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Kenmare Resources' valuation does not reflect its strong performance

As the titanium miner gears up for another monumental plant move, its earnings and balance sheet remain strong
March 20, 2024
  • Final dividend up 3 per cent to 56¢ a share
  • Weaker end markets knock sales from 2022 record levels

The low valuation the market has stuck on Kenmare Resources (KMR) goes beyond simple ratios or putting cash profits next to its minute enterprise value. Often when a company’s assets far outweigh the market capitalisation there is a huge debt load or crash in underlying markets. But not with Kenmare. The titanium oxide miner values its dredging, mining and processing kit in Mozambique at over $900mn (£709mn), compared with a market value of just £269mn. Put this against the 2023 cash profits of $220mn, strong balance sheet and increased dividend, and the share price looks even stranger. 

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