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 two large twin trades of 525k and 4,258k yesterday, though all marked as sells, looked like a couple fo rollovers to me. Is that what caused the SP to dip? Or was there something else going on? Any views?

sd

Well, what do we make of the two consecutive trades of 5m+ each at 41.12 and 41.14 both marked as sells. Looks very like a roll over of a large position, except the number are different. Maybe it's the modern equivalent of a CGT bed-and-breakfast with the numbers deliberately different so as to be seen to be two separate transactions. SP dipped a tick soon after then some modest buying sent it back up to end +0.25 on the day. Obviously not seen as two large sells by the market.

sd

Now we really will see some action :-)

Can't seem to post the rns ...but KMR mine 81% complete and resources found in exploration up 40%
Di

Link to RNS http://tinyurl.com/ruslq

Looks very good

A long-term rising channel is a thing of beauty to behold. Have been adding to these as they have risen over the year and will put some more in my ISA tomorrow (funds only arrive then) if we're still below 50p offer. The next time we hit the top markker of the channel will be at about 55p when there will probably be a bit of a retracement, but the mid-term to end 2006 looks very good and will probably exceed 75p on sentiment at some stage as mining starts, albeit briefly.

By then we'll have had updates on off-take deals for the balance of new estimated product at current prices. Incipient cashflow feels very good.

sd

These were my tip of the year ,along side pci

todays RNS :-))))))))))))))


Kenmare Resources makes 'significant' progress at Moma Titanium project
LONDON (AFX) - Kenmare Resources PLC said it has made "significant" progress
at its Moma Titanium Minerals Project in Mozambique.
Following drilling, the ilmenite resource has increased to 101 mln tonnes,
up from 42 mln and includes the adjacent Nataka zone where inferred ilmenite
resource increased to 49 million tonnes from 20 million tonnes.
The group said the project facility is 81 pct complete with a handover
expected in 2006.
Charles Carvill, group chairman said: "We are delighted with the results
from our resumed exploration drilling which make Moma one of the largest
exploitable titanium feedstock deposits in the world. The onset of production is
now only just around the corner and with the highly experienced team we have on
board we are looking forward to a smooth start."

Nice !

nice rise today, hoping for 60p by opening time late sept!!!

Kivver well if it doesn't it is nothing to worry about IMHO ...I remember GFM just before the mine started production...the price went down alot...it was just another buying opportunity and I was able to average down to 29P from 36p where I had first bought. KMR has a long way to go and I wouldn't be surprised to see another big rise tomorrow on such good news today :-)
Di

Di, please not before I can get my ISA away first thing below 50p to add to my existing holdings.

Been looking at the other side - what a load of old rubbish posted over there.

sd

A good buy after the bell , this could be the start of the next move up.

fliper,

That could just as easily have been a sell.

Two trades showing as sells for some 9m shares after the bell...Can anyone confirm that these were sells, by who and any particular reason behind the transaction?
LL

LL

Sorry I cannot answer your questions, but I do know the buyer's inside leg measurement is 26 inches and he takes size 10 shoes.

Maybe that gives you some idea of his height.

Predateur

Shares MAG what are you doing???? I cant believe you only put this one down as a 2 diamond rating in this weeks Aim mining hopefuls. Is that because you have missed most of the rise??? There is more to come and if the mine is finished this year production will start this year. Im looking for at least 65p up from todays 47p, thats around 40% upside and thats before other things are counted in. There are no guarentees, DYOR.

ha ha//who says these are on aim because I HAVE REASON TO BELIEVE THAT THEY ARE ON THE MAIN MARK??????

They certainly are and tucked away nice and safe in my ISA.

do you know i thought that, but couldnt be arsed to check. Shares mag you need to go and check this and correct it!!!!!!!!!! are you sure all the others are on the aim market??? ps your still a great mag!

Hi Predateur,
Thanks for the reply..lol. I'd just thought I'd ask the question as sometimes posters can provide more info on these matters. The sale hasn't affected the sp which is the main thing. In the meantime if anyone sees a small bloke with size 10 feet and 4 million quid in his pocket.......
LL