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

Jules I think you are right and if you don't have anything sensible to say just go away Informer cos' you are being a prat!

some of you guys do make me laugh. We are in a period of sluggish, even negative stock market sentiment. High oil prices, weak dollar, Iraq .... it just goes on and on, its a wonder anybody is buying anything if you listen to the doom and gloom merchants. KMR has had a good run from the 16p levels and its only natural with no news flow that some people will take profits - good luck to them. I am staying in - KMR is sitting on top of vast reserves of a mineral that is in short supply. Its a real company that will come into production next year, not some mining stock living from promise to promise of better times ahead. KMR is going to make lots of money.

Informer - apart from your obvious dislike of KMR, tell us what you see as the negative points of the company.

Jimwren...Here here

Hi Folks, re informer, pro1, etc, etc. He's posting the same rubish virtually word for word on several BB's and meeting the same response. I'm certainly not selling KMR.

As jimwren says - negative sentiment abounds (from those not well into oils - shouldn't it be the other way round?), not to mention boredom. So people like to trade a little and take profits and reinvest just to feel they are doing something.

Just the kind of day to top up, which is what I've done. I can relax now, knowing I'm up to the weight I want to be at a reaonable price. I will look again nearer start of production to see where we've got to by then.

SD

Yay...our friend the 6250 buy bot is back. come on buy buy buy!!

Hey Di.... where has our little deramper gone...LOL

Jules...back in his hole :-) KMR back to 28p...that was a short lived dip.

But, to be fair, thanks to the derampers for bringing the issue into focus, so I got my timing right for once.

well done stockdog:-)

Jules, dont take the bait, the mans a fool, been sussed out on many sites as ramper/deramper (but not even a good one). KMR is on the up now, anyone that knows anything about shares knows this is a good one, just look at the chart since all the finance as been put in place.

Thursday's two trades of:-

5,592,692 @ 27.5p @ 16:54:10
5,592,692 @ 27.55p @ 16:54:39

look very much like a rollover, but unlikely for such large trades.
Maybe a transfer of stock, with the MM's taking a 0.05p cut.

informer:
Did you manage to buy in on the dip or do you intend
to try to deramp this further to achieve your buy price.

The only dip that informer bought on was in his dreams - he is too busy giving us unresearched ideas as to why we should ditch KMR.

I see the smart people took good note yesterday of the 11 million Kenmare shares that were dumped last Thursday. Yes, Monday was yet another trading day which saw a bigger value in sales than buys.
I've watched the rampers on this site trying to pump up the Kenmare share price but people aren't as stupid as some would have us believe. "You can't fool all of the people all of the time ...bla bla bla". They tell you not to take notice of the statistics and to just put your hard earned money into the share come what may. They promise great riches in 'times to come'. This allows them to watch the price temporarily go up as they then quickly sell, making money out of gullible people.
Plain fact is, Kenmare is not for a single moment in time worth supporting. Look at the stats and you'll see that almost every day there are more sells than buys. People are dumping it and my advice to everyone who values there money is not to buy this share!

Yes, informer, we've all heard that "You can't fool all of the people all of the time ...bla bla bla". However, you are only one person and there is no rule than "You can't fool one person all of the time".

lol :)

SD

Misinformer,it's about time you got properly informed on KMR.
As one of the "rampers" you seem to be referring to, I suggest you take a proper read through this this thread and you will see for yourself the sorts of informed, intelligent and well researched posts that indicate a different story. Many of us have spent significant time researching this company and believe in it's growth potential. Incidentally, this is the investors site. It seems from your poorly reasoned pre-occupation and frankly illogical musings on sales/buys that you should be peddling your wares on the traders sites.

Well said informer look at the stats. 14p to 28p in 3 months. UP 96% IN 3 MONTHS!!!!!! Those that have been following this thread and reading the intelligent well researched posts Joe was talking about will laughing all the way to the bank. Stats say this share should be worth at least 35p WITHOUT upping output or any off-shoot agreements. A great possibility of someone coming in and buying them out.

Well dreamers do nothing if not dream, and ....if Kenmare be the food of fantasy ...hey, DREAM ON!!!!!
When the **** hits the fan you'll be bailing out without a parachute. Trust me on this one -it'll be one heck of a hard landing!!
p.s. think you'd better check out those stats again as there's big selling of Kenmare happening right now!

just a little note for dis...informer............Unless you are a market maker then you have NO IDEA whether everything published on the trades column here or elsewhere is a buy or sell. But it is a pretty good indication if the share price ends up that there were more buys than sells and they have been disguised for the benefit of the market.... but hey what do you care. You obviously come out to write cr*p when mummy allows you on the computer

Well said Jules...what a sad life some people like Informer lead if this is how they spend their time.
Every share has it's short term traders that does not make the potential any worse for the long term traders. If you do not know this then you need to go back to your Nursery school Informer.

Di