Kenmare Resources Reports 2024 Annual Results
Why we think this is neutral
The 2024 annual results for Kenmare Resources show a mixed performance, with a 10% decrease in mineral product revenue, a 7% increase in total cash operating costs, and a 29% decrease in EBITDA. While the company maintained a strong EBITDA margin of 40%, the significant declines in profitability are concerning. The RNS does not contain any explicit profit upgrades or statements of trading significantly ahead of market expectations, so the maximum sentiment score is capped at GOOD.
Key Points
- Mineral product revenue decreased 10% year-on-year due to 14% lower average product prices, partially offset by 4% higher shipments
- Total cash operating costs increased 7% year-on-year, primarily due to higher labor costs and 2% higher production
- EBITDA decreased 29% year-on-year to $157.1 million, but maintained a strong EBITDA margin of 40%
- Profit after tax declined 50% year-on-year to $64.9 million
- Recommended 2024 dividend of $28.6 million or USc32.00 per share
Summary
Kenmare Resources plc reported its 2024 annual results, which showed a 10% decrease in mineral product revenue to $392.1 million due to a 14% decrease in the average price received for its products, partially offset by a 4% increase in shipments. Total cash operating costs increased by 7% to $243.6 million, leading to a 5% increase in cash operating costs per tonne to $219. EBITDA decreased by 29% to $157.1 million, representing a strong EBITDA margin of 40%. Profit after tax declined by 50% to $64.9 million. The company's broker targets show a range of recommendations, with Berenberg Bank maintaining a 'Hold' rating and adjusting its price target.