Annual Report 2013

Business Strategy & Key Performance Indicators

BUSINESS STRATEGY

Kenmare’s strategy is to create long-term shareholder value through the production and marketing of products derived from its extensive titanium minerals resources. To date, the strategy has been implemented by the development and expansion of the Moma Titanium Minerals Mine.

The Mine has a number of inherent advantages which make it a leading titanium feedstock producer including:

a resource large enough to support very long mine life, over one hundred years

low mining operating cost with surface mineralisation (no overburden) which can be dredge mined

relatively low cost hydro power

coastal location with very limited overland transport by conveyor and the ability to mine and export directly from the Mine using a dedicated shipping terminal

diversified worldwide customer base and significant co-product revenue stream

ilmenite products suitable for both sulphate and chloride pigment processes without further beneficiation


The year 2013 saw the end of a long period of investment in the expansion. With the expansion complete and commissioned, the strategy now focuses on reducing costs and improving performance. The immediate priority is to improve performance at the Mine by tackling the challenge of maintaining consistent power supply which will result in productivity improvements. Kenmare is continuing to improve the efficiency of the business and to reduce operating and support costs.

KEY PERFORMANCE INDICATORS

The key performance indicators of the Group are: (i) output of HMC from the mining operations; (ii) output of finished products (ilmenite, rutile and zircon) from the MSP; and (iii) finished product shipments. The key performance indicators for the years ended 31 December 2013 and 2012 are as follows:

H1

2013

H2

2013

Total

2013

H1

2012

H2

2012

Total

2012

Tonnes

Tonnes

Tonnes

Tonnes

Tonnes

Tonnes

Mining - HMC produced

480,000

657,200

1,137,200

386,200

386,100

772,300

Processing – finished products produced

323,700

431,800

755,500

302,800

323,600

626,400

Marketing – finished product shipments

294,100

383,800

677,900

321,500

359,300

680,800

Further details are set out in the Operational Review.