or visiting the Mine.
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STRATEGIC REPORT
GENERAL ENVIRONMENT SOCIAL
GOVERNANCE
Kenmare requires all suppliers to confirm
adherence to its Supplier Code of Conduct,
which outlines Kenmare’s required minimum
standards on environmental, social and
governance management practices. In
2024, all the 50 suppliers in scope were
assessed through a survey, aligned to
the requirements of the Supplier Code
of Conduct. Kenmare has matured its
Sustainability due diligence survey over the
last reporting year. In 2023, suppliers were
required to provide evidence of supplier
policies in place on key sustainability issues,
including health and safety, environment,
diversity, and anti-bribery and corruption. In
2024, in addition to providing evidence of the
policies, suppliers were required to provide
evidence of strategies, management plans
and metrics to track delivery of their policy
commitments. International and Mozambican
suppliers assessed achieved 76% and 62%
alignment respectively, with the strongest
performing categories being Environment
at 68% and Health and Safety at 67%. Areas
for improvement included Diversity and
Inclusion at 53% compliance.
Kenmare’s procedures to prevent, detect and
address allegations or incidents of corruption
and bribery include the Company’s financial
processes, including tender processes, and
controls. These act as a primary control on
the prevention and detection of corruption
and bribery by or on behalf of the Company.
Furthermore, the Company has adopted a
whistleblowing procedure, and at the Mine,
a gifts and hospitality register is maintained.
Kenmare manages the risk of Bribery and
Corruption in its supply chain by screening
and monitoring its suppliers for adverse
reports on this issue. Finally, the Company’s
internal audit function has adopted a Fraud
Management Framework.
Supplier Payment Practices
Kenmare’s supplier payment policy is the
same for all sizes of organisation and the
average time the Company takes to pay
an invoice is 30 days. Kenmare pays local
companies, those who are based solely in
Larde or Pilivili districts, in cash, as they
do not have access to banking facilities.
To improve compliance with contract
payment terms to its suppliers Kenmare
has developed a dashboard to track
conformance to payment terms, enabling
daily analysis and corrective actions, such
as ensuring purchase orders are placed and
issued prior to the execution of works and
streamlining the governance of approvals.
One of the challenges the Company faces
in complying with contractual payment
terms relates to logistics. Many of the goods
ordered via suppliers come from outside of
Mozambique. Goods ordered by multiple
suppliers are stored in consolidation centres
at the South African and Mozambican border,
to be transported to site in bulk loads,
enabling fuel, cost and carbon efficiency.
Various opportunities, including receiving
goods at consolidation centres is being
explored to enable timely payments.
G1-6 PAYMENT PRACTICES
Average time Kenmare takes to pay an invoice from the date when the contractual term of payment starts to be calculated 38 days
Standard payment terms – same payment terms for all suppliers 30 days
Percentage of payments aligned to these terms 100%
Number of outstanding legal proceedings for late payments 0
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Annual Report and Accounts 2024
92
TRUSTED BUSINESS
ESRS G1 BUSINESS CONDUCT CONTINUED
The following tables list the ESRS disclosure requirements and the topical standards that are material to Kenmare. The tables list where
information within this Annual Report relating to a specific disclosure requirement may be found. The table also lists the cross-cutting and
topical standards that derive from other EU legislation.
DISCLOSURE REQUIREMENT AND RELATED
DATA POINT
SFDR PILLAR 3 BENCHMARK
REGULATION
EU CLIMATE
LAW
PAGE
ESRS 2 – GENERAL DISCLOSURES
BP-1
General Basis for preparation of the
sustainability statement
n/a n/a n/a n/a 39
BP-2
Disclosures in relation to specific
circumstances
n/a n/a n/a n/a 39
GOV-1
The role of the administrative, management
and supervisory bodies
n/a n/a n/a n/a 116, 118, 122-124,
126, 127, 130, 133,
137, 139, 141, 142,
146, 148, 151
GOV-2
Sustainability matters addressed by the
undertaking’s administrative, management
and supervisory bodies
n/a n/a n/a n/a 126, 130
GOV-3
Integration of sustainability-related
performance in incentive schemes
n/a n/a n/a n/a 126, 154-155
GOV-4
Statement on due diligence
n/a n/a n/a n/a 134
GOV-5
Risk management and internal controls over
sustainability reporting
n/a n/a n/a n/a 126
SBM-1
Strategy, business model and value chain
n/a n/a n/a n/a 12
SMB-2
Interests and views of stakeholders
n/a n/a n/a n/a 48
SBM-3
Material impacts, risks and opportunities and
their interaction with strategy and business
model
n/a n/a n/a n/a 44, 47
IRO-1
Description of the processes to identify
and assess material impacts, risks and
opportunities
n/a n/a n/a n/a 44-47
IRO-2
Disclosure requirements in ESRS covered by
the undertaking’s sustainability statement
n/a n/a n/a n/a 47
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STRATEGIC REPORT
ESRS DISCLOSURE INDEX
GENERAL
ENVIRONMENT SOCIAL GOVERNANCE
DISCLOSURE REQUIREMENT AND RELATED
DATA POINT
SFDR PILLAR 3 BENCHMARK
REGULATION
EU CLIMATE
LAW
PAGE
ESRS E1 – CLIMATE CHANGE
E1 GOV-3
Integration of sustainability related
performance in incdentive schemes
n/a n/a n/a n/a 126, 154-155
E1 SBM-3
Material impacts, risks and opportunities and
their interaction with strategy and business
model
n/a n/a n/a n/a 12-15
E1 IRO-1
Description of the processes to identify and
assess material climate-related impacts, risks
and opportunities
n/a n/a n/a n/a 55-56
E1-1
Transition plan for climate change mitigation
n/a n/a n/a 51 51
E1-2
Policies related to climate change mitigation
and adaptation
n/a n/a n/a n/a 50
E1-3
Actions and resources in relation to climate
change policies
n/a n/a n/a n/a 51-54
E1-4
Targets related to climate change mitigation
and adaptation
n/a n/a n/a n/a 59
E1-5
Energy consumption and mix
n/a n/a n/a n/a 59
E1-6
Gross Scope 1, 2, 3 and total GHG emissions
n/a n/a n/a n/a 57
E1-7
GHG removals and carbon credits
n/a n/a n/a 58 58
E1-8
Internal carbon pricing
n/a n/a n/a n/a 59
ESRS E2 – POLLUTION 61
E2 IRO-1
Description of the processes to identify and
assess material pollution-related impacts,
risks and opportunities
n/a n/a n/a n/a 62
E2-1
Policies related to pollution
n/a n/a n/a n/a 62
E2-2
Actions and resources related to pollution
n/a n/a n/a n/a 63
E2-3
Targets related to pollution
n/a n/a n/a n/a 62
E2-4
Pollution of air, water and soil
n/a n/a n/a n/a 64
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94
ESRS DISCLOSURE INDEX
CONTINUED
DISCLOSURE REQUIREMENT AND RELATED
DATA POINT
SFDR PILLAR 3 BENCHMARK
REGULATION
EU CLIMATE
LAW
PAGE
ESRS E3 – WATER AND MARINE RESOURCES
E3 IRO-1
Description of the processes to identify and
assess material water and marine-related
impacts, risks and opportunities
n/a n/a n/a n/a 66
E3-1
Policies related to water and marine
n/a n/a n/a n/a 66
E3-2
Actions and resources related to water and
marine
n/a n/a n/a n/a 67
E3-3
Targets related to water and marine
n/a n/a n/a n/a 67
E3-4
Water consumption
n/a n/a n/a n/a 68
ESRS E4 – BIODIVERSITY AND ECOSYSTEMS
E4 IRO-1
Description of the processes to identify and
assess material water and marine-related
impacts, risks and opportunities
n/a n/a n/a n/a 69
E4-1
Policies related to biodiversity and
ecosystems
n/a n/a n/a n/a 69
E4-2
Actions and resources related to biodiversity
and ecosystems
n/a n/a n/a n/a 69-70
E4-3
Targets related to biodiversity and
ecosystems
n/a n/a n/a n/a 72
E4-4
Ecological thresholds for biodiversity targets
n/a n/a n/a n/a 72
E4-5
Sites in or near protected areas or key
biodiversity areas
n/a n/a n/a n/a 69
ESRS S1 – OWN WORKFORCE
S1 SBM-2
Interests and views of stakeholders
n/a n/a n/a n/a 78
S1 SBM-3
Material impacts, risks and opportunities and
their interaction with strategy and business
model
n/a n/a n/a n/a 74
S1-1
Policies related to own workforce
n/a n/a n/a n/a 74
S1-2
Processes for engaging with own workers and
workers’ representatives about impacts
n/a n/a n/a n/a 78, 133, 135
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STRATEGIC REPORT
GENERAL
ENVIRONMENT SOCIAL GOVERNANCE
DISCLOSURE REQUIREMENT AND RELATED
DATA POINT
SFDR PILLAR 3 BENCHMARK
REGULATION
EU CLIMATE
LAW
PAGE
S1-3
Processes to remediate negative impacts and
channels for own workers to raise concerns
n/a n/a n/a n/a 75-79
S1-4
Taking action on material impacts on own
workforce, and approaches to mitigating
material risks and pursuing material
opportunities related to own workforce, and
effectiveness of those actions
n/a n/a n/a n/a 75-79
S1-5
Targets related to managing material negative
impacts, advancing positive impacts, and
managing risks and opportunities
n/a n/a n/a n/a 80-81
S1-6
Characteristics of the undertaking’s
employees
n/a n/a n/a n/a 80
S1-8
Percentage of total employees covered by
collective bargaining agreements
n/a n/a n/a n/a 80
S1-9
Age distribution of workforce
n/a n/a n/a n/a 80
S1-10
Percentage of employees paid below the
applicable adequate wage benchmark
n/a n/a n/a n/a 78
S1-11
Employees covered by social protection
n/a n/a n/a n/a 78
S1-13
Employees participating in training and
development and regular performance and
career development reviews
n/a n/a n/a n/a 80
S1-14
Health and safety metrics
n/a n/a n/a n/a 81
S1-15
Family related leave
n/a n/a n/a n/a 80
S1-16
Compensation metrics (gender pay gap and
total remuneration ratio)
n/a n/a n/a n/a 82
S1-17
Incidents, complaints and severe human
rights impacts
n/a n/a n/a n/a 82
Kenmare Resources plc
Annual Report and Accounts 2024
96
ESRS DISCLOSURE INDEX
CONTINUED
DISCLOSURE REQUIREMENT AND RELATED
DATA POINT
SFDR PILLAR 3 BENCHMARK
REGULATION
EU CLIMATE
LAW
PAGE
ESRS S3 – AFFECTED COMMUNITIES
S3 SBM-3
Material impacts, risks and opportunities and
their interaction with strategy and business
model
n/a n/a n/a n/a 83
S3-1
Disclosures relating engagement, policies and
human rights impacts
n/a n/a n/a n/a 83
S3-2
Processes for engaging with affected
communities about impacts
n/a n/a n/a n/a 83-85
S3-3
Processes to remediate negative impacts and
channels for affected communities to raise
concerns
n/a n/a n/a n/a 85-88
S3-4
Taking action on material impacts on
affected communities, and approaches to
mitigating material risks and pursuing material
opportunities related to affected communities,
and effectiveness of those actions
n/a n/a n/a n/a 85-88
S3-5
Targets related to managing material impacts,
risks and opportunities related to affected
communities
n/a n/a n/a n/a 86-88
ESRS G1 – BUSINESS CONDUCT
G1 GOV-1
The role of the administrative, supervisory
and management bodies
n/a n/a n/a n/a
116, 118, 120-125,
128, 131, 135, 137,
140, 144, 146, 149
G1 IRO-1
Description of the processes to identify
and assess material impacts, risks and
opportunities
n/a n/a n/a n/a 102-104
G1-1
Corporate culture and business conduct
policies
n/a n/a n/a n/a 89
G1-2
Management of relationships with suppliers
n/a n/a n/a n/a 91
G1-3
Prevention and detection of corruption and
bribery
n/a n/a n/a n/a 90
G1-4
Incidents of bribery and corruption n/a n/a n/a n/a 90
G1-5
Political contributions and lobbying n/a n/a n/a n/a 90
G1-6
Payment practices n/a n/a n/a n/a 92
97
Kenmare Resources plc
Annual Report and Accounts 2024
STRATEGIC REPORT
GENERAL
ENVIRONMENT SOCIAL GOVERNANCE
Disclosure and application requirements in topical ESRS that are applicable in
conjunction with ESRS 2 General disclosures
The following table outlines the requirements in topical ESRS that need to be taken into account when reporting against the Disclosure
Requirements in ESRS 2.
ESRS 2 DISCLOSURE REQUIREMENT RELATED ESRS PARAGRAPH PAGE
GOV–1 The role of the administrative,
management and supervisory bodies
`
ESRS G1 Business conduct (paragraph 5) 116, 118, 120-125, 128, 131,
135, 137, 140, 144, 146, 149
GOV–3 Integration of sustainability-related
performance in incentive schemes
`
ESRS E1 Climate change (paragraph 29) 126, 154-155
SBM–2 Interests and views of stakeholders
`
ESRS S1 Own workforce (paragraph 12)
`
ESRS S3 Affected communities (paragraph 7)
48, 78
48, 85
SBM–3 Material impacts, risks and
opportunities and their interaction with
strategy and business model
`
ESRS E1 Climate Change (paragraphs 18 to 19)
`
ESRS E2 Pollution
`
ESRS E3 Water and marine resources
`
ESRS E4 Biodiversity and ecosystems (paragraph 16)
`
ESRS S1 Own workforce (paragraphs 13 to 16)
`
ESRS S3 Affected communities (paragraphs 8 to 11)
45-47, 50, 56
45-47, 62
45-47, 66
45-47, 69
45-47, 74
45-47, 83
IRO-1 Description of the processes to
identify and assess material impacts, risks
and opportunities
`
ESRS E1 Climate change (paragraphs 20 to 21)
`
ESRS E2 Pollution (paragraph 11)
`
ESRS E3 Water and marine resources (paragraph 8)
`
ESRS E4 Biodiversity and ecosystems (paragraphs
17 to 19)
`
ESRS G1 Business conduct (paragraph 6)
45-47, 102-104, 124, 126
45-47, 102-104, 124, 126
45-47, 102-104, 124, 126
45-47, 102-104, 124, 126
45-47, 102-104, 124, 126
Kenmare Resources plc
Annual Report and Accounts 2024
98
ESRS DISCLOSURE INDEX
CONTINUED
Limited Assurance Report on the Sustainability Statement
Limited Assurance Conclusion
We have conducted a limited assurance
engagement on the sustainability reporting
set out in the Sustainability Statement (the
“Sustainability Statement”) of Kenmare
Resources PLC (the “Company”) and its
consolidated undertakings (the “Group”) for
the year ended 31 December 2024 prepared
in accordance with Part 28 of the Companies
Act 2014 which is a dedicated section of
the Directors’ Report, the disclosures for
which are referenced in the ESRS index
on pages 93 to 98. Further detail on the
Double Materiality Assessment (the “DMA”)
component of the Sustainability Statement
can be found on the Company’s website at
www.kenmareresources.com/sustainability.
Based on the procedures we have performed
and the evidence we have obtained, nothing
has come to our attention that causes us to
believe that the Company’s Sustainability
Statement is not prepared, in all material
respects, in accordance with Part 28 of the
Companies Act 2014, including:
`
the compliance of the Sustainability
Statement with the European
Sustainability Reporting Standards
(“ESRS”);
`
the process carried out by Management
to identify the information reported
in the Sustainability Statements, is in
accordance with the description set out in
the section ‘DMA process’ ;
`
the compliance with the reporting
requirements of Article 8 of Regulation
(EU) 2020/853 (the “Taxonomy
Regulations”); and
`
compliance with the requirement to
mark up the Sustainability statement
in accordance with Section 1600 of the
Companies Act 2014.
Basis for Conclusion
We conducted our limited assurance
engagement in accordance with the
International Standard on Assurance
Engagements (Ireland) 3000, Assurance
engagements other than audits or reviews of
historical financial information - assurance
of sustainability reporting in Ireland (“ISAE
(Ireland) 3000 ”), issued by the Irish Auditing
& Accounting Supervisory Authority (IAASA).
The procedures in a limited assurance
engagement vary in nature and timing from,
and are less in extent than for, a reasonable
assurance engagement. Consequently, the
level of assurance obtained in a limited
assurance engagement is substantially
lower than the assurance that would have
been obtained had a reasonable assurance
engagement been performed.
Any internal control structure, no matter how
effective, cannot eliminate the possibility
that fraud, errors or irregularities may occur
and remain undetected and because we
use selective testing in our engagement,
we cannot guarantee that all errors or
irregularities, if present, will be detected.
The Sustainability statement includes
prospective information such as targets,
strategy, future plans, expectations and
estimates. Prospective information relates
to events and actions that have not yet
occurred and may never occur. We do not
provide any assurance on the assumptions
and achievability of this prospective
information.
We believe that the evidence we have
obtained is sufficient and appropriate to
provide a basis for our conclusion. Our
responsibilities under this standard are
further described in the Practitioners’
responsibilities section of our report.
Our Independence and Quality
Management
We are independent of the Company in
accordance with the International Code
of Ethics for Professional Accountants
(including International Independence
Standards) (IESBA Code) issued by the
International Ethics Standards Board for
Accountants, together with the ethical
requirements that are relevant to our
assurance engagement of the Sustainability
statement under the Code of Ethics issued
by Chartered Accountants Ireland. We have
fulfilled our other ethical responsibilities in
accordance with these requirements and the
IESBA Code.
Our firm applies International Standard on
Quality Management (ISQM) 1 (Ireland),
Quality Management for Firms that Perform
Audits or Reviews of Financial Statements,
or Other Assurance or Related Services
Engagements, issued by IAASA. This standard
requires the firm to design, implement and
operate a system of quality management,
including policies or procedures regarding
compliance with ethical requirements,
professional standards and applicable legal
and regulatory requirements.
Emphasis of Matter
a) Control environment observations
Without modifying our conclusion, we draw
attention to management’s disclosure of
control weaknesses identified in the ESRS
data collection and reporting process, under
the heading ‘Basis for preparation and
limitations’ on page 39 in the Sustainability
statement. Although we did not adopt a
controls-based approach to testing, as this
was a limited assurance engagement, ISAE
(Ireland) 3000 still requires us to gain an
understanding of the control environment.
Through enquiries with management,
and walkthroughs of the data collection
and reporting processes, we observed
weaknesses in certain elements of the
of the control environment, as disclosed
by management in the Sustainability
Statement. However, through our substantive
testing approach we undertook additional
procedures to ensure that we were able to
obtain sufficient appropriate evidence, to
support our conclusion that nothing has
come to our attention that causes us to
believe that the disclosures included in the
Sustainability Statement for the year ended
31 December 2024 have not been prepared,
in all material respects, in accordance
with ESRS.
Other matters
a) Compliance with the requirement to
mark-up the Sustainability Statement
We note that Section 1613(3)(c) of the
Companies Act 2014 requires us to report
on the compliance by the Company with the
requirement to mark-up the Sustainability
Statement in accordance with Section 1600
of that Act. Section 1600 of the Companies
Act 2014 requires that the Directors’ Report
is prepared in the electronic reporting
format specified in Article 3 of Delegated
Regulation (EU) 2019/815 and shall mark-up
the Sustainability Statement. However, at the
time of issuing our limited assurance report,
the electronic reporting format has not been
specified nor become effective by Delegated
Regulation. Consequently, the Company is
not required to mark-up the Sustainability
statement. Our conclusion is not modified in
respect of this matter.
99
Kenmare Resources plc
Annual Report and Accounts 2024
STRATEGIC REPORT
INDEPENDENT PRACTITIONER’S
LIMITED ASSURANCE REPORT
TO THE DIRECTORS OF KENMARE RESOURCES PLC
b) Comparative information
The comparative information included in
the consolidated Sustainability Statement
of the Company for any period prior to
1 January 2024 was not subject to an
assurance engagement and we express no
opinion over that information. Our conclusion
is not modified in respect of this matter.
Other information
The directors are responsible for the other
information. The other information comprises
the information included in the Group’s
Annual Report but does not include the
CSRD Sustainability Statement (including
the Double Materiality Report published on
the Company’s website) and our Limited
Assurance Report thereon.
Our limited assurance conclusion over the
CSRD Sustainability Statement does not
cover the other information and we do not
express any form of assurance conclusion
thereon.
Responsibilities for the
Sustainability Statement
Management of the Company is
responsible for:
`
preparing, measuring, presenting and
reporting the Sustainability statement
in accordance with the relevant criteria,
contained in the applicable sustainability
reporting framework being the ESRS,
Part 28 of the Companies Act 2014; the
Taxonomy Regulations; the requirement
to mark up the Sustainability statement
in accordance with Section 1600 of
the Companies Act 2014; and any
additional criteria used by the Company
to supplement and / or interpret the
sustainability reporting framework
criteria; and
`
developing, implementing and reporting
its double materiality assessment process
to identify the information reported in the
Sustainability statement in accordance
with ESRS and for disclosing this
process in the Sustainability statement.
This responsibility includes identifying
and engaging with the Company’s
stakeholders as identified in the
Company’s double materiality assessment
process (stakeholders) to understand
their information needs.
Those charged with governance are also
responsible for overseeing the Company’s
Sustainability statement reporting process.
Inherent Limitations in
Preparing the Sustainability
Statement
We obtained limited assurance over the
preparation of the Sustainability statement
in accordance with the Companies Act 2014.
Inherent limitations exist in all assurance
engagements. There are inherent limitations
regarding the measurement or evaluation
of the Sustainability statement subject to
limited assurance, which have been set
out below:
`
estimates, approximations, and/
or forecasts used by the Company
in preparing and presenting their
Sustainability statement are subject
to significant inherent uncertainty.
The extent to which the Sustainability
statement contains, qualitative,
quantitative, objective, subjective,
historical, and prospective disclosures,
also represents a significant degree
of uncertainty. The selection by
management of different but acceptable
estimation, approximation, or forecasting
techniques, could have resulted
in materially different amounts or
disclosures being reported. For the
avoidance of doubt, the scope of our
engagement and our responsibilities did
not involve us performing work necessary
for any assurance on the reliability,
proper compilation, or accuracy of the
prospective information;
`
certain metrics reported within the
Sustainability statement may be subject
to inherent limitations, for example, where
there are complexities in value chain
information and reporting on scope 3
emissions;
`
where estimated, approximated and
/ or forecast information is provided
by management in respect of value
chain information, the verification or
benchmarking of this information is
subject to a high degree of uncertainty
and the actual value chain information
may be different to the estimated,
approximated or forecast value chain
information provided by management;
`
the self-defined Basis of Preparation,
the nature of the sustainability matters,
and absence of consistent external
standards allow for different, but
acceptable, measurement methodologies
to be adopted which may result in
variances between entities. The adopted
measurement methodologies may also
impact the comparability of sustainability
matters reported by different
organisations and from year to year
within an organisation as methodologies
develop.
Practitioner’s Responsibilities
Our objectives are to plan and perform the
assurance engagement to obtain limited
assurance about whether the Sustainability
statement is free from material misstatement,
whether due to fraud or error, and to issue
a limited assurance report that includes our
conclusion. Misstatements can arise from
fraud or error and are considered material
if, individually or in the aggregate, they
could reasonably be expected to influence
decisions of users taken on the basis of the
Sustainability statement.
As part of a limited assurance engagement
in accordance with ISAE (Ireland) 3000, we
exercise professional judgment and maintain
professional scepticism throughout the
engagement. We also:
`
Perform risk assessment procedures,
including obtaining an understanding
of internal control relevant to the
engagement, to identify disclosures
where material misstatements are likely
to arise, whether due to fraud or error,
but not for the purpose of providing a
conclusion on the effectiveness of the
entity’s internal control.
`
Design and perform procedures
responsive to disclosures in the
Sustainability statement where material
misstatements are likely to arise. The risk
of not detecting a material misstatement
resulting from fraud is higher than for one
resulting from error, as fraud may involve
collusion, forgery, intentional omissions,
misrepresentations, or the override of
internal control.
`
Design and perform procedures to
evaluate whether the Sustainability
statement has been prepared in
accordance with the ESRS, which includes
the process carried out by the Company
to identify material sustainability related
impacts, risks and opportunities;
`
Design and perform procedures to
evaluate whether the Sustainability
statement has been prepared in
in compliance with the Taxonomy
Regulations; and
`
With respect to our conclusion in respect
to the Company’s reporting obligations
and responsibility to mark up the
Sustainability statement in accordance
with Section 1600 of the Companies Act
2014, we assess whether we have become
Kenmare Resources plc
Annual Report and Accounts 2024
100
INDEPENDENT PRACTITIONER’S LIMITED
ASSURANCE REPORT
TO THE DIRECTORS OF KENMARE RESOURCES PLC CONTINUED
aware of anything to suggest that the
Sustainability statement has not been
prepared, in all material respects in this
specified format. However, as explained in
the ‘Other Matters’ section of the report,
the Company is not currently required to
mark-up the Sustainability statement.
Summary of the Work Performed
A limited assurance engagement involves
performing procedures to obtain evidence
about the Sustainability statement. The
nature, timing and extent of procedures
selected depend on professional judgment,
including the identification of disclosures
where material misstatements are likely to
arise, whether due to fraud or error, in the
Sustainability statement.
The procedures in a limited assurance
engagement vary in nature and timing from,
and are less in extent than for, a reasonable
assurance engagement and depend on
professional judgment, including the
identification of disclosures where material
misstatements are likely to arise, whether
due to fraud or error, in the Sustainability
statement. Consequently, the level of
assurance obtained in a limited assurance
engagement is substantially lower than the
assurance that would have been obtained
had a reasonable assurance engagement
been performed.
In conducting our limited assurance
engagement, the procedures we have
performed include the following:
`
Obtaining an understanding of the
Sustainability Statement reporting
process performed by the Company,
including the preparation of the
Sustainability Statement;
`
Obtaining an understanding of internal
control relevant to the preparation of the
Sustainability Statement, but not for the
purpose of expressing an opinion on the
design and operating effectiveness of the
Company’s internal control thereof;
`
Obtaining an understanding of the
Company’s double materiality assessment
process by performing inquiries to
understand the sources of the information
used by management and reviewing the
Company’s internal documentation of
this process, challenging management’s
assessment of material topics, and
evaluating whether the evidence
obtained from our procedures about the
Company’s process is consistent with the
description of the process set out in the
Sustainability Statement;
`
Performing risk assessment procedures
to understand the Group and its
environment, including the Company’s
reporting boundary, its value chain
information and identify risks of material
misstatement;
`
Designing and performing further
assurance procedures (which included
inquiries, analytical and substantive
procedures) to respond to the identified
risks of material misstatement; and
`
Evaluating the overall presentation of the
Sustainability Statement, and considering
whether the Sustainability statement
as a whole, including the sustainability
matters and disclosures, is disclosed in
accordance with the applicable criteria.
`
Evaluating the methods, assumptions
and data for developing estimates and
forward-looking information; and
`
Obtaining an understanding of the
Company’s process to identify taxonomy-
eligible and taxonomy-aligned economic
activities.
The purpose of our limited assurance
work and to whom we owe our
responsibilities
Our report is made solely in accordance with
Section 1613 of the Companies Act 2014 to
the Directors of the Company.
Our limited assurance work has been
undertaken so that we might state to the
Directors those matters we are required to
state to them in a limited assurance report
and for no other purpose. To the fullest
extent permitted by law, we do not accept or
assume responsibility to anyone other than
the Company and its Directors, as a body, for
our limited assurance work, for this report, or
for the conclusions we have formed.
BRENDAN KEAN
For and on behalf of
Baker Tilly Ireland Audit Limited
9 Exchange Place
International Financial Services Centre
Dublin 1, Ireland
D01 X8H2
8 April 2025
101
Kenmare Resources plc
Annual Report and Accounts 2024
STRATEGIC REPORT
Managing risk is an integral part of Kenmare’s business. The Group applies
a comprehensive process for identifying, assessing and managing risks
associated with its operations and business and strategic corporate decisions.
Risk management framework
An overview of the risk management and internal control framework, responsibilities within it and the relationship between functions is set
out below. While the Board is ultimately responsible for risk management within the Group, it has delegated responsibility for the monitoring
of the effectiveness of the Group’s risk management and internal control systems to the Audit & Risk Committee. The Board and Audit & Risk
Committee receive reports from the Executive Committee on the key risks to the business and the steps being taken to mitigate such risks.
The Audit & Risk Committee reviews the principal risks and uncertainties.
Board of Directors
The Board of Directors has ultimate responsibility for risk management. The Board
receives reports and updates from the Board Committees and the Managing Director on
the key risks facing the business and the steps taken to manage these risks. The Board
delegates responsibility to the Audit & Risk Committee.
Audit & Risk Committee
The Audit & Risk Committee is
responsible for monitoring and
assessing the Group’s risk management
and internal control systems. The
Committee receives regular updates on
risk management strategies, mitigation
and action plans.
Executive Committee
The Executive Committee monitors and facilitates the implementation of effective risk
management practices by departmental management and ensures appropriate risk
reporting up and down the organisation.
Sustainability Committee
The Sustainability Committee
is responsible for monitoring
developments related to sustainability
risks, including safety, health,
environment, climate and social
performance, and providing strategic
direction, oversight and risk assurance.
First line of defence
Operational management
has ownership, responsibility
and accountability for
directly identifying, assessing,
controlling and mitigating risks.
Second line of defence
Kenmare has various
oversight functions, which
are responsible for providing
subject matter expertise,
defining standards and
risk appetite and ensuring
adherence and compliance.
Third line of defence
Internal audit provides
assurance to the Board or
Audit & Risk Committee on
how effectively the organisation
assesses and manages its risks.
It includes assurance on the
effectiveness of the first and
second lines of defence.
1 2 3
Kenmare Resources plc
Annual Report and Accounts 2024
102
PRINCIPAL RISKS AND UNCERTAINTIES
Risk assessment process
The Group’s risk assessment process is based
on a co-ordinated, Group-wide approach to
the identification and evaluation of risks and
the manner in which they are monitored and
managed. This process begins with a bottom-
up approach involving operational managers
who, through a programme of workshops,
regularly perform a detailed risk review to
update the departmental risk registers. In
assessing the potential impact and likelihood
of each risk identified, management considers
the existing key controls and evaluates the
risks in terms of potential residual impact. A
standard risk-scoring matrix is used to ensure
consistency in reporting across all areas and
between periods.
Departmental risk registers are consolidated
into a Group Risk Register. The Executive
Committee provides input to ensure that
there is a top-down view of the key risks
facing the Group. This includes consideration
and assessment of any newly identified
emerging risks. Following a review of the
Group Risk Register by the Executive
Committee, the principal risks identified for
the Group and their mitigations are submitted
to the Audit & Risk Committee and Board for
review and approval.
As part of this review and approval process,
the Audit & Risk Committee provides a robust
assessment of the emerging and principal
risks faced by the Group. This is achieved by
offering alternative viewpoints and challenging
risk scoring assumptions, as appropriate.
Risk appetite
Exploration for, and the development
of, Mineral Resources, together with the
construction and development of mining
operations in Mozambique, are activities that
involve high risk. Kenmare makes informed
decisions prior to engaging in any associated
activities that pose a significant risk to the
Group. Where activities are undertaken,
appropriate mitigations are put in place
commensurate with the degree of risk that
is faced and to ensure compliance with any
regulations or industry guidelines relevant to
these risks. For some risks, such as country
risk and industry cyclicality, these risks are
inherent to the Company’s business and
there is a limit on the level of mitigation
that can be put in place given the single
jurisdiction and the single industry in which
the Group operates. Kenmare has a very low
appetite and tolerance for risk in areas which
potentially impact the health and safety of its
staff, community and/or environment.
Risk heat map
HIGH
1 2 3 4 5
LIKELIHOOD
IMPACT
LOW
LOW
HIGH
1 2 3 4 5
6
4 10
1
2
7 8
3
5 9
12
13
14
15
11
1
Permitting, licensing and
Government agreement risk
2
Country risk
3
Geotechnical risk
4
Weather conditions
5
Uncertainty over physical
characteristics of the orebody
6
Loss of production due to
power supply and transmission
interruption
7
Asset damage or loss
8
Health, Safety and Environment
9
Material misstatement in
the Ore Reserves & Mineral
Resource table
10
IT security risk
11
Development project risk
12
Industry cyclicality
13
Customer and/or market
concentration
14
Foreign currency risk
15
Unanticipated cost inflation
103
Kenmare Resources plc
Annual Report and Accounts 2024
STRATEGIC REPORT
Emerging risks
Kenmare considers emerging risk as part of
the risk assessment process within the Group’s
risk management framework. An emerging risk
is one that could potentially impact the Group;
however, the risk is not yet fully understood,
limiting its ability to fully assess the likelihood
and impact of such risks. Such risks are closely
monitored, enabling Kenmare to implement
mitigations when necessary or appropriate.
Geo-political events, including the recent
imposition of tariffs, are an example of an
emerging risk that is not fully understood but
that is being monitored by Kenmare.
Taskforce on Climate-related Financial
Disclosures
In line with regulatory reporting requirements,
Kenmare used two alternate warming
scenarios to evaluate climate-related risks
applicable to its operations and business
model. These included both physical risks
and those related to the transition to a low
carbon economy, such as policy, regulatory,
technology, market and reputational risks. To
assess the growing threat of climate change
and the necessary adaptation strategies to
be developed in response, Kenmare refreshed
its physical climate risk assessment in
2024, with research undertaken by external
sustainability consultants. More information
is available about this on pages 55 and 56.
Further detail on its climate risks is also set
out in the 2021 Climate Strategy Report
available at www.kenmareresources.com.
This analysis confirms that extreme weather
events, and in particular cyclones and storms,
present the most material climate-related
risk to its business. The controls in place to
mitigate this risk are set out on page 106. No
other climate-risks have been identified as a
principal risk or uncertainty.
Principal risks and uncertainties
Under Section 327(1)(b) of the Companies
Act 2014 and Regulation 5(4)(c)(ii) of the
Transparency (Directive 2004/109/EC)
Regulations 2007 and UK Disclosure and
Transparency Rule 4, the Group is required to
give a description of the principal risks and
uncertainties that it faces. These risks are
similar to those faced by many companies
in the mining industry. A description of the
principal risks and uncertainties, together
with mitigating factors and controls, are set
out in the table on pages 104 to 111. This table
is not prioritised nor is it an exhaustive list of
all risks that may impact the Group, but rather
the Board’s view of principal risks at this point
in time. There are additional risks that are not
yet considered material or that are not yet
known to the Board or fully understood but
that may assume greater importance in the
future.
STRATEGIC
Permitting, licensing and Government agreement risk
STRATEGY
DESCRIPTION
The Group’s mining and processing activities require its foundation agreements (Mineral Licensing Contract and Implementation
Agreement), and various licences, permits, concessions and approvals to be in place in respect of the relevant mining areas in northern
Mozambique. The Group may not be granted, may not maintain, or may not obtain a renewal or extension of its foundation agreements,
necessary licences, permits, concessions and approvals for it to operate in accordance with its plans on the same terms or at all. This
could be because of failure or inability to comply with conditions or processes, including in connection with community consultation
processes; pressure from stakeholders; administrative delay and/or failure by the relevant authorities to comply with the terms of the
foundation agreements and/or applicable law.
POTENTIAL
IMPACT
A failure to obtain, maintain, renew or extend a foundation agreement, necessary licence, concession or approval would significantly
affect the Group’s ability to operate, its ability to generate cash and the valuation of the Group’s assets. In addition, the terms of
any such agreement, licence, concession or approval, renewal or extension may be less advantageous than expected and the costs
associated with obtaining, maintaining, renewing or extending such agreement, licence, concession or approval may be higher than
expected.
HOW KENMARE
MANAGES RISK
`
Robust foundation agreements (Mineral Licensing Contract and Implementation Agreement) entitle the Group to be issued a
number of key permits and provide it with rights of extension in relation to those foundation agreements
`
Continued compliance with terms of foundation agreements and maintenance of existing licences in good standing
`
Continued commitment to the future long-term development of the Mine
`
Positive working relationship with the Government of Mozambique through regular contact, promoting open and honest two-way
communication
`
Engagement with affected local communities to work towards obtaining the required environmental approvals
RISK TREND
The Implementation Agreement, which governs the terms of KMPL’s operation of the IFZ (Industrial Free Zone), provides certain rights
and concessions to the Group for an initial period of 20 years that ended in December 2024. Under the terms of the Implementation
Agreement, the Group is entitled to an extension of the relevant rights and concessions for a further 20 years. In connection with the
extension, Kenmare has been in negotiations with the Government in relation to certain modifications to the applicable investment
regime to obtain the agreement of the Government. Although negotiations have not concluded, Kenmare continues to engage with
the Government while reserving the right to safeguard its contractual entitlements via all means, including international arbitration, if
an agreement cannot be reached. The Minister of Industry and Commerce has confirmed that the Group continues to benefit from the
originally prevailing rights and concessions pending conclusion of the extension process.
As the extension of the rights under the Implementation Agreement has not been concluded the risk trend is marked as increasing.
Kenmare Resources plc
Annual Report and Accounts 2024
104
PRINCIPAL RISKS AND
UNCERTAINTIES CONTINUED
STRATEGIC
Country risk
STRATEGY
DESCRIPTION
The Group’s operations are located entirely in Mozambique. There may be potential adverse operational or financial impacts from
changes in the political, security or economic circumstances in Mozambique. In addition, changes in, or disputes over, the regulatory or
tax regimes in Mozambique (including changes in the interpretation or application of those regimes to the Group) could also have an
adverse impact.
POTENTIAL
IMPACT
Kenmare has operated in Mozambique since 1987; however, it remains subject to risks similar to those prevailing in many developing
nations, including economic and social instability, variability in governmental effectiveness, law and order and the risk of insurgency,
changing regulatory or tax regime (or the application thereof) or disputes with the authorities in relation to the same.
These risks may cause the safety of Kenmare’s personnel to be affected, significant disruption to the operation or an increase in costs in
order to ameliorate their impact. In addition, tax increases could have an adverse effect on the Group’s financial results.
HOW KENMARE
MANAGES RISK
`
Binding foundation agreements with legal and fiscal stability clauses and international arbitration provisions
`
Positive relationship with the Government of Mozambique
`
Close monitoring of national, regional and local environment
`
Frequent engagement with the Mozambique Defence Department, navy marines, and police
`
Security strategy
`
On-site diesel storage and power generation enable continuation of processing and export operations in a situation of where national
electrical supply infrastructure is damaged in connection with political unrest or insurgency
RISK TREND
The risk of insurgence in the Cabo Delgado province remains subject to monitoring.
In connection with the October 2024 elections, significant political and social unrest was experienced in Mozambique, including in Maputo
and in the vicinity of Moma. However, while the unrest has to a degree subsided since the formation of a new government in January
2025, the transition resulted in a reduction in the presence, availability and effectiveness of regional and national government and an
increase in criminal incidents at Moma. Consequently, the perceived risk has increased compared to the prior year.
The country risk premium used in the discount rate has remained unchanged from the prior year as the unrest did not impact materially
on the Mine’s operations. The discount rate is used in the preparation of the financial statements as set out in Note 1 Statement of
Accounting Policies and Note 11 Property, Plant and Equipment.
Links to strategy Trend key
Operate
responsibly
Deliver long-life,
low-cost production
Allocate capital
efficiently
Risk is
increased
Risk is
unchanged
Risk is
decreased
New
risk
105
Kenmare Resources plc
Annual Report and Accounts 2024
STRATEGIC REPORT
OPERATIONAL
Geotechnical risk
STRATEGY
DESCRIPTION
The failure of an external berm or the Tailings Storage Facility (TSF) under construction at the Moma Mine could result in a major
slimes/water spill into adjoining valleys, potentially impacting on local communities and/or the operating assets.
POTENTIAL
IMPACT
The nature of Kenmare’s dredge mining gives rise to the creation of artificial ponds. In addition, Kenmare is constructing a TSF in
connection with the move of Wet Concentrator Plant (WCP) A that involves the retention of a large volume of slimes and water by berm
systems. Therefore there is the potential for failure of berm systems that surround the ponds or that will form part of the TSF. A failure
of a berm could cause loss of life, damage to the operating assets and cessation of the operation of the WCPs for a prolonged period.
HOW KENMARE
MANAGES RISK
`
Permanently employed staff with geotechnical engineering skills
`
Prudent geotechnical design and controls
`
Daily inspections
`
Interlocking external audits from two separate independent geotechnical consultants
`
Safety/diversion berm erected to protect downstream areas from pond berm failure
`
Ongoing installation and monitoring of pipes on ponds to control excess water
`
Transition to the Global Industry Standard on Tailings Management (GISTM)
RISK TREND
External berm failure remains a key focus in risk management. Although the TSF under construction is a major new aspect of the Mine,
given the high level of governance required under GISTM, the migration from multiple settling ponds to the TSF is not regarded as
representing an increase in risk.
Based on this, there is no significant change in the assessment of this risk compared to the prior year.
Weather conditions
STRATEGY
DESCRIPTION
Climate change and the location of the Group’s operations on the Mozambican coast gives rise to the risk of cyclone activity and severe
wind/flooding. Such events pose a risk to the safety of mine staff, contractors, and visitors, and to the physical integrity of Kenmare’s
operational assets. In addition, weather conditions (short of cyclone and severe wind), such as sea swell, have a detrimental impact on the
Group’s ability to load its products for ocean transport. For further information on the climate-related risks Kenmare faces, see its 2021
Climate Strategy Report.
POTENTIAL
IMPACT
In extreme weather circumstances, there is a risk of loss of life. There is a risk of physical damage to the operating assets of the Mine,
which may result in an inability to operate. Heavy rain and flooding can also affect supply logistics to and from the Mine. Weather
conditions also negatively impact the Group’s ability to load its products for ocean transport, thereby affecting total products shipped and
consequently, revenue.
HOW KENMARE
MANAGES RISK
`
Mine and associated infrastructure designed to appropriate cyclone rating
`
Designated cyclone-proofed buildings at the Mine
`
Ongoing weather/cyclone monitoring
`
Cyclone readiness plan covering land-based and marine assets
`
Disaster management programme
`
Insurance cover
`
Adequate stock of materials and supplies on site
RISK TREND
Although there has been no change in the risk of weather conditions, there has been a noted increase in the effect of weather
conditions (i.e. sea swell) on Kenmare’s ability to load and ship its products onto ocean-going vessels at the Moma transshipment facility.
Notwithstanding the increase in perceived risk, the location of the risk on the risk heat map on page 103 remains unaltered because the
assessment of likelihood remains within the same range as last year (although it has moved to the upper end of that range).
Links to strategy Trend key
Operate
responsibly
Deliver long-life,
low-cost production
Allocate capital
efficiently
Risk is
increased
Risk is
unchanged
Risk is
decreased
New
risk
Kenmare Resources plc
Annual Report and Accounts 2024
106
PRINCIPAL RISKS AND
UNCERTAINTIES CONTINUED
OPERATIONAL
Uncertainty over physical characteristics of orebody
STRATEGY
DESCRIPTION
Orebody characteristics, including slimes levels, may not conform to existing geological or other expectations or may have an
unanticipated effect on production operations or the effectiveness of plant and equipment. Orebody characteristics, including slimes
levels, in some of the orebodies may differ from those previously mined and may require changes in mining methods and/or additional
plant and equipment. In addition, the quality of products produced from an orebody may not conform to expectations.
POTENTIAL
IMPACT
Physical characteristics of an orebody, including divergence from expectations, may result in reduced production levels or increased
operating or capital costs to maintain production at the intended level. In addition, any difference in product quality produced from an
orebody may result in reduced revenues.
HOW KENMARE
MANAGES RISK
`
Extensive sample testing
`
Extensive orebody drill programme including cone penetration testing
`
Test pits/trenching implemented
`
Expertise in managing slimes and in managing unexpected mining conditions
`
Dry mining operations
`
Improved throughput modelling
`
Definitive Feasibility Study for Nataka
`
Investment in Geometallurgy department, including a new laboratory
`
Additional drilling equipment is being used to increase orebody knowledge and accelerate the availability of relevant information
RISK TREND
The transition to Nataka, scheduled to commence in late 2025, is proceeding on the basis of a completed Definitive Feasibility Study,
which includes extensive information about the new ore zone.
As a result, the overall assessment of this risk remains unchanged.
Loss of production due to power supply and transmission interruption
STRATEGY
DESCRIPTION
The Mine is reliant on the delivery of stable and continuous electric power by Electricidade de Mocambique (EdM) from the Cahora Bassa
dam, which is experiencing historically low water levels.
The Mine also relies on the efficient transmission of power via the 170km transmission line to the Mine, which is affected by the wider
EdM transmission grid.
Furthermore, additional power in excess of that currently agreed to be supplied by EdM is required for the future operations of the Mine,
including in connection with the transition to Nataka.
The viability of obtaining additional power may require additional infrastructure.
POTENTIAL
IMPACT
Significant disruption to, or instability in, the power supply at the Mine could have a material and adverse effect on the ability to operate
the Mine or to operate it in the lowest cost manner, thereby adversely affecting production volumes and/or operating costs.
In addition, a failure to obtain any additional power required by future operations, or to obtain such power at acceptable cost, could have
a material and adverse effect on the ability to operate the Mine or to operate it in the lowest cost manner, thereby adversely affecting
production volumes and/or operating costs.
HOW KENMARE
MANAGES RISK
`
Company’s Synchronous Condenser (“Dip Doctor”) reduces the effect of grid power instability
`
The Rotary Uninterruptible Power Supply (RUPS) provides increased power reliability to the MSP as it is able to supply it with
alternative power where issues with incoming grid power are detected
`
On-site diesel-powered generators are able to power part of the mining operations in the case of planned or prolonged unavailability
of stable grid-power, thereby maintaining Heavy Mineral Concentrate (HMC) production at approximately 50% capacity
`
A line bay with breakers and additional protection equipment is under construction on the incoming EdM transmission line and is due
to be commissioned during Q3 2025
`
Consideration of options for additional power supply for future operations and dialogue with EdM and other stakeholders in
connection therewith
`
Monitoring of Cahora Bassa dam water levels and interaction with the dam operator, Hidroeléctrica de Cahora Bassa, to proactively
identify potential power generation limitations
RISK TREND
Kenmare has done a significant amount of work with EdM to ensure improved stability and capacity of power supply. However, it was
identified that the Cahora Bassa dam water level is at 20% capacity as of Q4 2024. Given the reliance on water to generate power, the risk
has increased in its current rating on page 103 to the upper end of its position in the table.
107
Kenmare Resources plc
Annual Report and Accounts 2024
STRATEGIC REPORT
OPERATIONAL
Asset damage or loss
STRATEGY
DESCRIPTION
The operation of a large mining and processing facility carries an inherent risk of technical failure of equipment, fires and other
accidents. In addition, the assets are exposed to the risk of theft.
POTENTIAL
IMPACT
An occurrence of these risks could result in damage to, or destruction of, key mining, processing or shipping facilities at the Mine, such
as the transshipment vessels, the jetty or product conveyor belt. Loss of such key assets could result in disruption to production and/or
shipping, significant replacement cost and consequential monetary losses. Theft of cables and other materials, as well as fuel, can cause
interruption to operations, increase operating costs and represent a potential risk to the safety of Kenmare’s people.
HOW KENMARE
MANAGES RISK
`
Programme of inspections and planned maintenance by a team of specialist engineers
`
Standard operating procedures
`
Fire detection and suppression systems
`
Annual external risk assessment and compliance audit
`
Insurance cover
`
Investment in improved technology infrastructure to enable improved monitoring of assets, enabling the identification and
prevention of damage and/or theft-related incidents
`
Mine warehouse storing critical and strategic spares
RISK TREND
The Mine has noted an increase in security-related incidents during 2024.
Notwithstanding the increase in perceived risk, the location of the risk on the risk heat map on page 103 remains unaltered because the
assessment of likelihood remains within the same range as last year (although it has moved to the upper end of that range).
Health, Safety and Environment
STRATEGY
DESCRIPTION
The operation of a large mining and processing facility carries a potential risk to the health and safety of the workforce, visitors and the
local community.
Incidents carry potential for environmental damage to surrounding areas.
POTENTIAL
IMPACT
The improper use of machinery, poor maintenance, technical failure of certain equipment or failure to meet and maintain appropriate
safety standards could result in significant injury, loss of life or significant negative impact on the surrounding environment and/or
communities.
In addition, it is possible that a failure to comply fully with applicable regulations exposes the Mine to the risk of fines or other sanctions
by a relevant regulator.
HOW KENMARE
MANAGES RISK
`
Prioritisation of Health, Safety and Environment (HSE) by management
`
Appropriately trained staff
`
Standard operating procedures
`
Ongoing hazard identification programme
`
Health and Safety awareness programme implemented for the Company and community
`
Mine clinic and evacuation procedures for staff
`
Community investment and programmes including health clinic and education programmes
`
Compliance with applicable HSE standards and legislation
RISK TREND
While the Mine’s Lost Time Injury Frequency Rate improved to 0.06 per 200,000 hours worked in 2024, health and safety remains an area
of priority for the Company.
The overall assessment of this risk remains unchanged.
Links to strategy Trend key
Operate
responsibly
Deliver long-life,
low-cost production
Allocate capital
efficiently
Risk is
increased
Risk is
unchanged
Risk is
decreased
New
risk
Kenmare Resources plc
Annual Report and Accounts 2024
108
PRINCIPAL RISKS AND
UNCERTAINTIES CONTINUED
OPERATIONAL
Material misstatement in the Ore Reserves & Mineral Resource Table
STRATEGY
DESCRIPTION
A material misstatement in the Ore Reserves and Mineral Resources statement.
POTENTIAL
IMPACT
A material misstatement could adversely impact the Company’s valuation.
HOW KENMARE
MANAGES RISK
`
JORC-compliant statement prepared by competent person
`
Methodological improvements following independent specialist review in 2023
`
Ongoing drilling and sampling programme, including in-fill drilling at Pilivili, completed in 2024
`
Ongoing reconciliation of mining results to Mineral Resource model
RISK TREND
The overall assessment of this risk remains unchanged.
IT security risk
STRATEGY
DESCRIPTION
The Group is dependent on the employment of advanced information systems and is exposed to risks of failure in the operation of these
systems. Further, the Group is exposed to security threats through cyber attacks.
POTENTIAL
IMPACT
A failure in these systems, or a successful cyber attack, could lead to:
`
Disruption to critical business systems and operational equipment, impacting on production or capital programmes
`
Loss or theft of confidential information, competitive advantage, or intellectual property
`
Financial and/or reputational harm
`
Imposition of sanctions for breach of laws/regulations
HOW KENMARE
MANAGES RISK
`
Analysis by external certified IT specialists of Group information systems to ensure reliability and protection to align with industry
information security standards
`
Third-party specialists provide network assurance
`
Ongoing strategic and tactical efforts to address the evolving nature of cyber threats
`
Increased user training and IT security awareness
`
Increased management attention, coupled with additional internal and external resources
RISK TREND
Management have increased focus on IT and cyber security risk and significant progress has been made in 2024 in managing this risk.
These efforts will continue in 2025.
The risk trend remains unchanged from the previous year.
Development project risk
STRATEGY
DESCRIPTION
The WCP A upgrade project is in execution phase with commissioning expected during H2 2025.
All development projects include the risk of taking longer and costing more than anticipated.
POTENTIAL
IMPACT
Failure to successfully engineer, design, plan execute and complete the WCP A upgrade and Nataka transition and other development
projects, or to do so on time and on budget, and to operate completed projects in the manner anticipated could have adverse operational
and financial impacts.
HOW KENMARE
MANAGES RISK
`
Rigorous project appraisal and design process, including Pre-Feasibility Studies and Definitive Feasibility Studies
`
Significant mining trials in connection with the transition to Nataka
`
Owner’s team and use of industry experts with track records of delivery of a number of development projects for Kenmare
`
Efficient procurement practices regarding long lead items, ensuring timely delivery and certainty over certain construction costs
RISK TREND
Delays to the project to upgrade WCP A and transition it to Nataka have been experienced in connection with the Resettlement Action
Plan process. Although catch-up and mitigation plans are being executed, the perceived risk has increased compared to the prior year
because, with commissioning scheduled to commence in Q3, the potential for delays or overruns could potentially impact production and
revenues for 2025 and 2026.
109
Kenmare Resources plc
Annual Report and Accounts 2024
STRATEGIC REPORT
FINANCIAL
Industry cyclicality
STRATEGY
DESCRIPTION
The Group’s revenue generation may be significantly and adversely affected by declines in the demand for and prices of the ilmenite,
zircon, rutile and concentrates products that it produces. During rising commodity markets, there may be upward pressure on operating
and capital costs.
POTENTIAL
IMPACT
Unfavourable product market events beyond the Group’s control and/or pressure on operating or capital costs may adversely affect
financial performance.
HOW KENMARE
MANAGES RISK
`
Global portfolio of customers, many with relationships of over 10 years
`
Ongoing cost control and disciplined financial management
`
Industry analysis to develop suitable assumptions in the Group’s commodity price forecasting used for planning purposes
RISK TREND
The assessment of the risk remains unchanged.
Customer and/or market concentration
STRATEGY
DESCRIPTION
The customer base and market for Kenmare’s ilmenite, zircon, rutile and concentrates products is concentrated.
POTENTIAL
IMPACT
The Group’s revenue generation may be significantly affected if there ceases to be demand for its products from major existing
customers, or the Group is restricted from dealing with those customers, and it is unable to further expand its customer base in respect of
the relevant product.
HOW KENMARE
MANAGES RISK
`
Active management of existing customer relationships and development of new customers
`
Market intelligence to track developments in customer demand
`
Development of a new concentrates product as an additional co-product stream with a different customer base
RISK TREND
There have been no significant changes to the overall assessment of this risk compared to the prior year.
Foreign currency risk
STRATEGY
DESCRIPTION
The Group’s revenues are entirely denominated in US Dollars, whereas costs are denominated in a number of currencies including South
African Rand, Mozambican Meticais, Euros and US Dollars.
POTENTIAL
IMPACT
The nature and location of the Mine and the intrinsic volatility of exchange rates give rise to an on-going significant probability of
occurrence of an adverse exchange rate fluctuation. The impact of such a fluctuation can be large across calendar years.
HOW KENMARE
MANAGES RISK
`
Group debt is denominated in US Dollars
`
A natural hedge exists between revenue receipts and US Dollar-denominated costs
`
A further natural hedge exists between the value of US Dollars and commodity prices over the long-term. When commodity prices
increase, the Group’s non-US Dollar-denominated costs tend to increase in US Dollar terms. When commodity prices decrease, the
Group’s non-US Dollar-denominated costs tend to decrease in US Dollar terms
`
South African Rand hedging facilities are in place
RISK TREND
Foreign currency exposure has remained relatively unchanged from an operational perspective.
The risk therefore remains unchanged from prior years.
Links to strategy Trend key
Operate
responsibly
Deliver long-life,
low-cost production
Allocate capital
efficiently
Risk is
increased
Risk is
unchanged
Risk is
decreased
New
risk
Kenmare Resources plc
Annual Report and Accounts 2024
110
PRINCIPAL RISKS AND
UNCERTAINTIES CONTINUED
FINANCIAL
Unanticipated cost inflation
STRATEGY
DESCRIPTION
Inflation-related increases in operating or capital costs above expected inflation rates driven by geo-political events, sector-specific
reasons or otherwise.
POTENTIAL
IMPACT
Unanticipated inflation could have a negative impact on the Group’s cash cost per tonne, profitability, and capital investment costs.
HOW KENMARE
MANAGES RISK
`
Fixed price supply agreements where possible
`
Multi-year labour agreements
`
Understanding cost drivers and promoting proactive cost management throughout the Group
`
Active management of existing supplier relationships and development of new supplier relationships to ensure the Group receives
competitive contractual arrangements
RISK TREND
There have been no significant changes to the overall assessment of this risk compared to the prior year.
111
Kenmare Resources plc
Annual Report and Accounts 2024
STRATEGIC REPORT
The Board, taking into consideration the Group’s principal risks and uncertainties,
including emerging risks, assessed the long-term prospects of the Group in
accordance with Provision 31 of the UK Corporate Governance Code 2018. Its
conclusions are outlined below.
Viability assessment: period
The Board has reviewed the length of time to be covered by the
Viability Statement, particularly given its primary purpose of providing
investors with a view of financial viability that goes beyond the period
of the Going Concern Statement.
The Directors concluded that three years is an appropriate period
for the assessment as they have reasonable clarity over the Group
Forecast assumptions over this period. In a commodity-based
business, uncertainty increases inherently with expanding time
horizons, potentially impacting the large number of external variables,
in particular sales pricing.
Overall, a three-year timeframe is deemed to achieve a suitable
balance between long- and near-term influences.
Viability assessment: Approach
The viability of the Group is assessed against strategic plans and
projections, and considers cash flows, committed funding and
liquidity positions, forecast future funding requirements and other
key financial ratios.
The Directors’ assessment has been made based on the Group
forecast with reference to the cash generation capabilities of the
Group, its committed debt facilities, in particular the $200 million
Revolving Credit Facility, which is available to 11 February 2029, the
Board’s risk appetite and the principal risks and uncertainties and how
they are managed, as detailed on pages 102 to 111.
The Directors also assessed the potential financial and operational
impacts, in severe but plausible scenarios, of the principal risks and
uncertainties and the likely degree of effectiveness of current and
available mitigating actions as shown below. Sensitivity analysis
has been applied to certain key assumptions in the Group forecast
including revenue, operating costs and covenant compliance.
Assessment of prospects
The Directors carried out a robust assessment of Kenmare’s current
position and the principal risks facing the Group, including any
emerging risks and those that would threaten its strategy, business
model, future performance, solvency or liquidity.
The Board’s consideration of the long-term prospects of the Group
is an extension of the strategic planning process. This includes the
annual budget review, regular financial forecasting, a comprehensive
risk management assessment and scenario planning, which considers
the Group’s principal risks and uncertainties.
Conclusion
Based on their assessment of the three scenarios detailed below
and future prospects, the Directors confirm that they have a
reasonable expectation that the Group will continue to operate
and meet its liabilities, as they fall due, for the next three years to
31 December 2027.
SCENARIO RELEVANT PRINCIPAL RISKS
SCENARIO 1:
RECESSIONARY ENVIRONMENT
Scenario assumptions include reduced customer demand as a result of economic uncertainty
and supply-side pressure.
`
Industry cyclicality
`
Customer and/or market concentration
SCENARIO 2:
DEVELOPMENT PROJECT OVERRUN
Scenario assumptions include additional costs to complete the execution of the Wet
Concentrator Plant (WCP) A upgrade and transition to Nataka project resulting from a design or
construction failure, higher procurement cost or contractor delay.
All development projects include the risk of taking longer and costing more than anticipated.
`
Development project risk
`
Unanticipated cost inflation
SCENARIO 3:
COMBINATION OF SCENARIOS
The most severe scenario, although unlikely, considers the financial impact of both scenario 1
and scenario 2 materialising simultaneously.
`
Combination of relevant risks from
previous scenarios
Kenmare Resources plc
Annual Report and Accounts 2024
112
VIABILITY STATEMENT
113
Kenmare Resources plc
Annual Report and Accounts 2024
STRATEGIC REPORT
Kenmare Resources plc
Annual Report and Accounts 2024
114
“To me, Kenmare’s purpose of “Transforming
resources into opportunity for all” is about
embracing all that we have, including our
challenges, to turn them into opportunities.
On a personal level, as a woman in mining, I
feel that the Company has enabled me to do
this without losing my essence. I’m proud that
Kenmare continues to create opportunities
for other women by increasing the number
of female employees and through KMAD’s
development projects.”
IVANIA BULE
Production Shift Supervisor
114
Kenmare Resources plc
Annual Report and Accounts 2024
GOVERNANCE
`
Governance at a glance
116
`
Board of Directors
118
`
Executive Committee
120
`
Corporate governance report
122
`
Nomination Committee report
136
`
Sustainability Committee report
139
`
Audit & Risk Committee report
142
`
Remuneration Committee report
148
`
Annual report on remuneration
151
`
Directors' report
161
CONTENTS
115
Kenmare Resources plc
Annual Report and Accounts 2024
GOVERNANCE
Kenmare’s Board
How the composition of Kenmare’s Board allows it to deliver long-term sustainable value for Kenmare
and its stakeholders
Skills matrix
GOV-1
Kenmare requires each Director to
be recognised as a person of the
highest integrity and standing, both
personally and professionally. Each
Director must be ready to devote
the time necessary to fulfil their
responsibilities to the Company
in accordance with the terms
and conditions of their letter of
appointment. Each Director should
have demonstrable experience, skills
and knowledge that enhance Board
effectiveness and complement those
of the other Board members. This
is to ensure an overall balance of
experience, skills and knowledge,
and to create long-term sustainable
value for the Company and its
stakeholders. Where material skills
are identified as missing from
the Board composition, these
are targeted in the next Board
refreshment. Where necessary, the
Board draws on the expertise and
skills of external parties in order to
facilitate effective discussion and
decision making, e.g. climate change,
biodiversity experts. This is arranged
by the Company Secretary and
management.
AREA IAB MD EDK CF TH GM DS AW
Executive management
Experience as a Director, CEO, CFO or other
office holder or similar in medium
to large entities
✓ ✓ ✓ ✓ ✓ ✓ ✓
Specific industry knowledge
Senior Executive, advisory or Board experience
in a mining or resources organisation
✓ ✓ ✓ ✓ ✓ ✓ ✓
Accounting and finance
Senior Executive experience in financial
accounting and reporting, or business
development or Board Remuneration and
Nomination Committee experience
✓ ✓ ✓ ✓ ✓ ✓
Sustainability
Experience and knowledge of working on
sustainability activities directly or as part of
operational responsibility
✓ ✓ ✓
Climate
Leadership on climate and decarbonisation
✓ ✓
Legal and governance
Experience in organisations with a strong focus
on, and adherence to, governance standards
✓ ✓ ✓ ✓ ✓ ✓ ✓
International experience
An understanding of the complexities of
operating in foreign jurisdictions
✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
LENGTH OF TENURE COMPOSITION BOARD GENDER
DIVERSITY
NATIONALITY
2
0-3 YEARS
4
3-6 YEARS
2
6+ YEARS
5
INDEPENDENT
NON-EXECUTIVE DIRECTORS
1
NON-EXECUTIVE
DIRECTOR
1
CHAIR
1
EXECUTIVE
DIRECTOR
5
MALE
3
FEMALE
2
United Kingdom
2Ireland
1
Brazil
1
USA
Denmark
1
Oman
1
116
Kenmare Resources plc
Annual Report and Accounts 2024
GOVERNANCE AT A GLANCE
for all
The Sustainability Committee
actively engages with management
and provides advice and oversight
on matters such as health and safety,
environment, community, employee
matters, security and human rights,
all of which impact on the Group’s
relationships with stakeholders. The
Committee also reviews progress
on internal sustainability metrics
and public targets, which provide an
incentive to continuously improve
engagement.
Directors engage with shareholders,
lenders and authorities throughout
the year.
As part of the DMA process in 2024,
additional stakeholder engagement
in relation to climate change was
undertaken by the Company. The
Sustainability Committee and Audit
& Risk Committee interrogated and
approved the process.
into opportunity
Kenmare’s purpose involves the
creation of opportunities for all of
our stakeholders – whether it is
employees, Community members or
shareholders.
The Sustainability Committee’s
meetings include in-depth discussion
on strategies to ensure that both
Kenmare and its stakeholders
understand not only the context
and impact of operations but also
the benefits. The Board approves
the Sustainability Strategy – this
captures issues such as local
procurement, strategic partnerships/
projects and monitoring of KMAD
projects. The Sustainability
Committee monitors progress
against the strategy and reports on
this to the Board.
Transforming resources
The Board provides feedback
and constructive challenge
to management in relation to
operational performance and,
through the Company’s remuneration
structure, sets targets to incentivise
management and employees to
reach and maintain production
targets and achieve market guidance.
The Board also reviews the annual
budget which provides for optimal
use of Kenmare’s financial resources.
Financial reporting oversight
is provided by the Audit & Risk
Committee.
The Sustainability Committee is
briefed regularly on employee
engagement and development
as well as culture to ensure that
employees have the necessary
environment to perform and thrive.
How the Board has supported the Group in transforming resources
into opportunity for all.
See more details
about how the Board
builds, monitors and
listens to employee’s
perspectives on pages
128 and 129
See more details about
how the Board engages
with stakeholders on
pages 48 to 49
Read more about
the 2024 DMA
on pages 44 to 47
GOVERNANCE
117
Kenmare Resources plc
Annual Report and Accounts 2024
ANDREW WEBB (AW)
CHAIR AND NON-EXECUTIVE DIRECTOR
Age 56 | Appointed: 2021
TOM HICKEY (TH)
MANAGING DIRECTOR
Age 56 | Appointed: 2022
Skills and experience
Andrew Webb was previously a managing director at Rothschild & Co. in the Global
Advisory team, where he worked for 25 years until September 2018. During this time,
Andrew advised governments, private and listed companies (including the Company)
and joint ventures on strategy, fundraisings, debt financings, mergers, on and off-market
acquisitions, disposals and restructurings. He currently acts as a Non-Executive Director
of Ecora Minerals plc and several private companies and voluntary organisations. Andrew
has a BA and an MA in Natural Sciences from the University of Cambridge. He brings his
considerable experience in corporate finance to the Company.
External appointments
Andrew is a Non-Executive Director and Chair of Ecora Minerals plc, a royalty company
listed on the London Stock Exchange. He is also a Director of Memento Exclusives Limited, a
sports memorabilia company, AdeptoMines Limited, a mining software company, Launcherley
Tourism, a holiday apartment letting company as well as a number of community interest/not-
for-profit companies in England. All of these are private unlisted companies. Andrew also acts
as a consultant to Berkeley Research Group and Ecometric Limited, a climate-tech group.
Skills and experience
Before his appointment to Kenmare as Finance Director in September 2022, Tom Hickey served
for 15 years as Executive Director of various public companies. This included eight years as Chief
Financial Officer of the African and South American-focused oil and gas producer Tullow Oil Plc. Tom
also held senior financial roles with the oil and gas exploration company Petroceltic International Plc
between 2010 and 2016, including as Chief Financial Officer and was an Independent Non-Executive
Director with United Oil & Gas Plc and Petroneft Resources Plc. Tom has a Bachelor of Commerce
degree and a Diploma in Professional Accounting, both from University College Dublin, and he is a
Fellow of the Irish Institute of Chartered Accountants. He contributes his skills and expertise as an
experienced finance professional, as well as his natural resources background, to the Company. Tom
was appointed as Managing Director of the Company in August 2024.
External appointments
Tom is a Director of Boru Energy Limited, a personal consultancy company and a Non-
Executive Director of Teamwork Holdings Limited, Kuldea Limited and Vortech Water
Solutions Limited, all of which are private unlisted companies, as well as Donore Harriers
Company Limited by Guarantee, an athletics club.
Committee key
A
Audit & Risk Committee
R
Remuneration Committee
N
Nomination Committee
S
Sustainability Committee Committee Chair
ISSA AL BALUSHI (IAB)
NON-EXECUTIVE DIRECTOR
Age 36 | Appointed: 2023
METTE DOBEL (MD)
INDEPENDENT NON-EXECUTIVE DIRECTOR
Age 57 | Appointed: 2022
R
S
Skills and experience
Issa Al Balushi is a Manager in Economic Diversification Investments at Oman Investment
Authority (OIA). He has more than 10 years of experience in the financial industry and
has worked as a portfolio manager for several OIA assets nationally and internationally.
Previously, he worked at the Central Bank of Oman as a bank examiner and at EY in Oman
as a financial analyst. He holds a Master’s degree in Financial Analysis from UNSW, Sydney
and a Bachelor of Science, Finance from SQU, Muscat. Issa brings his experience in the
financial industry and in international investment to Kenmare.
External appointments
Issa is a Director of several private companies owned by OIA and Omani state-owned
enterprises.
Skills and experience
Mette Dobel has over 25 years’ experience in the mining, cement and engineering industries. She
was, until 2022, Regional President, Europe, North Africa, Russia/CIS for FLSmidth, an engineering,
equipment and service solutions provider to the global mining and cement industries. She was
previously, for 12 years, a director of FLSmidth A/S and FLSmidth & Co. A/S, which is listed on
Nasdaq OMX Exchange in Copenhagen. Through her work Mette has dealt with the sustainability
agenda within mining operations, particularly in relation to transitioning towards more climate-
friendly operations. She holds a Master’s degree in Engineering and a Bachelor of Science
(Commercial) from Københavns Teknikum. Mette contributes her engineering expertise as well
as her governance and employee relations experience to the Company.
External appointments
Mette is a Non-Executive Director of M&J Recycling ApS and Chief Executive Officer of
Dublix Technology ApS, both private Danish companies.
Kenmare Resources plc
Annual Report and Accounts 2024
118
BOARD OF DIRECTORS
GOV-1
ELAINE DORWARD‑KING (EDK)
INDEPENDENT NON-EXECUTIVE DIRECTOR
Age 67 | Appointed 2019
CLEVER FONSECA (CF)
INDEPENDENT NON-EXECUTIVE DIRECTOR
Age 71 | Appointed: 2018
S
A
N
A
R
S
Skills and experience
Elaine Dorward-King has over 30 years’ experience in the mining, chemicals and
engineering industries, including the mineral sands sector. She was Executive Vice
President of Sustainability and External Relations for Newmont Goldcorp from 2013
to 2019, where she was responsible for sustainability strategy, including climate and
decarbonisation. Prior to that, she worked from 1992 to 2013 for Rio Tinto, as Global Head
of Health, Safety and Environment and Managing Director of Richards Bay Minerals (South
Africa’s largest mineral sands producer). She holds a Bachelor of Science, magna cum
laude, from Maryville College, Tennessee and a PhD in Analytical Chemistry from Colorado
State University. Elaine brings a wealth of natural resources and sustainability.
External appointments
Elaine is a Non-Executive Director of JSE and NYSE-listed Sibanye Stillwater Ltd, NYSE
and TSX-listed Novagold Resources Inc and TSX-listed Nevada Copper Corp.
Skills and experience
Clever Fonseca has worked in the titanium industry for over 35 years. He has extensive
knowledge and Board-level management experience of mineral sands mining and he
has worked in the titanium pigment and feedstock industries. He was responsible for
developing Brazil’s only dredge-mined mineral sands operation, was Vice President of
Global Supply and Mining for Millennium Inorganic Chemicals (now part of Tronox) in the
US, and also served as Executive Director of Mineral Deposits Ltd in Melbourne. While at
Crystal Pigmentos do Brasil S.A., Clever led one of the most successful rehabilitations of
tropical forest in the mineral sands industry in Brazil. Most recently, he was Chief Executive
of TiZir Ltd until 2012. He has a BSc in Mining Engineering from Universidade Federal De
Pernambuco, and an MBA from Fundacao Getulio Vargas, both in Brazil. Clever contributes
his skills and experience in the titanium industry to the Company.
External appointments
None.
GRAHAM MARTIN (GM)
INDEPENDENT NON-EXECUTIVE DIRECTOR AND
SENIOR INDEPENDENT DIRECTOR
Age 71 | Appointed: 2016
DEIRDRE SOMERS (DS)
INDEPENDENT NON-EXECUTIVE DIRECTOR
Age 58 | Appointed: 2020
R
N A
N
R
Skills and experience
Graham Martin has over 35 years’ experience in the global natural resources sector with
a particular focus on Africa. From February 2018 until January 2025, Graham was Non-
Executive Chairman of United Oil & Gas Plc, an AIM-listed oil and gas company. From 1997
to 2016, he served as an Executive Director of Tullow Oil Plc, an oil and gas exploration,
development and production company listed on the London, Irish and Ghanaian stock
exchanges. Prior to Tullow, he was a partner at the US energy law firm Vinson & Elkins
LLP, and at the UK corporate law firm Dickson Minto WS. He holds a degree in Law and
Economics from the University of Edinburgh. Graham brings his experience in law and
natural resources and his expertise in remuneration to Kenmare.
External appointments
None.
Skills and experience
Deirdre Somers has over 20 years’ experience in senior management positions, having
served as Chief Executive of the Irish Stock Exchange (ISE) from 2007 to 2018 and, prior
to that, as its director of listing. She led the ISE’s transformation to a highly profitable entity
with global specialisms culminating in its sale in March 2018 to Euronext NV. She also
held the position of president and board chair of the Federation of European Securities
Exchanges from 2015 to 2018. Deirdre, a qualified Chartered Accountant, also worked with
KPMG for eight years and holds a Bachelor of Commerce degree from University College
Cork. She contributes her financial skills and market experience to the Company and is the
financial expert on the Audit & Risk Committee.
External appointments
Deirdre is a Non-Executive Director and Chair of Aquis Exchange Plc (quoted on the
Alternative Investment Market of the London Stock Exchange), Enfusion, Inc. (listed on the
New York Stock Exchange) and the investment entities iShares I plc, iShares II plc, iShares
III plc, iShares IV plc, iShares V plc, iShares VI plc and iShares VII plc (all BlackRock entities
listed in various markets) and Episode Inc. (unlisted). She is also a Non-Executive Director
and Chair of Cancer Trials Ireland Limited, which is an Irish registered charity.
119
Kenmare Resources plc
Annual Report and Accounts 2024
GOVERNANCE
TOM HICKEY
MANAGING DIRECTOR
BEN BAXTER
CHIEF OPERATIONS OFFICER
JAMES MCCULLOUGH
CHIEF FINANCIAL OFFICER
TERENCE FITZPATRICK
GROUP GENERAL MANAGER – TECHNICAL
ANNA BROG
HEAD OF SUSTAINABILITY
GARETH CLIFTON
MOZAMBIQUE MANAGER
Tom Hickey joined Kenmare as Financial Director
in September 2022. Before this, he served for 15
years as executive and/or non-executive director of
various public companies including Tullow Oil Plc,
Petroceltic International Plc and United Oil and Gas
Plc. Tom was appointed as Managing Director of
the Company in August 2024. Tom has a Bachelor
of Commerce degree and a Diploma in Professional
Accounting, both from University College Dublin,
and he is a Fellow of the Irish Institute of Chartered
Accountants.
Ben Baxter joined Kenmare in 2015 and has over
25 years’ experience in the mineral sands industry.
He was previously employed by Rio Tinto at
Richards Bay Minerals (RBM) in South Africa and
QMM in Madagascar, where he held a broad range
of geological, mine planning and leadership roles
before being appointed General Manager Mining.
Ben holds a BSc (Hons) in Applied Geology from
the University of Leicester and an MSc in Mining
Geology from the Camborne School of Mines. In
2022, he completed the Advanced Management
Programme at Harvard Business School.
James McCullough will join Kenmare as Chief Financial
Officer on 1 May 2025. James brings extensive mining,
strategic and financial experience, having served for
14 years with Rio Tinto Plc, most recently as General
Manager - Group Strategy. Prior to joining Rio, James
was a Natural Resources Equity Analyst with Davy
Group, where he covered a wide range of natural
resources companies, including Kenmare. James has a
PhD in Engineering from University College Dublin and
an Executive MBA from Bayes Business School. He is
also a Chartered Management Accountant.
Terence Fitzpatrick is a graduate of University of
Ulster (Mech. Eng.). He worked as Project Manager
and then Technical Director of Kenmare from 1990
to 1999. He was responsible for the development of
the Ancuabe Graphite Mine in Mozambique, which
achieved completion in 1994. He was appointed
to the Board of Kenmare in 1994. He served as a
Non-Executive Director from 2000 to 2008. He was
appointed as Technical Director in February 2009
and served until July 2018.
Anna Brog joined Kenmare in 2021. She was
previously at Tullow Oil Plc, whose assets are
predominantly in Africa, where she led the
development of the company’s ESG programme
as its Sustainability Manager. Prior to this, she
was head of Corporate Social Responsibility at
Logica Plc, a multinational IT and management
consultancy company. Anna holds a postgraduate
Certificate in Sustainability from the University of
Cambridge and a BA from the University of Sussex.
Gareth Clifton holds a BA Economics degree from
the University of Exeter and an MSc in African
Studies from the University of Edinburgh. He joined
Kenmare in 2001 having worked as a General
Manager for Union Transport LDA. He previously
held the position of manager for a Mozambican
shipping agent and worked for the UNDP.
CARLOS FREESZ
GLOBAL HEAD OF ICT
CHELITA HEALY
COMPANY SECRETARY
CILLIAN MURPHY
GROUP GENERAL MANAGER -
SALES & MARKETING
RAJAN SUBBERWAL
GENERAL COUNSEL
KATHARINE SUTTON
HEAD OF INVESTOR RELATIONS
Carlos Freesz joined Kenmare in 2022 and brings
over 25 years of experience in technology across
various industries. He has held global technology
leadership and management positions at MARS,
IBM, SAP, and Accenture, where he successfully
integrated technology strategy and execution.
Carlos has collaborated with prominent companies
such as Vale, CSN and Anglo-American. He holds a
BSc in Mechanical and Industrial Engineering from
Faculdade de Engenharia Industrial (Brazil), an
MSc in Digital Strategy from Trinity College Dublin,
an Executive MBA from INSPER (Brazil), and has
completed the MIT Leadership Programme at the
Massachusetts Institute of Technology (USA).
Chelita Healy graduated from University College
Dublin with a Bachelor of Civil Law degree and a
master’s degree in European Law. She qualified as
a Solicitor in 1996. She then worked as a solicitor
and, later, as a Partner, in a Dublin legal firm before
joining Kenmare’s Company Secretarial department
in 2019. She was appointed Company Secretary in
May 2021.
Cillian Murphy joined Kenmare in October 2016.
He graduated with a BSc in Economics and
Finance from University College Dublin. Cillian
initially worked in Kenmare’s Investor Relations and
Corporate Development team before becoming
a marketing executive. He became Marketing
Manager in January 2020 and, more recently, took
on the role of Group General Manager - Sales &
Marketing..
Rajan Subberwal joined Kenmare in June 2013. He
previously worked at Sullivan & Cromwell LLP in
London and he trained at Clifford Chance LLP in
London and Frankfurt. Rajan has a BA from Oxford
University, an LLB from London University and an
LLM from Harvard Law School. He is admitted as a
solicitor in Ireland and England and Wales, and as
an attorney in New York.
Katharine Sutton joined Kenmare in 2019. Prior to
that, she was Head of Investor Relations at three
gold producers: TSX and NYSE-listed Golden Star
Resources, AIM and TSX-listed Amara Mining plc,
and LSE (FTSE 250), and TSX-listed Centamin
plc. She began her career in the City at Buchanan
Communications and previously worked as a
Broadcast Journalist at the BBC. Katharine holds a
BA (Hons) in English and Related Literature from
the University of York.
Kenmare Resources plc
Annual Report and Accounts 2024
120
EXECUTIVE COMMITTEE
GOV-1
TOM HICKEY
MANAGING DIRECTOR
BEN BAXTER
CHIEF OPERATIONS OFFICER
JAMES MCCULLOUGH
CHIEF FINANCIAL OFFICER
TERENCE FITZPATRICK
GROUP GENERAL MANAGER – TECHNICAL
ANNA BROG
HEAD OF SUSTAINABILITY
GARETH CLIFTON
MOZAMBIQUE MANAGER
Tom Hickey joined Kenmare as Financial Director
in September 2022. Before this, he served for 15
years as executive and/or non-executive director of
various public companies including Tullow Oil Plc,
Petroceltic International Plc and United Oil and Gas
Plc. Tom was appointed as Managing Director of
the Company in August 2024. Tom has a Bachelor
of Commerce degree and a Diploma in Professional
Accounting, both from University College Dublin,
and he is a Fellow of the Irish Institute of Chartered
Accountants.
Ben Baxter joined Kenmare in 2015 and has over
25 years’ experience in the mineral sands industry.
He was previously employed by Rio Tinto at
Richards Bay Minerals (RBM) in South Africa and
QMM in Madagascar, where he held a broad range
of geological, mine planning and leadership roles
before being appointed General Manager Mining.
Ben holds a BSc (Hons) in Applied Geology from
the University of Leicester and an MSc in Mining
Geology from the Camborne School of Mines. In
2022, he completed the Advanced Management
Programme at Harvard Business School.
James McCullough will join Kenmare as Chief Financial
Officer on 1 May 2025. James brings extensive mining,
strategic and financial experience, having served for
14 years with Rio Tinto Plc, most recently as General
Manager - Group Strategy. Prior to joining Rio, James
was a Natural Resources Equity Analyst with Davy
Group, where he covered a wide range of natural
resources companies, including Kenmare. James has a
PhD in Engineering from University College Dublin and
an Executive MBA from Bayes Business School. He is
also a Chartered Management Accountant.
Terence Fitzpatrick is a graduate of University of
Ulster (Mech. Eng.). He worked as Project Manager
and then Technical Director of Kenmare from 1990
to 1999. He was responsible for the development of
the Ancuabe Graphite Mine in Mozambique, which
achieved completion in 1994. He was appointed
to the Board of Kenmare in 1994. He served as a
Non-Executive Director from 2000 to 2008. He was
appointed as Technical Director in February 2009
and served until July 2018.
Anna Brog joined Kenmare in 2021. She was
previously at Tullow Oil Plc, whose assets are
predominantly in Africa, where she led the
development of the company’s ESG programme
as its Sustainability Manager. Prior to this, she
was head of Corporate Social Responsibility at
Logica Plc, a multinational IT and management
consultancy company. Anna holds a postgraduate
Certificate in Sustainability from the University of
Cambridge and a BA from the University of Sussex.
Gareth Clifton holds a BA Economics degree from
the University of Exeter and an MSc in African
Studies from the University of Edinburgh. He joined
Kenmare in 2001 having worked as a General
Manager for Union Transport LDA. He previously
held the position of manager for a Mozambican
shipping agent and worked for the UNDP.
CARLOS FREESZ
GLOBAL HEAD OF ICT
CHELITA HEALY
COMPANY SECRETARY
CILLIAN MURPHY
GROUP GENERAL MANAGER -
SALES & MARKETING
RAJAN SUBBERWAL
GENERAL COUNSEL
KATHARINE SUTTON
HEAD OF INVESTOR RELATIONS
Carlos Freesz joined Kenmare in 2022 and brings
over 25 years of experience in technology across
various industries. He has held global technology
leadership and management positions at MARS,
IBM, SAP, and Accenture, where he successfully
integrated technology strategy and execution.
Carlos has collaborated with prominent companies
such as Vale, CSN and Anglo-American. He holds a
BSc in Mechanical and Industrial Engineering from
Faculdade de Engenharia Industrial (Brazil), an
MSc in Digital Strategy from Trinity College Dublin,
an Executive MBA from INSPER (Brazil), and has
completed the MIT Leadership Programme at the
Massachusetts Institute of Technology (USA).
Chelita Healy graduated from University College
Dublin with a Bachelor of Civil Law degree and a
master’s degree in European Law. She qualified as
a Solicitor in 1996. She then worked as a solicitor
and, later, as a Partner, in a Dublin legal firm before
joining Kenmare’s Company Secretarial department
in 2019. She was appointed Company Secretary in
May 2021.
Cillian Murphy joined Kenmare in October 2016.
He graduated with a BSc in Economics and
Finance from University College Dublin. Cillian
initially worked in Kenmare’s Investor Relations and
Corporate Development team before becoming
a marketing executive. He became Marketing
Manager in January 2020 and, more recently, took
on the role of Group General Manager - Sales &
Marketing..
Rajan Subberwal joined Kenmare in June 2013. He
previously worked at Sullivan & Cromwell LLP in
London and he trained at Clifford Chance LLP in
London and Frankfurt. Rajan has a BA from Oxford
University, an LLB from London University and an
LLM from Harvard Law School. He is admitted as a
solicitor in Ireland and England and Wales, and as
an attorney in New York.
Katharine Sutton joined Kenmare in 2019. Prior to
that, she was Head of Investor Relations at three
gold producers: TSX and NYSE-listed Golden Star
Resources, AIM and TSX-listed Amara Mining plc,
and LSE (FTSE 250), and TSX-listed Centamin
plc. She began her career in the City at Buchanan
Communications and previously worked as a
Broadcast Journalist at the BBC. Katharine holds a
BA (Hons) in English and Related Literature from
the University of York.
121
Kenmare Resources plc
Annual Report and Accounts 2024
GOVERNANCE
The Directors recognise the importance of corporate governance and
ensure that appropriate corporate governance procedures are in place.
The 2018 UK Corporate Governance Code issued by the UK’s Financial Reporting Council (FRC)
in July 2018 (the “Code”) applies to the Company as it has a premium listing on the London
Stock Exchange. A copy of the Code can be obtained from the FRC’s website, www.frc.org.uk. In
the financial year under review, the Directors complied with all relevant provisions of the Code.
The table on the right outlines the main Principles of the Code and where, in this Annual Report,
there is further information on the application of the Principles. During the course of 2025, the
Board will prepare for compliance with the 2024 UK Corporate Governance Code.
BOARD LEADERSHIP AND COMPANY PURPOSE:
KENMARE’S GOVERNANCE FRAMEWORK
GOV-1
Board of Directors
Supported by:
Main Principles Pages
Board leadership
and company purpose
122
Division of responsibilities 123
Composition, succession
and evaluation
123, 131
Audit, risk and
internal control
132
Remuneration 148
Role of the Board
The Board is collectively responsible for the leadership, oversight, control, development
and long-term success of the Group. It works with management to set corporate vision
and develop strategy, with the aim of creating long-term sustainable value for the
Company’s shareholders, while recognising and discharging wider responsibilities to
other stakeholders, including employees, customers, suppliers and the communities in
which it operates, and to the environment. The Board constructively challenges, and
holds to account , the management team, in relation to both the operational and financial
performance of the Group and its wider sustainability goals. It is also responsible for
ensuring that accurate and understandable information is provided about the Group to
shareholders, finance providers and other stakeholders on a timely basis.
The Board’s responsibilities include:
`
ensuring that appropriate management, development and succession plans are
in place;
`
reviewing the health, safety and sustainability performance of the Group, including its
response to climate;
`
approving the appointment of Directors and their remuneration and severance;
`
ensuring that satisfactory dialogue takes place with shareholders;
`
understanding the views of the Group’s other key stakeholders and keeping
engagement mechanisms under review so that they remain effective;
`
assessing the basis on which the Group generates and preserves value over the
long term;
`
assessing and monitoring culture;
`
providing a means for the workforce to raise concerns in confidence;
`
providing a robust assessment of the Group’s emerging and principal risks; and
`
monitoring the effectiveness of the Group’s risk management and internal control systems.
Matters reserved for the Board
The Board has a formal schedule of
matters specifically reserved for its
decision, including:
`
strategic decisions;
`
sustainability strategy and targets
`
risk management and internal controls;
`
acquisitions and capital expenditure
above agreed thresholds;
`
approval of interim and final
dividends and share purchases;
`
changes to the capital structure;
`
tax and treasury oversight;
`
approval of half-yearly and annual
financial statements;
`
budgets and matters currently, or
prospectively, affecting the Group
and its performance;
`
Board and Committee
membership; and
`
Remuneration policy.
This schedule is available at
www.kenmareresources.com/about/
corporate-governance/
AUDIT & RISK
COMMITTEE
Monitors the
appropriateness and
integrity of the Group’s
financial reporting,
external audit,
internal audit and risk
management processes.
NOMINATION
COMMITTEE
Evaluates the composition
of the Board to ensure
an effective balance of
skills and experience, and
considers succession
planning for Directors and
Senior Executives.
REMUNERATION
COMMITTEE
Determines the policy for
remuneration of the Chair,
the Executive Directors,
the Company Secretary
and such other Executive
management as it is
designated to consider.
SUSTAINABILITY
COMMITTEE
Oversees the
implementation of the
Group’s sustainability-
focused corporate
policies.
Kenmare Resources plc
Annual Report and Accounts 2024
122
CORPORATE GOVERNANCE REPORT
Responsibilities of members of the Board
DIRECTOR RESPONSIBILITIES
Chair The Chair leads the Board and is responsible for its overall effectiveness in directing the Company. The
Chair should demonstrate objective judgement throughout their tenure and promote a culture of openness
and debate. In addition, the Chair facilitates constructive Board relations and the effective contribution of all
Directors, and ensures that Directors receive accurate, timely and clear information.
Managing Director The Managing Director is responsible for managing the Company and the Group on a day-to-day basis within
policy parameters set by the Board.
Senior Independent Director The Senior Independent Director (SID) provides a sounding board for the Chair and serves as an intermediary
for the other Directors and shareholders.
Non-Executive Directors The Non-Executive Directors’ main responsibilities are to review the performance of management and the
Group’s financial information, assist in strategy development, and ensure that appropriate and effective
systems of internal control and risk management are in place. They provide a valuable breadth of experience
and independent judgement to Board discussions.
Composition and operation of
the Board
GOV-1
The Board consists of the Chair and
seven Directors, of whom one is Executive
and six are Non-Executive. Biographical
details, including each Director’s date of
appointment, are set out on pages 118 and
119. The majority of the Board is made up of
independent Non-Executive Directors. As
required, the Chair is a Non-Executive and
was independent on appointment.
The Board has delegated responsibility for
management of the Group to the Managing
Director and the management team.
A clear division of responsibility exists
between the Chair, whose principal
responsibility is the effective running of the
Board and is not responsible for executive
matters regarding the Group’s business,
and the Managing Director, whose principal
responsibility is running the Group’s business
on a day-to-day basis. A summary of the role
and responsibilities of each of the Chair and
the Managing Director can be found on the
Company website at www.kenmareresources.com/
about/corporate-governance/.
The Board has delegated some of its
responsibilities to four Committees of
the Board: Audit & Risk, Remuneration,
Nomination and Sustainability. Each
Committee has written Terms of
Reference that set out its authorities and
responsibilities. These Terms of Reference
are available for review at the Company’s
registered office and on the Company’s
website at www.kenmareresources.com/
about/corporate-governance.
Information required by the Listing Rules on
the Board and Executive Committee’s gender
and ethnic diversity are in the Nomination
Committee report on page 137. The diversity
policy on Board appointment is set out in the
Nomination Committee report on page 137 and
incorporated into this report.
All Directors offer themselves for re-election
at the Company’s Annual General Meeting
(AGM) in May 2025.
Commitments
Non-Executive Directors are expected to
devote such time as is necessary for the
proper performance of their duties. This
will include attendance at regular Board
and Committee meetings, the AGM and
any extraordinary general meetings, Board
dinners, occasional site visits and meetings
with shareholders. In addition, they are
required to consider all relevant papers prior
to each meeting. They are required to obtain
the agreement of the Board before accepting
additional commitments that might affect the
time they are able to devote to their role at
Kenmare. This matter is considered by the
Nomination Committee on an ongoing basis
in accordance with its Terms of Reference.
Board meetings
The Board meets regularly to ensure that
all its duties are discharged effectively.
All Directors are expected to prepare for,
and attend, meetings of the Board and the
AGM. If a Director is unable to attend a
Board meeting in person, teleconference
arrangements are available to facilitate
participation. In the event that a Board
member cannot attend or participate in the
meeting, the Director may discuss agenda
items with the Chair, Managing Director
or Company Secretary in advance of the
meeting.
A schedule of Board and Committee meetings
is circulated to the Board for the following year.
A more detailed agenda and Board materials
are made available electronically in the week
preceding the meeting.
123
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Annual Report and Accounts 2024
GOVERNANCE
During 2024, the Board held 12 meetings. Details of the Directors’ and Company Secretary’s attendance at Board and Committee meetings
are set out below:
FULL BOARD
AUDIT & RISK
COMMITTEE
REMUNERATION
COMMITTEE
NOMINATION
COMMITTEE
SUSTAINABILITY
COMMITTEE
A B A B A B A B A B
Non-Executive Director
Issa Al Balushi 12 11
Mette Dobel 12 12 5 5 4 4
Elaine Dorward-King 12 12 7 7 11 11 4 4
Clever Fonseca 12 11 7 7 5 5 4 4
Graham Martin 12 12 5 5 11 11
Deirdre Somers 12 12 7 7 5 5 11 11
Andrew Webb 12 12
Executive Directors
Michael Carvill
1
6 6
Tom Hickey 12 12
Company Secretary
Chelita Healy
2
12 12 7 7 5 5 11 9 4 4
Column A indicates the number of meetings held during the period the Director was a member of the Board and/or Committee.
Column B indicates the number of meetings attended during the period the Director was a member of the Board and/or Committee.
1
Michael Carvill stepped down as a Director on 14 August 2024.
2
In attendance only.
Sustainability
GOV-1
Governance
The Chair, Andrew Webb, is responsible
for overseeing Kenmare’s sustainability
strategy, including its Climate Strategy.
The Sustainability Committee of the Board
ensures expert oversight and provides
both the Board and Executive Committee
with direction on sustainability, including
overseeing the development and review
of the Company’s Climate Strategy and
management plan. The Board, Sustainability
Committee, Audit & Risk Committee and
Executive Committee all have roles in
relation to oversight of sustainability-related
impacts and sustainability-related financial
risks and opportunities as described on
page 125. Sustainability work at the Mine is
led by the Environmental, Health & Safety
Manager, Country Manager and Deputy
Country Manager all of whom are based
in Mozambique and have experience
working on these matters in Africa. Further
details on the Sustainability Committee’s
responsibilities and the matters it reviewed
in 2024 are on pages 139 to 141. In 2024,
the Board’s consideration of climate in the
Company’s strategy and capital allocation
included revising the Climate Transition
Plan, setting a target for reduction of Scope
1, 2 and 3 carbon emissions and investment
in decarbonisation technologies, as well as
updates from the Audit & Risk Committee on
preparation for CSRD reporting.
Sustainability-related impacts,
risks and opportunities
GOV-1
Roles and responsibilities
The Board of Directors has ultimate
responsibility for oversight of impacts, risks
and opportunities (IROs) and is assisted in
this at various stages by the Sustainability
Committee, Audit & Risk Committee, Head of
Sustainability and the Executive Committee,
as well as various members of management.
The role of the Board is explained on page
122. A summary of the responsibilities of
each of the Sustainability Committee and
the Audit & Risk Committee is set out in
their respective reports. The role of the
Executive Committee is outlined on page 130.
Individuals’ responsibilities are specified in
their respective job descriptions.
ESG integration across governance
bodies
ESG and the identification and recording of
IROs is integrated into the work performed by
the Board, its Committees and the Executive
Committee. Sustainability-related areas of
responsibility and issues addressed in 2024
are listed on the opposite page.
Kenmare Resources plc
Annual Report and Accounts 2024
124
CORPORATE GOVERNANCE REPORT
CONTINUED
GOVERNANCE
BODY AREAS OF ESG RESPONSIBILITY INCL. TERMS OF REFERENCE MATERIAL ESG ISSUES ADDRESSED IN 2024
SUSTAINABILITY
COMMITTEE
`
To oversee the management of health, safety, security, social and
environmental risks by the Group
`
To incorporate management of climate change, biodiversity, water
stewardship and other sustainability issues into Group plans
`
To provide challenge and direction on all areas of sustainability
management
`
Participated in a workshop on climate change with expert
speakers
`
Reviewed updated Physical and Transition Risk analysis and
mitigations
`
Reviewed proposed Scope 3 emissions reduction targets
`
Approved a revised Climate Transition plan
`
Reviewed and approved management’s ESG targets
`
Reviewed progress against the Sustainability strategy and
reviewed the proposal for new targets to 2030
`
Approved the material issues identified by the DMA for 2024
`
Approved the final DMA
`
For more details on the Sustainability Committee’s work see
page 141
AUDIT & RISK
COMMITTEE
`
To monitor the integrity of the Group’s financial statements and any
formal announcements relating to the Group’s financial performance
and reviewing significant financial reporting judgements contained
in them
`
To monitor the effectiveness of the Group’s internal control and risk
management systems including those related to climate change and
other financially material ESG risks
`
To consider the appropriate risk appetite for the Group and overseeing
the current and prospective risks faced by the Group and its strategy
and mitigations in relation to such risks
`
To review the basis of preparation, adequacy and consistency of any
non-financial disclosures - including sustainability – as required by
law or listing rules and the adequacy of the related external assurance
processes
`
To ensure the financial impact of climate scenario analysis is evaluated
and transparently reflected in Kenmare’s financial disclosures
`
To review and approve the process of double materiality assessment
`
To oversee the result of the limited assurance process of non-financial
data points
`
Approved 2023 annual report and 2024 half year results
including non-financial results
`
Reviewed the disclosures in the 2023 Annual Report against
the TCFD recommendations and EU Taxonomy
`
Considered the impact of climate change on amounts
reported in the 2023 financial statements
`
Reviewed the Company’s Climate Transition Plan (CTP)
forecast capital expenditure
`
Reviewed conclusions of DMA and CSRD reporting
readiness review
`
Reviewed and approved the 2024 DMA process and result
`
Approved process employed in preparation and
assurance of DMA
`
Reviewed quarterly risk review reports
REMUNERATION
COMMITTEE
`
To ensure that remuneration policy and practices of the Group are
designed to support strategy and promote long-term sustainable
success (including environmental, social and governance (“ESG”)
objectives)
`
To ensure the executive and site leadership teams are incentivised to
make progress against sustainability KPIs, including decarbonisation
and climate risk management goals
`
Annual review and approval of management KPIs and the
discretionary underpin for KRSP awards ensuring targets
contribute to Kenmare’s business strategy, long term interests
and sustainability
NOMINATION
COMMITTEE
`
To assess the effectiveness and performance of the Board and
Committees including consideration of the balance of skills,
knowledge, independence, diversity and experience of the Board and
Committees, and other factors relevant to its effectiveness
`
To ensure the Board has access to the relevant skills and capabilities
to assess, address and report on Kenmare’s sustainability policies and
programmes, including exposure to climate change and the transition
to a low carbon economy
`
Annual evaluation of the skills and competencies required
and available to the Board, particularly in the context of the
various searches conducted during the year
BOARD
`
To review the health, safety and sustainability performance of the
Group, including its response to climate change
`
To approve sustainability strategy and targets
`
To approve half-yearly and annual financial statements and reports
including the Sustainability Statement and other non-financial data
`
Approved the target for the reduction of Scope 1 and 2
carbon emissions
`
Received updates from the Sustainability and Audit & Risk
Committees on their activities and, in particular, on CSRD
reporting
EXECUTIVE
COMMITTEE
`
To carry out the duties assigned to it by the Managing Director, which
may include working on sustainability-related projects
`
To review, and where required, provide input into all sustainability
committee papers and updates
`
To assist in the risk review process
`
Identification of Impacts, Risks and Opportunities (IROs)
from analysis of the business model and value chain and
stakeholder engagement
`
Reviewed proposed IROs
`
Assisted in classification and recording and financial
assessment of IROs
125
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Annual Report and Accounts 2024
GOVERNANCE
Monitoring and management of
IROs
GOV-1
GOV-2
GOV-5
Sustainability-related impacts are managed
as part of the business, monitored by
management and reported on by the Head of
Sustainability to the Sustainability Committee
on a quarterly basis. The General Manager
and Community Manager manage the Group’s
sustainability-related opportunities, which
are largely delivered via social development
programmes managed by The Kenmare Moma
Development Association (KMAD). Progress
on Resettlement Action Plans, community
relations including grievances and KMAD
programmes are reported by the Community
Manager to the Executive Committee and
Sustainability Committee. The Sustainability
Committee provides feedback on the relevant
discussions to the Board at its meetings.
Sustainability-related risks are managed with
all risks through Kenmare’s Risk Management
Framework and Internal Control Framework,
details of which are set out on pages 102 and
132. There are no such procedures dedicated
solely to sustainability risks.
Setting of targets and incentive
schemes
GOV-1
GOV-2
GOV-3
The Company sets targets regarding
material IROs in its Environmental, Social
and Governance (ESG) Scorecard, which
forms part of the Managing Director,
Executive Committee and staff bonus
incentive schemes. Each person’s bonus
target is a combination of the overall
Company scorecard and tailored individual
targets – the proportion and nature of the
individual targets depends on the role and
some may have ESG elements. This assists
in monitoring and rewarding performance
in these areas. The Scorecard is approved
by the Sustainability Committee. It is
updated on a quarterly basis and progress
is reported by the Head of Sustainability
to the Sustainability Committee and to the
Executive Committee. Details of the 2024
ESG Key Performance Indicators are on
pages 42, 44, 154 and 160. Details of the
ESG KPIs, which form part of the Managing
Director’s annual bonus award for 2024
and 2025, and the overall percentage score
they represent, are on pages 154 and 155
respectively. Individual performance is
discussed on a quarterly basis with the
employee’s line manager.
The vesting of awards made under the
Kenmare Resources plc Restricted Share Plan
(KRSP) to the Managing Director and certain
other members of the Executive Committee
is subject to a discretionary underpin. KRSP
awards made to other members of the
Executive Committee are not subject to the
underpin. The factors, which are considered
as part of this underpin assessment are
determined by the Remuneration Committee
and include ESG considerations, as set out on
page 134 of the 2022 Annual Report.
An explanation of the workings of the annual
bonus scheme and of awards made under the
KRSP is in the current Directors’ Remuneration
Policy at www.kenmareresources.com/about/
corporate-governance/remuneration-committee
and on pages 138 and 139 of the 2022 Annual
Report. The bonus scheme and KRSP, in so far
as they relate to Directors, were approved by
shareholders at the Company’s AGM in 2023.
The KRSP was approved by shareholders of
the Company in 2017 – it is administered by
the Remuneration Committee and the Board.
The Non-Executive Directors do not receive
any bonus payments or share awards.
Advocacy and lobbying
Kenmare is not a member of any trade
associations. The Company supports the
position of the International Council on
Mining and Metals on climate, to achieve
Net Zero by 2050 or sooner. Kenmare also
supports policies that encourage investment
in low-carbon technologies and supports
disincentives for the ongoing use of fossil fuels.
Kenmare Resources plc
Annual Report and Accounts 2024
126
CORPORATE GOVERNANCE REPORT
CONTINUED
Board activities in 2024
GOV-1
In addition to regular agenda items, such as updates on operations, projects, marketing, finance, investor relations, corporate development and
briefings from Committee Chairs, the Board’s activities in 2024 included the following:
STRATEGIC LINKS TO STRATEGY STAKEHOLDERS CONSIDERED
`
Considered terms of renewal of the Implementation Agreement and related strategy
`
Conducted a review of strategy including capital allocation, forecasting and Mineral
Resource estimation, operational scenario planning, the Mozambican operating
environment, evolving product landscape and marketing opportunities, value
planning, exploration activities and the budgeting process
`
Participated in shareholder engagement and commissioned an investor
perception study
`
Approved the new Company purpose statement
`
Reviewed potential acquisition and/or exploration opportunities
`
Approved the complete Definitive Feasibility Study (DFS) for upgrade of Wet
Concentrator Plant A and its transition to development of the Nataka ore zone
Shareholders, governments,
employees, lending banks
OPERATIONS LINKS TO STRATEGY STAKEHOLDERS CONSIDERED
`
Reviewed power outages at site and measures to build resilience in this regard
`
Received an expert briefing on titanium dioxide value chain review and outlook
`
Received briefings on the Mozambican political and security situation
Shareholders, employees,
customers, communities
GOVERNANCE AND CORPORATE LINKS TO STRATEGY STAKEHOLDERS CONSIDERED
`
Managed the departure of Michael Carvill as Managing Director and the
appointment of Tom Hickey as his successor
`
Reviewed Directors’ compliance arrangements
Shareholders, employees,
governments and regulators
HEALTH AND SAFETY LINKS TO STRATEGY STAKEHOLDERS CONSIDERED
`
Received reports on investigations into a contractor fatality at Site and a fatality
involving a member of the public
Employees and communities
FINANCE AND RISK MANAGEMENT LINKS TO STRATEGY STAKEHOLDERS CONSIDERED
`
Approved the refinancing of the Group’s borrowings
`
Approved the 2024 Budget
`
Participated in cyber security risk review
`
Considered the Company’s distributable reserves and approved the payment of
the 2023 final dividend and 2024 interim dividend
`
Approved the annual report and accounts for 2023 and the half-year results to
30 June 2024
Shareholders, lending banks and
governments
SUSTAINABILITY LINKS TO STRATEGY STAKEHOLDERS CONSIDERED
`
Considered relations with the communities living close to the Mine
`
Approved the target for reduction of Scope 1 and 2 carbon emissions
`
Received briefings on sustainability reporting
`
Received quarterly reports from the Chair of the Sustainability Committee in
relation to its activities
Communities, governments,
shareholders
CULTURE LINKS TO STRATEGY STAKEHOLDERS CONSIDERED
`
Received regular briefings on community and employee relations
`
Monitored culture within the organisation
Employees, communities,
shareholders
Links to strategic priorities
Operate responsibly Deliver long-life, low-cost production Allocate capital efficiently
127
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Annual Report and Accounts 2024
GOVERNANCE
Visit to the Moma mine
The Board visits the Mine every two years,
with its last visit in December 2023. Physically
meeting employees and community
members has proven to be one of the most
effective tools in assessing the culture of
the organisation and gauging stakeholders’
attitudes towards Kenmare.
Diversity and inclusion
The Board believes that diversity and
inclusion help the Company to attract,
engage and retain the best talent; adapt
and respond effectively to the changing
expectations of its stakeholders; and find and
innovate solutions to business challenges,
leveraging on the diverse viewpoints,
skills and experience of all employees
and stakeholders. The Board-approved
Employment Policy seeks to create an
environment where everyone is respected
and valued. The Board places particular
emphasis on promoting local content
and employment and increasing female
representation in the workforce. At year-end,
17.43% of the Mine employees were women,
compared with 16% in 2023. Kenmare aims
to hire local people wherever possible and, in
2024, 97% of the workforce was Mozambican..
Various initiatives are in place, such as the
Women’s Forum, to encourage the retention
of female staff and improvement in working
conditions, where necessary. Levels of
female participation in the workforce are
set as targets for management by the
Remuneration Committee and reported on to
the Committee and Board.
Workforce engagement
The Board believes that regular workforce
engagement can greatly assist in
understanding the impact and value of
culture to the business and assessing its
implementation by management. Mette
Dobel has been designated as the Non-
Executive Director responsible for workforce
engagement. Her interaction with staff and
feedback to the Board help the Board to
assess workforce sentiment and address
issues of concern. A report from Mette Dobel
is set out on page 135.
Health and safety
A safe working environment is a fundamental
plank of Kenmare’s values. Kenmare’s Health
and Safety policy sets out its commitment
to zero harm, proactive management of
safety risks, and maximising opportunities to
enhance employee well-being. Performance
against these objectives is monitored by the
Board and Sustainability Committee, and is
used as a Key Performance Indicator (KPI)
for management remuneration. KPIs are
externally audited.
Employee engagement survey
The Employee Engagement Survey helps
the Board to understand how employees
feel about the Company, their working
environment and the culture. It is undertaken
every two years and the results are presented
to the Sustainability Committee. It covers
areas such as job fulfilment, respect,
workload, teamwork and interaction with
managers. The most recent survey was
completed in late 2024 and reviewed by
the Board in 2025. The results showed an
employee satisfaction rating of 81%, down
2% since the last such survey. In response,
an action plan focusing on communication,
growth and development and work/life
balance has been drawn up by management.
Kenmare Moma Development
Association (KMAD)
The Board believes that Kenmare should
be a catalyst for positive social and
economic change in the Moma Mine area.
One of the ways the Company achieves
this is by supporting KMAD, a not-for-
profit organisation established in 2004
to implement development programmes
in the Moma Mine’s host communities.
Its community initiatives have four key
focuses – livelihoods and economic
development, healthcare development,
education development, and water and
sanitation development. The Kenmare
Country Manager and his team brief the
Sustainability Committee on its activities and
the Committee reviews and provides input
into its strategy.
Board oversight of culture
The Board believes that Kenmare’s strategy is supported and enabled by a unique and distinctive culture, which has been developed and
sustained over many years. This culture is founded on the Company’s values of Integrity, Commitment, Accountability, Respect and Excellence
(CARE), which are embedded at every level of the organisation through a variety of policies, forums, tools, communication and support.
The Board does not use a singular tool for monitoring and shaping culture – instead it draws on a number of sources to understand how
employees and others feel about Kenmare and understand how this drives behaviours on a day-to-day basis. These include the following reports,
metrics and other information channels:
KENMARE VALUES (I CARE)
INTEGRITY
COMMITMENT
ACCOUNTABILITY
RESPECT
EXCELLENCE
Kenmare Resources plc
Annual Report and Accounts 2024
128
CORPORATE GOVERNANCE REPORT
CONTINUED
Supplier code of conduct
The supply chain is an essential part of
Kenmare’s business and the Company
recognises that its suppliers, through the
goods and services they deliver in support of
operations, create ESG impacts that Kenmare
is indirectly responsible for. It is Kenmare’s
vision for its entire supply chain to share
its commitments in these areas and, to this
end, the Company has put in place a Board-
approved Supplier Code of Conduct. This
Code draws together its various corporate
policies and will help suppliers understand
Kenmare’s expectations regarding sustainable
development. Suppliers may be audited or
required by Kenmare to provide information
to demonstrate compliance with the Code.
Policies
Kenmare aims to be a trusted business
and support transparent disclosure, so
it can be accountable for its actions and
commitments. All staff recognise their
personal and collective responsibility in
upholding Kenmare’s business integrity. The
Company’s high standards are enshrined in
its policies and the laws and regulations of
Ireland, the UK and Mozambique. Its policies
reflect these standards and expectations, and
are approved and reviewed by the Board and
relevant Committees.
Company purpose
The Company’s new purpose statement of
“Transforming resources into opportunity
for all” was approved by the Board in 2024
and launched externally in early 2025. More
details are on pages 2 and 3.
Sustainability Committee
This Committee is tasked with managing
health, safety, security, social and
environmental risks, and facilitating
progressive employment practices on
operating sites. The Chief Operating Officer
keeps the Committee appraised of the safety
culture at site, any awareness campaigns
underway and responses to any significant
incidents. As of 31 December 2024, the
team at site achieved over two million hours
worked without a Lost Time Injury.
Risk management
Managing risk, including that to the well-
being of the workforce and host communities,
is an integral part of Kenmare’s business.
A comprehensive process is in place for
assessing and managing risks associated with
business and strategic corporate decisions.
Through this process, significant risks faced
by the Group are identified, evaluated and
appropriately managed. Details of the risk
management framework and the role of the
Board and its Committees are set out on
page 102.
Whistleblowing
Kenmare promotes a culture of openness
and accountability and encourages staff
to report suspected wrongdoing as soon
as possible. Concerns can be raised with
a line manager, externally with Safecall,
an independent external reporting
line, with the Chair of the Audit & Risk
Committee or with the General Counsel.
Safecall reports are investigated by
the Internal Auditor and reported on to
the Audit & Risk Committee, and any
concerns fed back from its Chair to the
Board. Details of the reports received
during 2024 are on page 145.
Read more about
supplier relationships
on page 48
129
Kenmare Resources plc
Annual Report and Accounts 2024
GOVERNANCE
Independence of Non-Executive
Directors
GOV-1
The Board has carried out an evaluation
of the independence of its Non-Executive
Directors, taking account of the relevant
provisions of the Code and whether the
Non-Executive Directors who are identified
as independent discharge their duties in a
proper and consistently independent manner,
and constructively challenge the Executive
Directors and the Board.
In January 2023, Issa Al Balushi was
appointed to the Board by African Acquisition
S.à.r.l, as provided for under the Subscription
and Relationship Agreement entered into
in 2016. As a result, Issa Al Balushi is not
considered to be independent. The Board
is satisfied that each of the other current
Non-Executive Directors (representing 71%
of the Board excluding the Chair) fulfils the
independence requirements of the Code.
Andrew Webb has been Chairman of
the Company since May 2022. On his
appointment as Chairman, Andrew met the
independence criteria as set out in the Code.
Graham Martin will complete nine years on
the Board in October 2025 and will then
cease to be regarded as independent under
the UK Corporate Governance Code. 2018.
He intends to remain on the Board until
the outcome of the Possible Offer has been
resolved as explained in the report of the
Nomination Committee.
Senior Independent Director
Graham Martin is the Group’s Senior
Independent Director (SID). He will complete
nine years on the Board in October 2025
and will then cease to be regarded as
independent under the UK Corporate
Governance Code 2018. Graham Martin’s
current intention is to step down as Senior
Independent Director in October 2025 at
which point the Board will appoint one of the
female Directors to the position.
The principal role of the SID is to provide a
sounding board for the Chairman and to act
as an intermediary for other Directors and
shareholders. The SID is responsible for the
appraisal of the Chairman’s performance
throughout the year. He is also available to
meet shareholders upon request, particularly
if they have concerns that cannot be resolved
through the Chairman or the Managing
Director. A summary of the role of the SID
can be found at www.kenmareresources.com/
about/ corporate-governance.
Directors’ Compliance
Statement
The Directors have drawn up a Compliance
Policy Statement as defined in Section
225(3)(a) of the Irish Companies Act 2014.
Arrangements and structures have been put
in place that are, in the Directors’ opinion,
designed to secure material compliance with
the Company’s relevant obligations. These
arrangements and structures were reviewed
during the financial year to ensure they
remained appropriate and comprehensive.
The Directors’ Compliance Statement is set
out in full in the Directors’ report on page 162.
Share ownership and dealing
Details of the Directors’ interests in Kenmare
shares are set out in the Annual Report on
Remuneration on page 157. The Kenmare
Resources plc Dealing policy applies to the
Directors and to all employees. Under this
policy, Directors and employees may not
deal in Kenmare shares while they are in
possession of inside information about the
Group. Kenmare also operates a Dealing
Code, which applies to the Directors and to
employees who are able to access restricted
information about the Group. Under the
Dealing Code, Directors and relevant
employees are required to obtain clearance
from the Company before dealing in Kenmare
shares and persons discharging managerial
responsibilities are prohibited from dealing in
the shares during closed periods, as defined
by the Dealing Code.
Executive Committee
GOV-1
GOV-2
The Executive Committee undertakes the
day-to-day management of the Group
and the responsibilities of its members are
delegated to it by the Managing Director.
It also presents proposals to the Board
for approval, including those for capital
expenditure, sustainability strategy and
targets. From time to time, the Executive
Committee establishes specialist sub-
committees or working groups with other
members of management in order to manage
specific projects or issues. The Executive
Committee is comprised of 10 members and
their skills and experience are described
on pages 120 and 121. They report to the
Managing Director who presents any
material issues arising to the Board either
at a scheduled Board meeting or an ad
hoc meeting called for the purpose. Where
necessary, the Committee draws on the
expertise and skills of external parties in
order to facilitate effective discussion and
Kenmare Resources plc
Annual Report and Accounts 2024
130
CORPORATE GOVERNANCE REPORT
CONTINUED
decision making, e.g. climate change experts.
This is arranged by the relevant member
of the Committee. Each member of the
Committee monitors the skills requirements
for his/her team and, should a material gap
be identified, will (subject to budgeting
constraints) endeavour to recruit additional
staff. Following an internal review of the
process involved in reporting under Part 28
of the Companies Act 2014 for the first time,
the Executive Committee will decide whether
additional resources are required in this
regard. Details of the Committee’s gender and
ethnic diversity are on page 137.
Company Secretary and legal
The Directors have access to the advice
and services of the Company Secretary
who advises the Board and Committees on
governance matters. The Company’s Articles
of Association provide that the appointment
or removal of the Company Secretary is a
matter for the Board.
Kenmare’s General Counsel and Company
Secretary provide advice, guidance and
support to Executive and operational
management and work closely with
them to provide training to employees.
Together, they provide support on a range
of matters including establishing policies
and procedures, providing compliance
training and communications, providing legal
advice on compliance and business issues,
monitoring and investigating whistleblower
calls, and ensuring the Group is informed of
any changes to regulation and/or reporting
requirements. They work with the Head of
Sustainability in relation to sustainability
governance. During 2024, workflows included
initiating an ethics compliance review.
Directors may take independent advice in the
furtherance of their duties at the Company’s
expense.
Induction and development
of Directors
New Non-Executive Directors undertake a
structured induction process, which includes
a series of meetings with management, a
briefing session with the General Counsel
and the Company’s corporate solicitors on
the responsibilities of a Director under Irish
law and applicable stock exchange rules,
and a briefing with the Company Secretary
regarding corporate policies.
External experts may be invited to attend
certain Board or Committee meetings to
address the Board (or relevant Committee,
as the case may be) on relevant industry
matters and on developments in corporate
governance, risk management and Executive
remuneration. Training and development
requirements for the Directors are discussed
in the Board performance review process
and Directors are encouraged to undertake
appropriate training on relevant matters.
During 2024, management arranged for
briefings to the Board on cybersecurity, the
Irish Takeover Rules and shareholder rights.
In addition, all Directors have access to an
online database, which is regularly updated
with relevant publications, agreements and
changes in legislation.
Board performance review
In accordance with provisions of the Code, a
performance review of the Board is carried
out annually and facilitated externally every
third year. In 2021, a comprehensive external
performance review of the Board and all of its
Committees was conducted and is summarised
on page 86 of the 2021 Annual Report.
The departure of Michael Carvill as Managing
Director in August 2024 and the appointment
of Tom Hickey to the role brought a new
dynamic to Board relations and various
changes to internal processes. Consequently,
the Board was of the opinion that a deferral of
the next external Board performance review
from 2024 until 2025 would be beneficial,
when this change in leadership has been
embedded in the organisation. As a result, in
late 2024, a Board performance review was
carried out internally. This was focused on
the identification of areas for improvement
and change. The review found that the Board,
Committees and Chair performed effectively
during 2024, but suggested changes to Board
meeting papers and structure. These will be
incorporated, where appropriate, into the
Board objectives for 2025 and an action plan.
Powers of the Directors
Under the Articles of Association of the
Company, the business of the Company
is managed by the Directors who may
exercise all the powers of the Company
subject to the provisions of the Companies
Act, the Constitution of the Company and
to any directions given by resolution of a
General Meeting (not being inconsistent
with the Companies Act and the Articles of
Association). The Articles of Association
permit the Directors to delegate any of their
powers, authorities and discretions to any
committee provided that a majority of the
members of a committee are Directors.
The Directors may also, from time to time,
appoint any company, firm or person to be
the attorney(s) of the Company subject to
such conditions as they may think fit.
The Articles of Association also provide
that the Directors may establish any local or
divisional boards or agencies for managing any
of the affairs of the Company in any specified
locality, either in Ireland or elsewhere, and may
delegate to any such board or agent any of
their powers, authorities and discretions upon
such terms and subject to such conditions as
the Directors may think fit.
Directors’ powers in relation to the issuing or
buying back by the Company of its shares are
set out in the Directors’ report on page 161.
Appointment and removal of Directors
The Articles of Association empower the
Board to appoint Directors but require such
appointees to retire and submit themselves
for reappointment at the first Annual General
Meeting following their appointment. A
member qualified to vote may also propose
a person for appointment as a Director at an
annual general meeting, not less than seven
nor more than forty two (42) days before the
date appointed for the meeting.
Each Non-Executive Director holds office
pursuant to a letter of appointment, which
(except in the case of Issa Al Balushi) refers
to an initial term of three years and the
expectation of serving two three-year terms
which can be reduced or extended at the
Board’s discretion. Issa Al Balushi’s contract
does not refer to any such term(s). All of
the initial terms referred to in the respective
letters of appointment have now expired.
The Chair’s letter of appointment refers
to the expectation that he will serve three
three-year terms as Chair. Tom Hickey,
the Managing Director, has entered into a
Contract of Employment with the Company.
It does not refer to any specific term of
employment. His employment, thereunder,
continues until terminated in accordance
with the terms and conditions of the contract
(including, without limitation, when he
reaches the age of 65).
Under the Articles of Association, a third
of the Board must retire annually but may
offer themselves for re-election. However, in
accordance with the provisions contained in the
Code, the Board has decided that all Directors
should retire annually at the Annual General
Meeting and offer themselves for re-election.
Directors may be removed by the shareholders
in a General Meeting of the Company.
131
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Annual Report and Accounts 2024
GOVERNANCE
Memorandum of Association
and Articles of Association
The Company’s Memorandum of Association
and Articles of Association set out the
objects and powers of the Company and may
be amended by shareholders at a General
Meeting of the Company by special resolution
(requiring the resolution to be passed by 75%
of the eligible votes).
General meetings and
shareholders’ rights
Under the Articles of Association, the power
to manage the business of the Company is
generally delegated to the Directors. However,
the shareholders retain the power to pass
resolutions at a General Meeting of the
Company, which may give directions, not being
inconsistent with the Companies Act and the
Articles of Association, to the Directors as to
the management of the Company.
The Company must hold a General Meeting
each year as its Annual General Meeting,
in addition to any other meetings in that
year. The Annual General Meeting will
be held at such time and place as the
Directors determine. All General Meetings,
other than Annual General Meetings, are
called Extraordinary General Meetings.
The Directors may, at any time, call an
Extraordinary General Meeting. Extraordinary
General Meetings shall also be convened by
the Directors on the requisition of members
holding, at the date of the requisition, not less
than 5% of the paid-up capital carrying the
right to vote at General Meetings.
No business may be transacted at any
General Meeting unless a quorum is present
at the time when the meeting proceeds
to business. Three persons entitled to
attend and to vote upon the business to be
transacted, each being a member, or a proxy
for a member, constitutes a quorum.
The shareholders have the right to receive
notice of a General Meeting. In the case of an
Annual General Meeting or of a meeting for
the passing of a special resolution, 21 clear
days’ notice at the least, and, in any other
case, 14 clear days’ notice at the least, needs
to be given in writing in the manner provided
for in the Articles to all the members (subject
to any restrictions imposed on any shares),
to the Directors, the Company Secretary and
the auditor, and any other person entitled
to receive notice under the Companies
Act. The shareholders also have the right
to attend, speak, vote and ask questions
at General Meetings. In accordance with
Irish company law, the Company specifies
record dates for General Meetings, by which
date shareholders must be registered in the
Register of Members of the Company to be
entitled to attend. Record dates are specified
in the notes to the Notice of a General
Meeting. Shareholders may exercise their
right to vote on some, or all, of their shares by
appointing a proxy or proxies, by electronic
means or in writing. The requirements for the
receipt of valid proxy forms are set out in the
notes to the notice convening the meeting.
A shareholder, or a group of shareholders,
holding at least 3% of the issued share capital
of the Company has the right to put an item
on the agenda of the Annual General Meeting
or to table a draft resolution for inclusion in
the agenda of a General Meeting, subject to
certain timing requirements prescribed by the
Companies Act, and any contrary provision of
Irish company law.
Voting at any General Meeting is by a show
of hands unless a poll is properly demanded.
On a show of hands, every member who is
present in person or by proxy has one vote
regardless of the number of shares they hold.
On a poll, every member who is present in
person or by proxy has one vote for each
share they hold. A poll may be demanded
by the Chair of the meeting or by at least
three members having the right to vote at
the meeting, or by a member, or members
,representing not less than one-tenth of the
total voting rights of all the members having
the right to vote at the meeting, or by a
member, or members, holding shares in the
Company conferring a right to vote at the
meeting, being shares on which an aggregate
sum has been paid up equal to, and not less
than, one-tenth of the total sum paid up on all
shares conferring that right.
Deadlines for exercising
voting rights
Voting rights at General Meetings of the
Company are exercised when the Chair
puts the resolution at issue to a vote of the
meeting. Where a person is appointed to vote
for a shareholder as proxy, the instrument
of appointment must be received by the
Company not later than the latest time
approved by the Directors.
Audit, risk and internal
control
Board’s approach to risk
management and internal
control
The Board of Directors has responsibility
for the Group’s systems of internal control
and risk management. This involves an
ongoing process of identifying, evaluating
and managing the significant risks faced
by the Group and regularly reviewing the
effectiveness of the resultant systems of
internal control and risk management that
have been in place throughout the financial
year and up to the date of approval of the
Annual Report and Accounts. The Board has
delegated to management the planning and
implementation of the system of internal
control throughout the Group. The system
of internal control is designed to provide
reasonable, but not absolute, assurance
against material misstatement or loss. Both it,
and the risk management system, accord with
the Financial Reporting Council’s Guidance
on Risk Management, Internal Control and
Related Financial and Business Reporting
(September 2014). The key elements of the
systems include the following:
`
The Board, in conjunction with
management, identifies the major risks
faced by the Group and determines the
appropriate course of action to manage
these risks.
`
Risk assessment and evaluation are an
integral part of the management process
throughout the Group. Risks are identified
and evaluated and appropriate risk
management strategies are implemented.
`
The Board maintains control and direction
over appropriate strategic, financial,
organisational and compliance issues,
and has put in place an organisational
structure with defined lines of
responsibility and authority.
`
Capital expenditures are controlled
centrally and, if in excess of predefined
levels, are subject to approval by
the Board.
Review and effectiveness of the
risk management and internal
control systems
The Board conducted a review of the
effectiveness of the Group’s risk management
and internal controls systems, including
financial, operational and compliance
controls, and, as part of this, it obtained a
Kenmare Resources plc
Annual Report and Accounts 2024
132
CORPORATE GOVERNANCE REPORT
CONTINUED
report from the internal auditor. In the course
of this review, the Board did not identify, nor
was it advised of, any failings or weaknesses
that it determined to be significant.
Compliance policies and
training
Kenmare insists on honesty, integrity
and fairness in all aspects of its business
and expects the highest standards of
professionalism and ethical conduct to be
maintained in all its activities. The Group has
detailed policies and procedures in place on
a range of relevant areas such as climate,
employment, health and safety, environment,
human rights and business ethics. Depending
on the nature of their role, Directors and
employees of the Group receive more
detailed training on those policies both as
part of their induction process and Kenmare’s
ongoing training programme. An e-Learning
programme, which includes topics such as
insider dealing, risk, information security,
market abuse regulation and whistleblowing,
has been put in place and update briefings
are provided when there are any material
changes in law or regulation.
Whistleblowing
Kenmare promotes a culture of openness and
accountability and encourages staff to report
suspected wrongdoing as soon as possible,
in the knowledge that their concerns will
be taken seriously and investigated as
appropriate, and that their confidentiality
will be protected wherever possible.
Concerns can be raised with a line manager,
externally with Safecall (an independent
external reporting line) or with the Chair of
the Audit & Risk Committee or the General
Counsel. Whistleblowers may raise concerns
anonymously if they wish. Kenmare’s policies
make clear that retaliation against any
employee who raises a genuine concern
is prohibited. Where concerns are raised,
they are investigated in an appropriate and
independent manner.
All whistleblowing incidents are reviewed by
the Internal Auditor and General Counsel and
formally investigated by the Internal Auditor
who reports any findings to the Audit & Risk
Committee. The Audit & Risk Committee
reviews these reports and outcomes and
provides updates to the Board.
Stakeholder engagement
Kenmare has adopted a Stakeholder
Engagement Policy (available on its website
at www.kenmareresources.com/about/
corporate-governance/policies) pursuant to
which it will:
`
engage openly and honestly with its
key stakeholders using appropriate
communication tools and in a regular
and timely manner, having regard to
commercial sensitivities; and
`
consult with and listen to all its
stakeholders transparently and resolve
disagreements.
More details on stakeholder engagement can
be found on pages 48 and 49.
Community engagement
Kenmare values highly its strong relationship
with its host communities. Its stakeholder
engagement plan is updated annually
and reflects the changing dynamics in
the relationship between the Mine and
the community. Kenmare works with
local communities through the KMAD.
Read more on pages 87 and 88 or read
the KMAD Annual Report 2024 at www.
kenmareresources.com/sustainability/kmad.
Workforce
engagement
GOV-1
The Board has designated Mette Dobel as
the Non-Executive Director responsible for
engagement with the Group’s workforce. In
December 2024, Mette Dobel had video calls
with staff in Mozambique, London, China
and Dublin. More details on this workforce
engagement are on page 135.
133
Kenmare Resources plc
Annual Report and Accounts 2024
GOVERNANCE
GOV-4
CORE ELEMENTS OF DUE DILIGENCE PARAGRAPHS IN THE SUSTAINABILITY STATEMENT PAGE
a. Embedding due diligence in governance,
strategy, and business model
Governance
Strategy & business model
112-162
12-19
b. Engaging with affected stakeholders in all
key steps of the due diligence
Stakeholder engagement
Double Materiality Assessment
48-49
44-47
c. Identifying and assessing adverse impacts Principal Risks
Double Materiality Assessment
102-109
44-47
d. Taking actions to address those adverse
impacts
Stakeholder engagement
Actions sections in E1, E2, E3, E4, S1, S3 and G1
48-49
51, 61, 66, 69, 70, 74-78,
85-87, 89-90
e. Tracking the effectiveness of these efforts
and communicating
Targets and metrics sections in E1, E2, E3, E4, S1, S3 and G1 57-59, 63, 66, 67, 71,
79-81, 86-86, 89-91
Shareholder engagement
Communications with shareholders are given
high priority. Annual Reports and Accounts
are sent to shareholders in accordance
with their instructions. Major transactions
and production guidance are also notified
to the market, and the Company’s website
www.kenmareresources.com, provides the full
text of all announcements. The website also
contains a significant amount of published
material such as Annual Reports, half-year
results, governance documents, share price
information and investor presentations. In
addition, the Company maintains several
social media accounts on platforms such as
X, LinkedIn and Facebook, which are regularly
updated with operational, financial and
sustainability-focused news.
Shareholder presentations are made at the
time of release of the Company’s full-year and
half-year results, following which the Chair,
assisted by the Executive Director and Investor
Relations team provide feedback on the views
of shareholders and analysts to the Board. The
Chair and, where necessary, Committee Chairs
engage with shareholders on specific topics
and, where relevant, provide feedback to other
Directors. The Chair and Senior Independent
Director are also available throughout the year
to meet shareholders on request.
The Board is kept informed of the views of
shareholders through the Chair’s attendance
at investor presentations and results
presentations. Relevant feedback from such
meetings, investor relations reports and
brokers’ notes are provided to the entire Board
on a regular basis. The Board also receives
briefings from the Company’s brokers.
Capital Markets Days and Mine visits for
major investors are held periodically. The
most recent Capital Markets Day was held in
London in April 2023. Presentations from the
day are available on the Company’s website.
A visit to the Mine for major investors and
analysts was held in January 2025.
On an ongoing basis, the Investor Relations
team acts as a focal point for contact with
investors and provides information and deals
with queries as they arise. The Company
Secretary engages annually with proxy
advisers in advance of the Company’s AGM.
The Company’s AGM affords shareholders
the opportunity to question the Chair and the
Board.
OIA relationship
agreement
OIA (formerly the State General Reserve
Fund (“SGRF”)) currently does not fall within
the definition of controlling shareholder
under the Listing Rules as it holds less than
30% of Kenmare’s equity. However, the
Company and African Acquisition S.à.r.l., the
vehicle through which SGRF invested in the
Company, have entered into arrangements
equivalent to those that would be expected
to be in place between a listed company and
its controlling shareholder. This is to ensure
the independence of the Company from
that shareholder. In particular, the Company
entered into a subscription and relationship
agreement, dated 18 June 2016, with African
Acquisition S.à.r.l. which, among other things,
sets forth the relevant arrangements.
Substantial holdings
The Company is not owned or controlled
directly, or indirectly, by any government or
by any corporation or by any other natural or
legal person, severally or jointly. The major
shareholders do not have any special voting
rights. Details of the substantial holdings as
at 31 December 2024 and 4 April 2025 are
provided on page 162.
Stock exchange listings
Kenmare, which is incorporated in Ireland and
subject to Irish company law, has an Equity
Shares (Commercial) listing on the London
Stock Exchange (LSE) and is subject to the
Listing Rules of the UK Listing Authority.
Kenmare has a secondary listing on Euronext
Dublin.
Due diligence
Information on where information can be
found on Kenmare’s due diligence procedures
is set out in the table below.
AGM update
The AGM is an opportunity for the
Executive Director to deliver presentations
on the business and for shareholders,
both institutional and private, to question
the Board directly. Generally, all Euopean
Directors attend the AGM and are available
to meet with shareholders. Notice of the
AGM, proxy statement and the Annual
Report and financial statements are sent
to shareholders at least 21 days before
the meeting. A separate resolution will be
proposed at the AGM on each separate issue,
including a particular resolution relating to
the adoption of the Directors’ report and
Auditor’s report and the financial statements.
Details of the proxy votes for and against
each resolution, together with details of votes
withheld, are announced after the result
of the votes. These details are published
on the Company’s website following the
conclusion of the AGM. At the AGM held on
10 May 2024, there were no material votes
cast against any resolutions.
Kenmare Resources plc
Annual Report and Accounts 2024
134
CORPORATE GOVERNANCE REPORT
CONTINUED
WORKFORCE ENGAGEMENT
This year has been a transformative period for
Kenmare Resources, marked by significant leadership
transitions and sustained efforts to engage
meaningfully with our workforce across all locations.
The retirement of Michael Carvill after 38 years as
Managing Director naturally brought a degree of
uncertainty, particularly for employees who have
long been part of the Kenmare family. However,
there has been broad satisfaction with the
appointment of Tom Hickey as our new Managing
Director, reflecting confidence in his leadership to
guide us through the next phase of our journey.
Overall, employee sentiment towards working at
Kenmare remains highly positive, with particular
appreciation expressed for our unwavering
commitment to eliminating operational hazards and
ensuring safety across our sites through the “Trabahlo
Seguro” safety initiative focusing on our core value of
prioritising employee well-being above all else.
The Company completed its bi-annual employee
engagement survey in November and December
2024 and the results highlight that 81% of
employees report they are engaged and 42% that
they are highly engaged in their work at Kenmare.
This is an excellent result and a testament to the
positive culture that is in place in the business.
A key reason for the positive results is the intensive
investment in leadership training that continues to
be recognised as a vital asset to the organisation.
Employees have commended the value these
programmes bring in fostering trust-based leadership
and enhancing the quality of interactions at all levels.
In addition, the Company completed an inclusive
programme to review and revise the Company
purpose statement in 2024. Representative groups
from across the business shared what Kenmare
means to them and other stakeholders, resulting in
the widely accepted new statement “Transforming
resources into opportunity for all” , which is being
rolled out through the business.
Feedback from the workforce, particularly from
employees working at Moma, has highlighted
a desire for stronger support mechanisms to
handle mental stress. The nature of working on
site, including extended time away from home
and relatively long rosters, can present challenges
for some. In response, management is actively
exploring the establishment of a 24/7 mental
health telephone hotline to provide immediate
support. Thereafter, Kenmare will be able to support
appropriate care, including mental health services.
Employees have also appreciated initiatives aimed
at encouraging physical activity and healthy living,
which help mitigate the challenges of remote work
environments.
Employees have also expressed pride in Kenmare’s
standing as an equal opportunity employer.
97% of Moma employees are Mozambican and
the representation of women in our workforce
continues to increase.
As we advance, the Board remains dedicated to
listening and acting on workforce feedback, ensuring
Kenmare continues to be a safe, inclusive, and forward-
looking organisation. Together, we are creating a
workplace where every individual feels valued and
empowered to contribute to our shared success.
METTE DOBEL
DESIGNATED WORKFORCE ENGAGEMENT
DIRECTOR
13 April 2025
GOVERNANCE
135
Kenmare Resources plc
Annual Report and Accounts 2024
“OVERSEEING A YEAR
OF SIGNIFICANT
LEADERSHIP
TRANSITION AND
THE START OF A NEW
CHAPTER.”
GRAHAM MARTIN
CHAIR OF THE NOMINATION
COMMITTEE
ELAINE DORWARD‑KING
COMMITTEE MEMBER
DEIRDRE SOMERS
COMMITTEE MEMBER
MEMBERSHIP AND MEETINGS
The Nomination Committee consists of Elaine Dorward-King, Deirdre Somers and me, all of
whom are Independent Non-Executive Directors.
There were 11 Committee meetings during 2024. These were attended by all Committee members.
Committee membership and diversity
INDEPENDENT
DATE OF
APPOINTMENT
TO COMMITTEE
Graham Martin
Chair
Yes 25/05/2017
Elaine Dorward-King
Member
Yes 13/05/2020
Deirdre Somers
Member
Yes 31/12/2021
Gender Diversity: 33% Male, 66% Female
Ethnic Diversity: 0%
PRINCIPAL RESPONSIBILITIES OF THE COMMITTEE
`
Regularly reviewing the structure, size,
composition and length of service of the
Board and making recommendations
to the Board with regards to changes
considered advisable
`
Assessing the effectiveness and
performance of the Board and
Committees including consideration
of the balance of skills, knowledge,
independence, diversity and experience
of the Board and Committees, and other
factors relevant to its effectiveness
`
Considering succession planning for
Directors and other Senior Executives,
taking into account the challenges and
opportunities facing the Group, what
skills and expertise are needed in the
future, and ensuring a diverse pipeline for
succession
`
Identifying, and nominating for the
approval of the Board, candidates for
appointment as Directors and ensuring
that there is a formal, rigorous and
transparent procedure for appointment
`
Considering the results of the Board
performance review process that relate to
the composition of the Board, its diversity
and how effectively the members of the
Board work together
`
Periodically reviewing the time input
required from a Non-Executive Director
The standard terms of contract for
Non-Executive Directors are available on
request from the Company Secretary, at the
Company’s registered office during normal
business hours, and at the Annual General
Meeting (for 15 minutes prior to the meeting
and during the meeting).
See the Committee’s Terms of Reference
at www.kenmareresources.com/about/
corporate-governance/nomination-
committee/
Dear shareholders
I am pleased to present the report of the
Nomination Committee for 2024. During
the year, the Committee met 11 times and
the main areas of focus were searches for
a new Non-Executive Director, Managing
Director and Chief Financial Officer. We
also conducted our regular review of skills
and experience of existing Board members,
external appointments and time commitment,
diversity on the Board, succession planning,
the composition of the Board’s Committees,
and the Board performance review. This
report describes how the Committee has
fulfilled its responsibilities during the year
under its Terms of Reference and under the
relevant requirements of the UK Corporate
Governance Code 2018.
Kenmare Resources plc
Annual Report and Accounts 2024
136
NOMINATION COMMITTEE REPORT
Board succession and
changes this year
The search for an additional female
Non-Executive Director progressed well in early
2024 but was suspended when the departure
of Michael Carvill, the former Managing Director,
was announced in March and a search for his
replacement took priority. Both searches were
conducted by Korn Ferry, an external search
firm with no connections to the Company or
the Directors. On 14 August 2024, following
an extensive process involving external and
internal candidates, Tom Hickey was appointed
as Managing Director. The process employed
by the Company for Board appointments, other
than following a nomination by OIA, is set out
on page 138.
Tom’s appointment left the Financial Director
post vacant and it was decided to recruit a
Chief Financial Officer as Tom’s replacement,
a position not currently carrying a seat on the
Board. While this appointment was primarily
a matter for the Managing Director, the
Committee was requested to assist given its
experience in recruitment and we engaged
Stratum to carry out this search. Stratum is
an external executive search firm with no
connections to the Company or the Directors.
On completion of a thorough process, involving
external and internal candidates, James
McCullough was appointed in December and
will take up the role on 1 May 2025.
Committee composition
There were no changes in the composition
of Committees or in Board roles in 2024. .
However, I will complete nine years on the
Board in October 2025 and will then cease
to be regarded as independent under the UK
Corporate Governance Code 2018. As a result,
I intend to step down as Senior Independent
Director in October 2025 at which point the
Board will appoint one of the female Directors
to the position. My current intention is to
remain on the Board until the outcome of the
Possible Offer has been resolved. If it results
in a successful takeover of the Company, I
will remain on the Board until the process is
complete. If a takeover is not completed, then
I will resign once my successors to the Chair
of each of the Remuneration Committee and
Nomination Committee have been appointed.
Training
Directors have access to an online training
platform, which allows them to update and
refresh their knowledge in their own time. We
also invite external experts to present to the
Board on specific topics of interest from time
to time. During 2024, tailored updates on the
titanium dioxide market, the Irish Takeover
Rules and cyber security were provided by
Kenmare to the Directors.
Executive and Officer
succession planning
2024 saw the appointment of Tom Hickey as
Managing Director and the appointment of
James McCullough as Chief Financial Officer
(yet to take effect). In due course, the Board
and the Committee will look at succession
planning for them both, as well as for the
Chief Operating Officer.
Management succession
Each year the Committee considers the
leadership needs of the Group and succession
planning for other senior management roles.
During the year, the Committee received
updates from management on succession
planning activities throughout the Group.
The Committee, and the wider Board,
also engages with the potential pipeline
for succession as members of the senior
management team present at Board and
strategy meetings.
Diversity and
inclusivity
GOV-1
Kenmare recognises the benefits of diversity
and its objective to achieve greater diversity
at Board, Committee and senior management
level, as well as across the wider workforce.
This is supported by the Group’s
Employment policy, which can be found at
https://www.kenmareresources.com/about/
corporate-governance/policies/.
The Board keeps this policy under review
to ensure that it is effective in achieving
diversity in its broadest sense, having regard
to experience, age, sex and gender, religious
beliefs, sexual orientation, race, ethnicity,
disability, nationality, educational, socio-
economic or professional background and
culture but bearing in mind the need for an
appropriately sized Board. We instruct any
search consultants we engage to consider
this in sourcing candidates. We recognise
that diversity aids implementation of our
strategy by providing the Board with different
ways to tackle an issue, healthy debate and
challenge of the Board and the Executive
team as well as making Kenmare more
adaptable to changes in our environment.
While the Board will always seek to appoint
candidates on merit against objective criteria,
greater diversity is actively considered when
making Board appointments and will continue
to be given careful consideration as part of the
process of Board refreshment and renewal.
NUMBER OF
BOARD MEMBERS
PERCENTAGE OF
THE BOARD
NUMBER OF SENIOR
POSITIONS ON THE BOARD
(CEO, CFO, SID AND CHAIR)
NUMBER ON
EXECUTIVE
COMMITTEE
PERCENTAGE
OF EXECUTIVE
COMMITTEE
Men 5 62.5 3 8 80
Women 3 37.5 – 2 20
Not specified/prefer not to say – – – – –
NUMBER OF
BOARD MEMBERS
PERCENTAGE OF
THE BOARD
NUMBER OF SENIOR
POSITIONS ON THE BOARD
(CEO, CFO, SID AND CHAIR)
NUMBER ON
EXECUTIVE
COMMITTEE
PERCENTAGE
OF EXECUTIVE
COMMITTEE
White British or other White
(including minority-white groups) 7 87.5 3 8 80
Mixed/multiple ethnic groups – – – 1 10
Asian/Asian British – – – 1 10
Black/African/Caribbean/Black British – – – – –
Other ethnic group, including Arab 1 12.5 – – –
Not specified/prefer not to say – – – – –
137
Kenmare Resources plc
Annual Report and Accounts 2024
GOVERNANCE
In 2023, following a review by the Committee
of new and pending regulatory requirements
regarding gender and ethnic diversity, as well
as the skills, qualifications and experience of
the existing Board, the Committee engaged
Korn Ferry to carry out a search for an
additional female Non-Executive Director.
A shortlist of candidates was prepared but
the Committee took the decision to pause
the process in order to prioritise the search
for a new Managing Director, following
the resignation of Michael Carvill and this
suspension has continued in 2025 to date
as a result of the Possible Offer which has
created a difficult recruitment environment.
Gender and ethnic breakdown of the
Board and the Executive Committee as at
31 December 2024 are set out in the tables on
the previous page. Since then, a new Head of
Investor Relations has been appointed and, as
a result, 30% of the Executive Committee is
now female. There has been no change in the
Board data since that date. Women comprise
37.5% of the Board., which is slightly lower than
the Listing Rules target, although we have
endeavoured to meet and exceed that, as
explained above. We did, however, meet the
target in the Listing Rules for ethnic diversity
and it is the current intention of the Board to
appoint one of the female Directors to the role
of Senior Independent Director when I cease to
be regarded as independent in October 2025,
having completed nine years on the Board. The
Board decided that postponing this change until
that point would allow the Board time to focus
on Kenmare’s business and provide stability
after several years of changes.
The Board and Executive Committee are
committed to increasing female representation
in senior leadership positions across the
Group. We are making progress with this
objective, with 30% of the current Executive
Committee being female and a further seven
women in the Committee’s direct reports.
The Board and management continue to focus
on evolving and implementing strategies for
recruiting and developing colleagues in ways
that promote diversity and inclusion such as
a Key Performance Indicator (KPI) regarding
the percentage of women in the workforce
and working with current female employees
to improve hiring and retention rates. Further
details of our approach to diversity in the
workforce can be found on page 128 and in the
Sustainability Statement.
The data contained in the tables on the
previous page was collected on the basis of
self-reporting by the individuals concerned,
who were asked to indicate, by ticking the
relevant box, which (if any) of the categories
they identified as.
Additional Directorships
Non-Executive Directors are expected to
devote such time as is necessary for the proper
performance of their duties. This will include
attendance at regular Board and Committee
meetings, the AGM and any extraordinary
general meetings, Board dinners, occasional
site visits and meetings with shareholders.
In addition, they are required to consider all
relevant papers prior to each meeting. They are
required to obtain the agreement of the Board
before accepting additional commitments that
might affect the time they are able to devote to
their role at Kenmare.
During the year, Mette Dobel was appointed as
Chief Executive Officer of Dublix Technology
ApS, a Danish company specialising in waste-
to-energy plants. The Chair was satisfied with
Mette’s capacity to take on such additional role
without any impact on her work with Kenmare
and that there was no resulting conflict of
interest. In 2024, the Committee reviewed the
external appointments held by all Directors
and their time commitment to Kenmare and
found these to be satisfactory.
Board effectiveness
As explained on page 136, an internal Board
performance review was carried out in 2024
by Andrew Webb, as Chair, and by myself in
respect of Andrew’s performance. The review
is summarised on page 131 of the Corporate
Governance Report and incorporated into
this report by reference. The review indicated
that the Board, Committees and Chair are
performing well – there are some suggestions
for improvement around meetings, which will
be incorporated into 2025 Board objectives
and an action plan, where appropriate.
Committee effectiveness
and priorities for 2025
The Committee’s performance and
effectiveness was also considered as part of
the recent internal Board performance review.
I am pleased to say that the Committee was
found to be working effectively and efficiently.
Priorities for 2025 include a focus on
executive and senior management
succession following the recent changes,
considering the re-allocation of roles and
responsibilities of the non-executive directors
which will be required on my retirement and
the possible recruitment of an additional non-
executive director.
Acknowledgements
I would like to thank the Committee members
for their commitment and input to the work
of the Committee in 2024, in what was an
especially busy year, and Chelita Healy,
our Company Secretary, for her invaluable
support to the Committee.
GRAHAM MARTIN
Chair of the Nomination Committee
13 April 2025
PROCESS FOR BOARD APPOINTMENTS:
STAGE 1
The Committee approves a role
specification based on skills and
experience required and the
Diversity and Inclusion policy.
STAGE 2
An independent search agent
is appointed.
STAGE 3
The Committee considers a
longlist and then a shortlist of
potential candidates and holds
interviews.
STAGE 4
The Committee identifies its
preferred candidate.
STAGE 5
The preferred candidate is
invited to meet with all Board
members and (if the candidate
if external) due diligence is
carried out.
STAGE 6
The Committee makes a
recommendation to the Board
for consideration.
STAGE 7
The appointment is approved
by the Board and announced.
STAGE 8
The induction process is
commenced for an external
appointee.
Kenmare Resources plc
Annual Report and Accounts 2024
138
NOMINATION COMMITTEE REPORT
CONTINUED
“GUIDING OUR
COMMITMENT TO
BEING A TRUSTED
CORPORATE
CITIZEN, INCLUDING
DELIVERING A
STRONG SAFETY
PERFORMANCE IN
2024.”
ELAINE DORWARD‑KING
CHAIR OF THE
SUSTAINABILITY COMMITTEE
CLEVER FONSECA
COMMITTEE MEMBER
METTE DOBEL
COMMITTEE MEMBER
MEMBERSHIP AND MEETINGS
The Sustainability Committee consists of Clever Fonseca, Mette Dobel, and me as Chair, all of
whom are Independent Non-Executive Directors. The Committee met four times in 2024 and
details of members’ attendance thereat are set out on page 124.
Committee membership and diversity
GOV-1
INDEPENDENT
DATE OF
APPOINTMENT
TO COMMITTEE
Elaine Dorward-King
Chair Yes 04/11/2019
Clever Fonseca
Member Yes 02/10/2019
Mette Dobel
Member Yes 31/12/2022
Gender Diversity: 33% Male, 66% Female
Ethnic Diversity: 0%
PRINCIPAL RESPONSIBILITIES OF THE COMMITTEE
GOV-1
`
To oversee the management of health,
safety, security, social and environmental
risks, and facilitate progressive
employment practices
`
To ensure fair land access, compensation,
and timely rehabilitation arrangements;
`
Advocate for socio-economic
development on behalf of our host
communities, particularly relating to
livelihoods, healthcare, education, and
water and sanitation
`
Incorporate management of climate
change, biodiversity, water stewardship
and other sustainability issues into Group
plans, with external reporting where
appropriate to recognised international
regulations and frameworks
`
Monitor socio-political developments
within the region and Mozambique
See the Committee’s Terms of Reference
at www.kenmareresources.com/about/
corporate-governance/sustainability-
committee/
Dear shareholders
I am pleased to present the Sustainability Committee’s 2024 report. During the year, the
Committee met four times, on all occasions in person. The main areas of focus for our meetings
are set out on the following pages. This report describes how the Committee has fulfilled
its responsibilities during the year under its Terms of Reference and under the relevant
requirements of the UK Corporate Governance Code 2018.
139
Kenmare Resources plc
Annual Report and Accounts 2024
GOVERNANCE
SUSTAINABILITY COMMITTEE REPORT
2024 sustainability
performance
The Company achieved its lowest-ever
All Time Injury Frequency rate and a 33%
reduction in Lost Time Injury Frequency Rate
relative to the three-year rolling average
of 0.06 LTIs per 200,000 hours worked in
2024. The team also passed 4 million hours
worked without an LTI to 31 March 2025. This
fantastic performance was achieved because
of Kenmare’s “Trabalho Seguro” campaign, a
Portuguese phrase that translates to “Safe
Work”. It focuses on four areas: authentic and
courageous leadership; focus on standards;
planning for safety; and visible felt leadership.
I commend the team on this turnaround and
for their resilience and commitment to safety.
The Moma Mine again retained its NOSA
five-star accreditation, which is aligned to ISO
45001 and ISO14001 International Standards,
for its health, safety and environmental
performance for a ninth consecutive year.
However, we were deeply saddened by
two fatalities that occurred during the year.
The first fatality was the consequence of
an incident where criminal behaviour was
determined to be the motive, resulting in
prison sentences for those responsible.
The second fatality was outside the
Company's direct area of operation, where
the Development Projects team were
transporting a pontoon by road to the
Mine under escort. Tragically, a member of
the public was hit by the moving convoy.
Both incidents were fully investigated and
were deemed non-recordable according
to the International Council on Mining and
Metals safety accounting principles that we
use. Ensuring the safety and wellbeing of
everyone associated with our activities is a
priority for Kenmare and we are focused on
continual improvement in 2025 and beyond.
Kenmare exceeded its short-term emissions
reduction target of 12% by 2024 for Scope 1
and 2 emissions, relative to the 2021 baseline,
with a 15% reduction, and finalised its Climate
Transition Plan, which aims to deliver a
30% reduction in carbon emissions relative
to its 2021 baseline, by 2030. While this
target is not aligned to the rate required by
scientific consensus to limit average global
temperature increases to 1.5°C, Kenmare’s
intensity metric of GHG emissions per tonne
of excavated ore is being targeted to reduce
by 45% by 2030 relative to its 2021 baseline,
and TZMI, the industry association, shows
the Company’s carbon intensity as one of
the lowest in the mineral sands sector, which
makes the job of further decarbonisation
more challenging. You can read the Climate
Transition Plan in full on pages 51 to 54.
Kenmare’s commitment to local socio-
economic development continued but
progress is not always linear. In 2024, Kenmare
spend with Mozambican firms (based on
operating expenditure excluding electricity
and diesel costs) increased by 9% to $77.2m
(2023: $70.6m). However, overall spend with
Mozambican firms decreased year-on-year by
1% on a relative basis as a proportion of total
operating expenditure (excluding electricity
and diesel costs).
The Kenmare Moma Development Association
(KMAD) continues to support micro-
businesses and encourages their inclusion
in Kenmare’s supply chain. KMAD provided
interest-free loans and business support to
28 micro-businesses in 2024 (including five
vulnerable people led businesses), providing
employment to 384 people, including over 120
women. A total of 116 small businesses were in
operation at year end, generating revenues of
over $1.3 million, and, while many are operating
successfully, the overall pattern of loan
repayment has caused a re-evaluation of the
micro-loan programme.
The Conservation Agriculture (CA)
programme continued to be funded,
supporting 627 farmers to deliver crop yield
improvements of 35%.
We continued to make steady progress on
increasing the representation of women in our
business, and, by the end of 2024, 17.43% of the
workforce at the Mine was female (2023: 16%).
There was a slight reduction in representation
of women in senior management to 32% (2023:
40%). The Mine’s workforce comprised 97%
Mozambican employees, 2% above regulatory
requirements. Lower levels of the organisation
are 100% Mozambican, junior management sits
at 98%, while middle and senior management
are 73% and 14% Mozambican, respectively.
Kenmare has set a 2030 target to increase
Mozambican representation in senior
management to 25%.
Committee effectiveness
and priorities for 2025
An internal evaluation of the Committee’s
performance and effectiveness was
conducted in 2024 and found that the
Committee operates effectively. In 2025, the
Committee’s priorities include overseeing
the next iteration of the Biodiversity Offset
Management plan, understanding the gaps
in GISTM alignment from the Company’s first
GTMI audit, and taking on board the learnings
from the most recent staff engagement
survey and social baseline study.
Conclusion
I would like to thank the Committee members
for their commitment and input to the work
of the Committee during 2024. I would also
like to thank Michael Carvill, Tom Hickey, Ben
Baxter, Higino Jamisse and his management
teams for their efforts on driving a strong
safety performance and making progress
on malaria mitigation, Anna Brog for her
guidance, and Gareth Clifton and Regina
Macuacua for their dedication to strong
community relations.
ELAINE DORWARD‑KING
Chair of the Sustainability Committee
13 April 2025
$77.2m
Local spend in 2024
(2023: $70.6m)
4m
hours worked without an LTI
(to mid-March 2025)
Kenmare Resources plc
Annual Report and Accounts 2024
140
SUSTAINABILITY COMMITTEE REPORT
CONTINUED
AREA OF FOCUS GOV-1 SUSTAINABILITY COMMITTEE ACTION
ESG strategy, targets
and reporting
`
Reviewed and approved Executives’ and Mine management’s ESG targets
`
Reviewed progress against the Sustainability strategy and its 2025 targets and reviewed the proposal for new
targets to 2030
`
Discussed CSRD disclosure requirements and approved the material issues identified by the Double Materiality
Assessment for 2024
Safe and engaged
workforce
`
Received updates at every meeting on the health and safety of employees, including background and response
to any Community fatalities and Lost Time Injuries (LTIs)
`
Received a briefing on the malaria vector control programme
`
Reviewed safety culture and plans for improvement
`
Reviewed progress on the security strategy
Thriving communities
`
Reviewed plans for supplier capacity building and programmes to increase local expenditure
`
Discussed local procurement performance and plans for its improvement
`
Received updates on community relations, including a briefing on KMAD activities and its three-year strategy
and an update on the Group’s 10-year socio-economic development plan
A healthy natural
environment
`
Received an update on the implementation of the Company’s water stewardship strategy
`
Participated in a workshop on climate change with expert speakers
`
Reviewed updated Physical and Transition Risk analysis and mitigations
`
Reviewed proposed Scope 3 emissions reduction targets
`
Approved a revised Climate Transition plan
`
Considered the draft Biodiversity Offset Management Plan to deliver 15% Net Gain of critical habitats
`
Received a briefing on tailings managements and GISTM alignment
Trusted business
`
Endorsed management’s approach regarding customer engagement in relation to climate change
`
Received an update on the political landscape in Mozambique
`
Reviewed Kenmare’s Supply Chain due diligence programme and supplier performance
Terms of reference Considered its Terms of Reference to ensure they remain appropriate for the Group’s needs. The Terms of
Reference are available on the Kenmare website at www.kenmareresources.com/about/corporate-governance/
sustainability-committee/
141
Kenmare Resources plc
Annual Report and Accounts 2024
GOVERNANCE
“SUPPORTING
KENMARE’S FIRST
ANNUAL REPORT IN
ALIGNMENT WITH
CSRD, UNDERLINING
OUR COMMITMENT
TO TRANSPARENCY.”
DEIRDRE SOMERS
CHAIR OF THE AUDIT & RISK
COMMITTEE
ELAINE DORWARD‑KING
COMMITTEE MEMBER
CLEVER FONSECA
COMMITTEE MEMBER
Dear shareholders
I am pleased to present the report of the Audit & Risk Committee for 2024. During the year, the
Committee met seven times and the main areas of focus were as set out on pages 146 and 147.
This report describes how the Committee has fulfilled its responsibilities during the year under
its Terms of Reference and under the relevant requirements of the UK Corporate Governance
Code 2018.
MEMBERSHIP AND MEETINGS
The Audit & Risk Committee consists of Clever Fonseca, Elaine Dorward-King and me, as Chair,
all of whom are Independent Non-Executive Directors. As outlined in the Directors’ biographical
details, members bring considerable accounting, corporate financial and mining industry
experience to the work of the Committee. I am a Chartered Accountant and have been designated
by the Board as the Committee’s financial expert. Details of the skills and experience of the
Committee members are set out on page 119. Details of members’ attendance at Committee
meetings are set out on page 124.
Committee membership and diversity
GOV-1
INDEPENDENT
DATE OF APPOINTMENT
TO COMMITTEE
Deirdre Somers
Chair Yes 19/08/2020
Clever Fonseca
Member Yes 13/05/2020
Elaine Dorward-King
Member Yes 31/12/2021
Gender Diversity: 33% Male, 66% Female
Ethnic Diversity: 0%
PRINCIPAL RESPONSIBILITIES OF THE COMMITTEE
GOV-1
`
Monitoring the integrity of the Group’s
financial statements and any formal
announcements relating to the Group’s
financial performance and reviewing
significant financial reporting judgements
contained in them
`
Assessing whether the Annual Report and
Accounts, taken as a whole, is fair, balanced
and understandable, and provides the
information necessary for shareholders to
assess the Group’s performance, business
model and strategy
`
Reviewing the basis of preparation,
adequacy and consistency of any
non-financial disclosures - such as
sustainability and climate – as required by
law or listing rules and the adequacy of
the related external assurance processes
`
Monitoring the external auditor’s
independence and objectivity and, in
particular, the appropriateness of the
provision of non-audit services
`
Monitoring the effectiveness of the
Group’s internal control and risk
management systems
`
Considering the appropriate risk appetite
for the Group and overseeing the current
and prospective risks faced by the Group
and its strategy and mitigations in relation
to such risks
`
Ensuring the risk management function
is properly resourced, with adequate
information rights and sufficient
independence such that it is free from
management interference
`
Making recommendations for the Board
to put to shareholders for their approval
in General Meetings regarding the
appointment, remuneration and terms of
engagement of the external auditor
`
Monitoring the effectiveness of the
internal audit function
`
Reporting to the Board, identifying any
matters in respect of which it considers that
action or improvement is needed, and making
recommendations as to the steps to be taken
The Chair of the Audit & Risk Committee
attends the Annual General Meeting (AGM)
to answer questions on the report on the
Committee’s activities and matters within the
scope of the Committee’s responsibilities.
See the Committee’s Terms of Reference
at www.kenmareresources.com/about/
corporate-governance/audit-risk-committee
Kenmare Resources plc
Annual Report and Accounts 2024
142
AUDIT & RISK COMMITTEE REPORT
External audit
Independence and non-audit
services
The Committee is responsible for ensuring
that the external auditor is independent and
for implementing appropriate safeguards
where the external auditor also provides non-
audit services to the Group. The Committee
closely monitors the level of audit and
non-audit services that audit firms provide
to the Group. The Committee has adopted a
policy on the provision of non-audit services
by the external auditor on the basis that they
may provide such services only where the
engagement will not compromise their audit
objectivity and independence, they have the
understanding of the Group necessary to
provide the service, and they are considered
to be the most appropriate to carry out the
work. All non-audit services provided by audit
firms must be approved by the Committee.
KPMG is the Group’s external auditor and
has confirmed to the Committee that it
is independent from the Group under
the requirements of the Irish Auditing
and Accounting Supervisory Authority’s
(IAASA) Ethical Standards for Auditors.
The Committee reviews and approves any
appointment of an individual, within three
years of having previously been employed
by the current external auditor, to a senior
managerial position in the Group. No such
appointments were made in 2024.
The Company Secretary, the Chief Financial
Officer and, as required, the external audit
lead partner and audit team, attend meetings
at the invitation of the Committee and all
Directors are also free to attend should
they wish to do so. Twice each year, the
Committee and the external auditor discuss,
without management present, matters
relating to its remit and other pertinent
issues.
KPMG was approved as auditor by the
Company at the AGM in May 2019 and began
its engagement in July 2019. The lead audit
partner is Brian Kane, who took over the role
in 2024.
In 2024, KPMG provided a number of audit
services and non-audit services. The non-
audit services consisted mainly of audit-
related assurance concerning the review
of the half-yearly financial statements and
Mozambican tax compliance services and
other related matters. The Committee
is satisfied that the external auditor’s
knowledge of the Group was an important
factor in choosing it to provide these services.
Under the EU fee cap rules, non-audit
services are not permitted to exceed a ratio
of 70% of the average annual audit fee for the
preceding three-year period-that limit has
not been breached. The fee paid to KPMG in
2024, in respect of audit services and non-
audit services , was $230,000 and $101,000
respectively, a ratio of 2:1.
KPMG has stated that it does not consider
that these fees create a self-interest threat
since the level of fees is not significant
to the firm as a whole. The Committee is,
therefore, satisfied that the non-audit work
did not compromise KPMG’s independence or
objectivity and that it was in the interests of
the Group to retain KPMG for those services.
As a result, the Company did not invite third
parties to tender for these services. The
Committee did not request the auditor to look
at any specific areas in 2024. Details of the
amounts paid to KPMG during the year for
audit and other services are set out in Note
7 to the consolidated financial statements on
page 193.
Effectiveness and quality
The Committee, on behalf of the Board, is
responsible for the relationship with the
external auditor and for monitoring the
effectiveness and quality of the external audit
process. The Committee’s primary means of
assessing the effectiveness and quality of
the external audit process is by monitoring
performance against the agreed audit plan. In
addition, we consider the following:
`
The experience and knowledge of the
external audit team
`
The quality of presentations to the Board
and Committee
`
The technical insights provided relevant
to the Group
`
Demonstration of a clear understanding of
the Group’s business and key risks
`
The results of post-audit interviews with
management and the Committee Chair
Based on the above, the Committee is
satisfied with the effectiveness of the external
auditor for 2024 and the quality of its audit,
and is satisfied that the external auditor
demonstrated professional scepticism and
challenged management’s assumptions,
where necessary.
Financial reporting and
significant financial
judgements
A key responsibility of the Committee
is to consider the significant areas of
complexity, management judgement and
estimation that have been applied in the
preparation of the financial statements.
The Committee has reviewed the suitability
of the accounting policies, which have
been adopted and whether management
has made appropriate judgements and
disclosures and these assessments have
also been subject to significant review and
challenge by the Directors and the external
auditor in relation to material audit risks. The
table on page 147 sets out the significant
matters considered by the Committee in
relation to the financial statements for
the year ended 31 December 2024. After
reviewing the presentations and reporting
from management and consulting, where
necessary , with KPMG, the Committee is
satisfied that the Annual Report and Financial
Statements appropriately addresses the
critical judgements and key estimates, both
in respect of the amounts reported and the
disclosures.
$157.1m
EBITDA in 2024
Read more about
capital projects
on page 30
Read more about
Kenmare’s strategic pillars
on pages 16 to 19
143
Kenmare Resources plc
Annual Report and Accounts 2024
GOVERNANCE
Fair, balanced and understandable report
At the request of the Board, the Committee considered whether, in its opinion, the 2024 Annual Report and Financial Statements, taken as a
whole, is fair, balanced and understandable, and whether it provides the information necessary for shareholders to assess the Group’s position and
performance, business model and strategy.
Following its review, we believe that the 2024 Annual Report and Financial Statements is representative of the year and presents a fair, balanced
and understandable overview, providing the necessary information for shareholders to assess the Group’s position, performance, business model
and strategy.
As part of this process, we considered the robust process in place to create the Annual Report and Financial Statements and the Committee:
STAGE 1
Reviewed a draft of the
whole Annual Report and
Financial Statements
in advance of giving its
final opinion and ahead
of final approval by the
Board. The Committee was
provided with all relevant
information, received
briefings from management
on how specific issues are
managed and challenged
management as required.
STAGE 2
Received confirmation
that each Committee had
signed off on each of its
respective Committee
reports and reviewed
other sections for which it
has responsibility under its
Terms of Reference.
STAGE 3
Was provided with
a confirmation by
management that it was
not aware of any material
misstatements in the
financial statements made
intentionally to achieve a
particular presentation.
STAGE 4
Was provided with findings
from KPMG that it had
found no material audit
misstatements that would
impact the unqualified audit
opinion during the course of
its work.
Kenmare Resources plc
Annual Report and Accounts 2024
144
AUDIT & RISK COMMITTEE REPORT
CONTINUED
Risk management
The Group has identified and documented
critical risks to the business, including key
operational risks and related controls in its
risk register. The Group’s risk identification
and management process, register and
mitigants are reviewed and updated annually.
The Group’s key operational risks are
reviewed and updated quarterly.
Following a review of the Group risk register
by senior management, the principal risks
identified for the Group and their mitigations
are submitted to the Audit & Risk Committee
and Board for review and approval. These
risks are included in the principal risks and
uncertainties facing the Group as set out on
pages 102 to 111. As part of the internal audit
function, controls identified in the risk register
are tested to ensure they are operating
effectively.
The Committee assessed the Group’s risk
management and internal control framework
in line with the Financial Reporting Council
Guidance on Risk Management, Internal
Control and Related Financial and Business
Reporting (2014) and reviewed the audit and
review summary reports from the external
auditor. The Committee, having assessed
the above information, is satisfied that
the internal control and risk management
framework is operating effectively and has
reported this opinion to the Board.
Internal Audit
The Internal Auditor prepares an internal
audit plan for each financial year proposing
the audit areas to be covered and the
timeframe for each. This is presented to the
Committee for approval. The Internal Auditor
updates the Committee on progress at
regular intervals and presents reports to each
Committee meeting. The Committee can
question the Internal Auditor on the contents
of the reports and the processes employed
by him in investigations. These reports are
considered by the Committee and material
matters and recommendations are then
reported to the Board.
The Committee is responsible for
monitoring and reviewing the operation and
effectiveness of the Internal Audit function
including its focus, plans, activities and
resources. To fulfil its duties during 2024, the
Committee:
`
reviewed and approved the internal audit
annual plan;
`
considered, and was satisfied that, the
competencies, experience of and level
of resources available to the Internal
Auditor were adequate to achieve the
proposed plan;
`
considered the role and effectiveness
of internal audit in the overall context of
the Group’s risk management framework
and was satisfied that the function has
appropriate standing within the Group;
`
ensured that the Internal Auditor had
access to the Chair of the Board, if
required; and
`
ensured co-ordination between internal
audit and the external auditor to maximise
the benefits from clear communication
and co-ordinated activities.
On the basis of the above, the Committee
concluded that, for 2024, the internal audit
function was performing well and is satisfied
that the quality, experience and expertise of
the function is appropriate for the Group.
Whistleblowing
The Company has a Whistleblowing policy
in place and a third-party service provider
is engaged to provide a confidential 24/7
whistleblowing service (“Safecall”) available to
all stakeholders to report any wrongdoing in
the workplace. The service does not replace
the internal processes within the organisation
but seeks to provide an alternative for those
employees who, for any reason, do not
feel comfortable or safe using the internal
processes. The Audit & Risk Committee
Chair is also positioned to receive written
complaints in confidence on accounting, risk
issues, internal controls, auditing issues and
related matters for reporting to the Audit
& Risk Committee. No new Safecall reports
were received in 2024. Following an ethics
compliance review, a campaign to increase
awareness of the service among employees,
will be conducted during 2025.
$48.1m
Shareholder returns in
2024
$64.9m
Profit after tax in 2024
145
Kenmare Resources plc
Annual Report and Accounts 2024
GOVERNANCE
Areas of focus in 2024
GOV-1
AREA OF FOCUS AUDIT & RISK COMMITTEE ACTION
Financial reporting
`
Reviewed the 2023 Annual Report and Accounts in March 2024, the 2024 Half-Yearly Financial Report issued
in August 2024 and the regulatory announcements relating to these statements before submitting them to the
Board of Directors with a recommendation to approve
`
Assessed the appropriateness of the Group’s accounting policies, including the key estimates, judgements and
disclosures made by management
`
Reviewed the 2023 Annual Report and Accounts with management and KPMG to identify areas for improvement
Distributable reserves
`
Reviewed the Company’s distributable reserves to ensure these were sufficient to pay the 2023 final dividend and
the 2024 interim dividend
Risk management and
internal control
`
Reviewed the Group’s risk management and internal control framework (including procedures for detecting fraud)
established for identifying, evaluating and managing key risks
`
Reviewed and considered the principal risks facing the Group and identified five specific strategic risks as key to
the outcome for the year to be monitored quarterly
`
Received and considered quarterly risk review updates
`
Monitored progress against a set of Treasury policy KPIs
Internal audit
`
Approved the amendment of the Internal Audit charter primarily to deal with quality assurance
`
Approved the Internal Audit plan for 2024 and received quarterly updates on progress in this regard as well as in
relation to ad hoc work undertaken during the year
`
Reviewed Internal Audit reports during the year covering finished product management, warehouse management,
asset protection, procurement management and property, plant and equipment and challenged management,
where appropriate, to monitor and improve systems
`
Reviewed the effectiveness of the Internal Audit function
External audit
`
Agreed the audit plan of the external auditor, KPMG, for their audit of the 2024 Annual Report and Accounts and
their review of the 2024 Half-Yearly Financial Report
`
Reviewed the independence, objectivity and effectiveness of the external audit process including the safeguards
to protect the auditor’s objectivity and independence. The Committee is satisfied that the appropriate policy is in
place in respect of services provided by external auditor
`
Approved the non-audit services provided by KPMG to the Group in 2024
`
Post-completion of the 2023 audit and 2024 half-year review, in conjunction with KPMG, held review meetings
with senior finance management, at which it was confirmed by both parties that no issues had arisen during the
audit or review process
`
Met the external auditor without management present to discuss matters relating to the external audit process
Climate change
`
Reviewed the proposed disclosures in the 2023 Annual Report against the recommendations of the Task Force
on Climate-related Financial disclosures (TCFD) and EU Taxonomy
`
Considered the impact of climate change on amounts reported in the 2023 financial statements including the
potential financial impact of the physical and transitional risks and opportunities identified in accordance with the
recommendations of the TCFD.
`
Received briefings on its role in environmental, social and governance reporting and on the financial assessment
of climate risk
`
Reviewed the Company’s Climate Transition plan (CTP) forecast capital expenditure
`
Noted the outcome of the competitive tender process for Corporate Sustainability Reporting Directive (CSRD)
assurance
`
Briefed on CSRD compliance preparedness, including the appointment of the limited assurance provider
`
Reviewed the processes governing, and the conclusions of, the Double Materiality Assessment (DMA) and CSRD
reporting readiness review
`
Reviewed and challenged management on the DMA process and reviewed drafts of the DMA Report
`
Approved process employed in preparation and assurance of DMA and noted further work for 2025
Committee affairs
`
Reviewed the Committee’s performance.
`
Revised the Committee’s Terms of Reference to reflect its increasing oversight in sustainability reporting generally
and CSRD specifically
Kenmare Resources plc
Annual Report and Accounts 2024
146
AUDIT & RISK COMMITTEE REPORT
CONTINUED
AREA OF FOCUS AUDIT & RISK COMMITTEE ACTION
Other
`
Reviewed liquidity management
`
Monitored the Company’s consideration of the risk of impairment and challenged management’s calculation
method and assumptions
`
Provided oversight of , and challenge to, management’s cybersecurity strategy and plan
`
Briefed on engagement with IAASA regarding the 2023 Annual Report
Estimates and judgements
The Committee challenged management in relation to the following areas of significant judgement, complexity and estimation in connection with the
2024 financial statements. The Committee considered the report from the external auditor on the audit work undertaken and conclusions reached
as set out in its Audit Report on pages 169 to 174. The Committee is satisfied that, in all of these matters, the accounting treatment complies with
relevant International Financial Reporting Standards (IFRS), and none gave rise to disagreement between management, the external auditor or the
Committee.
AREA OF JUDGEMENT AUDIT & RISK COMMITTEE CONSIDERATIONS
Impairment of property,
plant and equipment
The Committee discussed the Group’s impairment process with both management and KPMG.
The Committee reviewed management’s impairment testing methodology and process, including key judgements
and assumptions. The Committee found the process to be robust and was satisfied with the appropriateness of
assumptions and the consistency with the approach in prior years.
Revenue recognition The Committee gained comfort over revenue recognition through discussions with management in relation
to the operation of key financial controls within the Revenue Process in order to prevent and detect material
misstatements. As a result of this, the Committee is satisfied that there are appropriate controls and processes in
place across the Group to ensure the completeness and accuracy of revenue. In addition, the Committee gained
an understanding of the substantive audit work performed by KPMG..
Going Concern and
Viability Statements
The Committee reviewed the Going Concern and Viability Statements, including the underlying methodology,
process and assumptions and recommended to the Board that it approve the Going Concern and Viability
Statements.
Other matters The Committee considered, and is satisfied with, a number of other judgements and estimates that have been
made by management, including provisioning for tax matters, the Mine closure and Mine rehabilitation provision,
climate and sustainability reporting, considerations of the impact of climate change on amounts reported in the
financial statements and the carrying amounts of the Parent Company’s investments in subsidiary undertakings.
Audit & Risk Committee effectiveness
and priorities for 2025
As outlined in the Corporate Governance report, during 2024, there was
an internal review of the performance and effectiveness of the Board
and of its Committees. I am pleased to confirm that the Chair found that
the Committee is working effectively and efficiently. The Committee has
identified the following key areas for specific focus in 2025: evolving and
optimising our CSRD reporting approach, processes, governance and
resourcing based on learnings of 2024; review of risk appetite statement
and effectiveness of current approach; review of impact and applicability
of IFRS 18; and cyber security.
The Committee would like to thank KPMG for its work on the 2024
financial statements. I would also like to thank my fellow Committee
members for their commitment and input to the work of the
Committee during 2024 and the financial team for their assistance,
guidance and support. Lastly, I would like to thank Tom Hickey for his
assistance in his tenure as Financial Director and to welcome James
McCullough to Kenmare.
DEIRDRE SOMERS
Chair of the Audit & Risk Committee
13 April 2025
147
Kenmare Resources plc
Annual Report and Accounts 2024
GOVERNANCE
“ENSURING EXECUTIVE
REMUNERATION IS
A FAIR REFLECTION
OF CORPORATE
PERFORMANCE AND
SUPPORTIVE OF LONG-
TERM SUSTAINABLE
SUCCESS.”
GRAHAM MARTIN
CHAIR OF REMUNERATION
COMMITTEE
DEIRDRE SOMERS
COMMITTEE MEMBER
CLEVER FONSECA
COMMITTEE MEMBER
METTE DOBEL
COMMITTEE MEMBER
Dear shareholders
On behalf of the Board, I am very pleased
to present the Remuneration Committee’s
report for 2024 on Directors’ remuneration.
This report is divided into two sections:
`
This statement, which provides a
summary of the year under review
and, together with the Annual Report
on Remuneration, describes how the
Committee has fulfilled its responsibilities
during the year under its Terms of
Reference and under the relevant
requirements of the UK Corporate
Governance Code 2018; and
`
the Annual Report on Remuneration,
which provides details of the remuneration
earned by the Directors in the year
ended 31 December 2024 and how the
remuneration policy will operate for the
year ending 31 December 2025.
The Directors’ remuneration policy was
approved by shareholders at the Annual
General Meeting held on 11 May 2023 and
applies for three years from that date. Details
of the vote in this regard are on page 160.
The policy is set out in full on pages 135
to 145 of the 2022 Annual Report and on our
website at www.kenmareresources.com/about/
corporate-governance/remuneration-committee
Summary of the work of the Committee in 2024
GOV-1
A substantial part of the work of the Committee
in each year relates to the setting of the
corporate key performance indicators (KPIs)
for the year, performance against which is
reflected not only in the Executive Directors’
bonus scheme, but also forms a part (generally
ranging from 20–60%) of the bonus entitlement
of our corporate staff and senior staff at the
Mine. The Committee monitors performance on
a quarterly basis and the outcome is regularly
communicated, as appropriate, to the Directors
and other affected staff.
As in previous years, the performance criteria
set by the Committee for 2024 reflected a
mix of quantitative targets and qualitative
targets and were set at stretching levels
for the maximum award. The quantitative
targets for 2024 comprised 66.5% of the
maximum 100% of salary opportunity and the
qualitative targets 33.5%. The quantitative
targets covered metrics reflecting mineral
production, financial results and some
environmental, social and governance (ESG)
targets. The qualitative targets included
matters such as project execution, some
ESG targets, the Group’s long-term mining
strategy, corporate vision and values and
each Executive Director’s personal leadership.
The Committee also dealt with the retirement
package for our Managing Director Michael
Carvill and the remuneration package for
Tom Hickey who was appointed to the role.
Details of each are below.
Other aspects of the Committee’s work in
2024 included:
`
assessing the outcome of the KPIs under
the Executive Directors’ bonus scheme for
2023, and agreeing some modifications
to those metrics for the application of the
scheme in 2024;
`
reviewing benchmarking reports prepared
by PwC on the salaries, benefits and fees of
the Executive Directors, the Chief Operating
Officer, the Company Secretary, and the
Chairman and setting their levels for 2024;
`
reviewing and discussing with the
Executive Directors the remuneration of
the Executive Committee and senior Mine
management;
`
agreeing the amount of the annual
award to the Executive Directors under
the Group’s long-term share plan, the
Kenmare Resources plc Restricted
Share Plan (KRSP), the performance
indicators to be considered under the
performance underpin and the annual
KRSP awards for other employees within
the Committee’s remit;
`
a summary of performance in 2023 in the
context of the performance underpin for
review at the end of the relevant three-
year period;
`
considering the discretionary underpin
to the 2021 KRSP awards made to
the Executive Directors and the Chief
Operating Officer and determining that
such awards should be reduced by 5%;
`
reviewing the remuneration and benefits
of the Executive Directors in the context of
the remuneration of the Group’s workforce
as a whole. We received presentations
from management on the remuneration
Kenmare Resources plc
Annual Report and Accounts 2024
148
REMUNERATION COMMITTEE REPORT
structure for workers at the Mine and
our staff based in Dublin, London, and
Beijing and we satisfied ourselves that
our staff receive pay and benefits that
are benchmarked appropriately, take into
account local employment regulations and
conditions as well as seniority, and afford
our staff the opportunity to share in the
benefits from the success of the Group.
The Committee also notes that there is
no discrimination between our male and
female workers in their pay and benefits for
similar jobs;
`
reviewing and amending the Committee’s
Terms of Reference to include an explicit
reference to supporting ESG objectives
through the remuneration policy and
strategy; and
`
a presentation from PwC with an update
on current remuneration matters with
particular focus on a review of the 2024
AGM season and investor feedback on
remuneration issues.
Performance and
reward for 2024
Under the Directors’ remuneration policy,
the Executive Directors receive a base salary
(which, in the case of Michael Carvill had
been increased since 2010 only on the basis
of inflation), pension contributions in line
with market levels and the Irish workforce,
certain other benefits, an award of shares
under the KRSP, and the opportunity to earn
a bonus depending on the outcome of the
remuneration KPIs. In 2024, the Directors’
remuneration policy operated in line with the
intentions set out in the 2023 Annual Report
on Remuneration.
As noted by the Chairman and the Managing
Director in their respective statements, in
2024, our ilmenite production exceeded
the midpoint of our guidance range while
production of our other products exceeded
the upper range. Our EBITDA exceeded
target and while our operating costs were
higher than expected, our project capital
costs remained on budget. Our health
and safety metrics remained encouraging
and other ESG targets also fared well.
These results, along with the Committee’s
assessment of performance against the
qualitative targets, (all of which are set out
in more detail on pages 154 to 155), were
reflected in a general corporate scorecard
outcome for the year of 63.57%. For Tom
Hickey, the bonus in excess of 50% of
salary has been delivered as deferred share
awards which vest after three years. For
Michael Carvill, the Committee determined
that it would be most appropriate that the
bonus would be paid entirely in cash. The
Committee considers this outcome a fair
reflection of corporate performance for
the year against stretching targets and the
respective individual performances of the
Directors.
The KRSP awards granted to former
Executive Directors on 5 April 2022 are
due to vest on 5 April 2025. Tom Hickey,
Managing Director, received a KRSP award
on joining the Company in 2022, which is
due to vest on 28 September 2025. Vesting
is subject to continued employment and
an underpin based on the Remuneration
Committee’s judgement of Company and
individual performance over the three-
year vesting period. The Committee has
conducted an assessment of the underpin
and determined that a reduction to the
vesting of 10% should be made to the
awards. More details on the underpin and the
Committee’s assessment are on page 156.
The KRSP awards granted in April 2021 vested
in April 2024. Vesting was subject to continued
employment and an underpin based on the
Remuneration Committee’s judgement of
Company and individual performance over
the three-year vesting period. The Committee
determined that a reduction to the vesting of
5% should be made to the awards, confirming
its provisional assessment, which was reported
in the 2023 Annual Report.
The Committee confirms that no malus and
clawback provisions were used during the year.
Managing Director
stepping down and
remuneration packages
In August, Michael Carvill, our former
Managing Director, stepped down from
the role after nearly 38 years. He remained
as a consultant to the Company to advise
on the negotiation of the renewal of the
Implementation Agreement, the execution
of the move to Nataka and other corporate
matters. His consultancy arrangements will
terminate on 30 April 2025.
In connection with Michael Carvill stepping
down, it was agreed that he would be treated
as a “good leaver” for the purpose of his
outstanding variable pay awards and that
(a) his KRSP awards would continue to vest
on their relevant vesting dates subject to
the underpin; (b) his KRSP awards would
not be otherwise reduced; (c) vesting of
the deferred bonus award, which he earned
in 2022 would be accelerated to the date
Michael stepped down as Managing Director;
and (d) he would not receive a KRSP award
in 2024. The Company also agreed to pay
to Michael Carvill one year’s salary in lieu of
his 12-month contractual notice period and
one year’s salary in bona fide compromise of
any claims which he might have against the
Company in connection with his employment
or its termination. In addition to his bonus in
respect of 2023, which he received in March
2024, he will receive a bonus in respect of his
period of employment in 2024 – this bonus
will be paid in cash with no deferred element.
The Committee and Board believe these
arrangements were reasonable given Michael
Carvill’s long service to the Company and
were in the best interests of the Company.
Further details of Michael Carvill’s leaving
arrangements and consultancy are set out on
page 156.
The Committee also considered and
approved the appropriate starting salary
for Tom Hickey (€575,000, which was lower
than Michael Carvill’s), his 2024 annual
bonus opportunity (100% of salary, pro-rated
for the period during which he acted as
Financial Director, and the period he acted
as Managing Director) as well as the other
terms of his service contract. Further details
are set out on page 156. It was also agreed
that the Company would grant Tom Hickey
a “top-up” KRSP award in respect of 2024 to
reflect his higher salary as Managing Director.
Due to the confidentiality of negotiations
on the renewal of the Implementation
Agreement and other corporate matters, the
Company was not in a position to grant the
top-up award in 2024. However, the 2022
Directors’ remuneration policy states that
“the maximum award level in any year is
100% of base salary” and so it would not have
been possible to make this award in 2025
in addition to the annual KRSP award. The
Board has therefore amended this restriction
to relate to an award in respect of any year
(rather than in any year). This allowed it to
fulfil its obligations to the Managing Director
in early April 2025. As it was not considered
a material amendment under Irish law,
shareholder approval was not required.
149
Kenmare Resources plc
Annual Report and Accounts 2024
GOVERNANCE
The relevant extract from the 2022 Remuneration Policy marked up with this change is set out below:
ELEMENT OF
REMUNERATION
HOW THE ELEMENT
SUPPORTS OUR
STRATEGIC OBJECTIVES
OPERATION OF THE
ELEMENT INCLUDING ANY
PROVISION FOR MALUS OR
CLAWBACK
MAXIMUM
POTENTIAL
VALUE
PERFORMANCE METRICS,
WEIGHTING, MINIMUM PAYOUT AND
TIME PERIOD (WHERE APPLICABLE)
Share awards
under the Kenmare
Restricted Share
Plan (“KRSP”)
To increase shareholder
alignment by providing
Executive Directors with
longer-term interests in
shares.
Annual awards of shares will
be made under the Kenmare
Restricted Share Plan.
The award will vest on
the third anniversary of
grant subject to continued
employment.
The maximum
award level in
respect of any
year is 100% of
base salary.
The Remuneration Committee will
use its discretion to consider the
appropriate level of award (including
making no award) if it believes
this is appropriate in light of the
Group’s performance and that of the
individual Executive Director at the
time of making of the award.
Directors’ remuneration
policy
The current Directors’ remuneration policy was
approved by the Company’s shareholders at
the 2023 AGM with 97.07% of votes in favour.
Full details of the policy are on pages 135
to 145 of the 2022 Annual Report and are
incorporated into this Report by reference.
The Committee continues to believe that,
taking into account the minor change
referred to above, the current Directors’
remuneration policy remains appropriate
for the Group. However, it will review the
policy in detail during the course of 2025 and
present its proposals in this regard to the
shareholders at the Annual General Meeting
in 2026.
Directors’ remuneration
for 2025
Fees payable to Non-Executive Directors in
2025 have been increased by 2%, in line with
increases for corporate staff to reflect current
inflation levels. Given that the Managing
Director’s salary was agreed relatively
recently, the Remuneration Committee
does not feel that an increase in his salary
is warranted at this time. Kenmare’s bonus
scheme and KRSP will continue to operate
in 2025 in broadly the same way as they did
in 2024.
Workforce engagement
on remuneration matters
During the course of my engagement with
employees during 2024 and that of Mette
Dobel as the designated Non-Executive
Director, there were no issues regarding
Directors’ remuneration highlighted or
queried by employees.
Management engaged with the workforce
during the year in relation to performance
reviews, salaries, bonus outcomes (which
reflect both personal and corporate
performance), and awards made under
the KRSP.
The Committee is particularly pleased that
the KRSP is now part of the remuneration
package of around 350 staff at the Mine.
The first large-scale vesting of awards for
Mine staff took place in 2024 and was well-
received.
Shareholder dialogue
Throughout the year, we take every
opportunity when engaging with our
shareholders to invite them to raise
any concerns or give any observations
on Executive remuneration, even when
Executive remuneration is not the specific
purpose of the meeting. No specific concerns
were raised by our shareholders regarding
remuneration in the course of 2024.
Conclusion
As ever, I am very grateful for the support and
guidance given to me throughout the year
by my fellow members of the Remuneration
Committee and for the support given to the
Committee by Chelita Healy, the Company
Secretary.
Shareholders’ views on Executive
remuneration are very important to the Board.
Should you have any questions, comments
or feedback on remuneration matters at
Kenmare, I would be very pleased to hear
from you. I can be reached via the Company
Secretary at chealy@kenmareresources.com.
I hope you will vote in support of the
remuneration report at the forthcoming AGM.
GRAHAM MARTIN
Chair of the Remuneration Committee
13 April 2025
Read more about
performance targets
on pages 154 to 155
Kenmare Resources plc
Annual Report and Accounts 2024
150
REMUNERATION COMMITTEE REPORT
CONTINUED
Remuneration Committee membership and meetings
The Remuneration Committee consists of Deirdre Somers, Clever Fonseca, Mette Dobel and
Graham Martin, as Chair. All Committee members are Independent Non-Executive Directors.
Biographical details for each of the Committee members and a description of their respective
skills, expertise and experience are set out on pages 118 and 119.
The Committee formally met five times during the year but there were also several less-
formal communications throughout the year on remuneration issues between members of the
Committee and with the Executive Directors. Details of members’ attendance at meetings are
set out on page 124.
Committee membership and diversity
GOV-1
INDEPENDENT
DATE OF
APPOINTMENT
TO COMMITTEE
Graham Martin
Chair Yes 14/10/2016
Deirdre Somers
Member Yes 13/05/2021
Clever Fonseca
Member Yes 31/12/2021
Mette Dobel
Member Yes 01/09/2023
Gender Diversity: 50% Male, 50% Female
Ethnic Diversity: 0%
Principal responsibilities
of the Committee
GOV-1
The role of the Committee is to assist
the Board in fulfilling its responsibility to
ensure that:
`
Remuneration policy and practices
of the Group are designed to support
strategy and promote long-term
sustainable success (including
environmental, social and governance
(“ESG”) objectives), reward fairly and
responsibly, with a clear link to corporate
and individual performance and having
regard to statutory and regulatory
requirements; and
`
Executive remuneration is aligned to
Group purpose and values and linked to
delivery of the Group’s long-term strategy.
The primary responsibilities of the Committee
are to:
`
determine and agree with the Board the
Group’s policy on executive remuneration;
`
within the terms of the agreed policy,
determine the total individual remuneration
package of the Chair, Executive Directors,
Chief Operating Officer, Company
Secretary and such other members of
the senior executive management as it is
designated to consider;
`
review workforce remuneration, related
policies and the alignment of incentives
and rewards with culture; and
`
oversee the preparation of the Annual
Report on remuneration.
See the Committee’s Terms of Reference
at www.kenmareresources.com/about/
corporate-governance/
remuneration-committee
The Committee gives full consideration to
legal and regulatory requirements, to the
principles and provisions of the 2018 UK
Corporate Governance Code (“the Code”)
and to related guidance. The Committee
also seeks to ensure that risk is properly
considered in the setting of the remuneration
policy, by ensuring that targets are
appropriately stretching but do not lead to
the taking of excessive risk.
The Committee reviews remuneration and
related policies applicable to the wider
workforce, ensuring that they are taken
into account when setting the policy for
Executive remuneration. The aim across
the Group is to provide a reward package
that is aligned to shareholders’ interests,
supports the achievement of the Company’s
annual and strategic objectives (including
climate targets, where relevant), is
competitive against the appropriate market
and is consistent with Kenmare’s focus on
performance and its core values. This means:
`
base salaries are set in line with the
relevant market recognising the
individual’s skill, knowledge, experience
levels and contribution to the role;
`
high performance and exceptional
contribution are recognised through in-
year incentives;
`
packages for leadership roles have an
increased emphasis on longer-term share-
based reward;
`
employees are provided with competitive
post-retirement benefits in line with
practices applicable in relevant
jurisdictions; and
`
access to a competitive and cost-effective
package of other benefits as part of the
total reward offering.
The Company Secretary acts as Secretary
to the Committee. The Managing Director
and Financial Director or Chief Financial
Officer may be invited to attend meetings
of the Committee, except when their own
remuneration is being discussed. No Director
is involved in the consideration of their own
remuneration.
The Remuneration Committee seeks
independent advice when necessary, from
external remuneration consultants. In 2019,
the Committee conducted a competitive
tender process following which PwC, which
has no other connection with the Group,
Company or the Directors, was retained as
independent external remuneration advisors.
Since then, the Committee has renewed their
appointment annually. PwC is paid a fixed fee
for a fixed scope of work and charges fees on
a time-and-materials basis for work outside
of the agreed scope. During the year ended
31 December 2024, the total fees payable
to PwC in respect of these services was
£59,500 (2023: £60,000). PwC is a member
of the Remuneration Consultants Group and
a signatory of that Group’s Code of Practice
for remuneration consultants. The Committee
reviews the services and advice provided by
PwC each year and is satisfied that the advice
it receives is independent and objective.
151
Kenmare Resources plc
Annual Report and Accounts 2024
GOVERNANCE
ANNUAL REPORT ON REMUNERATION
Consideration of
employment conditions
outside the Group
The Committee reviews the remuneration of the
Executive Directors in light of the remuneration
of the executive directors of other appropriate
quoted companies and, in the course of 2024,
considered benchmarking reports prepared by
PwC in relation to the same.
Implementation of the
Directors’ remuneration
policy
In developing and implementing the current
remuneration policy, the Remuneration
Committee considered the following factors
set out in the Code:
`
Clarity and simplicity – the Committee
believes that the remuneration package
for Kenmare’s Executive Directors is
clear and transparent, in particular the
Kenmare Resources plc Restricted Share
Plan (KRSP) is a simple structure, which
cascades, where appropriate, down the
organisation, with all awards vesting
after three years, subject, in the case of
Executive Directors, to a further two-year
holding period. Details of engagement
with the workforce on Directors’
remuneration are set out on page 150.
`
Risk – The Remuneration Committee
has a number of tools at its disposal
to ensure that reputational and other
risks are identified and mitigated. These
include malus and clawback provisions
in respect of both the annual bonus and
the KRSP and the discretionary underpin
on the vesting of KRSP awards. For
example, in 2025, the Committee reduced
the number of shares vesting under the
2022 KRSP award by 10% following its
assessment of individual and Company
performance over the three-year vesting
period, in accordance with the underpin.
Furthermore, the Remuneration Committee
has the discretion to amend the formulaic
outcome of the annual bonus if the
Committee believes this does not reflect
the true underlying performance of the
Group or the experience of shareholders.
When determining the outcomes of the
2024 bonus, the Committee considered
these factors and determined that the
formulaic outcome was appropriate in light
of the Group’s performance. In addition
to the underpin, the Committee may also
adjust the vesting level of KRSP awards
if it determines that there has been a
“windfall gain”.
`
Predictability and proportionality – A
range of potential remuneration outcomes
under the policy are outlined in the 2023
Annual Report, including a 50% share
appreciation scenario. This enables
shareholders to assess the impact of
performance outcomes and share price
appreciation on the value of remuneration
for individual Directors. The 2024 bonus
outcome reflected the Group’s overall
performance, including ESG outcomes
and progress in the long-term mining
strategy.
`
Alignment to culture – The discretionary
underpin assessment ensures that the
vesting level of KRSP awards takes into
account the overall business performance
over the relevant three-year period,
including non-financial factors such as
environmental, social and governance
considerations, which are at the heart of
Kenmare’s culture, values and strategy.
Directors’ remuneration (audited)
The following tables set out the remuneration for Directors for the year ended 31 December 2024 and the prior year. The base salaries increased
by 4% in 2024 (below the wider Kenmare corporate staff increase of 4.6%).
MICHAEL CARVILL
2
TOM HICKEY
3
EXECUTIVE DIRECTORS’
REMUNERATION
1
2024
$’000
2024
%
2023
$’000
2023
%
2024
$’000
2024
%
2023
$’000
2023
%
Fixed pay
Basic salary 455 679 528 448
Benefits 7 7 6 5
Pension 45 68 53 45
Total fixed pay 507 19% 754 49% 587 46% 498 74%
Variable pay
Bonus
4
289 259 336 171
KRSP
5
426 537 359 –
Total variable pay 715 27% 796 51% 695 54% 171 26%
Loss of office 1,414 54% – – – – – –
Total single figure 2,636 1,550 – 1,282 – 669 –
1
The underlying currency of the Executive Directors’ emoluments is Euros. Amounts disclosed above are translated at the average Euro to US Dollar rate for the relevant year. This
disclosure forms an integral part of the financial statements.
2
Michael Carvill stepped down as a Director on 14 August 2024. The annual basic salary of Michael Carvill was €653,272 (2023: €628,146). The amounts disclosed above relate to the
period of his employment as a Director.
3
Tom Hickey was appointed as Managing Director of the Company on 15 August 2024. Tom Hickey’s annual basic salary as Managing Director is €575,000. Prior to this, his salary as
Finance Director was €431,135 (2023: €414,553) .
4
The 2024 annual bonus performance outcome of each of Michael Carvill and Tom Hickey is 63.57% of maximum. For Tom Hickey, the bonus in excess of 50% of salary is delivered as
deferred share awards, which vest after three years. For Michael Carvill, the bonus outcome will be delivered in cash.
5
The value of the KRSP awards for 2024 reflects the awards granted in 2022 and is calculated based on an average share price of the last three months of 2024 of £3.40 and taking into
account the reduction in vesting of 10% as a result of the performance underpin. No value is attributable to share price appreciation or dividend equivalents. See page 156 for more
details. The vesting date for the awards is 5 April 2025 in the case of Michael Carvill and 28 September 2025 in the case of Tom Hickey. The value of the KRSP awards for 2023 has been
recalculated based on the share price on the vesting date, 29 April 2024 of £3.32 and taking into account the reduction in vesting of 5% as a result of the performance underpin.
Kenmare Resources plc
Annual Report and Accounts 2024
152
ANNUAL REPORT ON REMUNERATION
CONTINUED
BASIC FEE
COMMITTEE CHAIR AND
MEMBERSHIP FEE
SENIOR INDEPENDENT
DIRECTOR FEE AUDITED TOTAL
NON‑EXECUTIVE
DIRECTORS’
REMUNERATION
1,2,3
2024
$’000
2023
$’000
2024
$’000
2023
$’000
2024
$’000
2023
$’000
2024
$’000
2023
$’000
Issa Al Balushi
4
73 65 – – – – 73 65
Mette Dobel 73 69 15 9 – – 88 78
Elaine Dorward-King 73 69 34 32 – – 107 101
Clever Fonseca 73 69 22 21 – – 95 90
Graham Martin 73 69 32 30 12 11 117 110
Deirdre Somers 73 69 36 35 – – 109 104
Andrew Webb 248 237 – – – – 248 237
Total 686 647 139 127 12 11 837 785
1
The fees set out in the table above relate to the period of the directorship. The underlying currency of the Executive Directors’ emoluments is Euros. Amounts disclosed above are
translated at the average Euro to US Dollar rate for the relevant year.
2
The Non-Executive Directors’ remuneration is 100% fixed. In 2024, it was agreed to increase all Non-Executive Directors’ fees by 4.6% to reflect inflation.
3
This disclosure forms an integral part of the financial statements.
4
Issa Al Balushi was appointed as Director of the Company on 25 January 2023.
AUDITED TOTAL
TOTAL DIRECTORS’ REMUNERATION
2024
$’000
2023
$’000
Executive Directors
Salary 983 1,127
Benefits 13 12
Bonus 625 430
Pension 98 113
KRSP 785 537
Loss of office 1,414 –
Total Executive Directors’ remuneration 3,918 2,219
Non-Executive Directors
Fees 837 785
Total remuneration 4,755 3,004
Executive and Non-Executive Directors’ remuneration and fees for services as Directors provided to the Company and the entities controlled by
the Company are $3.9 million (2023: $2.2 million) and $0.8 million (2023: $0.8 million) respectively. These figures have been calculated based on
the requirements of the UK’s Large and Medium-sized Companies and Groups (Accounts and Report) Regulations 2008 as amended in 2013,
2018 and 2019 (the “Regulations”), to which the Company has regard.
2024 annual bonus award (audited)
The performance metrics for the 2024 annual bonus award sought to deliver continuous and stretching progress in relation to operational
performance, cost efficiency and capital expenditure management, health and safety initiatives, and corporate objectives. The maximum
opportunity under the annual bonus award for 2024 was 100% of base salary for Tom Hickey (as Financial Director up to 15 August 2024 and as
Managing Director thereafter) and for Michael Carvill, as Managing Director, pro-rated up to 14 August 2024.
153
Kenmare Resources plc
Annual Report and Accounts 2024
GOVERNANCE
Performance targets and outcomes for the 2024 financial year were as follows:
GOV-3
PERFORMANCE NEEDED FOR PAY OUT AT
2024 ANNUAL
BONUS OUTCOME WEIGHTING %
THRESHOLD
(25% OF
MAXIMUM VESTS)
TARGET
(50% OF
MAXIMUM VESTS)
STRETCH
(100% OF MAXIMUM
VESTS)
PERFORMANCE
ACHIEVED
PROPORTION OF
ELEMENT 2024 %
Operational
Ilmenite production (tonnes) 16.0 950,000 1,000,000 1,050,000 1,008,900 59.0 9.44
Zircon (standard and special)
production (tonnes)
6.0 45,000 48,000 50,000 50,500 100.0 6.0
Other (tonnes) 3.0 45,000 48,000 50,000 55,900 100.0 3.0
Financial
EBITDA ($m) 10.0 133.0 148.00 163.00 157.1 80.0 8.0
Production cash costs ($m) 10.0 243.0 231.0 219.0 243.6 0.0 0.0
Average share price in December
2024 (including dividends paid in
2024)(£ per share)
5.0 4.11 4.31 4.50 3.60 0.0 0.0
Relative share price (Kenmare vs.
FTSE Small cap)
5.0 Below median Median Top Quartile Below median 0.0 0.0
Safe and
engaged
workforce
Lost Time Injury Frequency Rate
(LTIFR)
8.0 Implement all actions
on 2024 safety
management plan
LTIFR >20% reduction
relative to 3-yr rolling
average (0.09)
Measure improved
safety culture
through biennial staff
engagement survey
`
Threshold delivered.
`
Target exceeded with a 33% reduction in LTIFR (0.06 vs 0.09 3-yr rolling average).
`
Stretch not achieved.
75.0 6.0
Reducing malaria 2.0 10% reduction of
malaria cases per
200k hours worked
vs a 3-year rolling
average
Meeting threshold
plus target completion
of the vector control
study and resulting
action plan submitted
to Government for
approval
Action plan to
deliver at least one
new technique not
previously used in
malaria mitigation to
date that materially
reduces threat
`
Threshold achieved. 12-month rolling malaria incident rate is at 24.67 cases per 200k
hours.
`
Target partially achieved. Vector control study was completed in 2024. Resulting
action plan due to be submitted government in Q1 2025.
`
New technique implemented in malaria mitigation in 2024 was malaria vaccination.
Results outstanding.
50.0 1.0
A healthy,
natural
environment
Climate / Decarbonisation 5.0 Deliver 12% emissions
reduction by 2024
Meeting threshold
plus approval of
Climate Transition
Plan targets by Board
Meeting both
threshold and target
plus exceeding
emissions reduction
`
Stretch achieved. 15% emissions reduction achieved vs 2021 baseline. 100.0 5.00
Land use/rehabilitation 1.25 Slimes addition on
10ha
Slimes addition on
30ha
Slimes addition on
50ha
`
Target achieved 50.0 0.63
Land use/rehabilitation 1.25 190ha rehabilitated 198ha rehabilitated 203ha rehabilitated
`
Stretch exceeded. 207.3Ha rehabilitated. 100.0 1.25
Biodiversity 2.50 Establish external
monitoring committee
for Kenmare’s
Biodiversity Offset
Management Plan
(BOMP)
BOMP submitted by
July 2024
Legal application
for Icuria forest as
sustainable community
forest to the National
Administration for the
Conservation Areas
(ANAC) submitted by
end Q3 2024
`
Threshold achieved. External monitoring committee established.
`
Target partially achieved. BOMP was prepared and two public consultations took place, however, community
feedback on crop compensation meant BOMP requires third round of public consultation, which due to
elections and government availability is projected to happen in Q1 2025
`
Stretch partially achieved. The Icuria activities application was submitted to ANAC on 15 November 2024.
50.0 1.25
Thriving
communities
Micro-business to provide services
to Kenmare
5.0 Set up framework for
micro businesses to
provide services to
Kenmare
Meeting threshold
plus establish one
business to provide
services to Kenmare
Meeting threshold
and target plus
establish two business
to provide services to
Kenmare
`
Stretch achieved. Scrap dealer business established. Working to get external waste provider to safely cut
larger scrap to enable transportation to mitigate safety risks. Laundry business established in H1 2024; H2
scope agreed to expand to handle Kenmare personal protective equipment (PPE) and laundry of camp
bedding.
100.0 5.0
Project
execution
Development projects progress 15.0 Definitive Feasibility Study (DFS) for the move of Wet Concentrator
Plant (WCP)A to Nataka finalised and approved. All relevant phases of
the project on time and budget
WCP B upgrade project progressed to DFS stage
Other development projects progressed namely potential development
of the Congolone deposit
`
The Nataka DFS was approved, and all relevant phases have remained on schedule and on budget.
Some slight delays to the Tailings Storage Facility for reasons out of the Company’s control which can be
mitigated.
`
The WCP B upgrade project warranted further review on costs and some deferral on timing.
`
Congolone and other growth options continue to be under review.
80.0 12.0
Corporate,
leadership,
vision
and values
5.0 The Committee considers how each Executive performed in terms
of the Board’s expectations of his role, including: leadership, strategic
vision and planning, business development, succession planning and
alignment with the Company’s vision and values. Regard is also had to
the Executive’s part in the achievement of the Board objectives for the
year and in long-term value creation for the Company
The Committee also considers delivery of a number of specific
corporate initiatives.
`
In what was a very challenging year corporately (including the departure of the Managing Director, the
recruitment of his successor and then the recruitment of a new CFO) the Executives achieved all the goals
set by the committee which included a number of corporate initiatives.
100.0 5.0
Total
100.0 63.57
Overall, the outcome of the scorecard and, therefore, outcome for each of Michael Carvill and Tom Hickey, was 63.57% of maximum (and therefore 63.57% of relevant
salary). The Committee believes this appropriately reflects the Executive Directors’ performance during the year and the Group’s results, and, therefore, has not applied
further discretion to this outcome. For Tom Hickey, the bonus amount in excess of 50% of relevant salary was delivered in deferred shares which vest after three years.
For Michael Carvill, the Committee determined that it would be most appropriate that the bonus would be paid entirely in cash.
Kenmare Resources plc
Annual Report and Accounts 2024
154
ANNUAL REPORT ON REMUNERATION
CONTINUED
Performance targets and outcomes for the 2024 financial year were as follows:
GOV-3
PERFORMANCE NEEDED FOR PAY OUT AT
2024 ANNUAL
BONUS OUTCOME WEIGHTING %
THRESHOLD
(25% OF
MAXIMUM VESTS)
TARGET
(50% OF
MAXIMUM VESTS)
STRETCH
(100% OF MAXIMUM
VESTS)
PERFORMANCE
ACHIEVED
PROPORTION OF
ELEMENT 2024 %
Operational
Ilmenite production (tonnes) 16.0 950,000 1,000,000 1,050,000 1,008,900 59.0 9.44
Zircon (standard and special)
production (tonnes)
6.0 45,000 48,000 50,000 50,500 100.0 6.0
Other (tonnes) 3.0 45,000 48,000 50,000 55,900 100.0 3.0
Financial
EBITDA ($m) 10.0 133.0 148.00 163.00 157.1 80.0 8.0
Production cash costs ($m) 10.0 243.0 231.0 219.0 243.6 0.0 0.0
Average share price in December
2024 (including dividends paid in
2024)(£ per share)
5.0 4.11 4.31 4.50 3.60 0.0 0.0
Relative share price (Kenmare vs.
FTSE Small cap)
5.0 Below median Median Top Quartile Below median 0.0 0.0
Safe and
engaged
workforce
Lost Time Injury Frequency Rate
(LTIFR)
8.0 Implement all actions
on 2024 safety
management plan
LTIFR >20% reduction
relative to 3-yr rolling
average (0.09)
Measure improved
safety culture
through biennial staff
engagement survey
`
Threshold delivered.
`
Target exceeded with a 33% reduction in LTIFR (0.06 vs 0.09 3-yr rolling average).
`
Stretch not achieved.
75.0 6.0
Reducing malaria 2.0 10% reduction of
malaria cases per
200k hours worked
vs a 3-year rolling
average
Meeting threshold
plus target completion
of the vector control
study and resulting
action plan submitted
to Government for
approval
Action plan to
deliver at least one
new technique not
previously used in
malaria mitigation to
date that materially
reduces threat
`
Threshold achieved. 12-month rolling malaria incident rate is at 24.67 cases per 200k
hours.
`
Target partially achieved. Vector control study was completed in 2024. Resulting
action plan due to be submitted government in Q1 2025.
`
New technique implemented in malaria mitigation in 2024 was malaria vaccination.
Results outstanding.
50.0 1.0
A healthy,
natural
environment
Climate / Decarbonisation 5.0 Deliver 12% emissions
reduction by 2024
Meeting threshold
plus approval of
Climate Transition
Plan targets by Board
Meeting both
threshold and target
plus exceeding
emissions reduction
`
Stretch achieved. 15% emissions reduction achieved vs 2021 baseline. 100.0 5.00
Land use/rehabilitation 1.25 Slimes addition on
10ha
Slimes addition on
30ha
Slimes addition on
50ha
`
Target achieved 50.0 0.63
Land use/rehabilitation 1.25 190ha rehabilitated 198ha rehabilitated 203ha rehabilitated
`
Stretch exceeded. 207.3Ha rehabilitated. 100.0 1.25
Biodiversity 2.50 Establish external
monitoring committee
for Kenmare’s
Biodiversity Offset
Management Plan
(BOMP)
BOMP submitted by
July 2024
Legal application
for Icuria forest as
sustainable community
forest to the National
Administration for the
Conservation Areas
(ANAC) submitted by
end Q3 2024
`
Threshold achieved. External monitoring committee established.
`
Target partially achieved. BOMP was prepared and two public consultations took place, however, community
feedback on crop compensation meant BOMP requires third round of public consultation, which due to
elections and government availability is projected to happen in Q1 2025
`
Stretch partially achieved. The Icuria activities application was submitted to ANAC on 15 November 2024.
50.0 1.25
Thriving
communities
Micro-business to provide services
to Kenmare
5.0 Set up framework for
micro businesses to
provide services to
Kenmare
Meeting threshold
plus establish one
business to provide
services to Kenmare
Meeting threshold
and target plus
establish two business
to provide services to
Kenmare
`
Stretch achieved. Scrap dealer business established. Working to get external waste provider to safely cut
larger scrap to enable transportation to mitigate safety risks. Laundry business established in H1 2024; H2
scope agreed to expand to handle Kenmare personal protective equipment (PPE) and laundry of camp
bedding.
100.0 5.0
Project
execution
Development projects progress 15.0 Definitive Feasibility Study (DFS) for the move of Wet Concentrator
Plant (WCP)A to Nataka finalised and approved. All relevant phases of
the project on time and budget
WCP B upgrade project progressed to DFS stage
Other development projects progressed namely potential development
of the Congolone deposit
`
The Nataka DFS was approved, and all relevant phases have remained on schedule and on budget.
Some slight delays to the Tailings Storage Facility for reasons out of the Company’s control which can be
mitigated.
`
The WCP B upgrade project warranted further review on costs and some deferral on timing.
`
Congolone and other growth options continue to be under review.
80.0 12.0
Corporate,
leadership,
vision
and values
5.0 The Committee considers how each Executive performed in terms
of the Board’s expectations of his role, including: leadership, strategic
vision and planning, business development, succession planning and
alignment with the Company’s vision and values. Regard is also had to
the Executive’s part in the achievement of the Board objectives for the
year and in long-term value creation for the Company
The Committee also considers delivery of a number of specific
corporate initiatives.
`
In what was a very challenging year corporately (including the departure of the Managing Director, the
recruitment of his successor and then the recruitment of a new CFO) the Executives achieved all the goals
set by the committee which included a number of corporate initiatives.
100.0 5.0
Total
100.0 63.57
155
Kenmare Resources plc
Annual Report and Accounts 2024
GOVERNANCE
Vesting of the 2022 KRSP
awards
The KRSP awards granted on 5 April 2022 or, in
the case of Tom Hickey, 28 September 2022,
vest subject to continued employment and
an underpin based on the Remuneration
Committee’s judgement of Company and
individual performance over the three-year
vesting period. The underpin provides the
Committee with the ability to take a holistic
view of the Company’s performance over the
three-year period to ensure that the vesting
level is appropriate.
For the 2022 award, the underpin included
the following five core elements to be
considered as part of the assessment
(although the Committee may consider other
factors in addition to these):
`
Operational performance outcomes under
the annual bonus scorecard over the
three-year period
`
Share price performance since grant
`
ESG performance
`
Major strategic or project decisions and
return on investment
`
The long term strategic vision for the
Company
In advance of the awards vesting in April and
September 2025, the Committee conducted
an assessment of the underpin. The
Committee noted that the three-year Total
Shareholder Return (which takes account
of dividends) was – 8%. While disappointing,
the Committee noted however that this
performance placed the Company broadly
in the middle of the Company’s extractive
industry peer group and at the top end
against its mineral sand company peers.
As part of this assessment, the Committee
considered whether there had been a windfall
gain and concluded that there had not.
Ilmenite production missed target in the first
two years of the period but in 2024 exceeded
the midpoint of market guidance. Production
of our other products was consistently high
over the period. ESG performance was strong
throughout. Our key project over the three
year period, the move of WCP A to Nataka,
remained on track and, following an early
adjustment after the preliminary feasibility
study, remained on the adjusted budget.
Taking these factors into account, and
also considering various other matters
such as a number of successful corporate
initiatives, but noting that the renewal of
the Implementation Agreement missed
its originally expected renewal date, the
Committee has determined that a reduction
of 10% should be made to the vesting of the
awards.
Vesting of the 2021 KRSP
awards
The KRSP awards granted in April 2021
vested in April 2024 and were granted
subject to an underpin. Details of the
relevant underpin and the Committee’s
initial assessment of it were set out on page
125 of the 2023 Annual Report. That report
stated that, at that time, the Committee had
provisionally determined that a reduction
of 5% should be made to the awards.
The Committee’s final assessment of the
underpin at the time of vesting confirmed this
determination.
Total pension
entitlements
Pension provision for the Executive Directors
was made in 2024 based on 10% of base
salary, in line with the remuneration policy
and the contributions for the Kenmare
corporate staff. In lieu of his pension
contribution, Tom Hickey receives this
amount in cash. Fees paid to Non-Executive
Directors are not pensionable. No Director
has a prospective entitlement to a defined
benefit pension by reference to their service
as a Director.
Payments for loss of
office (audited)
Michael Carvill stepped down as Director of
the Company on 14 August 2024 but was
retained as a consultant to the Company until
30 April 2025 (see details below). Under the
agreement reached with Michael Carvill in
respect of his stepping down, the Company
agreed to pay to him (a) 12 months’ salary
(€653,272) in lieu of his 12-month notice
period; and (b) 12 months’ salary (€653,272)
as a payment on termination of his
employment in bona fide compromise of any
claims he may have against the Company.
It was also agreed that he would receive his
annual bonus in respect of 2023 and a pro-
rated bonus in respect of 2024, but that he
would not receive any KRSP award in 2024.
The Committee determined that Michael
Carvill would be treated as a “good leaver”
by reason of retirement in accordance with
the Directors’ remuneration policy and KRSP
rules and that all KRSP awards at the date of
termination continue in full until their vesting
date, except for his 2022 deferred bonus
award in respect of 10,771 shares which would
be accelerated to vest immediately upon his
stepping down as Managing Director rather
than on 5 April 2025 as originally scheduled.
As outlined earlier, the vesting outcome in
relation to the 2022 KRSP award is 90%,
equivalent to 98,063 shares for Michael
Carvill with a value of £0.3 million based on
the average share price over the final three
months of 2024 (£3.40). Details of Michael
Carvill’s outstanding share awards are set out
on page 157.
Payments to past
Directors (audited)
Terence Fitzpatrick stepped down as a
Director on 1 July 2018 but has remained
an employee of the Company. His salary is
for his services as an employee and not as
compensation for loss of office. During the
year, contributions of $34,747 (2023: $30,450)
were paid into his pension.
Michael Carvill stepped down as a Director
of the Company on 14 August 2024. Details
of the payments he received in respect of
his stepping down, and of his KRSP awards,
are set out in Payments for loss of office
(above). Michael Carvill was retained as
a consultant to the Company via Zephyr
Consulting Limited (a company controlled
by Michael Carvill) until 30 April 2025 to
provide services in respect of the renewal of
the Implementation Agreement (IA), WCP
A’s move to Nataka and other corporate
matters. Under the agreement entered into
in this regard, Zephyr Consulting Limited
was entitled to: (a) a fixed monthly fee of
€27,220; and (b) a completion fee of 100%
of the payments due to him in the calendar
year 2024 if the IA was renewed on or before
21 December 2024. During 2024, a total of
€122,490 was paid to Zephyr Consulting
Limited for the fixed monthly fee under this
consultancy arrangement. The completion
fee did not become payable.
Kenmare Resources plc
Annual Report and Accounts 2024
156
ANNUAL REPORT ON REMUNERATION
CONTINUED
Directors’ and Secretary’s shareholdings (audited)
The interests of the Secretary and Directors who held office during 2024, their spouses and minor children, in the ordinary share capital of the
Company, other than pursuant to share options or share awards, were as set out below:
SHARES HELD
4 APRIL
2025
SHARES HELD
31 DECEMBER
2024
2
SHARES HELD
1 JANUARY
2024
Issa Al Balushi – – –
Michael Carvill
1
604,753 604,753 505,975
Mette Dobel 2,500 2,500 2,500
Elaine Dorward-King 10,000 10,000 10,000
Clever Fonseca 5,170 5,170 970
Tom Hickey 47,000 47,000 47,000
Graham Martin 100,000 100,000 100,000
Deirdre Somers 3,940 3,940 3,940
Andrew Webb 10,000 10,000 –
Chelita Healy (Secretary) – – –
1
This holding includes 152,320 shares held by Rostrevor One Limited, a company controlled by Michael Carvill and 165,176 shares held by the Kenmare Resources plc Employee Benefit
Trust on his behalf under the terms of the KRSP.
2
Shares held by Michael Carvill are as at 14 August 2024, the date on which he stepped down from the Company.
Share awards scheme (audited)
NUMBER OF NIL‑COST OPTIONS
(EXCLUDING DIVIDEND EQUIVALENTS UNLESS STATED OTHERWISE)
NAME
SHARE
PLAN
AT 1 JAN
2024 AWARDED
VESTED
AND
EXERCISED
LAPSED OR
FORFEITED
AT 31 DEC
2024 DATE OF GRANT
EXERCISE
PERIOD
MARKET
PRICE AT
EXERCISE £
Michael Carvill KRSP 30,414 7,896
1
38,310 – – 15 March 2019 15/03/2024–
15/03/2028
3.26
3
KRSP 133,930 39,551
1
167,478 6,003
2
– 28 April 2021 28/04/2024–
28/04/2028
3.58
4
KRSP 108,959 – – – 108,959 5 April 2022 5/04/2025–
5/04/2029
KRSP 10,771 3,649
1, 5
14,420 5 April 2022 14/08/2024–
14/08/2025
KRSP 118,261 – – – 118,261 6 April 2023 6/04/2026–
6/04/2030
Totals 402,335 51,096 205,788 6,003 241,640
Tom Hickey
6
KRSP 91,829 – – – 91,829 28 September 2022 28/09/2025–
28/09/2029
KRSP 78,048 – – – 78,048 6 April 2023 6/04/2026–
6/04/2030
KRSP 117,013 – – 117,013 28 March 2024 28/03/2027-
28/03/2031
Totals 169,877 117,013 – – 286,890
Chelita Healy KRSP 2,158 665
1
– – 2,823 28 April 2021 28/04/2024–
28/04/2028
KRSP 4,696 – – – 4,696 5 April 2022 5/04/2025–
5/04/2029
KRSP 5,192 – – – 5,192 6 April 2023 6/04/2026–
6/04/2030
– 8,231 – – 8,231 28 March 2024 28/03/2027-
28/03/2031
Totals 12,046 8,896 – – 20,942
1
Dividend equivalent entitlements relating to share awards vesting.
2
2021 award reduced by the Remuneration Committee by 5% on application of the discretionary underpin. See page 156.
3
Date of exercise was 25 March 2024.
4
Date of exercise was 21 May 2024.
5
This deferred bonus award vested on 31 August 2024. The Exercise period of six months was extended as the award was not capable of exercise during that period for regulatory
reasons.
6
On 2 April 2025, Tom Hickey received a “top up” award in respect of the difference between his Financial Director and Managing Director’s salary for 2024. For regulatory reasons, the
Company was not in a position to grant this award before 31 December 2024.
157
Kenmare Resources plc
Annual Report and Accounts 2024
GOVERNANCE
The aggregate gain on awards that were
exercised during the year for Executive
Directors was $0.9 million (2023: $1.4 million).
The Executive Directors’ KRSP awards
vest on the third anniversary of grant date,
subject to continued employment and to
the Remuneration Committee’s assessment
against a discretionary underpin. The vested
KRSP awards are subject to a two-year
holding period, which may extend beyond an
Executive Director’s cessation of employment
in accordance with the post-employment
holding requirements of the remuneration
policy.
The 2024 award for Tom Hickey represents
100% of base salary based on a share price
of £3.16, being the average closing price
of the Company’s shares during the five
trading days following announcement of
the Company’s preliminary results for 2023.
The value of this award totalled £0.4 million.
Michael Carvill, the former Managing Director,
did not receive a KRSP award in 2024.
In the case of Chelita Healy, the above KRSP
awards vest on the third anniversary of grant
date, subject to continued employment.
Non-Executive Directors do not receive
awards under share plans.
Executive Directors’
shareholding requirement
In accordance with the current remuneration
policy, Executive Directors are required to
build up shareholdings equal to 250% of their
respective salaries. This requirement can
be met both by shareholdings held by the
Executive Directors (directly or indirectly)
and, on a net of tax basis, by unvested share
awards that are not subject to performance
or underpin conditions. As of 14 August 2024,
when he stepped down from the Company,
Michael Carvill’s shareholding represented
390% of his salary. As of 31 December 2024,
the shareholding of Tom Hickey represented
37% of his salary.
Performance graph and
table
The value at 31 December 2024 of $100
invested in the Group in 2014, compared
with the value of $100 invested in the FTSE
All-Share Industrial Metals and Mining Index,
as this is a relevant sector index of which
Kenmare is a constituent, is shown in the
graph below.
Value at 31 December 2024 of $100 investment at 31 December 2014
2013 2014 2015 2016 2017 2018 2019 2020 20222021 2023
Kenmare Resources plcFTSE All-Share Industrial Metals and Mining Index
2024
0
100
200
300
400
500
600
700
800
900
1000
1100
The statutory chart above includes a period prior to the capital raise in 2016. The share price declined significantly during this period due to
a number of factors, including challenging commodity markets. However, Kenmare’s share price performance since the 2016 capital raise has
improved (with the share price as at 31 December 2024 being £3.18, which was 37% above the 2016 capital raise price of £2.32). Note the FTSE All
Share General Mining Index used in prior years is no longer available and so the FTSE All-Share Industrial Metals and Mining Index has been used
in the above chart.
Kenmare Resources plc
Annual Report and Accounts 2024
158
ANNUAL REPORT ON REMUNERATION
CONTINUED
The remuneration paid to the Managing Director in the past 10 years is set out below:
SINGLE FIGURE OF TOTAL
REMUNERATION $’000
BONUS PAY‑OUT
(AS % MAXIMUM
OPPORTUNITY)
LONG‑TERM INCENTIVE
VESTING RATES
(AS % MAXIMUM
OPPORTUNITY)
2024 Tom Hickey 1,282 64% 90%
2024 Michael Carvill 2,636 64% 90%
2023 Michael Carvill 1,550 38% 95%
2022 Michael Carvill 1,760 48% 95%
2021 Michael Carvill 1,135 60% N/A
2020 Michael Carvill 1,070 62% N/A
2019 Michael Carvill 1,444 47% 25%
2018 Michael Carvill 1,652 58% 83.3%
2017 Michael Carvill 1,528 59% –
2016 Michael Carvill 1,340 66%
1
N/A
2015 Michael Carvill 744 22%
1
N/A
1
Amount shown reflects the cash and deferred share award under the Kenmare Incentive Plan (KIP), part of which was conditional on long-term performance.
Percentage change in remuneration and Company performance
ANNUAL CHANGE
2024
%
2023
%
2022
%
Directors’ remuneration
Executive Directors
Tom Hickey, Managing Director/Financial Director 91% 287% N/A
Michael Carvill, former Managing Director 70% -9% 55%
Non-Executive Directors
1
Issa Al Balushi 12% N/A N/A
Mette Dobel 11% 25% N/A
Elaine Dorward-King 5% 10% 11%
Clever Fonseca 5% 10% 1%
Graham Martin 5% 3% 13%
Deirdre Somers 5% 10% 9%
Andrew Webb 5% 53% 2,483%
Group performance
Net profit (50%) (36%) 60%
Employee average remuneration on a full-time equivalent basis
Employees of Kenmare Resources plc 6% 10% 8%
1
The underlying currency of the fees is Euros.
Relative importance of spend on pay
ANNUAL CHANGE
2024
$’000
2023
$’000 CHANGE
Overall spend on pay including Directors 69,364 59,098 17%
Profit distributed by way of dividends and share buy backs 48,118 86,574 (44%)
Group cash operating costs 243,600 228,100 7%
Average employee numbers throughout the Group increased from 1,687 in 2023 to 1,761 in 2024.
Group cash operating costs have been included in the table in order to give a context to spend on pay relative to the overall cash operating costs.
159
Kenmare Resources plc
Annual Report and Accounts 2024
GOVERNANCE
Statement of implementation of policy in 2024 (audited)
Base salary
Tom Hickey’s base salary for 2025 will not change as it was agreed in August 2024 and will, therefore, remain at €575,000.
EXECUTIVE DIRECTOR
2025
$’000
2024
$’000 % CHANGE
Tom Hickey 597 454 31
The underlying currency of Tom Hickey’s base salary is Euro. The US Dollar figures shown above for 2025 have been calculated using the average
2024 Euro to US Dollar exchange rate. The final US Dollar figure for 2025 will vary depending on exchange rate movements.
Annual bonus
The incentive opportunity for the Executive Director under the incentive scheme for 2025 will be as follows:
EXECUTIVE DIRECTOR
ON‑TARGET
INCENTIVE
(% OF SALARY)
MAXIMUM
INCENTIVE
(% OF SALARY)
Tom Hickey 50 100
The performance metrics for 2025 annual bonuses and their associated weightings are as follows:
AREA MEASURE WEIGHT
Operational Ilmenite, zircon, rutile and concentrates production volumes 25%
Financial EBITDA/Total cash operating costs/Total Shareholder Return (TSR) 30%
ESG Safe and engaged workforce
A healthy, natural environment
Thriving communities
25%
Strategic and project execution 15%
Corporate 5%
The targets have not been disclosed due to commercial sensitivity but will be disclosed in the 2025 Annual Report on remuneration. The
performance metrics as set out above seek to deliver ongoing progress in relation to operational performance, cost efficiency, ESG and strategic
corporate objectives. The performance targets associated with the quantitative measures are in line with guidance issued in January 2025.
Kenmare Resources plc Restricted Share Plan
On 2 April 2025 Tom Hickey was granted a KRSP award in respect of 34,405 Ordinary Shares to reflect his higher salary as Managing Director in
2024 and was calculated at a share price of £3.48 being the average closing share price for five trading days after his appointment. The value of
this award is £0.1 million.
On 2 April 2025, the Executive Director received a KRSP award for 2025 in respect of 100% of his base salary. In addition to the assessment of the
appropriate award level prior to grant, the Remuneration Committee will also undertake a discretionary underpin performance assessment prior to
vesting in 2028.
Statement of voting at the AGM
The table below shows the outcome of the advisory vote on the Directors’ Remuneration report at the 2024 AGM and the Directors’ remuneration
policy at the 2023 AGM.
ITEM
VOTES
FOR %
VOTES
AGAINST %
VOTES
WITHHELD
Advisory vote on 2023 Directors’ Remuneration report (2024 AGM) 45,963,610 99.34 304,683 0.66 429
Advisory vote on Directors’ remuneration policy (2023 AGM) 71,307,730 97.07 2,148,927 2.93 252,639
This report was approved by the Board of Directors and signed on its behalf by:
GRAHAM MARTIN
Chair of the Remuneration Committee
13 April 2025
Kenmare Resources plc
Annual Report and Accounts 2024
160
ANNUAL REPORT ON REMUNERATION
CONTINUED
The Directors present their report below
and the audited financial statements for the
financial year ended 31 December 2024.
Principal activities
The principal activity of Kenmare Resources
plc and its subsidiary undertakings is
the operation and further development
of the Moma Titanium Minerals Mine in
Mozambique.
Strategic report
The Strategic report, including a financial and
risk review and a review of the likely future
developments of the Group, is set out on
pages 4 to 113.
Statement of results
and key performance
indicators
The consolidated statement of
comprehensive income for the year ended
31 December 2024 is set out on page 175.
The financial review on pages 34 to 37
contains a detailed business review, including
an analysis of the key performance indicators
used to measure the Group’s performance
and is incorporated by reference.
Dividends
In May 2024, the Company paid a final 2023
dividend of USc38.54 per ordinary share
(2022: USc43.33), totalling $34.7 million.
In October 2024, the Company paid a
2024 interim dividend of USc15.0 (H1
2023: USc17.5) per ordinary share, totalling
$13.4 million. The Board is recommending
a final 2024 dividend of USc17.0 (2023:
USc38.54) per share. This would give a
total dividend in respect of 2024 of USc32.0
(2023: USc56.04) per share. It is proposed
to pay the final dividend on 30 May 2025
to shareholders registered at the close of
business on 9 May 2025.
Directors and Company
Secretary
The names of the Directors and Company
Secretary who held office during 2024, and
a biographical note on each, appear on
pages 118 and 119. In accordance with the UK
Corporate Governance Code, all Directors
submit to re-election at each Annual General
Meeting (AGM).
Directors’ and Company
Secretary’s shareholdings
and share awards
The interests of the Directors and Secretary
of the Company, their spouses, and minor
children in the ordinary share capital of the
Company, and details of the share awards
granted to them in accordance with the rules
of the Kenmare Resources plc Restricted
Share Plan (KRSP), are detailed in the Annual
report on remuneration on page 157.
Share option and share
award schemes
At 31 December 2024, there were options in
respect of 2,659,027 Ordinary Shares in issue.
These are nil-cost options to subscribe for
Ordinary Shares and were granted pursuant
to the KRSP. There were no outstanding
interests under any previous share award
schemes.
Share capital
The Company’s authorised share capital
consists of 181,000,000 ordinary shares of
€0.001 each (ordinary shares). The Ordinary
Shares rank equally in all respects and carry
no special rights. They carry voting and
dividend rights. There are no restrictions
on the transfer of the Company’s shares or
voting rights and the Company has not been
notified of any agreements between holders
of securities in this regard.
At the AGM held on 10 May 2024:
`
the Company was granted an authority to
make market purchases, within a set price
range, of up to 10% of its own shares;
`
the Directors were given the authority
by shareholders to allot shares up to
an aggregate nominal amount equal to
€29,742; and
`
the Directors were empowered to allot
shares and other equity securities for
cash without first offering them to existing
shareholders in proportion to their
holdings, up to an aggregate nominal
value equal to the nominal value of 5% of
the issued share capital on that date.
None of the above authorities have been
exercised and they will expire at the
conclusion of this year’s AGM, at which
shareholders will be asked to grant new
authorities to the Company and the Directors.
The Company did not issue, hold, purchase,
sell or cancel any Ordinary Shares during
2024 and no member of the Group held any
Ordinary Shares during 2024.
161
Kenmare Resources plc
Annual Report and Accounts 2024
GOVERNANCE
DIRECTORS’ REPORT
Substantial interests
As at 4 April 2025 and 31 December 2024, the Company had received notification of the interests outlined in the table below in its ordinary share
capital, equal to, or in excess of, 3%:
AS AT 4 APRIL 2025 AS AT 31 DECEMBER 2024
HOLDING/
VOTING
RIGHTS
% OF ISSUED
SHARE
CAPITAL
HOLDING/
VOTING
RIGHTS
% OF ISSUED
SHARE
CAPITAL
African Acquisition S.à.r.l. 15,257,583 17.1% 15,257,583 17.1%
M&G Plc 12,487,098 14.0% 12,489,815 14.0%
JO Hambro Capital Management Limited 7,414,349 8.3% 6,296,674 7.1%
Aberforth Partners LLP 5,201,040 5.8% 4,955,440 5.6%
Aegis Financial Corporation 5,085,677 5.7% 3,578,594 4.0%
FIL Limited 3,785,315 4.2% 5,284,014 5.9%
Pageant Investments Ltd 3,566,000 4.0% 2,926,000 3.3%
Premier Miton Group Plc 3,240,014 3.6% 3,557,580 4.0%
Principal risks and
uncertainties
Under Section 327 of the Companies Act
2014, the Directors are required to give
a description of the principal risks and
uncertainties facing the Group. These
principal risks and uncertainties are set out
on pages 102 to 111.
Risk exposure
The exposure of the Group to credit, liquidity,
market, currency and cash flow risk is
detailed in Note 24. Capital management is
detailed in Note 25.
Viability statement
In line with Provision 31 of the UK Corporate
Governance Code, the Directors have
prepared a viability statement in respect of
the financial year ended 31 December 2024,
which is set out on page 112.
Going concern
The Directors have evaluated the
appropriateness of the going concern basis
in preparing the 2024 Consolidated Financial
Statements for a period of at least 12 months
from the date of approval of these financial
statements (the “period of assessment”). The
evaluation is based on the Group’s cash flow
forecast (“the Group Forecast”).
The Group’s business activities, together
with the factors likely to affect its future
development, performance and position are
set out in the Strategic Report on pages 4
to 113. The financial position of the Group, its
cash flows, liquidity and borrowing position are
described in the Financial review on pages 34 to
37. Note 25 to the financial statements includes
the Group’s policy for managing its capital.
The Group Forecast has been prepared
by management with best estimates of
production, pricing and cost assumptions
over the period of assessment.
The Group recognises the principal risks,
which can impact on the outcome of the
Group Forecast and have, therefore, applied
sensitivity analyses to the assumptions to
test the robustness of the cash flow forecast
for changes in market prices, shipments,
operating and capital cost assumptions.
Changes in these assumptions affect the
level of sales and profitability of the Group
and the amount of capital required to deliver
the projected production levels. In each of
these sensitivities, the Group is in compliance
with debt covenants and maintains liquidity,
although at lower levels.
Having assessed the principal risks facing
the Group, together with the Group’s cash
flow forecast, the Directors have a reasonable
expectation that the Group has adequate
resources for the foreseeable future and can
continue to adopt the going concern basis of
accounting in preparing the annual financial
statements.
Statutory compliance
statement
The Directors acknowledge that they are
responsible for securing the Company’s
compliance with the Company’s “relevant
obligations” within the meaning of Section
225 of the Companies Act 2014 (described
below as “Relevant Obligations”).
The Directors confirm that they have:
a. drawn up a compliance policy statement
setting out the Company’s policies
(that are, in the opinion of the Directors,
appropriate to the Company) in respect
of the Company’s compliance with its
Relevant Obligations;
b. put in place appropriate arrangements
or structures that, in the opinion of the
Directors, provide a reasonable assurance
of compliance in all material respects with
the Company’s Relevant Obligations; and
c. during the financial year to which this
report relates, conducted a review of
the arrangements or structures that the
Directors have put in place to ensure
material compliance with the Company’s
Relevant Obligations.
Takeover directive
In the event of a change in control of the
Company, the Project Companies or any
other subsidiary that is a borrower under
the Revolving Credit Facility, such facility is
automatically cancelled and all outstanding
amounts, together with accrued interest,
become immediately due and payable upon
completion of the relevant transaction.
Under both KMML’s Mineral Licensing
Contract with the Mozambican government
and KMPL’s Implementation Agreement
with the Mozambican government, the prior
written approval of the government (not to
be unreasonably withheld) is required for
any transfer of a majority or other controlling
interest in KMML or KMPL.
The KRSP contains change of control
provisions that provide for accelerated
crystallisation of awards and vesting of shares
Kenmare Resources plc
Annual Report and Accounts 2024
162
DIRECTORS’ REPORT
CONTINUED
(including by way of exercise of nil-paid
options) in the event of a change of control of
the Company, in such proportions as may be
decided by the Board, at its discretion. Where
there is a change of control of the Company
(meaning the acquisition by a person or
persons of more than 50% of the voting rights
of the Company) before 15 February 2026,
the Managing Director’s employment may
only be terminated by the Company at 12
months’ notice (or payment in lieu thereof).
Save for this, there are no agreements
between the Company and its Directors
or employees providing for predetermined
compensation for loss of office or
employment that would occur in the event
of a bid for the Company, save that certain
employees, not being Directors, have service
contracts that either provide for extended
notice periods and/or fixed payments on
termination following a change in control of
the Company.
Corporate Governance
Statement
For the purpose of Section 1373 of the
Companies Act 2014, the Directors have
prepared a Corporate Governance Statement
in respect of the financial year ended
31 December 2024, which is set out on pages
122 to 135.
Non-financial reporting statement
In compliance with the European Union (Disclosure of Non-Financial and Diversity Information by certain large undertakings and groups)
Regulations 2017, the table below sets out the relevant sections in this Annual Report to understand the Group’s approach to these
non-financial matters.
REPORTING
REQUIREMENTS PAGE REFERENCE
KENMARE’S
POLICIES RISK ASSESSMENT
Environmental matters Pages 50 to 73
`
Environmental Environmental risk is included in the risk entitled “Health, Safety and
Environment described in the “Principal risks and uncertainties” section
on page 108.
Social and employee
matters
Pages 74 to 76
Page 89
Page 89
Page 74
Pages 48 to 49
`
Health
and safety
`
Whistleblowing
procedure
`
Conflicts of
interest
`
Employment
`
Stakeholder
engagement
Health and safety risk is included in the risk entitled “Health, Safety
and Environment” described in the “Principal risks and uncertainties”
section on page 108. Community engagement and investment is
relevant to the risk entitled “Permitting, licensing and government
agreement risk”, described in the “Principal risks and uncertainties”
section on page 104. Otherwise, although the risks associated with
social and employee matters are actively monitored, the Group does
not believe these risks meet the threshold of a principal risk for the
business.
Human rights Pages 74 to 75 , 82
Pages 78 to 79
`
Human rights
`
Freedom of
association
Although the risks associated with human rights abuses are actively
monitored, the Group does not believe these risks meet the threshold
of a principal risk for the business.
Anti-bribery and
corruption
Page 90
Page 89
`
Anti-bribery
`
Business ethics
Although the risks associated with bribery and corruption are actively
monitored, the Group does not believe these risks meet the threshold
of a principal risk for the business.
Description of business
model
Pages 12 to 13
Non-financial key
performance indicators
Included in KPIs on page 24 and the
Sustainability report on pages 42 to 43
163
Kenmare Resources plc
Annual Report and Accounts 2024
GOVERNANCE
Diversity and inclusion
The Diversity and Inclusivity report is
within the Nomination Committee report on
page 137.
Sustainability reporting
The information in relation to intangible
resources, which is required by section 1589
of the Companies Act 2014 to be disclosed
herein, is set out on pages 12 and13.
An index showing the location of the
information required to be disclosed herein
by section 1596 (1) to (11) of the Companies
Act 2014 is set out on pages 93 to 98.
Taxonomy Regulation
For the purposes of the EU Taxonomy
Climate Delegated Act, the Directors have
prepared a taxonomy disclosure in respect of
the financial year ended 31 December 2024,
which is set out on page 60.
Other
Audit & Risk Committee
An Audit & Risk Committee is in place.
See pages 142 to 147 for the Audit & Risk
Committee report for the financial year under
review.
Rules regarding Directors, etc.
Details of the rules relating to the
appointment or removal of Directors,
amendment of the Articles of Association
and the powers of Directors are set out in the
Corporate Governance report.
Subsidiary undertakings and
branches
The subsidiary undertakings of the Company
at 31 December 2024 are outlined in Note 4
to the Company financial statements. Each
of the subsidiary undertakings Kenmare
Moma Mining (Mauritius) Limited, Kenmare
Moma Processing (Mauritius) Limited and
Mozambique Minerals Limited operates
a branch in Mozambique. In addition, the
Company established and maintains a branch
in the UK, registered at Companies House.
Political donations
There were no political donations made
during 2024 that require disclosure under the
Electoral Act 1997 (as amended).
UK Listing Rule 6.6.1
No information is required to be disclosed in
respect of Listing Rule 6.6.1.
Auditor
KPMG Ireland, a global chartered accounting
firm, was first appointed statutory auditor
on 14 May 2019 and has been reappointed
annually since that date and pursuant
to Section 383(2), of the Companies Act
2014 will continue in office. The financial
statements on page 175 to 223 have been
audited by KPMG Ireland .
Disclosure of information
to the statutory auditor
In accordance with the provisions of Section
330 of the Companies Act 2014, each of the
persons who are Directors of the Company
at the date of approval of this report
confirms that:
`
So far as each Director is aware, there is
no relevant audit information (as defined
in the Companies Act 2014) of which the
statutory auditor is unaware; and
`
Each Director has taken all the steps that
they ought to have taken as a Director to
make themself aware of any relevant audit
information (as defined) and to ensure
that the statutory auditors are aware of
such information.
Accounting records
The Directors have employed appropriately
qualified accounting personnel and have
maintained appropriate accounting systems
to ensure that proper accounting records are
kept in accordance with Sections 281 to 285
of the Companies Act 2014. The books of
account are kept at the Company’s office at
4th Floor, Styne House, Hatch Street Upper,
Dublin 2, Ireland.
Events since the financial
year end
Details of events since the financial year-end
are set out in Note 30 to the consolidated
financial statements.
Notice of Annual General
Meeting and special
business
Notice of the Annual General Meeting,
together with details of special business to
be considered at the meeting, is set out in a
separate circular to be sent to shareholders
and will also be available on the Group’s
website, www.kenmareresources.com
Cross-references
All information cross-referenced in this report
forms part of the Directors’ report.
On behalf of the Board:
A. WEBB
Director
13 April 2025
T. HICKEY
Director
13 April 2025
Read more about
cash flows
on page 36
Kenmare Resources plc
Annual Report and Accounts 2024
164
DIRECTORS’ REPORT
CONTINUED
GOVERNANCE
165
Kenmare Resources plc
Annual Report and Accounts 2024
“I see our purpose of 'Transforming
resources into opportunity for all' in a
broader way. Kenmare is transforming not
only Moma’s Mineral Resources but also the
people and community in order to create
those opportunities. Those opportunities
could be a new job, professional
development, funding through KMAD to
start a small business in the community,
community development through building
new infrastructure, educational scholarships,
a business partnership and many more.”
CURATE GORDANDAS
Senior Metallurgist acting as a Superintendent
Kenmare Resources plc
Annual Report and Accounts 2024
166
GROUP
FINANCIAL
STATEMENTS
`
Statement of Directors’ responsibilities 168
`
Independent auditor’s report 169
`
Consolidated statement of
comprehensive income
175
`
Consolidated statement of
financial position
176
`
Consolidated statement of
changes in equity
177
`
Consolidated statement of cash flows 178
`
Notes to the consolidated financial
statements
179
Group financial statements
CONTENTS
167
Kenmare Resources plc
Annual Report and Accounts 2024
FINANCIALS
The Directors are responsible for preparing
the Annual Report and the Group and Parent
company financial statements, in accordance
with applicable law and regulations.
Company law requires the Directors to
prepare Group and Parent company financial
statements for each financial year. Under
that law, the Directors are required to
prepare the Group financial statements in
accordance with IFRS as adopted by the
European Union and applicable law including
Article 4 of the IAS Regulation. The Directors
have elected to prepare the Parent company
financial statements in accordance with
Financial Reporting Standard 101 Reduced
Disclosure Framework (‘FRS 101’) and the
Companies Act 2014.
Under company law the Directors must not
approve the Group and Parent company
financial statements unless they are satisfied
that they give a true and fair view of the
assets, liabilities and financial position of
the Group and Parent company and of
the Group’s profit or loss for that year. In
preparing each of the Group and Parent
company financial statements, the Directors
are required to:
`
select suitable accounting policies and
then apply them consistently;
`
make judgements and estimates that are
reasonable and prudent;
`
state whether applicable Accounting
Standards have been followed, subject
to any material departures disclosed and
explained in the financial statements;
`
assess the Group and Parent company’s
ability to continue as a going concern,
disclosing, as applicable, matters related
to going concern; and
`
Use the going concern basis of
accounting unless they either intend to
liquidate the Group or Parent company or
to cease operations, or have no realistic
alternative but to do so.
The Directors are also required by the
Transparency (Directive 2004/109/EC)
Regulations 2007 and the Transparency
Rules of the Central Bank of Ireland to
include a management report containing a
fair review of the business and a description
of the principal risks and uncertainties facing
the Group.
The Directors are responsible for keeping
adequate accounting records that disclose
with reasonable accuracy at any time
the assets, liabilities, financial position,
and profit or loss of the Group and which
enable them to ensure that the financial
statements comply with the provision of
the Companies Act 2014. The Directors are
also responsible for taking all reasonable
steps to ensure such records are kept
by its subsidiaries, which enable them to
ensure that the financial statements of the
Group comply with the provisions of the
Companies Act 2014, including Article 4 of
the IAS Regulation. They are responsible
for such internal controls as they determine
is necessary to enable the preparation
of financial statements that are free from
material misstatement, whether due to fraud
or error, and have general responsibility
for safeguarding the assets of the Group,
and, hence, for taking reasonable steps for
the prevention and detection of fraud and
other irregularities. The Directors are also
responsible for preparing a Directors’ report
that complies with the requirements of the
Companies Act 2014.
The Directors are responsible for the
maintenance and integrity of the corporate
and financial information included on the
Group’s and Company’s website. Legislation
in the Republic of Ireland concerning the
preparation and dissemination of financial
statements may differ from legislation in
other jurisdictions.
Responsibility statement as required
by the transparency directive and UK
corporate governance code:
Each of the Directors, whose names and
functions are listed on pages 118 and 119 of
this Annual Report, confirm that, to the best
of each person’s knowledge and belief:
`
the Group financial statements, prepared
in accordance with IFRS as adopted by
the European Union and the Company
financial statements prepared in
accordance with Financial Reporting
Standard 101 Reduced Disclosure
Framework (‘FRS 101’) and the Companies
Act 2014, give a true and fair view of the
assets, liabilities, and financial position
of the Group and Parent company at
31 December 2024 and of the profit of the
Group for the year then ended;
`
the Directors’ report contained in the
Annual Report includes a fair review
of the development and performance
of the business and the position of the
Group and Parent company, together
with a description of the principal risk and
uncertainties that they face; and
`
the Annual Report and financial
statements, taken as a whole, provides
the information necessary to assess
the Group’s performance, business
model and strategy, and is fair, balanced
and understandable, and provides the
information necessary for shareholders
to assess the Parent Company’s position
and performance, business model and
strategy.
On behalf of the Board:
A. WEBB
Director
13 April 2025
T. HICKEY
Director
13 April 2025
Kenmare Resources plc
Annual Report and Accounts 2024
168
STATEMENT OF DIRECTORS’ RESPONSIBILITIES
IN RESPECT OF THE ANNUAL REPORT AND THE FINANCIAL STATEMENTS
Report on the audit of the financial statements Opinion
Opinion
We have audited the financial statements of
Kenmare Resources PLC (‘the Company’)
and its consolidated undertakings
(‘the Group’) for the year ended
31 December 2024 set out on pages 175 to
223, contained within the reporting package
635400ETHWP1EKJMDO16-2024-12-31-
0-en.zip, which comprise the Consolidated
Statement of Comprehensive Income,
Consolidated Statement of Financial Position
Consolidated Statement of changes in Equity,
Consolidated Statement of Cash Flows,
Parent Company Statement of Financial
Position, Parent Company Statement
of Changes in Equity and related notes,
including the material accounting policies set
out in note 1.
The financial reporting framework that has
been applied in the preparation of the Group
financial statements is Irish Law, including
the Commission Delegated Regulation
2019/815 regarding the single electronic
reporting format (ESEF) and International
Financial Reporting Standards (IFRS) as
adopted by the European Union and, as
regards the Company financial statements,
Irish Law and FRS 101 Reduced Disclosure
Framework issued in the United Kingdom by
the Financial Reporting Council.
In our opinion:
`
the financial statements give a true
and fair view of the assets, liabilities
and financial position of the Group and
Company as at 31 December 2024 and of
the Group’s profit for the year then ended;
`
the Group financial statements have been
properly prepared in accordance with
IFRS as adopted by the European Union;
`
the Company financial statements have
been properly prepared in accordance
with FRS 101 Reduced Disclosure
Framework issued by the UK’s Financial
Reporting Council; and
`
the Group and Company financial
statements have been properly prepared
in accordance with the requirements of
the Companies Act 2014 and, as regards
the Group financial statements, Article 4
of the IAS Regulation.
Basis for opinion
We conducted our audit in accordance
with International Standards on Auditing
(Ireland) (ISAs (Ireland)) and applicable law.
Our responsibilities under those standards
are further described in the Auditor’s
Responsibilities section of our report. We
believe that the audit evidence we have
obtained is a sufficient and appropriate
basis for our opinion. Our audit opinion
is consistent with our report to the audit
committee.
We were appointed as auditor by the
directors on 17 July 2019. The period of
total uninterrupted engagement is the 6
years ended 31 December 2024. We have
fulfilled our ethical responsibilities under,
and we remained independent of the Group
in accordance with, ethical requirements
applicable in Ireland, including the Ethical
Standard issued by the Irish Auditing and
Accounting Supervisory Authority (IAASA)
as applied to public interest entities. No non-
audit services prohibited by that standard
were provided.
Conclusions relating to going
concern
In auditing the financial statements, we have
concluded that the director’s use of the
going concern basis of accounting in the
preparation of the financial statements is
appropriate. Our evaluation of the director’s
assessment of the Group’s and Company’s
ability to continue to adopt the going
concern basis of accounting included:
We evaluated the directors’ assessment of
the entity’s ability to continue to adopt the
going concern basis of accounting. In our
evaluation of the Directors’ conclusions, we
considered the inherent risks to the Group’s
and Company’s business model and analysed
how those risks might affect the Group’s and
Company’s financial resources or ability to
continue operations over the going concern
period. There were no risks identified that
we considered were likely to have a material
adverse effect on the Group’s and Company’s
available financial resources over this period
Based on the work we have performed,
we have not identified any material
uncertainties relating to events or conditions
that, individually or collectively, may cast
significant doubt on the Group or the
Company’s ability to continue as a going
concern for a period of at least twelve
months from the date when the financial
statements are authorised for issue.
Our responsibilities and the responsibilities of
the directors with respect to going concern are
described in the relevant sections of this report.
In relation to the Group and the Company’s
reporting on how they have applied the UK
Corporate Governance Code and the Irish
Corporate Governance Annex , we have
nothing material to add or draw attention
to in relation to the directors’ statement in
the financial statements about whether the
directors considered it appropriate to adopt
the going concern basis of accounting.
Detecting irregularities including
fraud
We identified the areas of laws and
regulations that could reasonably be
expected to have a material effect on the
financial statements and risks of material
misstatement due to fraud, using our
understanding of the entity’s industry,
regulatory environment and other external
factors and inquiry with the directors. In
addition, our risk assessment procedures
included:
`
Inquiring with the directors and
management as to the Group’s policies
and procedures regarding compliance
with laws and regulations, identifying,
evaluating and accounting for litigation
and claims, as well as whether they
have knowledge of non-compliance or
instances of litigation or claims.
`
Inquiring of directors, the audit and risk
committee, internal audit, management
and inspection of policy documentation
as to the Group’s policies and procedures
to prevent and detect fraud, including the
internal audit function, and the Group’s
channel for “whistleblowing”, as well as
whether they have knowledge of any
actual, suspected or alleged fraud.
`
Inquiring of directors, regarding their
assessment of the risk that the financial
statements may be materially misstated
due to irregularities, including fraud.
`
Inspecting the Group’s regulatory and
legal correspondence.
`
Reading Board and audit and risk
committee minutes.
`
Considering remuneration incentive
schemes and performance targets for
management and directors.
`
Performing planning analytical
procedures to identify any usual or
unexpected relationships.
169
Kenmare Resources plc
Annual Report and Accounts 2024
FINANCIALS
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF KENMARE RESOURCES PLC
We discussed identified laws and regulations,
fraud risk factors and the need to remain
alert among the audit team. This included
communication from the group to full scope
component audit teams of relevant laws and
regulations and any fraud risks identified
at the Group level and request to full scope
component audit teams to report to the
Group audit team any instances of fraud that
could give rise to a material misstatement at
group.
Firstly, the Group is subject to laws and
regulations that directly affect the financial
statements including companies and
financial reporting legislation, taxation
legislation, distributable profits legislation.
We assessed the extent of compliance
with these laws and regulations as part
of our procedures on the related financial
statement items, including assessing the
financial statement disclosures and agreeing
them to supporting documentation when
necessary.
Secondly, the Group is subject to many
other laws and regulations where the
consequences of non-compliance could have
a material effect on amounts or disclosures
in the financial statements, for instance
through the imposition of fines or litigation
or the loss of the Group’s licence to operate.
We identified the following areas as those
most likely to have such an effect: health
and safety, anti-bribery, employment law,
environmental law, regulatory capital and
liquidity and certain aspects of company
legislation recognising the financial and
regulated nature of the Group’s activities and
its legal form.
Auditing standards limit the required audit
procedures to identify non-compliance with
these non-direct laws and regulations to
inquiry of the directors and management
and inspection of regulatory and legal
correspondence, if any. These limited
procedures did not identify actual or
suspected non-compliance.
We assessed events or conditions that could
indicate an incentive or pressure to commit
fraud or provide an opportunity to commit
fraud. As required by auditing standards, we
performed procedures to address the risk
of management override of controls and the
risk of fraudulent revenue recognition.
In response to the fraud risks, we also
performed procedures including:
`
Identifying journal entries and other
adjustments to test for all full scope
components based on risk criteria and
comparing the identified entries to
supporting documentation.
`
Evaluating the business purpose of
significant unusual transactions
`
Assessing significant accounting
estimates for bias
`
Assessing the disclosures in the financial
statements
As the Group is regulated, our assessment
of risks involved obtaining an understanding
of the legal and regulatory framework
that the Group operates and gaining an
understanding of the control environment
including the entity’s procedures for
complying with regulatory requirements.
Owing to the inherent limitations of an
audit, there is an unavoidable risk that
we may not have detected some material
misstatements in the financial statements,
even though we have properly planned and
performed our audit in accordance with
auditing standards. For example, the further
removed non-compliance with laws and
regulations (irregularities) is from the events
and transactions reflected in the financial
statements, the less likely the inherently
limited procedures required by auditing
standards would identify it.
In addition, as with any audit, there remains a
higher risk of non-detection of irregularities,
as these may involve collusion, forgery,
intentional omissions, misrepresentations, or
the override of internal controls. We are not
responsible for preventing non-compliance
and cannot be expected to detect non-
compliance with all laws and regulations.
Key audit matters: our
assessment of risks of material
misstatement
Key audit matters are those matters that, in
our professional judgement, were of most
significance in the audit of the financial
statements and include the most significant
assessed risks of material misstatement
(whether or not due to fraud) identified by us,
including those which had the greatest effect
on: the overall audit strategy; the allocation
of resources in the audit; and directing the
efforts of the engagement team. These
matters were addressed in the context of our
audit of the financial statements as a whole,
and in forming our opinion thereon, and we
do not provide a separate opinion on these
matters.
Kenmare Resources plc
Annual Report and Accounts 2024
170
INDEPENDENT AUDITOR’S REPORT CONTINUED
TO THE MEMBERS OF KENMARE RESOURCES PLC
In arriving at our audit opinion above, the key audit matters, in decreasing order of audit significance, were as follows (unchanged from 2023):
Group key audit matters
Impairment of property, plant and equipment (PPE) $1,017.9m (2023: $935.8m)
Refer to page 183 (accounting policy) and pages 195 to 197 (financial disclosures)
THE KEY AUDIT MATTER HOW THE MATTER WAS ADDRESSED IN OUR AUDIT
The Directors have developed an impairment assessment model
which they use to determine if the net present value of future cash
flows from the CGU (Moma Titanium Minerals Mine) will be sufficient
to recover the carrying value of the PPE assets of the Group.
There is a risk that incorrect inputs or inappropriate assumptions
could be included in the impairment model leading to an impairment
charge not being correctly identified and recognised. The level of
judgement involved in impairment model could give rise to a material
misstatement given the significance of the caption to the balance
sheet.
For the reasons outlined above the engagement team determine this
matter to be a key audit matter.
`
We obtained and inspected the Group’s assessment of impairment
of PPE assets and considered whether further indicators should
have been assessed based on our knowledge of the business,
its operating environment, industry knowledge, current market
conditions and other information obtained during the audit.
`
We made inquiries of members of the Local and Group finance
teams to understand the performance of the Group and
management’s assessment of impairment in the period.
`
We challenged the Group’s key assumptions and valuation
techniques in determining whether impairment charges are
required and evaluating if these were indicators of possible
management bias.
`
We assessed the accuracy of the Group’s calculations of the
carrying value of those assets subject to impairment testing and
considered whether the assets tested are complete.
`
We compared certain inputs to external industry specific and
general economic data sources.
`
We agreed cashflow forecasts used in the impairment model to
Board approved budgets and challenged the reasonableness of
these budgets.
`
We evaluated the appropriateness and likelihood of the Group’s
sensitivities on the cashflow forecasts and the impact on the
overall impairment test outcome and assessed whether additional
sensitivity analysis would have been appropriate.
`
We performed testing on the design and implementation of
the control in place over the impairment of property, plant and
equipment.
`
We used KPMG’s Asset Impairment Tool to recalculate impairment/
headroom for the CGU using stressed variables and to evaluate
management’s sensitivity analysis.
`
We assessed the Group’s calculations to determine whether
impairment losses were required.
`
We engaged our own KPMG valuation specialist to challenge
certain assumptions used within the discount rate.
`
We challenged the Group’s financial advisor on the assumptions
and data inputs used in the discount rate and assessed their
capability, competence and objectivity as financial advisers to the
Group.
`
We evaluated the completeness, accuracy and relevance of
disclosures required by IAS 36 Impairment of assets, including
disclosures about sensitivities and sources of estimation
uncertainty as presented in the Group’s financial statements.
Based on evidence obtained, we found that management’s key
assumptions and key inputs used in the impairment assessment were
reasonable. We found the disclosures to be adequate in providing an
understanding of the basis of impairment.
171
Kenmare Resources plc
Annual Report and Accounts 2024
FINANCIALS
Revenue $414.7m (2023: $458.5m)
Refer to page 182 (accounting policy) and pages 189 to 190 (financial disclosures)
THE KEY AUDIT MATTER HOW THE MATTER WAS ADDRESSED IN OUR AUDIT
The Group sells products under a variety of contractual terms.
Revenue is recognised when the control is transferred to customers
which is generally when mineral products have been delivered in line
with the terms of the individual customer contracts.
There is a risk of fraud at year end that revenue has not been reported
in the consolidated financial statements in line with IFRS 15 Revenue
from Contracts with Customers, and differing contractual terms. There
is a risk that it has been misstated intentionally to meet performance
targets or in error through the recording of a sale intentionally in the
incorrect period, specifically at year end.
For the reasons outlined above the engagement team determine this
matter to be a key audit matter.
`
We assessed the appropriateness of the allocation of contract
revenue to multiple element deliverables.
`
We performed testing on the design and implementation of the
control in place over the recognition of revenue and any journals
posted to revenue with characteristics that make them susceptible
to fraud.
`
We assessed on a sample basis whether sales transactions either
side of the balance sheet date as well as credit notes issued after
year end were recognised in the correct period. We assessed
if revenue has been recorded correctly through the review of
shipment terms, shipment dates bills of lading and letters of credit.
`
We examined any new significant contractual arrangements
entered into and inquired whether terms have changed with any
significant customer, where there could be an impact on the timing
of revenue recognition.
`
We evaluated the adequacy of the Group’s disclosures in respect
of revenue.
Based on the procedures performed, we did not identify any material
misstatements. We found the disclosures in respect of revenue to be
appropriate.
Company key audit matter
Investments in subsidiaries $805.3m (2023: $804.0m)
Refer to pages 216-217 (accounting policy) and page 219 (financial disclosures)
THE KEY AUDIT MATTER HOW THE MATTER WAS ADDRESSED IN OUR AUDIT
The investments held by Kenmare Resource plc company only are
held at cost less impairment.
There is a risk in respect of the carrying value of these investments
if future cash flows and performance of these subsidiaries is not
sufficient to support the Company’s investment.
For the reasons outlined above the engagement team determine this
matter to be a key audit matter.
`
We obtained an understanding of the process for impairment
considerations and tested the design and implementation of the
relevant control therein.
`
We obtained and inspected the Group’s assessment of impairment
indicators.
`
We compared the carrying value of investments to the net assets
of the subsidiary to consider impairment indicators.
`
We considered the audit work performed in respect of the
subsidiaries, including the judgements and assumptions used in
the impairment model used to support the carrying value of the
investment in subsidiaries which also supports the carrying value
of the Group’s property, plant and equipment.
`
We evaluated the adequacy of the Company’s disclosures in
respect of investments in subsidiaries in accordance with the
relevant accounting standards.
Based on the procedures performed, we found management’s
assessment of the carrying value of the investment in subsidiary
undertakings to be appropriate. We found the disclosures to be
adequate in providing an understanding of the basis of impairment.
Kenmare Resources plc
Annual Report and Accounts 2024
172
INDEPENDENT AUDITOR’S REPORT CONTINUED
TO THE MEMBERS OF KENMARE RESOURCES PLC
Our application of
materiality and an overview
of the scope of our audit
Materiality for the Group financial statements
and Company financial statements as a
whole was set at $8.97m (2023: $9.35m)
and respectively, determined with reference
to benchmarks of total assets (2023: total
assets) (of which it represents 0.75% (2023:
0.75%) for the Group and Company.
We consider total assets to be the most
appropriate benchmark as it best reflects
the operations of the Group and Company.
In applying our judgement in determining
the most appropriate benchmark, the factors
that had the most significant impact were:
`
the stability of the Group, resulting from
its nature, where the Group is in its
current mine plan and the industry in
which the Group operates; and
`
our understanding that one of the
principal considerations for investors in
assessing the financial performance is the
Group and Company’s total assets.
We applied Group and Company materiality
to assist us determine the overall audit
strategy.
In applying our judgement in determining the
percentage to be applied to the benchmark,
the following qualitative factors, had the
most significant impact, decreasing our
assessment of materiality:
`
the amount of external debt on the Group
and Company’s balance sheet; and
`
the entity operates in locations which are
subject to political instability.
Performance materiality for the Group
financial statements and Company financial
statements as a whole was set at $6.7m
(2023: $7.01m), determined with reference
to benchmarks of total assets (2023:
total assets) (of which it represents 0.75%
(2023: 0.75%). In applying our judgement in
determining performance materiality, the
following factors were considered to have
the most significant impact, increasing our
assessment of performance materiality:
`
the low number and value of
misstatements detected; and
`
the low number and severity of
deficiencies in control activities identified
in the prior year financial statement audit.
We applied Group and Company
performance materiality to assist us
determine what risks were significant risks
for the Group and Company.
We apply the concept of materiality
in planning and performing the audit,
in evaluating the effect of identified
misstatements on the audit and in forming
our audit opinion. We reported to the
Audit Committee and Board of Directors
any corrected or uncorrected identified
misstatements exceeding $0.45m (2023:
$0.47m), in addition to other identified
misstatements that warranted reporting on
qualitative grounds.
In planning the audit we used materiality
to assist in making the determination to
perform full scope audits. The Group’s
principal activity, its mining operation in
Mozambique, is carried out through two
components. These components were
subject to full scope audits for Group
audit purposes, using materiality levels of
US$4.0m each (2023: US$3.6m). We applied
materiality to assist us determine what risks
were significant risks and the Group audit
team instructed component auditors as
to the significant areas to be covered by
them, including the relevant risks, and the
information to be reported.
Taken together, the Company and the mine
components accounted for 100% of Group
revenue (2023: 100%) and 99% of Group net
assets (2023: 99%).
Our audit was undertaken to the materiality
and performance materiality level specified
above and was all performed by a single
engagement team in Dublin and Mozambique.
Other information
The directors are responsible for the
preparation of the other information presented
in the Annual Report together with the
financial statements. The other information
comprises the information included in the
directors’ report and the non-financial
statement included on the company’s website
at https://www.kenmareresources.com/en and
Directors’ Report, the Business Overview,
Strategic Report and Governance sections of
the Annual Report, as well as the Directors’
Responsibility Statement, Shareholder profile,
Glossary - alternative performance measures,
Glossary – terms, and General information.
The financial statements and our auditor’s
report thereon do not comprise part of
the other information. Our opinion on the
financial statements does not cover the
other information and, accordingly, we do
not express an audit opinion or, except as
explicitly stated below, any form of assurance
conclusion thereon.
Our responsibility is to read the other
information and, in doing so, consider
whether, based on our financial statements
audit work, the information therein is
materially misstated or inconsistent with the
financial statements or our audit knowledge.
Based solely on that work we have not
identified material misstatements in the
other information.
Based solely on our work on the other
information undertaken during the course of
the audit we report that:
`
we have not identified material
misstatements in the directors’ report;
`
in our opinion, the information given in
the directors’ report is consistent with the
financial statements; and
`
in our opinion, those parts of the
directors’ report specified for our review,
which does not include sustainability
reporting when required by Part 28 of the
Companies Act 2014, have been prepared
in accordance with the Companies
Act 2014.
Corporate governance statement
We have reviewed the directors’ statement
in relation to going concern, longer-
term viability, that part of the Corporate
Governance Statement relating to the
Company’s compliance with the provisions
of the UK Corporate Governance Code
and the Irish Corporate Governance Annex
specified for our review by the Listing Rules
of Euronext Dublin and the UK Listing
Authority.
Based on the work undertaken as part of
our audit, we have concluded that each of
the following elements of the Corporate
Governance Statement is materially
consistent with the financial statements and
our knowledge obtained during the audit:
`
Directors’ statement with regards the
appropriateness of adopting the going
concern basis of accounting and any
material uncertainties identified set out
on page 162;
`
Directors’ explanation as to their
assessment of the Group’s prospects,
the period this assessment covers and
why the period is appropriate set out on
page 162;
`
Director’s statement on whether it has a
reasonable expectation that the Group
will be able to continue in operation and
meets its liabilities set out on page 162;
173
Kenmare Resources plc
Annual Report and Accounts 2024
FINANCIALS
`
Directors’ statement on fair, balanced
and understandable and the information
necessary for shareholders to assess
the Group’s position and performance,
business model and strategy set out on
page 144;
`
Board’s confirmation that it has carried
out a robust assessment of the emerging
and principal risks and the disclosures
in the annual report that describe the
principal risks and the procedures in
place to identify emerging risks and
explain how they are being managed or
mitigated set out on page 145;
`
Section of the annual report that
describes the review of effectiveness of
risk management and internal control
systems set out on page 145; and;
`
Section describing the work of the audit
committee set out on pages 142-147.
The Listing Rules of Euronext Dublin also
requires us to review certain elements of
disclosures in the report to shareholders
by the Board of Directors’ remuneration
committee.
We have nothing to report in this regard.
In addition as required by the Companies
Act 2014, we report, in relation to information
given in the Corporate Governance
Statement on page 163, that:
`
based on the work undertaken for our
audit, in our opinion, the description of
the main features of internal control and
risk management systems in relation
to the financial reporting process, and
information relating to voting rights
and other matters required by the
European Communities (Takeover Bids
(Directive 2004/EC) Regulations 2006
and specified for our consideration, is
consistent with the financial statements
and has been prepared in accordance
with the Act;
`
based on our knowledge and
understanding of the Company and its
environment obtained in the course of our
audit, we have not identified any material
misstatements in that information; and
`
the Corporate Governance Statement
contains the information required by the
European Union (Disclosure of Non-
Financial and Diversity Information by
certain large undertakings and groups)
Regulations 2017.
We also report that, based on work
undertaken for our audit, the information
required by the Act is contained in the
Corporate Governance Statement.
Our opinions on other matters
prescribed by the Companies
Act 2014 are unmodified
We have obtained all the information and
explanations which we consider necessary
for the purposes of our audit.
In our opinion the accounting records of
the Company were sufficient to permit
the financial statements to be readily and
properly audited and the financial statements
are in agreement with the accounting
records.
We have nothing to report on other
matters on which we are required to
report by exception.
The Companies Act 2014 requires us to
report to you if, in our opinion:
`
the disclosures of directors’ remuneration
and transactions required by Sections
305 to 312 of the Act are not made;
`
the Company has not provided the
information required by Section 1110N in
relation to its remuneration report for the
financial year 31 December 2023;
`
the Company has not provided the
information required by section 5(2) to
(7) of the European Union (Disclosure of
Non-Financial and Diversity Information
by certain large undertakings and groups)
Regulations 2017 for the year ended
31 December 2023 as required by the
European Union (Disclosure of Non-
Financial and Diversity Information by
certain large undertakings and groups)
(amendment) Regulations 2018.
We have nothing to report in this regard.
Respective responsibilities and
restrictions on use
Responsibilities of directors for the
financial statements
As explained more fully in the directors’
responsibilities statement set out on page
168, the directors are responsible for: the
preparation of the financial statements
including being satisfied that they give a
true and fair view; such internal control as
they determine is necessary to enable the
preparation of financial statements that are
free from material misstatement, whether
due to fraud or error; assessing the Group
and Company’s ability to continue as a going
concern, disclosing, as applicable, matters
related to going concern; and using the going
concern basis of accounting unless they
either intend to liquidate the Group or the
Company or to cease operations, or have no
realistic alternative but to do so.
Auditor’s responsibilities for the audit
of the financial statements
Our objectives are to obtain reasonable
assurance about whether the financial
statements as a whole are free from material
misstatement, whether due to fraud or error,
and to issue an auditor’s report that includes
our opinion. Reasonable assurance is a high
level of assurance, but is not a guarantee
that an audit conducted in accordance
with ISAs (Ireland) will always detect a
material misstatement when it exists.
Misstatements can arise from fraud or error
and are considered material if, individually
or in the aggregate, they could reasonably
be expected to influence the economic
decisions of users taken on the basis of
these financial statements.
A fuller description of our responsibilities is
provided on IAASA’s website at https://iaasa.ie/
publications/description-of-the-auditors-
responsibilities-for-the-audit-of-thefinancial-
statements/.
The purpose of our audit work and to
whom we owe our responsibilities
Our report is made solely to the Company’s
members, as a body, in accordance with
Section 391 of the Companies Act 2014. Our
audit work has been undertaken so that
we might state to the Company’s members
those matters we are required to state to
them in an auditor’s report and for no other
purpose. To the fullest extent permitted
by law, we do not accept or assume
responsibility to anyone other than the
Company and the Company’s members, as a
body, for our audit work, for this report, or for
the opinions we have formed.
BRIAN KANE 13 April 2025
for and on behalf of
KPMG
Chartered Accountants, Statutory Audit Firm
1 Stokes Place
St. Stephen’s Green
Dublin 2
D02 DE03
Kenmare Resources plc
Annual Report and Accounts 2024
174
INDEPENDENT AUDITOR’S REPORT CONTINUED
TO THE MEMBERS OF KENMARE RESOURCES PLC
| 2024 | 2023 | ||
| NOTES | $’000 | $’000 | |
Revenue | 2 | ||
Cost of sales | 4 | ( | ( |
Gross profit | |||
Administration expenses | 4 | ( | ( |
Operating profit | |||
Finance income | 8 | ||
Finance costs | 8 | ( | ( |
Profit before tax | |||
Income tax expense | 9 | ( | ( |
Profit for the financial year and total comprehensive income for the financial year | |||
Attributable to equity holders | |||
$ per share | $ per share | ||
Basic earnings per share | 10 | ||
Diluted earnings per share | 10 |
The accompanying notes form part of these financial statements.
175
Kenmare Resources plc
Annual Report and Accounts 2024
FINANCIALS
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2024
| 2024 | 2023 | ||
| NOTES | $’000 | $’000 | |
| Assets | |||
| Non-current assets | |||
Property, plant and equipment | 11 | ||
Right-of-use assets | 12 | ||
| Current assets | |||
Inventories | 13 | ||
Trade and other receivables | 14 | ||
Current tax assets | 23 | ||
Cash and cash equivalents | 15 | ||
Total assets | |||
| Equity | |||
Capital and reserves attributable to the Company’s equity holders | |||
Called-up share capital | 16 | ||
Share premium | 17 | ||
Other reserves | 18 | ||
Retained earnings | 19 | ||
Total equity | |||
| Liabilities | |||
| Non-current liabilities | |||
Bank loans | 20 | ||
Lease liabilities | 12 | ||
Provisions | 21 | ||
| Current liabilities | |||
Bank loans | 20 | ||
Lease liabilities | 12 | ||
Trade and other payables | 22 | ||
Current tax liabilities | 23 | ||
Provisions | 21 | ||
Total liabilities | |||
Total equity and liabilities |
The accompanying notes form part of these financial statements.
On behalf of the Board:
T. HICKEY A. WEBB
Director Director
13 April 2025 13 April 2025
Kenmare Resources plc
Annual Report and Accounts 2024
176
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024
| CALLED‑UP | |||||
| SHARE | SHARE | OTHER | RETAINE D | ||
| CAPITAL | PREMIUM | RESERVES* | EARNINGS | TOTAL | |
| $’000 | $’000 | $’000 | $’000 | $’000 | |
Balance at 1 January 2023 | |||||
| Total comprehensive income for the year | |||||
Profit for the financial year | |||||
Total comprehensive income for the year | |||||
| Transactions with owners of the Company – | |||||
| Contributions and distributions | |||||
Recognition of share-based payment expense (Note 6) | |||||
Exercise of share-based payment awards | ( | ( | ( | ||
| Shares acquired by The Kenmare Resources plc Employee | |||||
| Benefit | |||||
Trust (Note 16) | ( | ( | |||
| Shares distributed by The Kenmare Resources plc Employee | |||||
| Benefit | |||||
Trust (Note 16) | |||||
Tender offer share buy-back (Note 16) | ( | ( | ( | ||
Share-buy back transaction costs (Note 16) | |||||
Dividends paid (Note 19) | ( | ( | |||
Total contributions and distributions | ( | ( | ( | ( | |
Balance at 1 January 2024 | |||||
| Total comprehensive income for the year | |||||
Profit for the financial year | |||||
Total comprehensive income for the year | |||||
| Transactions with owners of the Company – | |||||
| Contributions and distributions | |||||
Recognition of share-based payment expense (Note 6) | |||||
Exercise of share-based payment awards | ( | ( | |||
| Shares acquired by The Kenmare Resources plc Employee | |||||
| Benefit | |||||
Trust (Note 18) | ( | ( | |||
| Shares distributed by The Kenmare Resources plc Employee | |||||
| Benefit | |||||
Trust (Note 18) | |||||
Dividends paid (Note 19) | ( | ( | |||
Total contributions and distributions | ( | ( | ( | ||
Balance at 31 December 2024 |
* An analysis of other reserves is provided in Note 18.
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FINANCIALS
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2024
| 2024 | 2023 | ||
| NOTES | $’000 | $’000 | |
| Cash flows from operating activities | |||
Profit for the financial year after tax | |||
| Adjustment for: | |||
Expected credit losses | 24 | ||
Share-based payments | |||
Finance income | 8 | ( | ( |
Finance costs | 8 | ||
Income tax expense | 9 | ||
Depreciation | 11, 12 | ||
| Change in: | |||
Provisions | |||
Inventories | ( | ( | |
Trade and other receivables | ( | ||
Trade and other payables | |||
Exercise of share-based payment awards | ( | ||
Cash generated from operating activities | |||
Income tax paid | ( | ( | |
Interest received | |||
Interest paid | 12, 20 | ( | ( |
Factoring and other trade facility fees | 8 | ( | ( |
Debt commitment fees paid and other fees | 8 | ( | ( |
Net cash from operating activities | |||
| Investing activities | |||
Additions to property, plant and equipment | 11 | ( | ( |
Net cash used in investing activities | ( | ( | |
| Financing activities | |||
Dividends paid | 19 | ( | ( |
Tender offer share-buy back | 18 | ( | |
Tender offer share-buy back transaction costs | 18 | ||
Market purchase of equity under Kenmare Restricted Share Plan | 18 | ( | ( |
Drawdown of debt | 20 | ||
Repayment of debt | 20 | ( | ( |
Transaction costs of debt | 20 | ( | |
Payment of lease liabilities | 12 | ( | ( |
Net cash used in financing activities | ( | ( | |
Net decrease in cash and cash equivalents | ( | ( | |
Cash and cash equivalents at the beginning of the financial year | |||
Cash and cash equivalents at the end of the financial year | 15 |
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CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2024
1. Statement of accounting policies
179
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FINANCIALS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2024
1. Statement of accounting policies continued
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Annual Report and Accounts 2024
180
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2024
181
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FINANCIALS
1. Statement of accounting policies continued
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Annual Report and Accounts 2024
182
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2024
183
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FINANCIALS
1. Statement of accounting policies continued
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Annual Report and Accounts 2024
184
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2024
185
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FINANCIALS
1. Statement of accounting policies continued
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Annual Report and Accounts 2024
186
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2024
187
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FINANCIALS
1. Statement of accounting policies continued
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188
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2024
2. Revenue
| 2024 | 2023 | |
| $’000 | $’000 | |
| Revenue from contracts with customers | ||
Revenue derived from the sale of mineral products | 392,052 | 437,091 |
Revenue derived from freight services | 22,695 | 21,386 |
Total Revenue | 414,747 | 458,477 |
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FINANCIALS
2. Revenue continued
Revenue by mineral product
The principal categories for disaggregating mineral products revenue are by product type and by country of the customer’s location. The
mineral product types are ilmenite, zircon, rutile and concentrates. Concentrates includes secondary zircon and mineral sands concentrates.
During the financial year, the Group sold 1,088,600 tonnes (2023: 1,045,200 tonnes) of finished products to customers at a sales value of
$392.1 million (2023: $437.1 million). The Group earned revenue derived from freight services of $22.7 million (2023: $21.4 million).
| 2024 | 2023 | |
| $’000 | $’000 | |
| Revenue derived from sales of mineral products by primary product | ||
Ilmenite | 291,622 | 315,138 |
Primary zircon | 70,952 | 79,628 |
Concentrates | 21,452 | 31,046 |
Rutile | 8,026 | 11,279 |
Total revenue from mineral products | 392,052 | 437,091 |
Revenue derived from freight services | 22,695 | 21,386 |
Total revenue | 414,747 | 458,477 |
Revenue by destination
In the following table, revenue is disaggregated by the primary geographical market. The Group allocates revenue from external customers to
individual countries and discloses revenues in each country where revenues represent 10% or more of the Group’s total revenue. Where total
disclosed revenue disaggregated by country constitutes less than 75% of total Group revenue, additional disclosures are made on a regional
basis until at least 75% of the Group’s disaggregated revenue is disclosed. There were no individual countries within Europe, Asia (excluding
China) or the Rest of the World with revenues representing 10% or more of the Group’s total revenue during the year.
| 2024 | 2023 | |
| $’000 | $’000 | |
| Revenue derived from sales of mineral product by destination | ||
China | 146,434 | 177,511 |
Europe | 83,363 | 86,238 |
Asia (excluding China) | 103,074 | 76,535 |
USA | 59,181 | 52,826 |
Rest of the World | - | 43,981 |
Total revenue from mineral products | 392,052 | 437,091 |
Revenue derived from freight services | 22,695 | 21,386 |
Total revenue | 414,747 | 458,477 |
Revenue by major customers
The Group evaluates the concentration of mineral product revenue by major customer. The following table disaggregates mineral product
revenue from the Group’s four largest customers.
| 2024 | 2023 | |
| $’000 | $’000 | |
| Revenue from external customers | ||
Largest customer | 58,934 | 69,023 |
Second largest customer | 44,350 | 41,616 |
Third largest customer | 43,520 | 32,999 |
Fourth largest customer | 25,531 | 31,844 |
Total | 172,335 | 175,482 |
All Group revenues from external customers are generated by the Moma Titanium Minerals Mine in Mozambique. Further details on this
operating segment can be found in Note 3. Sales to and from Ireland were $nil (2023: $nil) in the year.
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190
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2024
3. Segment reporting
Information on the operations of the Moma Titanium Minerals Mine in Mozambique is reported to the Executive Committee for the purposes of
resource allocation and assessment of segment performance. The Executive Committee reports to the Board on the performance of the Group.
Information regarding the Group’s operating segment is reported below:
2024 | 2023 | |||||
| CORPORATE | MOZAMBIQUE | TOTAL | CORPORATE | MOZAMBIQUE | TOTAL | |
| $’000 | $’000 | $’000 | $’000 | $’000 | $’000 | |
| Revenue & results | ||||||
Revenue* | – | 414,747 | 414,747 | – | 458,477 | 458,477 |
Cost of sales | – | (319,371) | (319,371) | – | (294,927) | (294,927) |
Gross profit | – | 95,376 | 95,376 | – | 163,550 | 163,550 |
Administrative expenses | (9,137) | 2,977 | (6,160) | (6,867) | (1,559) | (8,426) |
Segment operating profit | (9,137) | 98,353 | 89,216 | (6,867) | 161,991 | 155,124 |
Finance income | 1,349 | 2,289 | 3,638 | 2,585 | 3,319 | 5,904 |
Finance expenses | (59) | (10,725) | (10,784) | (40) | (11,078) | (11,118) |
Profit before tax | (7,847) | 89,917 | 82,070 | (4,322) | 154,232 | 149,910 |
Income tax expense | (7,157) | (10,022) | (17,179) | (7,156) | (11,772) | (18,928) |
Profit for the financial year | (15,004) | 79,895 | 64,891 | (11,478) | 142,460 | 130,982 |
| Segment assets & liabilities | ||||||
Segment assets | 9,571 | 1,299,748 | 1,309,319 | 40,918 | 1,220,253 | 1,261,171 |
Segment liabilities | 4,514 | 143,721 | 148,235 | 10,392 | 107,488 | 117,880 |
| Additions to non-current assets | ||||||
Segment additions to non-current assets | – | 153,805 | 153,805 | – | 69,730 | 69,730 |
* Revenue excludes inter-segment revenue of $22.8 million (2023: $22.7 million) earned by the corporate segment relating to marketing and management services fee income. Inter-
segment revenue is not regularly reviewed by the Chief Operating Decision Maker.
Corporate assets consist of the Company’s property, plant and equipment including right-of-use assets, cash and cash equivalents and
prepayments at the reporting date. Corporate liabilities consist of trade and other payables at the reporting date.
| 2024 | 2023 | |
| $’000 | $’000 | |
| Expenses by function | ||
Cost of sales | 319,371 | 294,927 |
Administrative expenses | 6,160 | 8,426 |
Total | 325,531 | 303,353 |
| 2024 | 2023 | |
| $’000 | $’000 | |
| Expenses by nature | ||
Staff costs | 68,499 | 58,252 |
Repairs and maintenance | 40,734 | 42,278 |
Power and fuel | 48,760 | 47,791 |
Freight | 22,695 | 21,386 |
Other production and operating costs | 89,265 | 83,274 |
Movement of mineral products inventory | (12,390) | (14,750) |
Depreciation of property, plant and equipment and right-of-use assets | 67,968 | 65,122 |
Total | 325,531 | 303,353 |
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FINANCIALS
| 2024 | 2023 | |
| $’000 | $’000 | |
Wages and salaries | 61,471 | 51,864 |
Share-based payments | 3,584 | 3,278 |
Social insurance costs | 3,523 | 3,201 |
Retirement benefit costs | 786 | 755 |
69,364 | 59,098 |
| 2024 | 2023 | |
| HEADCOUNT | HEADCOUNT | |
Management and administration | 415 | 384 |
Operations | 1,346 | 1,303 |
1,761 | 1,687 |
6. Share-based payments
Share-based payment expense recognised in the consolidated income statement:
| 2024 | 2023 | |
| $’000 | $’000 | |
Expense arising from the Kenmare Resources plc Restricted Share Plan | 3,584 | 3,278 |
The Group, under its incentive plan known as the Kenmare Resources plc Restricted Share Plan (KRSP), grants equity-settled share-based
payments to employees as part of their remuneration.
The Executive Director’s awards vest, subject to continued employment and to the Remuneration Committee’s assessment against a
discretionary underpin, on the third anniversary of grant date. The vested KRSP awards are subject to a two-year holding period which may
extend beyond the Executive Director’s cessation of employment in accordance with the post-employment holding requirements of the 2020
Remuneration policy.
The discretionary underpin contains six core elements that the Remuneration Committee will consider, including operational performance,
share price performance, ESG performance, major strategic or project decisions, cost competiveness and the long-term strategic vision for the
Company. The committee has not set fixed, quantitative underpins in respect of these factors. As such, these elements, including share price
performance, are considered non-market performance conditions and, accordingly, are not reflected in the grant date fair value. The grant date
of awards containing a discretionary underpin is deemed to occur when a shared understanding of the award is obtained by all parties and this
generally occurs upon the Remuneration Committee’s assessment of the Group’s performance in the year of vesting.
In addition, in the case of the Executive Directors, where the annual bonus achieved exceeds 50% of base salary, the Executive Director is
granted restricted shares under the KRSP in respect of the excess outcome above this level. Such restricted shares would not be subject to
forfeiture or the discretionary underpin.
For other Group employees, awards under the KRSP vest, subject to continued employment, on the third anniversary of award.
Kenmare Resources plc
Annual Report and Accounts 2024
192
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2024
| NUMBER OF | NUMBER OF | |
| SHARES | SHARES | |
| 2024 | 2023 | |
Awards outstanding at the beginning of the financial year | 2,274,376 | 2,562,203 |
Awards issued during the financial year | 1,243,820 | 943,670 |
Awards exercised during the financial year | (696,320) | (1,093,552) |
Awards forfeited during the financial year | (138,743) | (116,466) |
Awards cancelled during the financial year | (22,289) | (21,479) |
Awards lapsed during the financial year | (1,817) | – |
Awards Outstanding at the end of the financial year | 2,659,027 | 2,274,376 |
Awards Exercisable at the end of the financial year | 16,795 | 26,673 |
In 2024, awards in respect of 885,323 shares were granted to employees under the 2024 KRSP award. The estimated fair value of the shares
awarded is $4.9 million. During the year, 358,497 shares were granted in the form of dividend equivalents. The fair value is determined using the
share price on the date of the award.
In 2024, KRSP awards in respect of 696,320 shares (2023: 1,093,552) were exercised. 674,703 awards (2023: 1,002,415) were exercised in equity
through shares held by the Kenmare Resources plc Employee Benefit Trust as described in Note 18 and 21,617 awards (2023: 91,137) were settled
in cash, resulting in a total cost of exercise of share-based payments of $1.8 million (2023: $5.7 million).
7. Auditor’s remuneration
The analysis of the auditor’s remuneration is as follows:
| 2024 | 2023 | |
| $’000 | $’000 | |
| Audit fees | ||
Audit of the Company’s financial statements | 25 | 22 |
Audit of the Company’s subsidiary undertakings | 205 | 187 |
Total audit fee | 230 | 209 |
| Non-audit fees | ||
Other assurance services | 80 | 80 |
Taxation compliance services | 10 | 10 |
Other non-audit services | 11 | 11 |
Total non-audit fees | 101 | 101 |
Total fees | 331 | 310 |
$155,800 (2023: $143,500) of the total fee was paid to KPMG Dublin and $175,700 (2023: $166,600) of the total fee was paid to KPMG Maputo.
KPMG Dublin fees are invoiced in Euro.
193
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FINANCIALS
| 2024 | 2023 | |
| $’000 | $’000 | |
| Finance costs | ||
Interest on bank borrowings | (3,863) | (7,935) |
Transaction costs on debt financing | (1,398) | – |
Interest on lease liabilities | (126) | (112) |
Factoring and other trade facility fees | (2,592) | (1,467) |
Commitment and other fees | (2,085) | (928) |
Unwinding of discount on mine closure provision | (720) | (676) |
Total finance costs | (10,784) | (11,118) |
Interest earned on bank deposits | 3,638 | 5,904 |
Total finance income | 3,638 | 5,904 |
Net finance costs recognised in profit or loss | (7,146) | (5,214) |
9. Income tax expense
| 2024 | 2023 | |
| $’000 | $’000 | |
Corporation tax | 17,179 | 18,928 |
Deferred tax | – | – |
Total | 17,179 | 18,928 |
| Reconciliation of effective tax rate | ||
Profit before tax | 82,070 | 149,910 |
Profit before tax multiplied by the applicable tax rate (12.5%) | 10,259 | 18,739 |
Under/(over) provision in respect of prior years | 2,046 | (219) |
Non-taxable income | (1,351) | (9,434) |
Non-deductible expenses | 458 | 1,204 |
Differences in effective tax rates on overseas earnings | 5,767 | 8,638 |
Total | 17,179 | 18,928 |
During the year, Kenmare Moma Mining (Mauritius) Limited (“KMML”) Mozambique Branch had taxable profits of $27.7 million (2023:
$34.1 million), resulting in an income tax expense of $10.0 million (2023: $11.7 million) being recognised. The income tax rate applicable to taxable
profits of KMML Mozambique Branch is 35% (2023: 35%).
KMML Mozambique Branch has elected, and the fiscal regime applicable to mining allows for, the option to deduct, as an allowable deduction,
depreciation of exploration and development expense and capital expenditure over the life of mine. Tax losses may be carried forward for three
years. There are no tax losses carried forward at 31 December 2024.
Kenmare Moma Processing (Mauritius) Limited (“KMPL”) Mozambique Branch has Industrial Free Zone (IFZ) status. As an IFZ Branch, it is
exempt from corporation taxes and, hence, its income is non-taxable.
During the year, Kenmare Resources plc had taxable profits of $53.5 million (2023: $89.2 million) as a result of management and marketing
service fee income earned on services provided to subsidiary undertakings and dividend income earned from subsidiary undertakings, resulting
in a corporate tax expense of $7.1 million (2023: $7.2 million). There was an under provision in the prior year of $2.0 million (2023: $nil) recognised
in the year.
Kenmare Resources plc
Annual Report and Accounts 2024
194
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2024
10. Earnings per share
The calculation of the basic and diluted earnings per share attributable to the ordinary equity holders of the Company is based on the
following data:
| 2024 | 2023 | |
| $’000 | $’000 | |
Profit for the financial year attributable to equity holders of the Company | 64,891 | 130,982 |
| 2024 | 2023 | |
| NUMBER OF | NUMBER OF | |
| SHARES | SHARES | |
Weighted average number of issued ordinary shares for the purpose of basic earnings per share | 89,228,161 | 93,126,115 |
| Effect of dilutive potential ordinary shares: | ||
Share awards | 2,699,029 | 2,437,495 |
Weighted average number of ordinary shares for the purposes of diluted earnings per share | 91,927,190 | 95,563,610 |
$ PER SHARE | $ PER SHARE | |
Basic earnings per share | 0.73 | 1.41 |
Diluted earnings per share | 0.71 | 1.37 |
11. Property, plant and equipment
| PLANT AND | DEVELOPMENT | CONSTRUCTION | OTHER | ||
| EQUIPMENT | EXPENDITURE | IN PROGRESS | ASSETS | TOTAL | |
| $’000 | $’000 | $’000 | $’000 | $’000 | |
| Cost | |||||
At 1 January 2023 | 1,035,604 | 260,051 | 50,773 | 77,390 | 1,423,818 |
Additions during the financial year | – | – | 69,703 | 27 | 69,730 |
Transfer from construction in progress | 20,144 | 13,095 | (40,391) | 7,152 | – |
Disposals | (415) | – | – | (9,429) | (9,844) |
Adjustment to mine closure cost | 241 | – | – | – | 241 |
At 31 December 2023 | 1,055,574 | 273,146 | 80,085 | 75,140 | 1,483,945 |
Additions during the financial year | 1,858 | 14 | 151,933 | – | 153,805 |
Transfer from construction in progress | 3,454 | 3,363 | (14,094) | 7,277 | – |
Disposals | – | – | – | (6,207) | (6,207) |
Adjustment to mine closure cost | (3,985) | – | – | – | (3,985) |
At 31 December 2024 | 1,056,901 | 276,523 | 217,924 | 76,210 | 1,627,558 |
| Accumulated depreciation | |||||
At 1 January 2023 | 304,318 | 147,868 | – | 40,873 | 493,059 |
Charge for the financial year | 44,928 | 8,952 | – | 11,002 | 64,882 |
Disposals | (415) | – | – | (9,429) | (9,844) |
At 31 December 2023 | 348,831 | 156,820 | – | 42,446 | 548,097 |
Charge for the financial year | 47,976 | 9,438 | – | 10,281 | 67,695 |
Disposals | – | – | – | (6,207) | (6,207) |
At 31 December 2024 | 396,807 | 166,258 | – | 46,520 | 609,585 |
| Carrying amount | |||||
At 31 December 2024 | 660,094 | 110,265 | 217,924 | 29,690 | 1,017,973 |
At 31 December 2023 | 706,743 | 116,326 | 80,085 | 32,694 | 935,848 |
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FINANCIALS
11. Property, plant and equipment continued
An adjustment to the mine closure cost of $4.0 million (2023: $0.2 million) was made during the year as a result of an update in the mine closure
cost estimate as detailed in Note 21.
At each reporting date, the Group assesses whether there is any indication that property, plant and equipment may be impaired. The Group
considers the relationship between its market capitalisation and its book value, among other factors, when reviewing for indicators for
impairment. As at 31 December 2024, the market capitalisation of the Group was below the book value of net assets, which is considered an
indicator of impairment. The Group carried out an impairment review of property, plant and equipment as at 31 December 2024. As a result
of the review, and given the performance and outlook of the Group, no impairment provision was recognised in the current financial year. No
impairment was recognised in the prior financial year. Given the historic volatility in mineral product pricing and sensitivity of the forecast to
mineral product pricing, the discount rate and, to a lesser extent, operating costs, the impairment loss of $64.8 million, which was recognised in
the consolidated statement of comprehensive income in 2014, was not reversed.
The cash-generating unit for the purpose of impairment testing is the Moma Titanium Minerals Mine. The basis on which the Mine is assessed
is its value in use. The cash flow forecast employed for the value in use computation is from a life of mine financial model. The value in use
methodology has changed from using a life of mine discounted cashflow to using the next five years’ cashflows and then using year five as a
basis for the remaining 35 years to align with the 40-year life of mine assumption. The recoverable amount obtained from the financial model
represents the present value of the future discounted pre-tax, pre-finance cash flows discounted at 13.41% (2023: 12%).
Key assumptions include the following:
` The discount rate is based on the Group’s weighted average cost of capital. This rate is a best estimate of the current market assessment
of the time value of money and the risks specific to the Mine, taking into consideration country risk, currency risk and price risk. The factors
making up the cost of equity and cost of debt have changed from the prior year review, resulting in a discount rate of 13.41% (2023: 12%).
In connection with the October 2024 elections, significant political and social unrest was experienced in Mozambique, including in Maputo
and in the vicinity of Moma, although it did not impact materially on the Mine’s operations. However, the unrest has substantially subsided
since the formation of a new government. Based on this, the Group’s estimation of the country risk premium included in the discount rate
has remained unchanged from the prior year. The Group does not consider it appropriate to apply the full current country risk premium for
Mozambique to the calculation of the Group’s weighted average cost of capital as it believes the specific circumstances that have impacted
on the risk premium in recent years are not relevant to the specific circumstances of the Moma Mine. Hence, country risk premium applicable
to the calculation of the cost of equity has been adjusted accordingly.
Using a discount rate of 13.41%, the recoverable amount is greater than the carrying amount by $83.0 million (2023: $374.0 million). The
discount rate is a significant factor in determining the recoverable amount. A 0.8% increase in the discount rate to 14.21% reduces the
recoverable amount by $83.0 million to $nil, assuming all other inputs remain unchanged. The decrease in the recoverable amount from
the prior year is a result of the increase in the discount rate and reduced cash flows as a result of increased operating costs over the life of
the Mine.
` The Implementation Agreement governs the terms under which Kenmare conducts its mineral processing and export activities. Mining
operations are conducted under a separate regulatory framework, which is not impacted in any way by the IA process. The IA granted
certain rights and benefits for a period of 20 years to 21 December 2024, subject to extension upon request. Kenmare has been engaging
constructively with the Government of Mozambique regarding the extension and, in connection with the extension, has agreed, in principle, to
certain modifications to the applicable investment regime. However, the timetable for the extension has extended beyond 21 December 2024.
Meanwhile, the Ministry of Industry and Commerce, has confirmed that the Company’s existing rights and benefits remain in full force and
effect pending conclusion of the process ,and that Kenmare can continue to process minerals and export final products in the same manner
as it currently does.
` The initial term of the Group’s Mining Licence over the orebody will expire in 2029. Under the terms of the Mineral Licensing Contact (MLC)
the Group can apply for an extension of 15 years to 2044. Under the terms of the MLC, the Group can apply for subsequent extensions post-
2044 provided the life of the Mine allows and subject to the same conditions as the first renewal. Since the Group signed its MLC in 2002
with the Government of Mozambique under Mining Law 2/86, mining law has been amended on a number of occasions. However, the various
amended mining legislation contain grandfathering provisions that confirm the ongoing validity of the mining contracts that were entered
into with the Government of Mozambique, before the entry into force of the amended legislation. The grandfathering provisions provide for
an opt in or opt out regime for companies that signed contracts under an earlier legal regime; the Group has not exercised the right to move
to either Mining Law 14/2002 or Mining Law 20/2014 and, as a result, the Group continues to be regulated by the legislation in force at the
time of the signature of the MLC.
The mine plan is based on the Namalope, Nataka, Pilivili and Mualadi proved and probable Ore Reserves and Mineral Resources. Specific
Mineral Resource material is included only where there is a high degree of confidence in its economic extraction. Average annual production
is, approximately, 1.2 million tonnes over the next five years with 1.3 million tonnes from 2029 onwards. Certain minimum stocks of final and
intermediate products are assumed to be maintained at period ends.
Kenmare Resources plc
Annual Report and Accounts 2024
196
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2024
` Product sales prices are based on contract prices as stipulated in marketing agreements with customers, or where contracts are based on
market prices or production is not currently contracted, prices are forecast by the Group taking into account independent titanium mineral
sands expertise provided by TiPMC Solutions and management expectations, including general inflation of 2% per annum. Forecast prices
provided by TiPMC Solutions have been reviewed and found to be consistent with other external sources of information. Average forecast
product sales prices have increased over the life of mine from the prior year-end review as a result of revised forecast pricing. A 2.3%
reduction in average sales prices over the life of mine reduces the recoverable amount by $83.0 million to $nil, assuming all other inputs
remain unchanged.
` Operating costs are based on approved budget costs for 2025, taking into account the current running costs of the Mine and estimated
forecast inflation for 2025. From 2026 onwards, operating costs are escalated by 2% per annum as management expects inflation to
normalise and average 2% over the life of mine period. Average forecast operating costs have increased from the prior year-end review. A
4.4% increase in operating costs over the life of mine reduces the recoverable amount by $83.0 million to $nil, assuming all other inputs
remain unchanged.
` Capital costs are based on a life of mine capital plan including inflation at 2% per annum from 2026. Average forecast capital costs have
increased, and their scheduling has changed from the prior year-end review based on updated sustaining and development capital plans
required to maintain the existing plant over the life of mine. A 12.7% increase in capital costs over the life of mine reduces the recoverable
amount by $83.0 million to $nil, assuming all other inputs remain unchanged.
` The Board and management have set a medium-term decarbonisation target of 30% reduction by 2030 from a 2021 baseline. Kenmare will
maintain its aim to achieve net zero for its operational (Scope 1 & 2) emissions by 2040, also from a 2021 baseline and will continue to work
to achieve a higher decarbonisation rate. Management has included the costs of implementing the Climate Transition Plan (“CTP”) (2025 to
2030) into the cashflow forecasts. CTP specific costs total $9.0 million over the period 2025 to 2030. A change in these costs (for overruns
or required additional projects to meet targets) are not anticipated to have a material impact on the forecast cashflows. The balance of spend
on the move of WCP A to Nataka is included in the capital forecasts. As noted above, a 12.7% increase in capital costs over the life of the
Mine reduces the recoverable amount by $83.0 million to nil, assuming all other inputs remain unchanged. No savings associated with the
Company’s ambition to become net zero have been factored into the forecast.
12. Right-of-use assets and lease liabilities
| LAND AND | ||
| BUILDINGS | TOTAL | |
| $’000 | $’000 | |
| Cost | ||
At 1 January 2024 | 2,590 | 2,590 |
Additions | – | – |
Disposals | – | – |
At 31 December 2024 | 2,590 | 2,590 |
| Accumulated Depreciation | ||
At 1 January 2024 | 1,222 | 1,222 |
Depreciation expense | 273 | 273 |
Disposals | – | – |
At 31 December 2024 | 1,496 | 1,495 |
| Carrying amount | ||
At 31 December 2024 | 1,095 | 1,095 |
At 31 December 2023 | 1,368 | 1,368 |
The Group recognised a lease liability of $1.7 million in respect of the rental of its Irish head office. The lease has a term of 10 years commencing
August 2017 and rental payments are fixed to the end of the lease term. This lease obligation is denominated in Euros.
The Group recognised a lease liability of $0.4 million in respect of its Mozambican country office in Maputo. The lease has a term of 10 years to
December 2032. This lease obligation is denominated in US Dollars.
At each reporting date, the Company assesses whether there is any indication that right-of-use assets may be impaired. No impairment
indicators were identified as at 31 December 2024 or 31 December 2023.
The Group has recognised a rental expense of $11.9 million (2023: $12.4 million) in relation to short-term leases of machinery and vehicles, which
have not been recognised as a right-of-use asset.
197
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Annual Report and Accounts 2024
FINANCIALS
12. Right-of-use assets and lease liabilities continued
Set out below are the carrying amounts of lease liabilities at each reporting date:
| 2024 | 2023 | |
| $’000 | $’000 | |
Current | 285 | 264 |
Non-current | 971 | 1,256 |
Total | 1,256 | 1,520 |
The consolidated income statement includes the following amounts relating to leases:
| 2024 | 2023 | |
| $’000 | $’000 | |
Depreciation expense | 273 | 240 |
Interest expense on lease liabilities | 126 | 112 |
Total | 399 | 352 |
| 2024 | 2023 | |
| Reconciliation of movements of lease liabilities to cash flows arising from financing activities | $’000 | $’000 |
| Lease liabilities | ||
Balance at 1 January | 1,520 | 1,785 |
| Cash movements | ||
Lease interest paid | (126) | (112) |
Principal paid | (264) | (265) |
| Non-cash movements | ||
Lease interest accrued | 126 | 112 |
Balance at 31 December | 1,256 | 1,520 |
13. Inventories
| 2024 | 2023 | |
| $’000 | $’000 | |
Mineral products | 70,795 | 58,405 |
Consumable spares | 42,001 | 40,852 |
112,796 | 99,257 |
| At 31 December 2024, total final product stock was 287,200 tonnes (2023: 259,100 tonnes). Closing stock of Heavy Mineral Concentrate was |
14,100 tonnes (2023: 16,700 tonnes).
Net realisable value is determined with reference to forecast prices of finished products expected to be achieved. There is no guarantee that
these prices will be achieved in the future, particularly in weak product markets. During the financial year, there was a write-down of $0.2 million
(2023: $nil) to mineral products charged to cost of sales to value mineral products at net realisable value.
| 2024 | 2023 | |
| $’000 | $’000 | |
Trade receivables | 91,451 | 127,442 |
VAT receivable | 6,410 | 6,377 |
Prepayments | 21,633 | 19,831 |
119,494 | 153,650 |
Kenmare Resources plc
Annual Report and Accounts 2024
198
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2024
15. Cash and cash equivalents
| 2024 | 2023 | |
| $’000 | $’000 | |
Bank balances | 56,683 | 71,048 |
Cash and cash equivalents comprise cash balances held for the purposes of meeting short-term cash commitments and investments that are
readily convertible to a known amount of cash and are subject to an insignificant risk of change in value. Where investments are categorised as
cash equivalents, the related balances have a maturity of three months or less from the date of investment.
| 2024 | 2023 | |
| €’000 | €’000 | |
| Authorised share capital | ||
181,000,000 ordinary shares of €0.001 each | 181 | 181 |
181 | 181 |
| 2024 | 2023 | ||
| $’000 | $’000 | ||
| Allotted, called-up and fully paid | |||
| Opening balance | |||
89,228,161 | (2023: 94,829,551) ordinary shares of €0.001 each | 97 | 104 |
| Acquired and cancelled | |||
Nil (2023: 5,601,390) ordinary shares of €0.001 each Closing balance | – | (7) | |
89,228,161 | (2023: 89,228,161) ordinary shares of €0.001 each | 97 | 97 |
Total called-up share capital | 97 | 97 | |
| 2024 | 2023 | |
| $’000 | $’000 | |
Opening balance | 545,950 | 545,950 |
Shares issued during the year | – | – |
Closing balance | 545,950 | 545,950 |
199
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FINANCIALS
| SHARE-BASED | ||||
| UNDENOMINATED | OWN | PAYMENT | ||
| CAPITAL | SHARES | RESERVE | TOTAL | |
| $’000 | $’000 | $’000 | $’000 | |
Balance at 1 January 2023 | 226,278 | (18) | 6,499 | 232,759 |
Recognition of share-based payment expense | – | – | 3,278 | 3,278 |
Exercise of share-based payment awards | – | – | (3,512) | (3,512) |
Tender offer share buy back (Note 16) | 7 | (29,963) | – | (29,956) |
Cancellation of treasury shares | – | 29,963 | – | 29,963 |
Shares acquired by The Kenmare Resources plc Employee Benefit Trust | – | (6,182) | – | (6,182) |
Shares distributed by The Kenmare Resources plc Employee Benefit Trust | – | 3,390 | – | 3,390 |
Balance at 1 January 2024 | 226,285 | (2,810) | 6,265 | 229,740 |
Recognition of share-based payment expense | – | – | 3,584 | 3,584 |
Exercise of share-based payment awards | – | – | (3,244) | (3,244) |
Shares acquired by The Kenmare Employee Benefit Trust | – | (3,169) | (3,169) | |
Shares distributed by The Kenmare Employee Benefit Trust | – | 2,363 | 2,363 | |
Balance at 31 December 2024 | 226,285 | (3,616) | 6,605 | 229,274 |
| 2024 | 2023 | |
| NO. OF | NO. OF | |
| SHARES | SHARES | |
At 1 January | 548,051 | 3,034 |
Tender offer share buy back | – | 5,601,390 |
Cancellation of treasury shares | – | (5,601,390) |
Shares acquired by The Kenmare Employee Benefit Trust | 694,843 | 1,206,909 |
Shares distributed by The Kenmare Employee Benefit Trust | (448,179) | (661,892) |
Closing balance | 794,715 | 548,051 |
Kenmare Resources plc
Annual Report and Accounts 2024
200
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2024
| 2024 | 2023 | |
| $’000 | $’000 | |
Opening balance | 367,504 | 324,721 |
Profit for the financial year attributable to equity holders of the Parent | 64,891 | 130,982 |
Tender Offer share-buy back (Note 16) | – | (29,963) |
Tender Offer share-buy back transaction costs (Note 16) | – | 572 |
Exercise of share options | 1,486 | (2,197) |
Dividends paid | (48,118) | (56,611) |
Closing balance | 385,763 | 367,504 |
20. Bank loans
| 2024 | 2023 | |
| $’000 | $’000 | |
Borrowings | 77,991 | 47,873 |
| The borrowings are repayable as follows: | ||
Less than one year | – | 33,087 |
Between two and five years | 80,417 | 15,712 |
80,417 | 48,799 | |
Transaction costs | (2,426) | (926) |
Total carrying amount | 77,991 | 47,873 |
Borrowings
On 4 March 2024, the Group entered into a secured senior debt facility agreement (“Senior Facility Agreement”) with Absa Bank Limited (acting
through its Corporate and Investment Banking Division) (“Absa”), Nedbank Limited (acting through its Nedbank Corporate and Investment
Banking division) (“Nedbank”), Rand Merchant Bank and Standard Bank Group (“Standard Bank”).
The Senior Facility Agreement provides the Group with a $200 million Revolving Credit Facility. The finance documentation also provides for a
Mine Closure Guarantee Facility (provided by either the existing lenders or other finance providers) of up to $50 million, with the provider(s) of
such a facility sharing in the common security package.
The Revolving Credit Facility has a maturity date of 4 March 2029. Interest is at SOFR plus 4.85% per annum. The Revolving Credit Facility can
be repaid or drawdown at any stage throughout the term of the loan.
The security package consists of: (a) security over the Group’s bank accounts (subject to certain exceptions); (b) pledges of the shares of
Kenmare Moma Processing (Mauritius) Limited and Kenmare Moma Mining (Mauritius) Limited (the “Project Companies”); and (c) security over
intercompany loans.
The carrying amount of the secured bank accounts of the Group was $56.3 million as at 31 December 2024 (2023: $70.9 million). The shares of
the Project Companies and intercompany loans are not included in the consolidated statement of financial position as they are eliminated on
consolidation. They, therefore, do not have a carrying amount, but, upon enforcement of the pledges on behalf of the Lender group, the shares in
the Project Companies would cease to be owned or controlled by the Group. The secured rights and agreements do not have a nominal amount.
The Group entered into a mine closure guarantee facility with Standard Bank SA effective from 1 July 2024 for an amount of $33.0 million. This
guarantee shares the security package with the Revolving Credit Facility on a pro rata and pari passu basis.
201
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Annual Report and Accounts 2024
FINANCIALS
20. Bank loans continued
| 2024 | 2023 | |
| Reconciliation of movements of debt to cash flows arising from financing activities | $’000 | $’000 |
| Bank loans | ||
Balance at 1 January | 47,873 | 78,578 |
| Cash movements | ||
RCF drawdown | 131,370 | – |
Loan interest paid – Term Loan | (2,694) | (7,211) |
Loan interest paid – RCF | (2,396) | – |
Principal paid – Term Loan | (47,142) | (31,429) |
Principal paid - RCF | (51,370) | – |
Transaction costs paid | (2,911) | – |
| Non-cash movements | ||
Loan interest accrued – Term Loan | 1,050 | 7,935 |
Loan interest accrued – RCF | 2,813 | – |
Transaction costs amortised | 1,398 | – |
Balance at 31 December | 77,991 | 47,873 |
Loan interest paid excludes lease liability interest as it is accounted for in Note 12.
Covenants
The finance documents contain a number of representations, covenants and events of default on customary terms, the breach of which could
lead to the secured parties under the finance documentation accelerating the outstanding loans and taking other enforcement steps, such
as the enforcement of some, or all, of the security interests, which could lead to, in extremis, the Group losing its interest in the Mine. The
most salient of the relevant terms that could lead to acceleration of the loans and/or enforcement of security relate to the effectiveness of key
governmental licences and agreement (including the Implementation Agreement) and the financial covenants.
All covenants have been complied with during the year. The key financial covenants are detailed below:
| AS AT | |||
| 31 DECEMBER | |||
2024 | COVENANT | ||
Interest Coverage Ratio | 17.2 | Not less than | 4.00:1 |
Net Debt to EBITDA | 0.15 | Not greater than | 2.00:1 |
Liquidity | $176,700,000 | Not less than | $25,000,000 |
The definition of the covenants under the debt facilities are set out below:
` Interest Coverage Ratio is defined as the ratio of EBITDA to Net Interest Cost.
` Net Debt is defined as total financial indebtedness, excluding leases less consolidated cash and cash equivalents.
` Liquidity is defined as consolidated cash and cash equivalents plus undrawn amounts of the Revolving Credit Facility.
Kenmare Resources plc
Annual Report and Accounts 2024
202
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2024
| 2024 | 2023 | |
| $’000 | $’000 | |
Mine closure provision | 14,275 | 17,540 |
Mine rehabilitation provision | 6,958 | 5,462 |
21,233 | 23,002 | |
Current | 1,226 | 2,125 |
Non-current | 20,007 | 20,877 |
21,233 | 23,002 |
| MINE | MINE | ||
| CLOSURE | REHABILITATION | ||
| PROVISION | PROVISION | TOTAL | |
| $’000 | $’000 | $’000 | |
At 1 January 2023 | 16,623 | 4,121 | 20,744 |
Increase in provision during the financial year | 241 | 1,720 | 1,961 |
Provision utilised during the financial year | – | (379) | (379) |
Unwinding of the discount | 676 | – | 676 |
At 1 January 2024 | 17,540 | 5,462 | 23,002 |
Increase in provision during the financial year | (3,985) | 3,718 | (267) |
Provision utilised during the financial year | – | (2,222) | (2,222) |
Unwinding of the discount | 720 | – | 720 |
At 31 December 2024 | 14,275 | 6,958 | 21,233 |
203
Kenmare Resources plc
Annual Report and Accounts 2024
FINANCIALS
| 2024 | 2023 | |
| $’000 | $’000 | |
Trade payables | 13,480 | 6,510 |
Deferred income | 2,415 | 2,752 |
Accruals | 31,860 | 29,302 |
47,755 | 38,564 |
| 2024 | 2023 | |
| $’000 | $’000 | |
Current tax (asset) / liabilities | (1,278) | 6,921 |
2024 | 2023 | ||||
| CARRYING | CARRYING | ||||
| AMOUNT | FAIR VALUE | AMOUNT | FAIR VALUE | ||
| $’000 | $’000 | $’000 | $’000 | ||
| Financial assets at fair value through OCI | |||||
Trade receivables 1 | 28,148 | 28,148 | 110,534 | 110,534 | Level 2 |
| Financial assets not measured at fair value | |||||
Trade receivables 2 | 65,060 | 65,060 | 16,908 | 16,908 | Level 2 |
Cash and cash equivalents | 56,683 | 56,683 | 71,048 | 71,048 | Level 2 |
149,891 | 149,891 | 198,490 | 198,490 | ||
| Financial liabilities not measured at fair value | |||||
Bank loans | 77,991 | 80,417 | 47,873 | 48,799 | Level 2 |
Kenmare Resources plc
Annual Report and Accounts 2024
204
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2024
| 2024 | 2023 | |
| $’000 | $’000 | |
Europe | 38,831 | 34,150 |
USA | 23,551 | 29,597 |
China | 21,127 | 38,693 |
Asia (excluding China) | 7,808 | 24,905 |
Africa | 134 | 97 |
Total | 91,451 | 127,442 |
| 2024 | 2023 | |
| $’000 | $’000 | |
External credit ratings at least Baa3 (Moody’s) | 28,148 | 65,266 |
Other | 65,060 | 63,756 |
Total gross carrying amount | 93,208 | 129,022 |
Loss allowance | (1,757) | (1,580) |
Total | 91,451 | 127,442 |
205
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Annual Report and Accounts 2024
FINANCIALS
24. Financial instruments continued
| MORE THAN | MORE THAN | MORE THAN | |||
| 30 DAYS | 60 DAYS | 90 DAYS | |||
| CURRENT | PAST DUE | PAST DUE | PAST DUE | TOTAL | |
| $’000 | $’000 | $’000 | $’000 | $’000 | |
2024 | 91,451 | – | – | – | 91,451 |
2023 | 127,383 | – | – | 59 | 127,442 |
| GROSS | IMPAIRMENT | |||
| WEIGHT | CARRYING | LOSS | ||
| AVERAGE | AMOUNT | ALLOWANCE | CREDIT | |
| Equivalent to Moody’s credit rating | LOSS RATE | $’000 | $’000 | IMPAIRED |
Other | 2.7% | 65,060 | 1,757 | No |
| GROSS | IMPAIRMENT | |||
| WEIGHT | CARRYING | LOSS | ||
| AVERAGE | AMOUNT | ALLOWANCE | CREDIT | |
| Equivalent to Moody’s credit rating | LOSS R ATE | $’000 | $’000 | IMPAIRED |
Other | 2.5% | 63,756 | 1,580 | No |
| 2024 | 2023 | |
| $’000 | $’000 | |
Balance at 1 January | 1,580 | 1,534 |
Net remeasurement of loss allowance | 177 | 46 |
Balance at 31 December | 1,757 | 1,580 |
2024 | 2023 | |||||
LONG‑TERM CREDIT RATING | LONG-TERM CREDIT RATING | |||||
$ MILLION | S&P | MOODY’S | $ MILLION | S&P | MOODY’S | |
Barclays Bank plc | 23.4 | A+ / Stable | A1/ Stable | 23.2 | A+ / Stable | A1/ Stable |
Absa Bank Mauritius Limited | 10.2 | – | Baa3 | 4.9 | – | Ba |
Standard Bank Mauritius Limited | 10.0 | – | Ba2 | – | – | – |
Nedbank Ltd | – | – | – | 25.8 | BB– | Ba2 |
FirstRand Bank Limited | – | – | – | 10.1 | BB– | Ba2 |
Kenmare Resources plc
Annual Report and Accounts 2024
206
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2024
| BETWEEN | ||||
| LESS THAN | TWO AND FIVE | MORE THAN | ||
| TOTAL | ONE YEAR | YEARS | FIVE YEARS | |
| Financial liabilities | $’000 | $’000 | $’000 | $’000 |
Bank loans | 80,417 | – | 80,417 | – |
Lease liabilities | 1,629 | 390 | 899 | 340 |
Trade and other payables | 47,755 | 47,755 | – | – |
129,801 | 48,145 | 81,316 | 340 |
| BETWEEN | ||||
| LESS THAN | TWO AND FIVE | MORE THAN | ||
| TOTAL | ONE YEAR | YEARS | FIVE YEARS | |
| Financial liabilities | $’000 | $’000 | $’000 | $’000 |
Bank loans | 48,799 | 33,087 | 15,712 | – |
Lease liabilities | 2,019 | 390 | 1,173 | 456 |
Trade and other payables | 38,564 | 38,564 | – | – |
89,382 | 72,041 | 16,885 | 456 |
207
Kenmare Resources plc
Annual Report and Accounts 2024
FINANCIALS
24. Financial instruments continued
| SOUTH | ||||||
| MOZAMBICAN | AFRICAN | AUSTRALIAN | ||||
| METICAL | RAND | EURO | STERLING | DOLLAR | RENMINBI | |
| $’000 | $’000 | $’000 | $’000 | $’000 | $’000 | |
Trade and other receivables | 8,067 | 1,405 | 1,349 | 15 | 335 | – |
Cash and cash equivalents | 5,152 | 1,010 | 945 | 95 | 2 | 28 |
Bank loans | – | – | – | – | – | – |
Leases | – | – | (971) | – | – | – |
Trade and other payables | (25,429) | (5,059) | (77) | – | (74) | – |
Net exposure | (12,210) | (2,644) | 1,246 | 110 | 263 | 28 |
| SOUTH | ||||||
| MOZAMBICAN | AFRICAN | AUSTRALIAN | ||||
| METICAL | RAND | EURO | STERLING | DOLLAR | RENMINBI | |
| $’000 | $’000 | $’000 | $’000 | $’000 | $’000 | |
Trade and other receivables | 12,956 | 1,712 | 338 | 395 | 156 | – |
Cash and cash equivalents | 5,371 | 9,296 | 571 | 499 | 3 | 17 |
Bank loans | – | – | – | – | – | – |
Leases | – | – | (1,255) | – | – | – |
Trade and other payables | (12,919) | (1,741) | (296) | – | – | – |
Net exposure | 5,408 | 9,267 | (642) | 894 | 159 | 17 |
Kenmare Resources plc
Annual Report and Accounts 2024
208
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2024
| SOUTH | ||||||
| MOZAMBICAN | AFRICAN | AUSTRALIAN | ||||
| METICAL | RAND | EURO | STERLING | DOLLAR | RENMINBI | |
| Profit or loss | $’000 | $’000 | $’000 | $’000 | $’000 | $’000 |
| 31 December 2024 | ||||||
Strengthening | (1,221) | (264) | 125 | 11 | 26 | 3 |
Weakening | 1,221 | 264 | (125) | (11) | (26) | (3) |
| 31 December 2023 | ||||||
Strengthening | 540 | 927 | (64) | 89 | 16 | 2 |
Weakening | (540) | (927) | 64 | (89) | (16) | (2) |
| 2024 | 2023 | |
| $’000 | $’000 | |
Variable rate debt | 77,991 | 48,799 |
25. Capital management
The Group’s capital management objective is to ensure that entities in the Group will be able to continue as a going concern while maximising
the return to shareholders through the optimisation of debt and equity balances.
The principal activity of the Group is the operation of the Mine. The Group, therefore, manages its capital to ensure existing operations are
adequately funded and, based on planned mine production levels, that the Mine will continue to achieve positive cash flows allowing returns to
shareholders.
At 31 December 2024, the Group had total debt facilities in place of $200 million (2023: $150 million), details of which are set out in Note 20.
The Board periodically reviews the capital structure of the Group, including the cost of capital and the risks associated with each class of
capital. The Group manages and, if necessary, adjusts its capital structure taking account of the underlying economic conditions. Any material
adjustments to the Group’s capital structure, in terms of the relative proportions of debt and equity, are approved by the Board. The Group is not
subject to any externally imposed capital requirements.
The definition of capital/capital structure of the Group consists of debt (which includes bank borrowings as disclosed in Note 20 and leases as
disclosed in Note 12) and equity attributable to equity holders of the Company, comprising issued capital, reserves, retained profits and other
reserves as disclosed in Notes 16 to 19.
209
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Annual Report and Accounts 2024
FINANCIALS
| 2024 | 2023 | |
| $’000 | $’000 | |
| Contracts for future expenditure authorised by the Board: | ||
Capital authorised and contracted | 246,850 | 93,664 |
Capital authorised and not contracted | 79,160 | 39,066 |
| 2024 | 2023 | |
| $’000 | $’000 | |
Short-term employee benefits | 4,773 | 4,728 |
Post-employment benefits | 335 | 336 |
Share-based payments | 1,848 | 1,992 |
Total benefits | 6,956 | 7,056 |
Kenmare Resources plc
Annual Report and Accounts 2024
210
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2024
30. Events after the statement of financial position date
Proposed dividend
On 25 March 2025, the Board proposed a final dividend of USc17.00 per share. This proposed dividend is subject to approval by the shareholders
at the Annual General Meeting. These financial statements do not reflect this dividend.
31. Approval of financial statements
The financial statements were approved by the Board on 13 April 2025.
211
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Annual Report and Accounts 2024
FINANCIALS
“For me, our purpose of “Transforming
resources into opportunity for all” is
primarily about empowerment. It is about
creating opportunities for young people
in Mozambique, who form the majority
of our workforce, as well as for our host
communities through KMAD’s initiatives.
More widely, it is also about using what
we have to create value for companies
in our supply chain, our customers,
shareholders, and other partners.”
SIMONE SENGO
Acting WCP A Shift Supervisor
Kenmare Resources plc
Annual Report and Accounts 2024
212
COMPANY
FINANCIAL
STATEMENTS
`
Parent Company statement of
financial position
214
`
Parent Company statement of
changes in equity
215
`
Notes to the Company financial
statements
216
Company financial statements
CONTENTS
213
Kenmare Resources plc
Annual Report and Accounts 2024
FINANCIALS
NOTES
2024
$’000
2023
$’000
Assets
Non-current assets
Property, plant and equipment 2 277 384
Right-of-use asset 3 482 682
Investments in subsidiaries 4 805,294 804,010
806,053 805,076
Current assets
Amounts due from subsidiary undertakings 5 20,348 5,233
Trade and other receivables 6 410 315
Current tax assets 11 987 –
Cash and cash equivalents 7 6,420 38,748
28,165 44,296
Total assets 834,218 849,372
Equity
Capital and reserves attributable to the
Company’s equity holders
Called-up share capital 8 97 97
Share premium 8 545,950 545,950
Other reserves 8 229,274 229,740
Retained earnings 54,530 9,226
Total equity 829,851 785,013
Non-current liabilities
Lease liabilities 3 396 625
Amounts due to subsidiary undertakings 9 – 54,116
396 54,741
Current liabilities
Amounts due to subsidiary undertakings 9 1,116 1,215
Lease liabilities 3 230 215
Current tax liabilities 11 – 6,055
Trade and other payables 10 2,625 2,133
3,971 9,618
Total liabilities 4,367 64,359
Total equity and liabilities 834,218 849,372
The accompanying notes form part of these financial statements.
On behalf of the Board:
T. HICKEY A. WEBB
Director Director
13 April 2025 13 April 2025
Kenmare Resources plc
Annual Report and Accounts 2024
214
PARENT COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024
CALLED‑UP
SHARE
CAPITAL
$’000
SHARE
PREMIUM
$’000
OTHER
RESERVES
$’000
RETAINE D
EARNINGS
$’000
TOTAL
$’000
Balance at 1 January 2023 104 545,950 232,759 24,976 803,789
Total comprehensive income for the year
Profit for the financial year – – – 72,449 72,449
Total comprehensive income for the year – – – 72,449 72,449
Transactions with owners of the Company
Tender offer share buy-back (7) – 7 (29,963) (29,963)
Tender offer share buy-back transaction costs – – – 572 572
Recognition of share-based payment expense – – 3,278 – 3,278
Exercise of share-based payment awards – – (3,512) (2,197) (5,709)
Shares acquired by The Kenmare Resources plc Employee
Benefit Trust – – (6,182) – (6,182)
Shares distributed by The Kenmare Resources plc Employee
Benefit Trust – – 3,390 – 3,390
Dividends paid – – – (56,611) (56,611)
Total contributions and distributions (7) – (3,019) (88,199) (91,225)
Balance at 1 January 2024 97 545,950 229,740 9,226 785,013
Total comprehensive income for the year
Profit for the financial year – – – 91,936 91,936
Total comprehensive income for the year – – – 91,936 91,936
Transactions with owners of the Company
Recognition of share-based payment expense – – 3,584 – 3,584
Exercise of share-based payment awards – – (3,244) 1,486 (1,758)
Shares acquired by The Kenmare Resources plc Employee
Benefit Trust – – (3,169) – (3,169)
Shares distributed by The Kenmare Resources plc Employee
Benefit Trust – – 2,363 – 2,363
Dividends paid – – – (48,118) (48,118)
Total contributions and distributions – – (466) (46,632) (47,098)
Balance at 31 December 2024 97 545,950 229,274 54,530 829,851
215
Kenmare Resources plc
Annual Report and Accounts 2024
FINANCIALS
PARENT COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2024
1. Statement of accounting policies
The Company Financial Statements of Kenmare Resources plc (the “Company”) are prepared on a going concern basis under the historical cost
convention, in accordance with Financial Reporting Standard 101 Reduced Disclosure Framework (‘FRS 101’) and the Companies Act 2014.
In preparing these Financial Statements, the Company applies the recognition, measurement and disclosure requirements of International
Financial Reporting Standards as adopted by the EU (Adopted IFRSs), but makes amendments where necessary in order to comply with the
Companies Act 2014 and has set out below where advantage of the FRS 101 disclosure exemptions has been taken.
The Company has taken advantage of the following disclosure exemptions under FRS 101:
` A cash flow statement and related notes
` Comparative period reconciliations for tangible fixed assets and share capital
` Disclosures in respect of transactions with wholly owned subsidiaries
` Disclosures in respect of capital management
` The effects of new but not yet effective IFRS
` Disclosures in respect of the compensation of key management personnel
As the consolidated financial statements of the Group are prepared in accordance with IFRS as adopted by the EU and include the equivalent
disclosures, the Company has also taken the exemptions under FRS 101 available in respect of the following disclosures:
` Certain disclosures required by IFRS 2 Share-Based Payments
` Certain disclosures required by IFRS 13 Fair Value Measurement
` The disclosures required by IFRS 7 Financial Instruments: Disclosures
` Certain disclosures required by IFRS 16 Leases
In accordance with Section 304(2) of the Companies Act 2014, the Company is availing of the exemption from presenting its individual
statement of comprehensive income to the Annual General Meeting and from filing it with the Companies Registration Office. The Company’s
profit for the financial year, determined in accordance with IFRS, is $91.9 million (2023: $72.5 million). The profit consists of income from shares in
group undertakings, marketing and management services fee income less administration and other costs.
The financial statements have been prepared in US Dollars and are rounded to the nearest thousand.
The principal accounting policies adopted are the same as those set out for the Group financial statements except as noted below. The
accounting policies have, unless otherwise stated, been applied consistently to all periods presented in these financial statements.
Accounting policies applying only to the Company financial statements
Investments in subsidiaries
Investments in subsidiary undertakings are accounted for under IAS 27 Separate Financial Statements. Investments in subsidiaries are
recognised at cost less impairment.
Equity-settled share-based payments granted by the Company to employees of subsidiary companies are accounted for as an increase in the
carrying value of the investment in subsidiary companies and the share based payment reserve.
Where the Company enters into financial guarantee contracts to guarantee the indebtedness of companies within the Group, the financial
guarantee liability is, initially, measured at its fair value. The fair value of a financial guarantee contract is determined as the present value of the
cost of the guarantee for the total debt facility.
At each reporting date the financial guarantee liability is, subsequently, measured at the higher of: (i) the amount, initially, recognised less the
cumulative amount of income recognised in accordance with the principles of IFRS 15 Revenue from Contracts with Customers; and (ii) the loss
allowance, i.e. the expected credit losses under IFRS 9 Financial Instruments.
Impairment of investments in subsidiaries
At each reporting date, the Company reviews the carrying amounts of its investments in subsidiaries to determine whether there is any
indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in
order to determine the extent of the impairment loss (if any). Where the asset does not generate cash flows that are independent from other
assets, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The recoverable amount is the higher of fair value less costs to sell and value in use. Fair value less costs to sell is the price that would be
received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In
assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current
market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been
adjusted.
Kenmare Resources plc
Annual Report and Accounts 2024
216
NOTES TO THE COMPANY FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2024
If the recoverable amount of the asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the
asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised as an expense immediately.
Where an impairment loss, subsequently, reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised
estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been
determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior financial years. A reversal of an impairment
loss is recognised as income immediately.
Amounts due from subsidiary undertakings
Amounts due from subsidiaries comprise of loans and borrowings and other receivables. All loans and borrowings are, initially, recorded at fair
value, net of transaction costs and allowances for expected credit losses. Loans and borrowings are, subsequently, stated at amortised cost.
Interest income is recognised using the effective interest method calculated by applying the effective interest rate to the gross carrying amount
of a financial asset. Interest income is recognised in profit or loss.
Other receivables due from subsidiaries are, initially, recognised at their transaction value and, subsequently, carried at amortised cost, net of
allowance for expected credit loss.
Impairment of amounts due from subsidiary undertakings
The Company recognises a loss allowance for expected credit losses on financial assets. The amount of expected credit losses is updated at
each reporting date to reflect changes in credit risk since initial recognition of the financial asset. When determining whether the credit risk
of a financial asset has increased the Company considers credit risk ratings where available, the Company’s historical credit loss experience,
adjusted for factors that are specific to the counterparts, general economic conditions, and an assessment of both the current as well as the
forecast conditions at the reporting date.
The Company considers a financial asset to be in default when there is information indicating that the debtor is in severe financial difficulty and
there is no realistic prospect of recovery, e.g. when the debtor has been placed in liquidation or has entered into bankruptcy proceedings. The
Company considers a financial asset to be credit-impaired when there is evidence that the debtor is in significant financial difficulty and the debt
is more than 90 days past due.
Amounts due to subsidiary undertakings
Amounts due to subsidiary undertakings are initially, measured at fair value and, subsequently, measured at amortised cost using the effective
interest rate method. The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest
expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees,
transaction costs and other premiums or discounts) through the expected life of the financial liability, or (where appropriate) a shorter period,
to the amortised cost of a financial liability. The Company derecognises financial liabilities when, and only when, the Company’s obligations are
discharged, cancelled or have expired.
Critical accounting judgements and key sources of estimation uncertainty
Key sources of estimation uncertainty
The preparation of financial statements requires the Directors to make estimates and assumptions that affect the amounts reported for assets
and liabilities as at the reporting date. The nature of estimation means the actual outcomes could differ from those estimates. The main areas
subject to estimation uncertainty are detailed below.
Impairment of non-current assets
Where there are indicators of impairment of non-current assets, the Company performs impairment tests based on fair value less costs to sell
or a value-in-use calculation. The fair value less costs to sell calculation is based on available data from binding sales transactions in an arm’s
length transaction on similar assets or observable market prices less incremental costs for disposing of the asset. The value-in-use calculation
is based on a discounted cash flow model. The cash flows are derived from the budget and do not include restructuring activities that are not
yet committed to, or significant, future financial assets that will enhance performance of the financial assets being tested. The value-in-use
calculation is most sensitive to the discount rate used for the discounted cash flow model as well as the expected future cash flows. Additionally,
in some instances, the Company obtains a third-party valuation of a financial asset and relies on this source if the valuation is current.
217
Kenmare Resources plc
Annual Report and Accounts 2024
FINANCIALS
2. Property, plant and equipment
FIXTURES
AND
FITTINGS
$’000
MOTOR
VEHICLES
$’000
TOTAL
$’000
Cost
At 1 January 2024 934 131 1,065
Disposal – (131) (131)
At 31 December 2024 934 – 934
Accumulated depreciation
At 1 January 2024 550 131 681
Disposal – (131) (131)
Charge for the financial year 107 – 107
At 31 December 2024 657 – 657
Carrying amount
At 31 December 2024 277 – 277
At 1 January 2024 384 – 384
At each reporting date, the Company assesses whether there is any indication that property, plant and equipment may be impaired. No
impairment indicators were identified as at 31 December 2024 or 31 December 2023.
3. Right-of-use assets
LAND &
BUILDINGS
$’000
At 1 January 2023 891
Depreciation expense (209)
At 31 December 2023 682
Depreciation expense (200)
At 31 December 2024 482
On 1 January 2019, the Group recognised lease liabilities of $3.3 million in respect of right-of-use assets being its head office at Styne House,
Dublin. The Styne House lease has a term of 10 years commencing August 2017 and rental payments are fixed for the remainder of the lease
term. This lease obligation is denominated in Euros.
At each reporting date, the Company assesses whether there is any indication that right-of-use assets may be impaired. No impairment
indicators were identified as at 31 December 2024 or 31 December 2023.
Set out below are the carrying amounts of lease liabilities at each reporting date:
2024
$’000
2023
$’000
Current 230 215
Non-current 396 625
Total 626 840
The income statement includes the following amounts relating to leases:
2024
$’000
2023
$’000
Depreciation expense 200 209
Interest expense on lease liabilities 59 40
Total 259 249
Kenmare Resources plc
Annual Report and Accounts 2024
218
NOTES TO THE COMPANY FINANCIAL STATEMENTS CONTINUED
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2024
4. Investments in subsidiaries
2024
$’000
2023
$’000
Opening balance 804,010 802,909
Capital contribution 1,284 1,101
Closing balance 805,294 804,010
The investment balance of $805.3 million (2023: $804.0 million) comprises an investment in Kenmare Moma Mining (Mauritius) Limited
and Kenmare Moma Processing (Mauritius) Limited, collectively known as “the Project Companies”, in the amount of $792.7 million (2023:
$792.7 million) and, subsequent, capital contributions of $12.5 million (2023: $11.3 million). It also comprises an initial investments, of $0.1 million in
Kenmare Resources Consulting (Beijing) Co. Ltd made during the year and less than $500 in the other subsidiary undertakings of the Company
when those entities were established.
The Company is involved in a Group share-based payment scheme whereby the Company has an obligation to settle awards relating to
employees of subsidiaries and is, therefore, considered the settling entity. The Company accounts for the arrangement in accordance with IAS
27 Separate Financial Statements and recognises an addition to the cost of its investment in the relevant subsidiary undertakings. The capital
contribution relating to share awards of the Project Companies amounts to $9.6 million (2023: $8.1 million). The total amount recognised as an
addition under Group share-based payment schemes during the year was $1.5 million (2023: $1.1 million).
The Company has undertaken to guarantee the debt of its subsidiaries. The Company has elected to account for intra-group guarantees in
accordance with IFRS 9 Financial Instruments.
IFRS 9 Financial Instruments requires a financial liability to be measured at its fair value in relation to the intra-group guarantee contracts at
initial recognition, with the corresponding entry recorded as an investment in subsidiary. Subsequently, the financial liability is measured at the
higher of: (i) the initial fair value less the cumulative amount of income recognised in accordance with the principles of IFRS 15 Revenue from
Contracts with Customers; and (ii) the expected credit loss. Amortisation for the unwinding of the financial liability is recognised within profit or
loss over the period of the guarantee contract.
The guarantee has been valued at nil on the basis it was made to allow funds to flow to the Company from its subsidiary undertakings without
affecting Lender security but not as a realistic mechanism to have debt repaid if the subsidiary undertakings were to default.
The subsidiary undertakings of the Company as at 31 December 2024 are as follows:
PLACE OF
INCORPORATION
PLACE OF
OPERATION
PERCENTAGE
OWNERSHIP
Kenmare C.I. Limited Jersey Jersey 100%
Congolone Heavy Minerals Limited Jersey Mozambique 100%
Kenmare Moma Mining (Mauritius) Limited Mauritius Mozambique 100%
Kenmare Moma Processing (Mauritius) Limited Mauritius Mozambique 100%
Mozambique Minerals Limited Jersey Mozambique 100%
Kenmare Mineral Resources Consulting (Beijing) Co. Ltd China China 100%
Each of the subsidiary undertakings has issued ordinary shares only. The activities of the above subsidiary undertakings are mining, mineral
exploration, management and development.
The registered office of the Irish company is Styne House, Hatch Street Upper, Dublin 2, D02 DY27. The registered office of the Jersey
companies is Zedra Trust Company (Jersey) Limited, 19-21 Broad Street, St. Helier, Jersey. The registered office of the Mauritian companies is
10th Floor, Standard Chartered Tower, 19 Cybercity, Ebene, Mauritius. The registered office of the China company is 5-304B20, 3F, No.1 Building,
No.1 Courtyard, Yue Tan South Street, Xicheng District, Beijing, China.
The Company carried out an impairment review of investments in subsidiary undertakings as at 31 December 2024. As a result of the review,
an indicator of impairment was identified in the Company’s investment in Kenmare Moma Processing (Mauritius) Limited and Kenmare Moma
Mining (Mauritius) Limited as a result of the carrying value of the Company’s investment in subsidiaries being in excess of the Group’s market
capitalisation.
In accordance with IAS 36, management calculated the recoverable amount of both investments, which, for the purposes of the impairment test
were considered collectively to form part of a cash-generating unit, namely the Moma Titanium Minerals Mine. As a result of the impairment
review, management concluded that the recoverable amount of the cash-generating unit exceeded the carrying amount and, as such, no
impairment loss was recorded. Further information on the assumptions used in the impairment test can be found in Note 11 to the Group
Consolidated Financial Statements.
219
Kenmare Resources plc
Annual Report and Accounts 2024
FINANCIALS
5. Amounts due from subsidiary undertakings
2024
$’000
2023
$’000
Loans and borrowings 14,988 –
Other payables 5,360 5,233
Closing balance 20,348 5,233
Under the terms of a management services agreement and marketing services agreement between the Company and the Project Companies,
the Company earned $11.1 million (2023: $9.5 million) in respect of management services provided during the year to both Project Companies
and $11.8 million (2023: $13.1 million) in respect of marketing services provided during the year to Kenmare Moma Processing (Mauritius) Limited.
The collective amount outstanding at the year end in relation to these services is $5.4 million (2023: $5.2 million).
During the year, the below loan was provided to the Project Companies:
2024
$’000
2023
$’000
Loan principal amount 30,000 –
Principal repaid (15,000) –
Interest accrued 1,702 –
Interest paid (1,306) –
Expected credit losses (408) –
Carrying amount 14,988 –
The carrying amount due from subsidiary undertakings represents the maximum credit exposure. Amounts due from subsidiary undertakings
are current (i.e. not overdue). The expected credit losses provided against amounts due from subsidiary undertakings is $0.4 million
(2023: $nil million).
6. Trade and other receivables
2024
$’000
2023
$’000
Prepayments 410 315
7. Cash and cash equivalents
2024
$’000
2023
$’000
Cash at bank and in hand 6,420 38,748
8. Share capital, share premium and other reserves
Relevant disclosures on the Company’s share capital, share premium and other reserves are given in Notes 16 to 19 to the Group Consolidated
Financial Statements.
Kenmare Resources plc
Annual Report and Accounts 2024
220
NOTES TO THE COMPANY FINANCIAL STATEMENTS CONTINUED
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2024
9. Amounts due to subsidiary undertakings
2024
$’000
2023
$’000
Loans and borrowings – 36,636
Other payables 1,116 18,695
Closing balance 1,116 55,331
Non-current 1,116 54,116
Current – 1,215
Closing balance 1,116 55,331
On 24 June 2024, as part of a Group restructuring of inter-group debt, Kenmare C.I. Limited converted $54.1 million, which was owed to it by
the Company into a promissory note. Kenmare C.I. Ltd distributed the amount it owes to the Company. Following the distribution, the Company
cancelled the promissory note, thereby, eliminating then amounts due to Kenmare C.I Ltd.
During the year, costs of $2.2 million (2023: $2.3 million) were recharged to the Company by Kenmare C.I. Limited under a Group cost agreement.
The amount due to Kenmare C.I. Ltd under the Group cost agreement is $0.7 million (2023: $0.8 million) at the year end.
During the year costs of $0.5 million (2023: $0.5 million) were recharged to the Company by its subsidiary, Mozambique Minerals Limited under a
Group cost agreement. The amount due to Mozambique Minerals Ltd is $0.4 million (2023: $0.4 million) at the year end.
The Company entered into a Consultancy Service Agreement with Kenmare Mineral Resources Consulting (Beijing) Co. Ltd on the
9 September 2024. During the year, services of $0.2 million (2023: $nil) were charged to the Company by its subsidiary, Kenmare Resources
Consulting (Beijing) Co. Ltd under this agreement. The amount due to Kenmare Mineral Resources Consulting (Beijing) Co. Ltd is $nil (2023:
$nil) at the year end.
10. Trade and other payables
2024
$’000
2023
$’000
Trade payables 3 50
Accruals 2,622 2,083
2,625 2,133
11. Tax (assets)/liabilities
2024
$’000
2023
$’000
Tax (asset) / liabilities (987) 6,055
The Company has made advanced preliminary tax payments on its estimated 2024 tax liability to the Irish Revenue Commissioners.
221
Kenmare Resources plc
Annual Report and Accounts 2024
FINANCIALS
12. Financial risk management
2024 2023
CARRYING
AMOUNT
$’000
FAIR VALUE
$’000
CARRYING
AMOUNT
$’000
FAIR VALUE
$’000
Financial assets not measured at fair value
Loans and borrowings 14,988 14,988 – – Level 2
Cash and cash equivalents 6,420 6,420 38,748 38,748 Level 2
21,408 21,408 38,748 38,748
Financial liabilities not measured at fair value
Loans and borrowings – – 36,636 36,636 Level 2
The carrying amounts and fair values of financial assets and financial liabilities including their levels in fair value hierarchy are detailed above.
The table does not include fair value information for other receivables, prepayments, trade payables and accruals as these are not measured at
fair value as the carrying amount is a reasonable approximation of their fair value.
Credit risk management
Credit risk is the risk of financial loss to the Company’s if a customer or a counterparty to a financial instrument fails to meet it contractual
obligations and arises, principally, from the Company’s trade receivables from customers. The carrying amount of financial assets represents
the maximum credit exposure. The expected credit losses provided against amounts due from subsidiary undertakings is $0.4 million
(2023: $nil million).
Foreign exchange risk management
The Company does not have any material assets or liabilities denominated in any currency other than US Dollars at 31 December 2024 or at
31 December 2023, which would give rise to a significant transactional currency exposure.
13. Dividends
The dividends paid in respect of ordinary share capital were as follows:
2024
$’000
2023
$’000
DIVIDENDS
48,118 56,611
In May 2024, the Company paid a final 2023 dividend of $34.4 million representing USc38.54 per share (2023: USc43.33). In October 2024, the
Company paid a 2024 interim dividend of USc15.0 (2023: USc17.5) per ordinary share, totalling $13.4 million.
Kenmare Resources plc
Annual Report and Accounts 2024
222
NOTES TO THE COMPANY FINANCIAL STATEMENTS CONTINUED
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2024
14. Events after the statement of financial position
Proposed dividend
On 25 March 2025, the Board proposed a final dividend of USc 17.0 per share. This proposed dividend is subject to approval by the shareholders
at the Annual General Meeting. These financial statements do not reflect this dividend.
15. Approval of financial statements
The financial statements were approved by the Board on 13 April 2025.
223
Kenmare Resources plc
Annual Report and Accounts 2024
FINANCIALS
“Our purpose of “Transforming resources
into opportunity for all” is of great
importance to me, particularly in terms
of creating employment and bringing
prosperity to local communities. I have
worked with Kenmare since 2012 and
during that time I’ve received extensive
training. Through the Company I’ve had
a lot of opportunities to develop and I’m
proud that Kenmare is focused on doing
the same for others.”
JUMA ALI
Storeman for Mobile Equipment
Kenmare Resources plc
Annual Report and Accounts 2024
224
OTHER
INFORMATION
`
Shareholder profile
226
`
Glossary – alternative performance
measures
227
`
Glossary – terms
229
`
General information
233
CONTENTS
225
Kenmare Resources plc
Annual Report and Accounts 2024
OTHER INFORMATION
Kenmare Resources plc
Annual Report and Accounts 2024
226
SHAREHOLDER PROFILE
BASED ON THE REGISTER AS AT 4 APRIL 2025
Size of holdings
NO. OF
SHAREHOLDERS
NO. OF
SHARES HELD
1–1,000 602 103,402
1,001–5,000 55 106,406
5,001–25,000 14 155,827
25,001–100,000 2 108,434
Over 100,000 1 88,754,092
Total 674 89,228,161
Geographic distribution of holdings
NO. OF
SHAREHOLDERS
NO. OF
SHARES HELD
Republic of Ireland 194 126,858
Northern Ireland and Great Britain 361 89,075,265
Other 119 26,038
Total 674 89,228,161
227
Kenmare Resources plc
Annual Report and Accounts 2024
OTHER INFORMATION
GLOSSARY – ALTERNATIVE PERFORMANCE MEASURES
Certain financial measures set out in the Annual Report to 31 December 2024 are not defined under International Financial Reporting Standards
(IFRS), but represent additional measures used by the Board to assess performance and for reporting both internally and to shareholders and
other external users. Presentation of these Alternative Performance Measures (APMs) provides useful supplemental information which, when
viewed in conjunction with the Group’s IFRS financial information, allows for a more meaningful understanding of the underlying financial and
operating performance of the Group.
These non-IFRS measures should not be considered as an alternative to financial measures as defined under IFRS. Descriptions of the APMs
included in this report, as well as their relevance for the Group, are disclosed below.
APM DESCRIPTION RELEVANCE
EBITDA Operating profit/loss before depreciation
and amortisation
Eliminates the effects of financing, tax and depreciation to allow
assessment of the earnings and performance of the Group
EBITDA margin Percentage of EBITDA to Mineral Product
Revenue
Provides a group margin for the earnings and performance of the Group
Capital costs Additions to property, plant and equipment
in the period
Provides the amount spent by the Group on additions to property, plant
and equipment in the period
Cash operating cost per
tonne of finished product
produced
Total costs less freight and other non-cash
costs, including depreciation and inventory
movements divided by final product
production (tonnes)
Eliminates the non-cash impact on costs to identify the actual cash
outlay for production and, as production levels increase or decrease,
highlights operational performance by providing a comparable cash
cost per tonne of product produced over time
Cash operating cost per
tonne of ilmenite net of
co-products
Cash operating costs less revenue
of zircon, rutile and mineral sands
concentrates, divided by ilmenite
production (tonnes)
Eliminates the non-cash impact on costs to identify the actual cash
outlay for production and, as production levels increase or decrease,
highlights operational performance by providing a comparable cash
cost per tonne of ilmenite produced over time
Net cash/debt Bank loans before transaction costs, loan
amendment fees and expenses plus lease
liabilities net of cash and cash equivalents
Measures the amount the Group would have to raise through
refinancing, asset sale or equity issue if its debt were to fall due
immediately, and aids in developing an understanding of the leveraging
of the Group
ROCE Return on capital employed ROCE measures how efficiently the Group generates profits from
investment in its portfolio of assets
Shareholder returns Dividends and share buy backs Shareholder returns comprises the interim dividend, the proposed final
dividend to be approved by shareholders at the AGM and any share
buy backs
EBITDA
2020
$M
2021
$M
2022
$M
2023
$M
2024
$M
Operating profit 33.4 151.1 233.4 155.1 89.2
Depreciation 42.3 63.1 64.6 65.2 67.9
EBITDA 75.7 214.2 298.0 220.3 157.1
EBITDA margin
2020
$M
2021
$M
2022
$’M
2023
$’M
2024
$’M
EBITDA 75.7 214.2 298.0 220.3 157.1
Mineral Product Revenue 231.5 420.5 498.4 437.1 392.1
EBITDA margin (%) 33% 51% 60% 50% 40%
Kenmare Resources plc
Annual Report and Accounts 2024
228
Cash operating cost per tonne of finished product
2020
$M
2021
$M
2022
$M
2023
$M
2024
$M
Cost of sales 192.3 295.0 282.7 294.9 319.4
Administrative expenses 18.1 9.8 9.9 8.4 6.2
Total operating costs 210.4 304.8 292.6 303.3 325.6
Freight (12.2) (35.4) (27.6) (21.4) (22.7)
Total operating costs less freight 198.2 267.5 265.0 281.9 302.9
Non-cash costs
Depreciation and amortisation (42.3) (63.1) (64.6) (65.2) (67.9)
Expected credit losses – (0.2) (1.1) – (0.2)
Share-based payments (0.5) (1.1) (2.2) (3.3) (3.6)
Mineral product inventory movements 4.9 (9.3) 21.6 14.7 12.4
Total cash operating costs 160.3 195.7 218.7 228.1 243.6
Final product production tonnes 840,500 1,228,500 1,200,800 1,091,500 1,115,300
Cash operating cost per tonne of finished product $191 $159 $182 $209 $219
Cash operating cost per tonne of ilmenite
2020
$M
2021
$M
2022
$’M
2023
$’M
2024
$’M
Total cash operating costs 160.3 195.7 218.7 228.1 243.6
Less revenue from co-products zircon,
rutile and mineral sands concentrate (63.2) (85.8) (150.9) (122.0) (100.4)
Total cash costs less co-product revenue 97.1 109.9 67.8 106.1 143.2
Ilmenite product production tonnes 756,000 1,119,400 1,088,300 986,300 1,008,900
Cash operating cost per tonne of ilmenite $128 $98 $62 $108 $142
Net cash/debt
2020
$’M
2021
$’M
2022
$’M
2023
$’M
2024
$’M
Bank debt (145.8) (148.1) (78.6) (47.9) (78.0)
Transaction costs (5.4) (3.8) (2.2) (0.9) (2.4)
Gross debt (151.2) (151.9) (80.8) (48.8) (80.4)
Lease liabilities (3.4) (2.2) (1.8) (1.5) (1.3)
Cash and cash equivalents 87.2 69.1 108.3 71.0 56.7
Net cash/(debt) (67.4) (85.0) 25.7 20.7 (25.0)
Return on Capital Employed
RESTATED
$M
RESTATED
$M
2022
$’M
2023
$’M
2024
$’M
Operating profit 33.4 151.1 233.4 155.1 89.2
Total Equity and Non-Current Liabilities 1,087.5 1,045.4 1,170.4 1,180.9 1,260.1
ROCE 3% 15% 20% 13% 7%
GLOSSARY – ALTERNATIVE PERFORMANCE MEASURES CONTINUED
229
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Annual Report and Accounts 2024
OTHER INFORMATION
GLOSSARY – TERMS
TERM DESCRIPTION
ABC Anti-bribery and corruption
AIFR All Injury Frequency Rate; his measures the number of injuries at the Mine in the year, per 200,000 hours
worked.
AFE Authorisation for Expenditure
AGM Annual General Meeting
APAIPS Área de Protecção Ambiental das Ilhas Primeiras e Segundas
AR6 IPCC Sixth Assessment Report
BOMP Biodiversity Offset Management Plan
CIF This terms means the seller delivers when the goods pass the ship’s rail in the port of shipment. Seller must
pay the cost and freight necessary to bring goods to named port of destination. Risk of loss and damage are
the same as CFR. Seller also has to procure marine insurance against buyer’s risk of loss/damage during the
carriage. Seller must clear the goods for export. This term can only be used for sea transport.
CFR This term means the seller delivers when the goods pass the ship’s rail in port of shipment. Seller must pay
the costs and freight necessary to bring the goods to the named port of destination, but the risks of loss or
damage, as well as any additional costs due to events occurring after the time of delivery, are transferred from
seller to buyer; seller must clear goods for export. This term can only be used for sea transport.
Chloride slag Chloride slag is a high-grade titanium dioxide feedstock, typically containing 85–90% TiO,
specifically produced for use in chloride pigment and titanium manufacturing processes.
Collective Bargaining The negotiation process between employers and workers (or unions) over wages, working conditions, and
rights.
CO
2
e Carbon Dioxide equivalent
CPTu CPTu is a cone penetration test that provides geotechnical information assisting in understanding of the
orebody parameters such as hardness.
CSRD Corporate Sustainability Reporting Directive
CTP Climate Transition Plan
The Company or Parent
Company
Kenmare Resources plc
Decarbonisation The process of reducing carbon dioxide emissions, often through energy efficiency, electrification, or carbon
capture.
DEFRA Department for Environment, Food and Rural Affairs of Mozambique
DFS Definitive Feasibility Studies. These are the most detailed studies and are used to determine definitively
whether to proceed with a project. A Definitive Feasibility Study will be the basis for capital appropriation, and
will provide the budget figures for the project. Detailed Feasibility Studies require a significant amount of formal
engineering work and are accurate to within approximately 10–15%..
EdM Electricidade de Moçambique
EGM Extraordinary General Meeting
EMP Environmental Management Plan
ESIA Environmental and Social Impact Assessment
ESRS Environmental Sustainability Reporting Standards
FOB This terms means means that the seller delivers when the goods pass the ship’s rail at the named port of
shipment. This means the buyer has to bear all costs and risks to the goods from that point. The seller must
clear the goods for export. This term can only be used for sea transport.
Free Cash Flow Free Cash Flow is the cash generated by the Group in a reporting period before distributions to shareholders.
Gender diversity Percentage of women in the workforce.
Kenmare Resources plc
Annual Report and Accounts 2024
230
TERM DESCRIPTION
GHG emissions Scope 1 & 2 Greenhouse Gas emissions. The Group acknowledges the human contribution to climate change
and aims to reduce emissions its already low carbon intensity operations.
GISTM Global Industry Standard of Tailings Management
Group or Kenmare Kenmare Resources plc and its subsidiary undertakings
GTMI Global Tailings Management Institute
Ha Hectares
HCB Hidroelectrica de Cahora Bassa
HMC Heavy Mineral Concentrate extracted from mineral sands deposits and which include ilmenite, zircon, rutile and
other heavy minerals and silica.
ICMM International Council on Mining and Metals
Implementation
Agreement
The agreement for the Moma Heavy Mineral Sands Industrial Free Zone Project between Kenmare Moma
Processing Limited (a company incorporated in Jersey whose rights and interests were transferred to KMPL in
November 2002), a wholly owned subsidiary of Kenmare, and Mozambique dated 21 January 2002.
ICMM International Council on Mining and Metals
IPCC Intergovernmental Panel on Climate Change
IRO Impacts, Risks and Opportunities
KMAD Kenmare Moma Development Association
KMML Kenmare Moma Mining (Mauritius) Limited
KMML
Mozambique Branch
Mozambique branch of KMML
KMPL Kenmare Moma Processing (Mauritius) Limited
KMPL
Mozambique Branch
Mozambique branch of KMPL
KRSP Kenmare Resources plc Restricted Share Plan
Lenders Absa Bank Limited (acting through its Corporate and Investment Banking Division) (Absa), Nedbank Limited
(acting through its Nedbank Corporate and Investment Banking division) (Nedbank), Rand Merchant Bank and
Standard Bank Group (Standard Bank).
LTI Lost Time Injury. This measures the number of injuries at the Mine that result in an employee not being able to
attend his next shift.
LTIF R Lost Time Injury Frequency Rate; measures the number of LTI's per 200,000 man hours worked on site.
Marketing – finished
products shipped
Finished products shipped to customers during the period.
Mining – HMC produced Heavy Mineral Concentrate extracted from mineral sands deposits and which includes ilmenite, zircon, rutile,
concentrates and other heavy minerals and silica. Provides a measure of Heavy Mineral Concentrate extracted
from the Mine.
Moma, Moma Mine, the
Mine or Site
The Moma Titanium Minerals Mine consisting of a heavy mineral sands mine, processing facilities and
associated infrastructure, which is located in the north east coast of Mozambique under licence to the Project
Companies.
Mine Closure Guarantee
Facility
$33 million mine closure guarantee facility between the Group and Standard Bank SA effective from
1 July 2024.
MSP Mineral Separation Plant
Mtpa Million tonnes per annum
Net Zero Achieving a balance between the greenhouse gases emitted and removed from the atmosphere.
No Net Loss (NNL) A conservation principle aiming to balance environmental damage by restoring or compensating for
biodiversity loss.
GLOSSARY – TERMS CONTINUED
231
Kenmare Resources plc
Annual Report and Accounts 2024
OTHER INFORMATION
TERM DESCRIPTION
NOSA National Occupational Safety Association
OIA Oman Investment Authority formerly the State General Reserve Fund of the Sultanate of Oman.
Odd lot offer The offer made by the Company to members in the UK and Ireland who held certificated holdings of less than
200 ordinary shares as described in the circular to shareholders dated 21 April 2022.
Ordinary Shares Ordinary shares of €0.001 each in the capital of the Company.
PFS A Feasibility Study is an evaluation of a proposed mining project to determine whether the mineral resource
can be mined economically. Pre-Feasibility Study is used to determine whether to proceed with a detailed
feasibility study and to determine areas within the project that require more attention. Pre-Feasibility Studies
are done by factoring known unit costs and by estimating gross dimensions or quantities once conceptual or
preliminary engineering and mine design has been completed.
PM Particulate Matter are microscopic particles of solid or liquid matter suspended in the air, which can have
natural or anthropogenic origins.They can affect climate, precipitation, human health, vegetation and regulation,
and are classified by size, composition and sources.
Possible Offer The non-binding proposal from Oryx Global Partners Limited and Michael Carvill regarding a possible all cash
offer for the entire issued and to be issued ordinary share capital of Kenmare which was announced by the
Company on 6 March 2025.
Processing – finished
products produced
Finished products produced by the mineral separation process; provides a measure of finished products
produced from the processing plants.
Project Companies KMML and KMPL, both wholly owned subsidiary undertakings of Kenmare Resources plc, which are
incorporated in Mauritius.
PSEPA Primeiras e Segundas Islands Protected Area
RAP Resettlement Action Plan
Revolving Credit Facility $200 million Revolving Credit Facility made available under the Senior Facilities Agreement dated
4 March 2024 between the Lenders, the Lenders’ agents, KMML Mozambique Branch and KMPL Mozambique
Branch as borrowers, and the Company, Kenmare C.I. Limited and Congolone Heavy Minerals Limited.
REE Rare Earth Elements
RUPS Rotary Uninterruptible Power Supply
SASB Sustainability Accounting Standards Board
SOFR Secured Overnight Financing Rate
Scope 1, 2, and 3
emissions
Scope 1: Direct emissions from company-owned operations
Scope 2: Indirect emissions from purchased energy
Scope 3: Indirect emissions from the company’s value chain (e.g., suppliers, transportation)
SMO Selective Mining Operation
SOFR Secured Overnight Financing Rate
SSP Shared Socioeconomic Pathways
Supply Chain Due
Diligence
Assessing environmental and human rights risks in the sourcing of materials and services.
Tailings Management The handling and storage of leftover material after ore extraction, which can contain toxic elements.
TCFD Task Force on Climate Related Financial Disclosures
Tender Offer The invitation by the Company to eligible shareholders to tender Ordinary Shares for purchase on-market by
Peel Hunt LLP on the terms and subject to the conditions set out in the circular dated 15 August 2023.
THM Total Heavy Minerals in the ore of which ilmenite (typically 82%), rutile (typically 2.0%) and zircon (typically
5.5%) total approximately 90%.
TSF Tailings Storage Facility
UK United Kingdom of Great Britain and Northern Ireland
WCP Wet Concentrator Plant
Kenmare Resources plc
Annual Report and Accounts 2024
232
TERM DESCRIPTION
WCP A The original WCP which started production in 2007.
WCP B The second WCP which started production in 2013.
WCP C The third WCP which started production in 2020.
WHIMS Wet High Intensity Magnetic Separation Plant
Whistleblower Protection Mechanisms for employees and stakeholders to report misconduct without fear of retaliation.
WRI World Resources Institute
VPSHR Voluntary Principles on Security and Human Rights
GLOSSARY – TERMS CONTINUED
The production of this report supports the work of the
Woodland Trust, the UK’s leading woodland conservation
charity. Each tree planted will grow into a vital carbon store,
helping to reduce environmental impact as well as creating
natural havens for wildlife and people.
OTHER INFORMATION
GENERAL INFORMATION
Company Secretary
Chelita Healy
Registered office
Kenmare Resources plc
Styne House
Hatch Street Upper
Dublin 2
D02 DY27
Registered number
37550
Independent auditor
KPMG
Chartered Accountants, Statutory Audit Firm
1 Stokes Place
St. Stephen’s Green
Dublin 2
D02 DE03
Solicitors
McCann FitzGerald
Riverside One
Sir John Rogerson’s Quay
Dublin 2
D02 X576
Bankers
Absa Bank (Mauritius) Limited
1st Floor Absa House
68 Wall Street
Cybercity
Ebene 72201
Mauritius
Absa Bank Moçambique
Torres Rani, Edifício de Escritórios,
16º Andar
Av. da Marginal nº 141
Maputo
Moçambique
AIB Bank Plc
140 Lower Drumcondra Road
Dublin 9
D09 YY61
Barclays Capital
1 Churchill Place
London
E14 5HP
FirstRand Bank Limited
Austin Friars House
2-6 Austin Friars
London
EC2N 2HD
Nedbank Limited
7th Floor
12 Arthur Street
London
EC4R 9AB
Standard Bank (Mauritius) Limited
Level 9 Tower A
1 Cybercity
Ebene 72201
Mauritius
Registrar
Computershare Investor Services (Ireland) Limited
3100 Lake Drive
Citywest Business Campus
Dublin 24
D24 AK82
Website
www.kenmareresources.com
233
Kenmare Resources plc
Annual Report and Accounts 2024
Kenmare Resources plc
4th Floor
Styne House
Hatch Street Upper
Dublin 2
Ireland
T: +353 1 671 0411
F: +353 1 671 0810
E: info@kenmareresources.com
www.kenmareresources.com