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

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.

That wouldn't be good but I would be amazed if that happened given the large fund raising exercise only just completed - it would piss off plenty of people. Given that KMR have only just started using the funds they have got it would take some explaining. We'll see.

There seems to be alot of people on here talking crap! Where did bhuntty come from The real Bhunt does not even have shares in KMR and would be constructive if he did have something to say. KMR are a great company and for those prepared to hold long term a huge amount of money is going to be made. There is aworld shortage of Titanium or haven't you heard. The onkly thing to do is to Squelch them so Starrfrog and bhuntty you are now joining Pro, mis'informer' and Brad pitt Lal. Obviously you have been paid to deramp so that someone can buy cheap. forget it!

hi bhuntty - any relation to bhunt1310? or perhaps to informer and wa157te?

Exactly stockdog...bunch of idiots ...Ian can't you get rid of people who try to immitate real posters with similar names??

Stockdog how is your portfolio doing?? Do you have KMR? I am still waiting for NML and GFM to fly :-)

Di

Don't worry about the idiot poster, Ian is on the case. I feel quite flattered that someone thinks I'm worth impersonating, even if he is a pratt!!

pth

Hi Dynamite - just back from near your part of the world (bit further north) sailing on the Broads.

Portfolio is going through dog days in line with AIM fall off of recent weeks. However, I feel we may have touched bottom and reached a general level of support for value stocks.

Still too many holdings, but I do love 'em all. Steeling myself to clear some less focused holdings and put the money into fewer key stocks.

Still concentrating on Gold, oil, mining (incl. NML and KMR) and innovation. Sitting on a very nasty loss on ARX, but what can you do now but hold? Also some gold/mining stocks looking a bit sick, but (and I am touching wood here) cannot see any further to fall and even start to see some life in them.

Don't see you posting so much these days - perhaps like me you're a bit fed up with the deterioration of the quality of the threads with so many bashers and other bores around. Hope you're OK.

sd

I wouldn't buy KMR for several reasons. For one, I'm not attracted to shares which are ramped. For two, this share has been in the doldrums for some time. It was over 28 pence a few months ago and is now under 25 pence. A good share produces a profit for shareholders -not a loss!

Pro 2 I suppose you are a clone of 'Pro'. You are now squelched like him cos' you sound a deliberate deramper like him! Squelched

Stockdog,

Welcome aboard KMR...a longer term ride but a very profitable one me thinks. Hmmmmmm well I can say that for the second year running: a brilliant start to the year and then doldrums again...but if it is like last year ...then I had lift off again. I haven't posted much as there isn't much to say at the mo. I still don't have any SEO as it is still going down and I am waiting on other things. I am just playing the waiting game at present tick tock.
Di

For those of you who like fantasy, keep buying.
For those of you who like facts, here are a few. These are the FACTS re trading since 30 March:

Buys(): 4,495,651
Sell():11,683,484 (quite a discrepancy there I feel)
Buyers: 561
Sellers: 794

There is a rumour of a rights issue which, if correct, would seriously dilute the share price. Perhaps the stats tell all?

pro2 - your obviously the same twat thats posting the
same load of bollocks on A_D_V_F_N.
The rights issue rumour was started by you.
Maybe you could tell us why they would need the cash for
a fully funded project and maybe you can't.

Also, your buys vs sells figures, are totally inaccurate.
This is now traded on SETS, (DYOR) and IMO is being accumulated
which is currently keeping the SP in this very tight range.

pro2 - sorry to be dumb, but I don't understand the relationship between the buy and sell figures you quote and the price of Titanium Oxide. Have I missed something fundamental here?

sd

sd

Waste of time trying to converse with the schizophrenic one of many aliases, he's sort of been hunted down so to speak.

I noticed over on the Traders Thread for today that KMR was flagged up as one to watch. Don't have an interest myself, but good luck.

pth

Morning stockdog & all - just browsing this thread - as I have no holding in Kenmare - and can confirm that I am no relation to bhuntly - who I think has now been remnoved by moneyam anyway.

Good Luck guys & gals

Baza

Thanks Baza

Come on in Baza, the water's lovely. Then you can dry off on all those acres of scorching red sand.

sd

I hold from 16p and never sold as I am holding till at least production/taken out but I do wonder if anyone actually did sell due to comments made by 1pro.

My question is can anyone who sold out because of 1pro comments, such as "Miners have gone on strike" and the "Right issues" which were clearly pack of lies made up, successfully sue the guy?

Rebels
Suing a loser generally does not yield a regular income, since they have no assets, 'cos they lost them all, 'cos they're a loser. So, I like the sentiment, but it will remain a piece of conceptual art for me.

I work in a risk management business where we simply are not in the market to buy opinion - we require facts on which we make our own judgement. So, my antennae are sharply attuned to any form of salesmanship and my entire being programmed to reject their assertions.

Good facts need no salesmanship. I would never dream of selling on a bashers comment (or buying on a ramper's one for that matter).

I remain a proud holder of these shares at least until production as you so correctly suggest.

sd