Kenmare cuts expected ilmenite output to 750,000 tonnes and trims 2026 shipments
Key Facts
Kenmare Resources cut its 2026 ilmenite production forecast to a range of 710,000–750,000 tonnes, from about 800,000 tonnes in its previous guidance, according to its third-quarter report released on 15 October. The company linked the production adjustment to continuing commissioning challenges at WCP A. It also cut its forecast for finished product shipments to about 1.05 million tonnes, compared with previous guidance of more than 1.1 million tonnes. It attributed this adjustment to factors separate from the plant’s underperformance, including delays at other ports that postponed customers’ vessels reaching Moma and reduced the time available for loading. The company said quality protocols limit the simultaneous loading of different products. In the same report, Kenmare confirmed that discussions over a potential cash offer from International Resources Holdings were continuing, without any guarantee that a firm offer would be made or clarity on its financial terms.
The annual forecast cuts came despite improved production and shipments in the third quarter. Ilmenite production was 233,600 tonnes, up 12% year on year and 59% from the second quarter. Finished product shipments were 242,900 tonnes, up 7% from the same period a year earlier, but remained below the pace needed to meet the previous annual shipment guidance. The divergence reflects how quarterly production gains did not offset the effect of commissioning constraints on the annual outlook, while shipping activity remained tied to vessel arrivals and loading time. The company said heavy mineral concentrate production was 334,100 tonnes for the quarter, up 12% year on year. This came as mined ore rose 22% and recovery rates improved after the new desliming plant at WCP A began operating, despite a 12% decline in ore grade.
WCP A’s operating metrics improved during the quarter, but the company continues to face commissioning challenges. The dredge operated at a rate of 3,100 tonnes per hour and utilisation of 49%, compared with about 2,760 tonnes per hour and utilisation of 42% in the first half of 2026. Kenmare said these improvements contributed to higher volumes of mined ore and that it expected further gains in the fourth quarter. However, it does not expect the plant to consistently reach nameplate capacity before the first half of 2027. On costs, the company expects 2026 cash operating costs to approach the upper end of its range of 215 million to 225 million dollars. Finished product inventories rose to 284,200 tonnes at the end of the third quarter, from 233,500 tonnes at the end of the second quarter, as production exceeded shipments; by contrast, heavy mineral concentrate inventories fell to 35,100 tonnes from 37,800 tonnes as consumption exceeded production.
The company is operating in a weak titanium feedstock market, with excess supply keeping prices under pressure during the third quarter. Kenmare said ilmenite availability in China remained high, supported by increased production from imported concentrates and domestic mines, displacing demand for imported ilmenite and keeping prices low. The company expects weak market conditions to persist in the fourth quarter, with the average realised ilmenite price declining quarter on quarter, while zircon prices improve further. Despite this pressure, the average realised price for Kenmare’s products rose compared with the second quarter, supported by a sales mix with a higher proportion of higher-value ilmenite. Thus, the average selling price improved even as the market remained weak, while excess supply continued to weigh on ilmenite.
In a separate expansion initiative beyond current production operations, Kenmare completed a pre-feasibility study for producing monazite concentrate from the Moma deposits. The study estimated potential production of up to 4,000 tonnes a year, and the company is now moving to a definitive feasibility study expected to take up to a year. It is also holding commercial discussions with potential partners to buy the output. The company said production could begin about two years after a decision to proceed with the project. The step offers a potential additional resource from the deposits, while the project remains at the study stage and no investment decision has been made.
The takeover offer covers all issued and to-be-issued share capital, but remains a non-binding proposal under discussion. Kenmare has not disclosed financial terms, and its report does not include a share price. Under Irish takeover rules, International Resources Holdings must announce by 17 November 2026 at 5 pm GMT whether it intends to make a firm offer or does not intend to do so. Until then, there is no certainty that the discussions will result in a firm offer or as to the terms it might contain. The company’s interest coincides with Kenmare’s continued operation of the Moma mine in Mozambique; it said the Mozambique government made progress on renewing the implementation agreement during the quarter, and that the company continues to operate under the previous terms while seeking to reach a negotiated renewal soon.