Materials
KMR is a mineral sands miner that has operated the Moma mine in Mozambique since 2007 and is the world’s third largest producer of titanium feedstock. 2023 was KMR’s second best year after the record year in 2022. It remains in the first cost quartile with over 100 years of remaining mine life, which maintains its competitive advantage. Ben Jones thinks the downward pressure on the share price in a response to a large capex programme over 2024/25 has been overdone. Once the capex programme is complete, he expects to see KMR generating ~$100m FCF p.a. This would represent a 30% FCF yield on its $340m market cap.
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- 05 April, 2024