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

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!

Can I ask who told you this stock is only worth 18p.
And can I also ask why this is your opinion to.
A properly reseasoned case is always welcome.
If you can`t give a reasoned argument, then I would suggest you don`t bother to post.
Regards.

porky - forget him he's a nutter - squelch him and move on.

SD

stockdog is right, this guy lost it a long time ago, don't bother asking for rational arguments. Here is another extract from KMR's statement...

"Kenmare has bought a new exploration drill which is presently being shipped to
site with the view to performing detailed infill drilling on the first years of
the mine path. It will also be used to investigate more fully the resource
potential beyond the immediate mining area."

With a bit of luck we'll get higher product prices than anticipated plus an extension to the area involved.

Could well see a steady appreciation in the SP, now that the results statement confirm things are on track.Be interesting to see where is the next short term peak.

It's all very well slagging me off just because I don't agree with you -I can take that, no problem -what I find particularly galling and not a little hard to digest is the head-in-the-sand way that you alienate yourself from reality regarding KMR.
Here's the trading statistics for the past 4 weeks (I could go back further, but let's keep things recent):
Buys: 2,322,455
Sells: 7,283,818 (please note, more than 3 times as much selling as buying!!!)
Buy trades: 218
Sell trades: 403

Company results came out last week and just what people thought of that can be seen reflected in the first day of trading since then (yesterday) when the following response came in the form of:
Buys: 62,146
Sells: 878,516 (please note, more than 14 times as much selling as buying!!!)
Buy trades: 12
Sell trades: 35

No doubt you will now slag me off again for telling the truth, but the truth it will remain whatever you do.

More selling yesterday and todays stats tell the same story. A must sell!

trash pro

don't respond to pro - squelch him. He is the other half of the idiot team.

He has about 30 names, the saddest individual ever, just read the axm thread.

We are giving up on this share.
There were 95,445 shares bought on friday. Not many considering they only cost 24 pence each.
However, a massive 8,766,807 shares were sold!!!
Just read those sells again and you'll see why we have decided to jump ship.

Congratulations on your "engagement" Bhunt1910 and Kivver - and we never knew!

lots of SQELCHY love

StockDogDynamiteJimwrenPorkyKenmare

lol, he is such a jerk it is untrue.

bhuntkivver

Thanks for alerting me to "my engagement" Kiver.

I have no knowledge about this share, have never posted on this thread, have never traded in this share - its not even on my watch list - so not quite sure what is going on.

Ian - is there anything that you can do - someone is obviously being mischevious trying to link me and Kiver together. Now Kiver if you are female, blonde and young - then maybe that could be interesting - but as I am male, geriatric and knackered - I cant see a match being made in heaven.

So if you dont mind - I would like to break of the engagement.

Baza

Ok Guys,

Please stick to the subject at hand and not personal abuse.

Ian

im fat bold and ugly too (is alright to insult myself?) unlike pro who apparently looks like brad pitt and mrs moneypenny. I agree Ian but we should also monitor the rampant rampers.

i have no interest in kmr, but when i saw baza and kivver together ....well, they looked so cute!!!! awwww!! this thread is nearly as funny as axm. sadly the seo thread seems to have become infested with shcizo's too!! anyway, baza , i thought that was rotten thing to do, to break kivvers heart so callously!!

BTW is insiderinsider covered by the canoncial laws of degree as concerns holy wedlock? Looks a bit close for comfort to me. Maybe it's even just one person behaving to himself as two - if you call that kind of behaviour behaving! KWIM.

woof woof

SD