From the FT on the 19th June

http://search.ft.com/search/article.html?id=040619001094&query=kenmare&vsc_appId=totalSearch&state=Form

COMPANIES UK & IRELAND: Kenmare negotiates $269m loan
By John Murray Brown
Financial Times; Jun 19, 2004



One of the largest debt financings for an independent mining company was announced yesterday when Kenmare Resources agreed a $269m (146.5m) facility to develop the Moma titanium mine in Mozambique.

Drawdown of the debt is contingent on the Irish company raising equity of $79m, lifting the value of the project to $345m.

The company already has commitments of $55m from a number of large investment funds.

Documents will be posted to shareholders on Monday for an open offer to raise up to $42m.

A banker at NM Rothschild, lead advisers on the financing, said the debt package represented three times Kenmare's market capitalisation of $90m.

"I do not think there have been any listed mining companies who have done that," he said.

Among the lenders, the African Development Bank is lending $40m and the European Investment Bank $15m in senior debt and a $40m subordinated loan, reflecting the vital economic benefits to what is the poorest region of one of Africa's poorest countries.

Martin Curwen, of the EIB, said this was the first deal signed under the 2000 Cotonou agreement between the EU and African, Caribbean and Pacific countries.

He said EIB's presence would "provide comfort" to other lenders. "It is part of our mandate to support projects where the funding would not have been available from the financial markets," he said at yesterday's signing ceremony, attended by Castigo Langa, Mozambique's minister of mineral resources and energy.

KFW, the German development finance institution, is providing $50m, partly tied to the supply of electrical equipment by Siemens.

The Dutch development agency FMO is lending $15m. The only commercial bank involved is ABSA, the South African bank, which is lending $80m to support the purchase of South African goods and services by the mine.

The mine is expected to be in production in the second half of 2006, with annual output of 600,000 tonnes of ilmenite and other titanium minerals that supplies white pigment used in paint and toothpaste.

The company has already raised 4m to purchase a mineral separation plant in Western Australia, which is being dismantled and shipped to the site.

At full production, the mine will account for about 5 per cent of world supply. About two-thirds of world production is controlled by RTZ and Iluka, an Australian company spun out of the old Rennison Goldfields.

FT Comment

* There have been similar financings in the minerals sector but never where the borrowing is three times the borrower's market valuation. The Lihir gold project in Papua New Guinea raised $300m in 1995 but lenders had the comfort that Rio Tinto Zinc owned about 40 per cent of the company. Kenmare's project is 100 per cent-owned by Kenmare, a company that has no cash flow and would have reported a small loss of $40,000 last year but for interest on its bank deposits. This project clearly could transform its fortunes. There are offtake agreements in place for more than half the first five years' production with Dupont and Mitsui. Prices for mineral sands tend to be more stable than base metals, which behave more like a commodity dependent on capital goods demand. The current market cap is little more than the value of a year's production from the mine. An upgrade seems inevitable. Canaccord, the company's broker, has a current price target of 35p. This compares with a close of 17p, down 2p yesterday.


Copyright The Financial Times Ltd

Up up and away?

Moma mine reaches breakeven point------this level of production means that the company has more than crossed the cash operating cost breakeven point------significant point in our development.Charles Carvill, chairman. ( part of todays statement, Annual General Meeting ).

Proactive Investors One2One Forums

The directors of Ascent Resources (AIM: AST), Blue Energy Limited (ASX: BUL) and Kenmare Resources (AIM: KMR) will be presenting:

Thursday the 16th July 2009

Chesterfield Mayfair Hotel, 35 Charles Street, Mayfair, W1J 5EB

The presentations will start at 6:00pm and finish at approx 7:30pm. After the presentations are complete the directors will also be available to take questions during a free canapand wine reception. Details on the presenting companies can be found below.


Register Here - http://www.proactiveinvestors.co.uk/register/event_details/55

If you have any problems registering or queries please email action@proactiveinvestors.com

Thanks for info.Andy.

humpback321,

My pleasure, if you are based around London, these events are well worth attending in my opinion.

I frequently attend, and there is a good balance of industry professionals, brokers, analysts, and small private investors, and a "club" atmosphere during the informal drinks session afterwards.

Are you planning to go?

Andy,possibly,trying to organise a long weekend with my missus as we live in the north-east.

Don't forget this excellent chance to meet the CEO this week!

Proactive Investors One2One Forums

The directors of Ascent Resources (AIM: AST), and Kenmare Resources (AIM: KMR), and Blue Energy Limited (ASX: BUL) will be presenting:

Thursday the 16th July 2009
Chesterfield Mayfair Hotel, 35 Charles Street, Mayfair, W1J 5EB

FREE registration : http://www.proactiveinvestors.co.uk/register/event_details/55

The presentations will start at 6:00pm and finish at approx 7:30pm. After the presentations are complete the directors will also be available to take questions during a free canapand wine reception.

These presentation evenings are well worth attending, and the networking afterwards is an excellent opportunity to meet the CEO's as well as other private investors.

If you have any problems registering or queries please email action@proactiveinvestors.com

Nearest tube stations are Green park (5 minutes walk), and Bond Street (7 minutes).

Anyone actually attending please feel free to relay your interpretation of the presentation over on the ADVFN and III. investor BB.

On the move.

Not before time IMO. If this had a pulse it had been shot long ago.

Intrim Management Statement-nearly breakeven profit-production up-full production by end of year.

Appears to be slow but steady progress.

Exactly...this one never really excites but gently clicks up or down bit by bit.

The new BA787 aircraft uses 250,000 lbs of titanium in every plane. Boeing has a backlog of 878 orders according to Lisa Reisman of Metal Miner.

kenmare mines ilmenite and rutile from which titanuim can be processed (I have just researched this), thanks for the info.zeibcmva.Good rise today.

Large volumes have been followed by spikes in the sp in the past - this will go to 35p / 37p in the next 2 weeks IMO.

67 per cent more shares to be issued.::::liquidity problems? takeover? any rumours out there?

Warrants MUST be exercised BEFORE end of year.These are underwritten at 19p.{that means the shares can be bought at 19p.} hopefully we should see some upward movement after 1st jan. as this is what has been holding KMR down.

Settlement and release with contractor who has paid and waivered 40 million (yes 40 million!!!) project complete. excellent result.

Is that not 50m? dollars that is. I'm a confirmed critic of this board of directors but I hope they have learned from their many mistakes over the last 2 1/2 years. After holding for 4+ years i whittled my stake down to 40k and added a further 40k yesterday on this news. Whats ironic here is I've paid the same yesterday as i did on my first purchase practically before ground had been broken in Moz.