Kenmare Resources (LON: KMR), which mines titanium minerals and zircon at the Moma mine in Mozambique, saw its shares rise sharply in early trade today after reporting a swing to a $34.1 million loss for the first half of 2026. The rise came despite weaker headline numbers, not because of them.
Shares traded up 6.46% in early trade to 206.5335p, against a previous close of 194p, within a 52-week range of 178.4p to 325.5p.
Kenmare published its half-yearly report for the six months to 30 June earlier today, showing mineral product revenue down 16% year-on-year to $134.5 million, driven by a 26% fall in the average price received per tonne to $242. KPMG, the company’s independent auditor, flagged a material uncertainty over going concern, tied to covenant sensitivity and the outcome of Mozambique’s Implementation Agreement renewal, the government contract underpinning Moma’s mining and export rights. The board has paid no dividend since suspending payouts in March.
EBITDA, earnings before interest, tax, depreciation and amortisation, fell to $4.4 million from an adjusted $47.2 million a year earlier, while net debt rose to $175.8 million from $85.1 million at the same point last year. Management pointed to offsetting progress: spending on the Wet Concentrator Plant A upgrade dropped 74% year-on-year to $30.1 million as the project neared completion, while its revolving credit facility, provided by Absa Bank, Nedbank, Rand Merchant Bank and Standard Bank, was upsized by $30 million to $230 million with eased covenants. The rally appears to reflect markets pricing in reduced capex drag and balance-sheet relief rather than the earnings decline itself.
“We continued to engage constructively with the Government of Mozambique regarding Moma’s Implementation Agreement during H1, with significant progress made over recent weeks on key issues,” said Tom Hickey, Kenmare’s managing director. The Implementation Agreement is the overhang KPMG’s going-concern note is tied to.
Kenmare reiterated 2026 shipment guidance of at least 1.1 million tonnes, though it trimmed ilmenite production guidance to approximately 800,000 tonnes, down from a prior “more than 800,000 tonnes” target.