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

SD I have made a note that I must keep money spare for just before Easter and Christmas when volumes are often low and prices of all shares drift down. I have no money spare so I couldn't buy more which is annoying as I bought more KMR only last week!
Di

Apparently there's rumoured to be unrest amongst Kenmare miners which could possibly lead to strike action.

PRO - IF YOU ARE GOING TO DERAMP AT LEAST TRY TO GET A HALF BELIEVABLE STORY TOGETHER. What miners would these be exactly - The mine is still in the comissioning phase. Kenmare are using a civil engineering firm for this - I quote you from a source rather better informed than your make-believe source in the city, namely the most recent KMR trading statement:-

"At site the first task has been the clearing of a space (servitude) on either side of our 170km powerline. On completion of this task, the contractor will assume responsibility for the site, expected late October. While the main focus of the contractor over the next few months will be on planning, detailed design, and procurement in Johannesburg, an advance team will also go to site to open up the quarries and perform initial civil works."

So you see Pro, no miners, not yet. Derampers are a particularly tragic and unattractive breed of individuals, but the ones who just make stuff up out of thin air should try to at least get a few credible facts together.

lol pro, brad ptiilookalike pro1 1pro, informer, helen, and all your other names. I cant believe i took you so seriusly for so long. you are infact quite funny!(if it wasnt so serious)

pro

must be a first in labour relations - workers striking before they have been recruited.

Jim he isn't worth the trouble just Squelch the idiot

O.K. Guys it looks like the mining equipment is due to leave Oz on the 20th April as the following answer has been posted on the Bunbury Port Website

Q.Any update please on when this mining equipement is due for shipment to Maputo

A.The equipment is due to be shipped out (by barge) around 20th April.
There will be 3 shipments, with each round trip to Africa taking 4 or more weeks.

Link to site
http://www.byport.com.au/

B.C. (Shredder on byport.com)

Di

I like idiots - they show how sane the rest of us are !

well that is one way of looking at it...but that does not mean I have to see what they write!

Well don't say you weren't told i.e, BEFORE the event!!! Told you warrants were being exercised. Ummm ...now how did I know that???? Well the fun hasn't even started yet. Anyway I told you once and I'm not wasting my time telling you again beyond this very good advice that you sell up your KMRs and -hey, get a load of this new mining company that's going to rocket us up into the financial stratosphere in the VERY NEAR FUTURE- buy into Alexander Mining (AMX). Rock solid information ...up to you if you want to go on ignoring.

overhang cleared and should see a good surge now.

An interesting piece of trivia for fellow KMR supporters...

30 March KMR Closing price 23.25 - tipped as strong sell by Pro that share was worth only 18 pence based on knowledge of forthcoming "bad news"

7 April - Mid-day price 25.75 (gain of 10.75%).

And whats happened to african diamonds???? now realised that was a dud so now into alexander mining. what will it be next week 'pro'???????

Well you still won't listen -so guess what?? You pay!!! Over 11 million shares were dumped today in just two trades. They were genuine sells (how did I know that was coming?!?). This is just the start of a selling blitz. The MMs will be hit for six and the price will eventually tumble to 18 pence -just as I told you last week.

Informer, thanks for the guidance but hold on a minute if I check the thread it was actually "pro" who told us the price would hit 18 pence last week. You and pro seem to have something of an identity crisis or is it just a case of "great minds think alike"?

Nice one joehargan1 - tee-hee.

You are right there Joe, for great minds do think alike. Often anyway. Pity you're not one of them or maybe you'd have hightailed it out of Kenmare by now. I guess you need to see the whites of the eyes before you make a move huh??? Just make sure you have that bankruptcy form ready to fill in!!
Try Alexander Mining. It will make you a fortune if you're smart, get in early and await the riches to be made.

INformer or is it pro or maybe Brad P LAL you talk crap and never have any thing to back it up. Squelch him everyone he's the same idiot. Squelched

From the other side:

'interested to see newspaper tip ..
G and E tip below
Kenmare Resources

In March, Kenmare announced an award won for 'best international deal' with regards to the 366 million dollar financing it arranged last year. Also, 6 million warrants have been exchanged for ordinary shares bringing the fully diluted market cap up to 193 million pounds.

The Moma mine is on track to begin production in late 2006. The mine is expected to produce more than 650,000 tonnes of Titanium minerals annually and sales contracts for more than 57% of the output has already been signed. We expect news of further offtake deals soon. That may well prompt Kenmare to announce that it is expanding the scope of the Moma project

We continue to value the core Moma project at 35p a share on a DCF basis but if capacity is expanded the project has a DCF of 57p per share. The current share price does not reflect the company's true value and at 24.75p the stance remains buy.


Key Data
EPIC KMR
Share Price 24.75p
Spread 24.5-25p
NMS 25,000
Fully diluted Market Cap. 193 million pounds
12 Month Range 13.75-29p
Market Full
Website www.KenmareResources
Contact Tony McCluskey
00 353 671 0411 '

Good positive update with the full year results - note that the project is on schedule. This for me was the most exciting comment....

"Marketing has been going extremely well with the establishment of heads of
agreement with major consumers for the supply of sulphate grade ilmenite. These
agreements are in the process of being converted into full legal contracts. The
general market for the supply of ilmenite has picked up considerably and we
believe that our average revenue per tonne will be in excess of the numbers used
in our financing documents. The markets for zircon and rutile are also very
strong. It is expected that by the time Moma commences operations, its present
level of production capacity will be fully sold"

When this sinks in I think we'll soem some more action on the SP

Yes we will! ....and that means, of course, that the selling will continue. There has been a lot of selling of this stock in recent weeks and if you are too dumb to know it I can reliably inform you that there is a reason for that fact. Figure it out for yourself -it isn't too difficult. This is a terrible stock! People like you promote and ramp but the share price does is drop ...and when I look at the trades I see more selling than buying. I've been told that the fair price of this stock is 18 pence and that's my belief too. Anyone buying at the present price of 25 pence needs his or her head looking at!