Kenmare Resources (LSE:KMR), the operator of the Moma titanium minerals mine in northern Mozambique, now expects 2026 ilmenite production of approximately 800,000 tonnes, down from its prior guidance of "more than 800,000 tonnes".
Heavy mineral concentrate production fell 37% year-on-year to 225,000 tonnes in the second quarter, driven by a 29% drop in ore grades as Wet Concentrator Plant A nears the end of its Namalope mine path.
"Production was lower than expected due to ongoing challenges with the commissioning of Wet Concentrator Plant A following the upgrade work", said Managing Director Tom Hickey, adding that production is anticipated to increase in the second half.
The plant's dredges have averaged 2,800 tonnes per hour in the second quarter, well short of the 3,500 tonne design nameplate capacity, though performance improved compared with the first quarter.
Shipments of finished products rose 53% year-on-year to 277,700 tonnes, keeping the company on track for its full-year guidance of at least 1.1 million tonnes, aided by drawdown of stockpiles.
Concentrates production surged as Kenmare converted 75,000 tonnes of stored tailings into its new ZrTi product, for which the company said demand has materially exceeded initial expectations.
The zircon market strengthened during the quarter with higher prices achieved across products, even as the ilmenite market stayed soft on rising Chinese supply.
Net debt climbed to $175.7 million at the end of the first half, from $158.8 million at the end of 2025, after cash fell to $31.0 million.
Kenmare secured a $30 million upsize to its revolving credit facility during the quarter alongside covenant adjustments, providing what Hickey called "important additional financial flexibility during this period of weak market conditions".
The company reports half-year results on 19 August.
