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

got a few more at 33.75 cheap as chips at this price .

yes, i wish i had some more dogs to sell, MM's are trying it on but noboddy falling for it.

Are the two trades of 243,600 at midday a rollover, do you imagine? Without them volume is a tad under average I reckon.

Very tempted to top up, but already burnt from topping up in early May! So will wait to see a more certain recovery from these levels. Any lower, I will probably stop out.

Sentimentally I agree with your enthusiasm, but am trying not to deny Mr Market these days.

sd

Had a punt on these this morning. Looks like the stock as hit a support line. Im told production could be as early as December?, any thoughts on this?. I see RHPS tip sheet as a price target of 60p and says buy at up to 40p, just been e-mailed a copy.

Goldfinger i first bought in at 22p and added steadily, Very surprised at the current SP, as 59p is the figure considered fair value at this stage of the project! .Still your good fortune i reckon.
Check out ADVFN some very knowledgable individuals there who may answer your questions.Good luck.

Cheers BD.

GF.

I have heard this 60p target , in this case its a great chance to get in at a low price .

I have held KMR in the past & still think that it should be a good investment, but "slippage" in their program & operating losses mean, imo, that the sp is due to dip lower than the current 32p.
I will be buying in again, but will watch for a while.

There are various targets ranging from 60p to 75p to 100p I've seen in various places. I wsa aiming for 75p personally - with slippage may have to wait a bit longer to get there, but am cautious that we may well go lower first.

RSI is starting to show the chart as oversold just now. Let the little grey area below the 30 line develop a little bit more, then we'll see.

Well worth having a look at the latest Broker report again....

http://www.kenmareresources.com/pdf/canaccordkmr0806.pdf

A bottom reached?. Any views please.

I think this is the last push down. I think the big boys will try for 30p before the march up to 50p.

How come they have stopped putting photos
on the website?

I have my finger hovering over the buy botton but can't decide if it has reached bottom. It could go either way so i'm treading water for a few days.
GF i see you've been pulling a few tails elsewhere re ASG. For what it's worth I think you're bang on.

LOL
MS

Its just nudged up again.

Poldark, no idea about the photos, must admit I should look at companys web sites more.

Mickey, looks like a bottom as been formed, might be right to watch for a few days.
ASG, yup its looking ok now but in the medium term?. You know Im a patient chap (probably all the stella I consume that puts me to sleep)and I thinks things are going to take a turn for the worse at some time for the pushers on advfn. We shall see.

I think this short term debating on MMs/seller in the market is going a little far.

The broader picture is that the demand for Kenmares products is growing ie, India , China and developing nations (7% to 10% growth for Imenite and Zircon per year, more than double historic growth rate) and the supply into the market is getting dangerously low, the worlds two largest mines are close to the end of their lives and production is in decline,

Levels of inventory throughout the supply chain are very low indeed.

KMR is in the right position at the right time, in my opinion.


http://www.kenmareresources.com/pdf/canaccordkmr0806.pdf

I go out for 20 minutes and look whats happened. That just about sums my luck up.

MS

Buys coming in thick and fast now.

Nice to see - pity got no spare cash.

Not sure yet. Many other stocks are slightly down today, so it may just be a case of traders trying to find bargains elsewhere. KMR attractive price, but there should be a bounce for those who have missed the boat, imo.