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

no stockdog - you have to be an expert like informer to profit from those situations.

Ah - got it wrong again. Apologies.

The Out(per)former.

Hey man -like, err easy man. I got African Diamonds too man. ...no man, not on the souls of my shoes (ha-ha ...joke man). Heyman, check it out -it's up again today and my LA bundle is looker safer!!
Hey Kenmare's down again man ...real dog eh?!!

Hey guys -get this man. There is presently a big stream of sell offs. Following the big 11 million share sell-off last Thursday man, it seems the trend of dumping KMR shares is continuing. Must be a good reason behind this man.

Yeh! Brad..it's called profit taking. Not everyone is happy with doubling their money, they look to take profits, institutions have to. Then the next wave of buying goes on. You need to go back to school.
:-)

Hey man ..real rude dude you are too man!! Everyone is checking outta the Kenmare shares hotel man ....and if you got any sense (something I fundamentally doubt too man) you'll do it too. Aint no future in this share man.

Crap Brad! The institutions play with this one. Notice everytime it goes down they put the 6250 sell bot on. Now we are back to the 6250 buy bot pushing prices back up again. If you don't like KMR clear off somewhere else cos' you ain't welcome on here unless you have something constructive to say. So far you are just spouting crap. Go back to your hole.

Hey dude the only hole around here man is that mega-type crap-spouting one in the middle o' your ugly face! Now you wanna be constructive man then ah will be too. But you go gittin on your high hoss now and ah'l git real hornery -okay man?!!! Treat people nice man! ....and before I go I'm telling you this for your own sake -Kenmare is a real bad dude of a share. Ah got my LA bundle riding high on it and ah can't wait to cash it in!!!

Well Pitt then you are a plonker. If you really had shares in KMR you would not be trying to deramp it and if you were waiting to sell why not do so! This makes no sense. If you have any dosh on KMR then it is a short via SB or CFD.
Clear off.

Well hush ma mouth boy!! You seen them there 6250s whipping through the trade counter like a whippowill on a stormy prairie?!! I'm bankrolling this mother and I aint getting out 'til the timin's right. Now you clear off cheeky boy and don'tcha come back agin -hear me there dude??

I ain't a boy I'm a woman with more sense in my little finger than you have got in your tiny brain :-)

Don't rise to it DI! It's a waste of energy.

Opionions on a share, fine - personal abuse is not allowed.

Please refrain from abusing fellow posters.

Ian

Don't worry MP...he's a prat:-)

I've never used the squelch button before, but I feel it coming on.

SD You can be my guard dog...woof woof.grrrrrrrrrrrrrrrrrrrrrrr Kill Kill

oh no KMR DOWN 0.5p its all down hill from here. disaster! IT aint going to work brad-tit-lookalike/pro1/and all your other names. You aint gonna be able to buy them at your cheap deramped prices get in now before it is too late!! And support it like you know you should. Go on you know you wanna.

well ah say, well ah say boy, if ah aint mistaken that there informer/pro1 doggone got himself another handle man...time to saddle up boy, the prairie dawgs will getcha an it won't be pretty. BUY.

Hey man, there were (at close) 97,175 of buys but guess what you silly rampers ...err...duh...there were also 265,869 of sales!!! Shucks! ...don it just make you wanna sell up and git outta town real pronto tonto?!?!! Ah also see that someone sold two batches of 340,250 shares. Guess he/she didn't feel too confident eh? Caint say ah blame 'em.

brads spitt lookalike

Whats your gripe?

Not enough commodity?

Mine construction not going fast enough?

Commodity prices not increasing fast enough?

Not enough financing awards?

Or did you bail out at 20p and sorry you did so?

Who cares what you think anyway, off to the coast for the weekend while you do some research. LOL!