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

Not wound up dynamite, in fact quite the oppisite i like winding him up and warning others of his constant ramping on the axm thread. Ive not seen one person who supports him yet.

price up again today!

Rumour and speculation is rife that a rights issue is due soon at a measly 20 pence. If this is true then the share price would be greatly diluted.
When they announced the recent issue of DES at 45 pence the price was 55 pence and diluted to 35 pence within days! Perhaps this explains the recent selling off??

Take a look for yourself. Here's the trading stats since March 30th:

Buy value: 3,007,299
Sell value:10,936,396 ...(Big difference there chaps! ...who's been selling??)
Buy trades: 471
Sell trades:693

Think it may well be time to sell off after the holidays!!!

Hi all

Looks like Brad Pitt Lookalike has ventured over to SKP with one of his deeply reasoned posts. FYI he is posting over the way as Manintheknow - possibly the most inaccurate handle ever lol

My biggest sympathies over here, you clearly have a right dipstick on your hands. As a nuetral without knowing anything about this stock you can see the deramping a mile off. The temptation is to nullify it immediately incase it affects newbies at all etc. but even the most easily influenced out there considering investing would spot it I'm sure. Good luck all and keep up the common sense posts.

Informer - you are a complete prat

the reality of the trade data is not as you have indicated, and certainly not as many of the BB sites record it - this is now a SETS stock rather than SEAQ and as such the real buys are those transacted on the bid (buy)-side of the order-book - and all those transactions together with some very meaty X-trades (which are very bullish and neutral to MM activity), which often look like sells when reported on sites like ADVFN etc, constitute the major part of the volume and these are buys - make no mistake, this is being accumulated

Why are you so afraid of bad news???
Pull that wool from over your eyes which Kivver and others have put there. This share is a dog with fleas and has never been worth any attention. You should sell now before the bad news hits the fan - or your pocket will feel the pinch!!!

Posted on the SKP thread:

wa157te - 29 May'05 - 08:21 - 122 of 125


Why are you so afraid of bad news???
Pull that wool from over your eyes which Kivver and others have put there. This share is a dog with fleas and has never been worth any attention. You should sell now before the bad news hits the fan - or your pocket will feel the pinch!!!

And the last post on this thread:

pro - 29 May'05 - 08:10 - 378 of 378


Why are you so afraid of bad news???
Pull that wool from over your eyes which Kivver and others have put there. This share is a dog with fleas and has never been worth any attention. You should sell now before the bad news hits the fan - or your pocket will feel the pinch!!!

Says it all really.

you'll find the same repetitive posting on CYH and PIC

It's no good bleating on about repetitive posting. Do you expect to be able to brush the bad news under your carpet?? Let people know what a bad company this is!!!
Or I will!!!

yet again a repeat posting with no fact - put up some facts or shut up!!!

Bye Bye Pro, not for AM much longer

i see kenmare treading water around this price for the near future, not much news to feed on whilst they build the mine, so bound to fall back some i reckon.

if you belive in the value here, patience will be rewarded, so no need to engage those that have opposite views, holders will have the last laugh, but maybe not this year!!!

This is not a good share to be involved in and you may well be in for some bad news shortly. My advice is to sell up ASAP!!!

There is no doubt about it -Kivver has well and truly lost the plot!!
Well how can you believe in someone who (see 'Worst Ramper Deramper Competition (RAMP)' MoneyAM post) admits to having multiple posting names (why the need for deception??) and who descends to ranting and raving at other posters???
I prefer to listen to balanced people who remain balanced in all situations where my investments are concerned.
And that's a fact!

What a fantastic share this has been (the chart tells the truth unlike some!) low teens to mid twenties and more to come closer to the mine opening. 'Fill your boots' Remember to do your own research (dyor). There is only likelyhood, no guarantees!!

There is no doubt about it -Kivver has well and truly lost the plot!!
Well how can you believe in someone who (see 'Worst Ramper Deramper Competition (RAMP)' MoneyAM post) admits to having multiple posting names (why the need for deception??) and who descends to ranting and raving at other posters???
I prefer to listen to balanced people who remain balanced in all situations where my investments are concerned.
And that's a fact!

It's no good bleating on about repetitive posting. Do you expect to be able to brush the bad news under your carpet?? Let people know what a bad company this is!!!

Why are you so afraid of bad news???
Pull that wool from over your eyes which Kivver and others have put there. This share is a dog with fleas and has never been worth any attention. You should sell now before the bad news hits the fan - or your pocket will feel the pinch!!!

wa157te

What bad news are you referring to - pls explain

Prepare for lift off!
Recent trades suggest that this is ready to move to the next level ie 30p plus. I am also aware that there are talks going on at the moment that could mean a MASSIVE return for shareholders!

The bad news jimwren is the rumour of an issue at 20 pence which will seriously dilute the present share price if correct. If anyone has any news, let's hear it please.