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Kenmare Resource - Potential For Re-Reating (KMR)     

intractable - 20 Jun 2004 11:22

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

steveo - 21 Dec 2006 11:46 - 730 of 1136

should be steady growth all year, will be toasting this stock next Xmas

goldfinger - 02 Jan 2007 10:14 - 731 of 1136

One of Winnies 5 tips for the top 2007.

Going well at the moment.

humpback321 - 03 Jan 2007 12:22 - 732 of 1136

we are on the move up. is 60p a short time target? what about 70 or80p this year? any forcasts?

stockdog - 03 Jan 2007 12:25 - 733 of 1136

Looking for 75p by time first shipment of ore takes place.

humpback321 - 03 Jan 2007 12:36 - 734 of 1136

price now 47p. is first shipment due in feb?

goldfinger - 04 Jan 2007 09:08 - 735 of 1136

Gently ticking up again.

grot - 11 Jan 2007 20:20 - 736 of 1136

Mirabaud Report on Kenmare BUY rating with 27% upside

stockdog - 11 Jan 2007 20:38 - 737 of 1136

cheers, grot

goldfinger - 25 Jan 2007 11:48 - 738 of 1136

Well glad to see this one back blue in the last few days.

Thanks for the broker report grot.

humpback321 - 25 Jan 2007 21:08 - 739 of 1136

share price today 44p trying to guess timetable of events?????? separation plant installed and complete in 3 to 4weeks and chairmans statement (share price 50p+) contractors handover in march. (share price 60p+) first shipment in may. (share price 70p+) summer 2007 news on production of mine, forword sales and prices, news on uranium licences. (share price 80p+) that would be nice. any views?

goldfinger - 25 Jan 2007 22:50 - 740 of 1136

Would agree with you there HB.

stockdog - 26 Jan 2007 10:17 - 741 of 1136

Looks about right tome, but would not count on any Uranium effect this year. So north of 70p is entirely speculative at this stage. Would be happy at 80p to double my stake.

zeibcmva - 12 Feb 2007 11:07 - 742 of 1136

I think some update on commencement of production is due mid Feb 07, provided all has gone well.Anyone with contacts in Mozambique ?

boxerdog - 12 Feb 2007 11:39 - 743 of 1136


On the 16/02/07 if my memory serves.

humpback321 - 13 Feb 2007 14:33 - 744 of 1136

new photograph of mining pond during final stages of commissioning on----www.kenmareresources.com

capetown - 13 Feb 2007 15:52 - 745 of 1136

I noticed this am a 3MILL buy at 47,then it vanished ,it was never included in the total buy column,any suggestions?

aldwickk - 13 Feb 2007 16:05 - 746 of 1136

It might show up after the close.

capetown - 13 Feb 2007 16:08 - 747 of 1136

Ok thankyou,it was good to see it while it was there!

Kivver - 19 Feb 2007 15:31 - 748 of 1136

loads of trades going through at 48p some recorded as buys and some as sells, how can they tell the difference?????

Kivver - 20 Feb 2007 15:29 - 749 of 1136

sellers out numbering the buyers, seems strange to me so close to the opening!! does someone know something we dont????
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