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

Latest Kenmare Newsletter

Grot, thats old news its dated the 15th october, read Tom Bulford at RHPS for the latest news.

So it is, there's some new pictures though



see the rest at Moma Project Photos

Great share, i bought at 14p and still holding. Should go much more when they start production and maybe before if we have more off-shoot agreements.

12th December, 2005

Kenmare is please to announce the appointment of Mirabaud Securities
Limited (Mirabaud) as joint stockbroker with Canaccord Capital Europe
Ltd and Davy. Mirabaud is part of the Mirabaud Group, one of
Switzerland's largest private bankers. Mirabaud will broaden
Kenmare's coverage in the UK and Europe.

Kenmare looks forward to working with both Mirabaud and Canaccord in
London, and Davy in Dublin, as its Moma Titanium Feedstock Project,
which is now 62% complete, nears production.

Check out kenmore resources,activety at last,any particular reason why!.

mine expected to be finished sept/oct some analyst have suggested shares should be worth at least 60p and probably more. the time will come when investors start to top up in aticipation of this happening. shares around 40p at the mo. a risky share but you know what comes with risk.

Last time i looked the risk grade was only 175.

its an aim share, thats a risk to start, and the mine is being built in mozambique that could also be risky but im in and positive.

kivver,i belive KMR to be fully listed,please correct me if its not so.

your absolutely right boxerdog, makes it safer than i thought it was, cheers.

KMR is an Irish registered company listed on the Dublin stock exchange and the LSE official list (i.e. not AIM) which means you have to pay duty of 1% rather than the standard 0.5% when you buy shares on the UK market.

Been in since Jan 05 and doubled my investment last week to 50% overweight - Sep/Oct start of mining is not so far off and I saw RHPS moved its target from 55p to 75p last week.

Looking good so far today, more than covering the spread and dealing costs of last week's foray.

sd

Although the SP.finished trading up 6.45% on fridays close,take note that KMW shares traded on Irish exchange finished some 12.73% higher ,as these shares tend to trade in close proximity to each other can we expect futher gains tomorrow.

its certainly not a dog is it dogs (stock and boxer)??

nor is it a short - stock or boxer - lol!

interesting note from boxer re Dublin price.

sd

Nice price rise yesterday, anyone know of any news or is it just 'its time'.

hope your joking, anyone following this share would know exactly why its rising. read post 485. hope your in.

I follow the share and know of the impending opening of the facility, however the share price has taken a fair old jump. I was expecting the newsletter to have been out this month. What I was hoping for was, has there been an upgrading of the output or ahead of time with the expected start date. TIA.

with what we know already without off-shoot agreements or commoditity price rises the share is worth upward of 65p alone some say much higher. i always thought there would be a push towards those prices when it comes nobody knows. i also know i have to be in ready otherwise it could be to late. anyway good luck to us and any other holders.

Posted on another BB, relates to a previous article, using data from 30/12/05

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