Kenmare Resources (CDI)
KMR · Main Market · Basic Resources · mcap £210m · 225.0p 5 open situations →
Open · 5
Possible offer
On 6 Oct 2026, after press speculation, Kenmare confirmed a non-binding proposal from IRH for a possible cash offer for the whole company. The 15 Oct Q3 report says talks are ongoing and gives no price or new terms. IRH must announce a firm offer or walk away by 17 Nov 2026.
- Bidder
- International Resources Holdings RSC Ltd (IRH) 15 Oct 2026 ↗
- Offer
- Non-binding proposal for a possible cash offer for the entire issued and to be issued share capital; no price stated 15 Oct 2026 ↗
- Board view
- Discussions ongoing; no certainty of a firm offer or its terms 15 Oct 2026 ↗
- Timetable
- Rule 2.7 firm offer or no-offer statement by 5.00 pm GMT on 17 November 2026 15 Oct 2026 ↗
- Share capital
- 89,228,161 ordinary shares in issue plus 2,363,871 options under the restricted share plan 6 Oct 2026 ↗
Next: IRH firm offer or no-offer statement under Rule 2.7/2.8 · 17 Nov 2026
- 15 Oct 2026 approach
- 6 Oct 2026 approach
2025 production guidance
Kenmare has cut production and drawn down stocks since January 2026. The 15 Oct Q3 report lowers 2026 shipments guidance to about 1.05m tonnes from over 1.1m, blaming port delays. Finished stock rose to 284,200 tonnes in Q3 as production exceeded shipments, and cash operating costs are now expected near the top of the range.
- Guidance
- 2026 ilmenite production now approximately 800,000 tonnes, instead of more than 800,000 16 Jul 2026 ↗
- H1 shipments
- 555,600 tonnes, up 14% YoY; guidance at least 1.1 million tonnes 19 Aug 2026 ↗
- Finished stock
- 284,200 tonnes at end Q3, from 233,500 tonnes at end Q2 15 Oct 2026 ↗
- Ilmenite guidance
- About 800,000 tonnes for 2026, instead of more than 800,000 19 Aug 2026 ↗
- H1 HMC
- 442,200 tonnes, down 34% YoY, mostly lower ore grades 19 Aug 2026 ↗
- Next milestone
- SMO 2 commissioning in Q4 2026 15 Oct 2026 ↗
Next: SMO 2 commissioning · 31 Dec 2026
- 15 Oct 2026 Shipments guidance cut to about 1.05m tonnes
- 19 Aug 2026 Drawdown continuing; H2 recovery expected
- 16 Jul 2026 Drawdown continuing; production below plan
- 22 Apr 2026 99,900 tonnes drawn down in Q1
WCP A upgrade and Nataka transition
WCP A upgrade construction is finished but commissioning is slow, mainly because of dredge performance. The 15 Oct Q3 report shows throughput of 3,100 tph at 49% utilisation, up from about 2,760 tph in H1. Nameplate of 3,500 tph is now expected consistently in H1 2027, and 2026 ilmenite guidance is cut.
- Q2 throughput
- Averaged 2,800 tph against 3,500 tph design nameplate capacity 16 Jul 2026 ↗
- Cause
- Extended commissioning of two new dredges; suppliers and consultants engaged 19 Aug 2026 ↗
- H1 throughput
- Averaged 2,800 tph against 3,500 tph design nameplate 19 Aug 2026 ↗
- Recent trend
- Throughput and utilisation improved in July and early August 19 Aug 2026 ↗
- Q3 throughput
- 3,100 tph at 49% utilisation, against about 2,760 tph and 42% in H1 15 Oct 2026 ↗
- Nameplate target
- 3,500 tph expected consistently in H1 2027 15 Oct 2026 ↗
Next: Nameplate 3,500 tph consistently achieved · 30 Jun 2027
- 15 Oct 2026 Throughput improving; nameplate pushed to H1 2027
- 19 Aug 2026 Construction complete; nameplate not yet consistent
- 16 Jul 2026 Built, but nameplate still not consistently reached
- 22 Apr 2026 Construction complete; debottlenecking progressing
Moma Implementation Agreement extension
Kenmare is negotiating renewal of the Moma Implementation Agreement. The 20 March 2026 target was missed and the 19 Aug results reported significant progress. The 15 Oct Q3 report says the Government maintained progress in Q3 and Kenmare operates on legacy terms. No agreement or deadline is stated.
- Missed target
- Final terms were due by 20 March 2026; not achieved 19 Aug 2026 ↗
- Government meeting
- 19 February 2026 senior meeting agreed to work to resolve outstanding issues
- Company stance
- Negotiated conclusion preferred; right to safeguard entitlements reserved, up to and including arbitration
- Mining scope
- Mining operations under a separate regulatory framework, not affected 15 Oct 2026 ↗
- Status
- Government maintained progress on renewal in Q3; Kenmare operating under legacy terms 15 Oct 2026 ↗
- Company input
- Clarified financial proposal and investment intentions in H1 19 Aug 2026 ↗
Next: Conclusion of IA renewal
- 15 Oct 2026 Talks continuing; near-term conclusion sought
- 19 Aug 2026 Talks continuing; significant progress reported
- 16 Jul 2026 Talks continuing; no agreement
- 22 Apr 2026 Missed 20 March target; talks continue
RCF covenant amendment talks
Net debt rose to $175.8m at 30 June 2026 from $158.8m at end 2025 as prices fell. The RCF was upsized by $30m to $230m with covenant adjustments, which the company says gives additional flexibility. Strong receipts were recorded after period-end. The 2025 final dividend was suspended earlier in 2026.
- Lender talks
- Adjustments to the RCF, including amendments to covenant levels
- Dividend
- 2025 final dividend suspended; resumption when prudent and financing facilities permit
- 2026 capex
- About $30 million WCP A development and $30 million sustaining
- Outcome
- $30 million upsize to the $200 million Revolving Credit Facility, secured in Q2 2026 16 Jul 2026 ↗
- Covenants
- Adjustments to financial covenants agreed 16 Jul 2026 ↗
- RCF
- Upsized by $30m to $230m, with adjusted financial covenants 19 Aug 2026 ↗
Next: Debt reduction from post-period receipts and H2 cash flow
- 19 Aug 2026 RCF upsized and covenants adjusted
- 16 Jul 2026 Resolved: RCF upsized, covenants adjusted
- 10 Apr 2026 Still in discussions with lender group
- 25 Mar 2026 In discussions with lender group
Closed · 1
Company filings. Not investment advice.