Kenmare to cut 15% of its Mozambique mine staff and suspend dividend as gross profit plunges

Kenmare Resources is laying off 15 per cent of staff working at its key Moma mine in Mozambique and suspending its final dividend as its gross profit plunged 79 per cent amid a slump in shipments and prices of its titanium minerals. The Dublin-based group also swung into a net loss of $325 million (€280 million) last year, driven by a $301.3 million impairment charge taken against it Moma assets as it lowered its long-term revenue assumptions amid uncertainty over pricing, it said in a statement on Wednesday. Kenmare has in recent months let 200 employees go at Moma, and is targeting a further 20 redundancies under a cost-cutting plan, chief executive Tom Hickey told The Irish Times.

Kenmare Resources said earlier this month that it may have no choice but to bring international arbitration proceedings against Mozambique after tax authorities there sought to “unilaterally” impose a new regime on royalties and VAT on the titanium miner’s processing and exporting activities in the country. However, the financial results statement struck a more optimistic tone, saying that “following recent meetings, we continue to believe there is scope for a mutually acceptable negotiated outcome, which would avoid the need for arbitration”. “In light of the challenging market conditions, we have had to make some difficult but responsible decisions, including retrenching 15 per cent of our Moma employees and suspending the 2025 final dividend,” Hickey said.

“This is in line with our commitment to maintaining balance sheet flexibility and ensuring the group’s long-term financial stability. The board recognises the importance of the dividend to many shareholders, and we are focused on resuming dividend payments as soon as it is prudent to do so.” This is the first time that Kenmare has not proposed a final dividend since it made a maiden payout in 2019. Revenues fell 20 per cent last year to $312 million last year due to a 13 per cent fall in shipments and a 6 per cent decline in the average price received for Kenmare’s products to $338 per tonne.

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Gross profit slid to $18.4 million from $95.4 million. Adjusted earnings before interest, tax, depreciation and amortisation (Ebitda) slipped 63 per cent to $58 million. $KMRhas announced its 2025 Preliminary Results.

Kenmare is focused on operating its business as efficiently as possible and in light of weak market conditions, the Company has suspended its 2025 final dividend. Read the full announcement herehttps://loom.ly/bMhYeso#miningpic.twitter.com/y4ocE1qcc2 — Kenmare Resources Plc (@KenmareRes)March 25, 2026

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