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

I bought in 22p,23,27 etc what a ride.Nearly threw in the towel this week CFD's were looking perilous hope the worsts behind us.

My two tips at the start of the year were kmr and pci ,both going well .

New research report out from cannacord adams Report click here

Well buying more KMR at the end of May at the lows was definitely a good decision. KMR is my biggest holding of any share and showing a great profit and certainly worth the 3 years I have held... the best is yet to come. I think once the mine opens in Sept KMR will also issue news of more resources of Titanium and maybe other metals...don't forget the broker note a little while back saying 80p by the year end...I suspect it will be more DYOR etc. Shares mag last week says 1 in 10 readers hold KMR which is interesting.
Di

http://moneyam.uk-wire.com/cgi-bin/articles/20060712120500H3271.html

12 July, 2006



At its AGM today Kenmare reported good progress on the development of
its Moma Titanium Minerals Mine. The project is now 88% complete and
on schedule for completion by the contractor before the end of the
year. Various elements of the overall project will be completed
before this time.

Kenmare also reported that the full production management team for
the mine has now been recruited and is working on commissioning and
ramp up programmes. The hiring and training of non-management workers
is on-going with the objective of having a full complement of staff
on board for taking over various elements of the project as they are
released by the contractor.

While the core business of Kenmare will remain titanium minerals, the
recruitment of this new project management group has allowed Kenmare
to redeploy some of its exploration team. Given Kenmare's experience,
logistical capacity and standing in Mozambique, the Directors
consider further exploration in Mozambique is a strategic fit for the
Company. Hence, Kenmare is pleased to announce that it has been
granted three uranium exploration licences covering approximately
750km2 in the Tete Province of western Mozambique. The licences which
lie in the Zambezi Valley, cover an area underlain by Karoo
sandstones and contain known occurrences of uranium. The licences
were signed by Minister Esperanca Bias on July 11. An exploration
programme will commence shortly.

For more information:

Kenmare Resources plc
Michael Carvill, Managing Director
Tel: + 353 1 671 0411
Mob: + 353 87 674 0110

Conduit PR Ltd
Leesa Peters
Tel: + 44 207 429 6600
Mob: + 44 781 215 9885

Murray Consultants Ltd
Elizabeth Headon
Tel: + 353 1 498 0300
Mob: + 353 87 989 7234

---END OF MESSAGE---

It will be interesting to observe what value to the SP.The news of the exploration licence brings.I was unaware of its application.

why the big sp rise this am pre trading up 5p.? was ths due to late trades going through from y/day?
or is it just a blip on my money program[this medium i hasten to add]
Alex

July edition of the company newsletter now on website,

'The construction phase of the project is approaching its conclusion and operations are soon to start'

http://www.kenmareresources.com/investors/newsletter.asp

likewise the 2006 presentation

http://www.kenmareresources.com/investors/presentations.asp

http://www.kenmareresources.com/investors/newsletter.asp


http://www.kenmareresources.com/investors/presentations.asp

Any news about the mine at moma ?

obviously not!!!

I think we will see a quick 25% rise in the next 3 weeks .

Your theory based on what flipper?. 25%! more like 2.5% until any relevant breaking news is issued.IMO.

25% in 3 weeks time , based on a 40p share going to 50p .

Fliper, why do you think so? Thks.

there are alot of fund managers holding this, redmayne are recommending it, will go up but not as opptomistic as flipper.

I've held these now from 20p,always going to be until production.Try ADVFN. BB.Some very knowledgeable investors on there who've done their home work on this and don't mind sharing.
BD.

In july the MOMA mine was 88% complete.
Anyone know how far off completion we are now?
I realise that financing has been spread over the next 20 years, so a big rise in the sp is not on the cards, but full production should at least raise the profitability of KMR particularly as they don't have to share profits with other partners.

Yes but dont forget the interest rates & the US dollar strength & how these factors effect the bottom line, also half of what also half of what is produced will be sold at a heavy discount to current prices 40% less & the energy costs have that influence production have gone up by 80%.

All in all though there should be a modest rise in share price by Feb next year (6 months time).

Happy holding

Gull

I think that the value the Uranium will bring to KMR will at least equal the value of the mineral sands. Uranium is BIG BIG business and the results of the initial exploratory work may come with the interims. If initial exploration results are good it could add 10p to the SP immediately.