Kenmare Resources (LSE:KMR) cut its 2026 ilmenite production guidance to between 710,000 and 750,000 tonnes, down from the approximately 800,000 tonnes it had flagged in July, citing continuing commissioning problems at Wet Concentrator Plant A (WCP A).
The titanium minerals and zircon producer, which operates the Moma mine in northern Mozambique, also trimmed its shipments guidance to approximately 1.05 million tonnes, down from the prior guidance of over 1.1 million tonnes, blaming port delays elsewhere that impacted vessel loading time at Moma during the third quarter.
Kenmare had already revised its 2026 ilmenite guidance once this year, cutting it from "more than 800,000 tonnes" to approximately 800,000 tonnes in July after a 37% year-on-year fall in heavy mineral concentrate output in the second quarter.
Despite the downgrade, ilmenite production strengthened sharply within the quarter, rising 59% quarter-on-quarter and 12% year-on-year to 233,600 tonnes, which managing director Tom Hickey attributed to increased excavated ore volumes across all three Wet Concentrator Plants.
"Ilmenite production strengthened materially in Q3 2026, rising almost 60% compared to Q2, due to increased excavated ore volumes at all three Wet Concentrator Plants," Hickey said.
Heavy mineral concentrate production rose 12% year-on-year to 334,100 tonnes, driven by a 22% increase in excavated ore volumes and improved recoveries from WCP A's new desliming plant, partly offset by a 12% fall in ore grades as the plant nears the end of its Namalope mine path.
Total shipments of finished products rose 7% year-on-year to 242,900 tonnes, though this remained below the run rate needed to hit the company's previous full-year target.
WCP A operated at 3,100 tonnes per hour at a 49% utilisation rate during the quarter, up from roughly 2,760 tonnes per hour and 42% utilisation in the first half, though still short of its 3,500 tonne-per-hour nameplate capacity, which Kenmare now expects to achieve consistently in the first half of 2027.
The company said total cash operating costs for 2026 are expected to land towards the upper end of its $215 million to $225 million guidance range.
Kenmare completed a pre-feasibility study into upgrading its monazite-bearing concentrate product, a source of light rare earth elements used in high-strength magnets, and is now progressing to a definitive feasibility study alongside commercial discussions with potential offtake partners; first production would follow roughly two years after a decision to proceed.
On pricing, Kenmare said its average ilmenite price received rose slightly quarter-on-quarter on a more favourable product mix, even as Chinese oversupply kept the broader market under pressure, while zircon prices continued to strengthen on tighter supply outside China.
The company expects titanium feedstock markets to remain weak in the fourth quarter, with its average ilmenite price received likely to fall quarter-on-quarter, while it anticipates further zircon price gains.
Kenmare confirmed that discussions remain ongoing with International Resources Holdings RSC following the non-binding takeover proposal disclosed on 6 October, with no certainty a firm offer will emerge; IRH has until 5 pm on 17 November to declare its intentions under Irish Takeover Rules.
The company also said it remains focused on concluding renewal talks with the Government of Mozambique over Moma's Implementation Agreement in the near term, with operations continuing under legacy terms during the quarter.
