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Kenmare Posts H1 Loss; Ilmenite Output Falls 39% as Outlook Brightens
Kenmare posted a $34.1M H1 loss after ilmenite output fell 39% and revenue dropped 16%. The titanium miner said a strengthening zircon market and WCP A progress support H2.
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Kenmare Resources posted a $34.1 million loss after tax in the first half of 2026 as weak titanium feedstock markets and slower-than-expected commissioning of its Wet Concentrator Plant A cut ilmenite production by 39% and revenue by 16%.
"Weak market conditions for our products, combined with the slower than expected commissioning of WCP A, continued to impact Kenmare's financial performance in H1 2026," Managing Director Tom Hickey said. "However, with a strengthening zircon market and the capital expenditure for the WCP A upgrade project now substantially complete, the outlook is slightly improved."
Production of heavy mineral concentrate fell 34% year-on-year to 442,200 tonnes. The drop reflected a 26% decrease in excavated ore grades as WCP A reaches the end of its mine path in Namalope, plus a 10% decline in excavated ore volumes due to the commissioning delays and a temporary stoppage of dry mining at WCP B for most of the second quarter. Ilmenite output, the company’s primary product, dropped to 273,100 tonnes. Primary zircon production fell 32% to 18,600 tonnes, while rutile declined 44% to 2,700 tonnes.
Concentrates production jumped 599% to 135,700 tonnes, driven by the conversion of a 102,200-tonne tailings stockpile into ZrTi product to meet customer demand. Kenmare expects to generate 30,000-40,000 tonnes of ZrTi per year going forward.
Production and Operational Challenges
WCP A, Kenmare’s largest mining plant, averaged 2,800 tonnes per hour in H1, well below its design nameplate of 3,500 tph, mainly due to dredging performance. The company is working with suppliers and consultants on testing, spares lead times, and operational techniques. Downstream modifications, including debottlenecking of the desliming circuit, have been implemented. Throughputs and utilisation rates improved in July and early August, the company said.
All major construction and installation work for the WCP A upgrade is now complete. Capital expenditure on the project fell to $23 million in H1, with only $7 million expected in H2. The plant is scheduled to begin its transition to the Nataka ore zone in the second half, which contains about 70% of Moma’s nine billion tonnes of mineral resources.