Great to see the last couple of sessions, exploration geology. Having grown up with an exploration geologist, I feel a little bit embarrassed to have to talk about an asset that is actually in production. If you bear with me, I hope you will agree that it is just as exciting waiting for government decisions and the outcome of customer engagement as it is waiting for the outcome of drill results. Kenmare owns and operates the Moma Titanium Mineral Sands mine in northern Mozambique. We have been mining there for about 20 years. We have got over 100 years to go. Moma supplies about 6% of global supply for titanium dioxide. We have just completed a major upgrade project, so about $300 million of capital invested to set us up for the coming decades. We are currently navigating difficult market conditions.
Unlike the other commodities that you will talk about here this week, we are sort of at trough conditions. That said, this is an asset that has been through many cycles and will endure many cycles to come. Kenmare has been in Mozambique for about 40 years. We developed the asset back in the mid-noughties. It has been in production since 2007, so almost 20 years of production and, as I said, over 100 years left of mine life still to come. If you are going to be somewhere for a long time, you better behave yourself. You better be a good corporate citizen. Really the most stark thing about being at Moma is how the mine and the community are integrated in a very symbiotic way. Kenmare and Moma are very important to Nampula and to Mozambique.
They make a meaningful contribution to both, not just in terms of the taxes and royalties that they generate, but also in the social investment, in capability, in capacity, in and around the mine. We are very pleased that our efforts in that space have been recognized and that we are included as a constituent of the FTSE4Good Index for the last two years. We produce titanium minerals, titanium dioxide, primarily used as an opacifier and pigment. That goes into paints, plastics, foods, many goods used every day. We also produce zircon, which goes into ceramics and refractories. Both of these in certain jurisdictions are recognized as critical minerals. We have invested north of $1.5 billion over the years at Moma. We own our own bulk mining, processing, shipping facilities, and our net book value is north of $875 million as of H1.
Our strategy is built around three main cores. First of all, that notion of operating responsibly, and the partnerships that we rely on really are dependent on our credentials as a responsible operator. We have worked very hard through the Kenmare Moma Development Association, or KMAD, to invest over $25 million since 2004 in public infrastructure, education, sanitation, healthcare. We have got industry-leading safety performance. We had an AIFR of 0.54 for the first half of the year. Through that work that we do with community and through the upskilling that we do, we have actually now reached 98% of our workforce being Mozambican, including our most senior people in country, our general manager for the site, and many of our senior leaders who have actually come up through their careers with Moma. Central to it, of course, is the asset. It is one of the largest mineral sands assets in the world.
Provides very stable, good quality, long-term supply that many of our customers rely on and have relied on for the last 15+ years. That has got us through cycles and will continue to. Finally, the efficient capital allocation we have invested for the long term, given this is a long-term asset. The program that we have just finished, the $300 million, again, sets us up for the long term. At the same time, we recognize shareholders are a key part of this, and we have given off more than $300 million in dividends and share buybacks over the last five years. What we do, we are not a conventional mining operation, so we are a dredge mining operation. We have three main dredge operations that wind their way through the ore body with floating concentrators that follow behind.
We also have some smaller capacity that really allows us to target high-grade areas of the deposit. We have our own on-site mineral separation facility that takes the high-grade product from the mines and processes it into the final products. The tails that we produce get deposited back in the mine void and progressively rehabilitated as the mine goes. We also have our own dedicated on-site port facilities. Combined with this, we have got a very low environmental impact. The bulk of our energy is, excuse me, electricity, 90% of which is hydro-generated from the Cahora Bassa Dam in Mozambique. We progressively rehab the mine areas, so we have been mining for 20 years. Much of the area that we have already mined is already back in agricultural use. We do not use any toxic chemicals. We recycle our water.
We recycle the waste that we generate, and it is all very nicely contained in the footprint of Moma. We talk about 100 years of mine life, and really that can only happen if we operate sustainably. Sustainably economically, sustainably physically, and also socially. To that end, safety is key and the engaged workforce. Thriving communities, we have talked about the importance of that relationship that we have with the community. When Moma started off, it was around probably 2,000 people in the immediate vicinity. We are now 35,000 or 40,000 people in the community. That has really built up around the mine. It is very pleasing to see the development of local economy coming out of the efforts that we have made through the development association.
Healthy natural environment, obviously, for all the reasons around carbon intensity and low emissions, but also to make sure that the land that we use gets back into agricultural use, gets back into having an economic benefit for the community, gets back into being able to supply crops and foodstuffs into the local communities and into the mine itself. All of these contributes to Kenmare being widely regarded as a very trusted business and named as one of the most, in fact, the most transparent company in the extractive industry in Mozambique for five consecutive years. In terms of our capital structure and share reg, we are listed in London and on the Euronext Dublin. We have a market cap of around $215 million, net debt of around $175 million for enterprise value of just shy of $400 million. We are covered by five analysts, mostly U.K.-based.
We have a good share reg where the top seven shareholders own just over 60% of the register. Many of those have been with us for 10+ years. Very solid supporters and a very high-quality set of shareholders. If we look just at the market for our products, titanium dioxide, as I said, it has a very high refractive index. That means that it is used primarily as an opacifier. It is used to impart whiteness on whatever it is put on, and that allows further kind of layering of colors whether that is in paints or plastics or paper or ink or the clothes. It is really sort of everywhere around us and used every day. We consider it to be a quality-of-life product. Demand tends to track very closely with GDP.
Typically, consumption per capita is highest in developing economies, so we do see significant latent demand in developing economies to reach the same sort of consumption per capita as we see in the developed economies. Zircon, similar set of demand patterns. It is used as an opacifier in the ceramics industry as well as in other sort of refractory and chemical industries. It kind of plays to similar demand drivers as TiO2. Broadly speaking, this is a pretty boring demand story. It is not like your copper or your lithium where we are seeing great leverage to the energy transition, but it is just a slow grind, a very dependable grind up and to the right in terms of consumption. It tends not to fluctuate too much year on year. The action on pricing really comes from the supply side of this industry. A few years ago, we had ilmenite.
Ilmenite is our major product or the primary product that we produce. Ilmenite prices were up around $400 a ton. This was coming out of the COVID pandemic. Everybody was painting their houses. It was a good time to be in the business. That incentivized a lot of new supply. Some of that supply has been relatively low CapEx, low cost, pretty rudimentary mining operations in places like Mozambique, Sierra Leone, Nigeria. That wave of new supply has depressed prices, and pricing for ilmenite now is down probably to around $200, in some cases even lower. While we can see now the preconditions, if you will, for a pricing recovery, we are seeing supply come out of the market. We are seeing a rising cost base in terms of diesel prices and the exposure that many producers have to that for their electricity generation.
We are seeing downstream players with much better financial results in terms of their volumes and prices. But we are not yet seeing that recovery in ilmenite pricing, and that is meaning that we have to tailor our business to a relatively low-price environment. In zircon, we are actually seeing a much stronger market coming through now as we come into H2. We are seeing price increases start to take hold. There is slightly less zircon content in the supply that has come on stream, and so that has been a bit of a bright spot for us through H1 and certainly continuing into H2. If we look at where this leaves us for our own performance and our own outlook, I mentioned earlier that we have just completed this $300 million expansion project or upgrade project on our main mining plant. You can see a picture of it here.
There are two new dredges which are mining the sand face. These sand dunes are higher than what we have looked at before. They are a little bit harder, so we have had to invest in more powerful dredgers. The concentrator plant as well has had to be expanded and enhanced to deal with slightly higher slimes contents. That project started to ramp up early this year. The ramp-up of that project has gone a little bit slower than we would have anticipated, and that has led to slightly lower production this year than we had expected and certainly than we had last year. When we look at that year on year, we can see that our heavy mineral concentrate ilmenite production are down.
Our shipments are up this year, and we have done that very deliberately. We have sold down finished product stockpiles that we had at the end of last year, and we have been, we think, quite creative and inventive in taking products that had previously been considered as waste concentrates that had effectively no perceived market value. We have gone, and we have created a market for that, particularly with customers in the Chinese market. That has enabled us to maintain high levels of shipments against those lower production volumes that we have seen. Looking through some of the financials, as I said, pricing has come down. Our average price has come down from in the mid-$300 per ton down to $240 during H1.
Notwithstanding the higher shipments that we had in the first half, that has been reflected in revenue with a relatively low revenue number in the first half. We focus a lot on costs. So far this year, we have done a retrenchment of around 15% of our workforce. We have taken costs out of every category, and that has somewhat offset the reduction in revenue, but we are still down at around $4 million of EBITDA, our lowest outcome for some time. That all reflects the challenging market conditions that we are in. Our net debt is up at around $175 million. We have a $230 million revolving credit facility with four South African banks. That gives us some headroom on that to manage our way through this.
Further to that, we have got waivers on our EBITDA-based covenants associated with that debt package through 2026, reflecting that ramp- up and the relatively weak market that we are operating in and a set of supportive banks who are prepared to stand behind us. The other major focus for us this year was our implementation agreement with the Mozambican government. That is an agreement between Kenmare Resources and the government of Mozambique stemming back to 2002. 2004 is when it was implemented. That governs the fiscal terms for our processing and export activities. That agreement expired in December 2024, and we have been operating since then with permission from the Mozambican government on our legacy terms as we negotiate its renewal. We have had some very constructive engagement with the government over the last six months.
I think we're circling around an agreement that we would all be comfortable with. Part of that involves an increase to royalty rates that we're paying. We'll move from 1% royalty rate up to probably 2.5%, is what we've been accruing for over the last year and a half. Look, we're very, very hopeful that that arrangement and agreement will be concluded in short order, and we think that will be a big de-risking for the stock. Certainly, something that we contend with in all of our shareholder discussions and indeed lender discussions. Look, our 2026 outlook, we think we'll sell somewhere or produce rather somewhere between 900,000 tons and 950,000 tons of product. We'll sell about 1.1 million tons of product. That's enabling us to unwind some of our inventory and convert that inventory into cash.
We are managing our costs very, very carefully to navigate through this downturn and to effectively set the business up to be able to operate under these conditions for as long as it takes to get through, and ultimately get to the other side of this trough. Maybe just to summarize again, this is a world-class asset. It's got more than 100 years left to go. It'll be going long after those of us here in the room are gone and certainly well past our professional careers. The investment that we've made is really to enable us to move into the next ore zone that'll keep production going probably for the next 30 years or more. We have a very strong position in the market. We're one of very few remaining independent producers.
We're relied upon by our customers for the continuity of our supply as well as the quality of the product. Over the course of cycles, this asset is very cash flow generative. We generated north of $300 million of EBITDA back in 2021. We've returned north of $300 million to shareholders over the course of the last five or six years. Over the course of the numerous cycles left to go in this asset's life cycle, we expect it to be very, very cash flow generative. As I said, at the moment, we're focused really on ensuring that we are able to, as custodians, get it through the current challenges and build and strengthen the legacy that's been created at Moma for years to come. With that, happy to take any questions. Thanks, Peter.
Thanks for the presentation, James. James, what's your revenue split between zircon and ilmenite? The reason I ask is just given the differing price charts, is there much flex in your operation between either-
Yeah.
production?
So look, traditionally, ilmenite would generate about 70% and zircon 20%-25%, and we've got a suite of concentrates that make up the balance. We are, of course, trying to really target areas that either have higher zircon or indeed we have three different grades of ilmenite, some of which are being hurt more in the current climate than others. So we're really trying to tailor where we're mining to higher zircon and better quality ilmenite at the moment with some of those smaller and more nimble mining assets that we have.
Okay. Excellent. Are there any questions from the floor? I am from Australia, and our focus on mineral sands at the moment particularly is on the rare earths.
Yeah.
Are you able to spend one minute on your rare earth asset suite and any plans to monetize those assets?
Yeah. It's one of the more interesting things that people are interested in. So we already produce a product called mineral sands concentrate, which is rich in rare earths through a monazite constituent. At the moment, we're selling that out, and we sell it under the right sort of licensing and agreements and handling and all of that. But we're looking at ways to monetize that ourselves. We're working through a PFS on a processing facility that could be built at Moma on-site that would actually lead to an upgraded monazite product that could be sold off to various counterparties. There's a lot of interest. There's a lot of people scrambling for secure supply of the feedstock to the plants that they want to build.
I think at the moment it's really trying to understand the opportunity that we have there, trying to do a bit of price discovery in terms of what the right pricing for this is. It's a very opaque market.
Then to align on and decide on the best way to monetize that beyond what we're already doing.
Okay. Thank you very much.