Kenmel releases the fourth quarterly report on production and operation and 2024 production guidance

The production of ilmenite in 2023 was 986300 tons, and within the scope of our revised guidance for the year, the output of our other products reached or exceeded our original guidance.

Due to the uncertainty of the global economy, the market for our products will face challenges in 2023, leading to lower prices. However, compared with other titanium raw materials, China's strong pigment production and booming titanium market have driven the demand for our high-quality ilmenite.

● 2023 revised guide for ilmenite production Primary zircon and rutile reached the initial production     guidelines, while concentrate production greatly exceeded the guidance values. Due to power outages and severe lightning strikes in the first quarter, the ore grade and recovery rate decreased. In 2023, the heavy concentrate     Mine ("HMC") produced 1448300 tons, compared with 2022. 9% decline in annual (1586200 tons) ● ilmenite production in 2023 is 986300 tons, which is lower than that in 2022 (1088300 tons)    9%, and HMC processing volume reduction is roughly the same as ● 2023 finished product shipments are 1045200 tons, less than 2022 (1075600 tons)     & nbsp    3%. The fourth quarter of 2023 was the strongest quarter of the year, with shipments of 324900 tons ● caused by global economic weakness & the average price of all Kenmel products fell in nbsp;2023. ● 2024 ilmenite production guidance is 950000 to 1.05 million tons.

  is as follows:

HMC production in the fourth quarter of 2023 was 399800 tonnes, down 1 per cent from the fourth quarter of 2022 (404000 tonnes).
 
      HMC production in 2023 was 1448300 tons, down 9% from 2022 (1586200 tons), although production increased significantly in the second half of the year (814400 tons, compared with 633900 tons in the first half of 2023). The 9 per cent annual decrease is due to a 4 per cent reduction in ore mining to 38549000 tons (2022: 40029000 tons) and a 5 per cent decline in ore grade to 4.38% (2022: 4.61%). Ore volume was mainly affected by severe lightning strikes and power outages in the first quarter, which affected operations throughout the year. The decline in ore grade was mainly due to the lower-than-expected grade of Wetland Concentrator ("WCP") B mining in wetlands, while WCP A mined lower-grade ores near the end of the Namalopu tunnel.
 
      compared to the fourth quarter of 2022, production of all finished products decreased in the fourth quarter of 2023, but the volume of HMC processing was the same as in the previous quarter. Ilmenite production in the fourth quarter of 2023 was 269600 tons, down 5% from the fourth quarter of 2022 (283900 tons), due to low recovery due to HMC shortages and some unplanned outages. Similarly, the production of primary zircon and rutile decreased by 4% and 5% respectively, and concentrate production decreased. 10%。
 
      2023, ilmenite production is 986300 tons, within the revised guidance range of 980000 to 1040000 tons. The production of primary zircon and rutile is within the range of initial guidance, and the output of concentrate exceeds the initial guidance.
 
      compared with 2022 (1088300 tons), ilmenite production decreased by 9% in 2023, basically in line with the 8% decline in HMC processing.

The annual primary zircon production of      2023 is 51100 tons, 13% lower than that of 2022 (58400 tons). This is the result of the reduction of HMC treatment capacity and recovery.

      produced 8400 tons of rutile in 2023, 6% lower than in 2022 (8900 tons). This reflects a decrease in HMC processing, partly offset by an increase in rutile content in HMC and a decrease in intermediate inventory.
 
      concentrate production was 45700 tons in 2023, an increase of 1% over 2022 (45200 tons). Due to the low recovery rate of primary zircon and intermediate inventory processing, it performed better than other products.
 
      shipped 324900 tons in the fourth quarter of 2023, the strongest quarter of the year, despite bad weather conditions. Although sales fell 11 per cent compared with the fourth quarter of 2022 (a near-record quarter) (365700 tonnes), they increased 99 per cent compared with the third quarter of 2023. Shipments in the fourth quarter of 2023 included 278700 tons of ilmenite, 22300 tons of primary zircon, 4500 tons of rutile and 19500 tons of concentrate.
 
      shipped 1045200 tons in 2023, 3 per cent less than in 2022 (1075600 tons). This is due to the impact of more cautious buying and destocking during periods of weak demand. Shipments for the year included 939000 tons of ilmenite, 51300 tons of primary zircon, 7900 tons of rutile and 47000 tons of concentrate.
 
      HMC's ending inventory at the end of 2023 was 16700 tons, compared with 18800 tons at the beginning of the year. The final inventory of finished products at the end of 2023 was 259100 tons, compared with 213500 tons at the end of 2022. Shipments are expected to exceed production in the first quarter of 2024, partly due to delays in shipments in the fourth quarter of 2023 due to weather.

As previously announced, WCP A will complete the mining of Namalope by the end of 2025 and begin the transition to the Nataka mine. Nataka is Moma's largest mining area, accounting for 75 per cent of Kenmel's mineral resources. WCP An expects to mine Nataka for the rest of its economic life (more than 20 years).

Ilmenite production is expected to be between 950000 and 1.05 million tons in 2024. Although conservative views on the lower grade of WCP B ore and dry mining in wetlands have led to production of HMC and final products consistent with 2023, the amount of ore mined is expected to increase compared to 2023. Production is expected to focus on H2 due to the first quarter WCP B level profile and planned maintenance.
 
      following poor electricity reliability in 2023, Kenmare intervened and funded the renovation of Nampula Statistics Bureau in the Mozambican electricity company ("EdM") network. The project will be put into operation in the fourth quarter of 2023 and is expected to improve the stability of the regional power grid. In addition, EdM is building a new 400kW line, which is expected to connect to Nampula in the first half of 2024, further enhancing the stability of the network.
 
      end-of-term product inventory at the end of 2023 was higher than normal, providing an opportunity to maintain sales despite low production in the first half of 2024.