Tom Hickey

TOM Hickey will be hoping for better news in 2026 because last year was a tough one. First, there was a proposed takeover by Abu Dhabi’s Oryx Global Partners and Michael Carvill, Kenmare’s former MD. Kenmare rejected an initial offer of £5.30 per share, but allowed the consortium to run a due diligence ahead of a new offer. Sadly, the value of the second bid came in yet lower. Stung, perhaps, Hickey’s board ended the affair.

In any event, there were more urgent matters to attend to, such as operating competitively amid weak pricing for ilmenite, one of the ‘heavy minerals’ Kenmare extracts from Moma, its mine in northern Mozambique. By January, Kenmare took a $300m impairment on future revenues. Having cut full-year production guidance for ilmenite and rutile in November – a consequence of commissioning problems at the $341m Wet Concentrator Plant A project – Kenmare announced that 2026 production would be lower than in previous years. This was in order to focus on value output to help tackle net debt which is forecast to be elevated.

Kenmare also negotiated a relaxation in lender covenants. Swirling above these operational and financial matters is the question of whether Kenmare can finalise an Implementation Agreement – a licence that allows mineral exports – with Mozambique. It should have been done in December 2024. Who knows what Mozambique wants to extract from the delay? So a tough old time for Hickey who needs some wins. Progress on WCP A is one. Once completed, it will set Kenmare up to mine Moma’s Nataka section for decades.