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

Thanks Pondlife interesting read....
Humpback are you referring to July shipments or when?
I am very tempted but I'll wait for a little retrace the charts RSI is over bought terrority so it could fall, which I'll defo tuck in when ready

I sold @ 49.5, and thought they would retrace. But got back in @ 55

1st shipment july? that sounds good. transportation barge 'bronagh' should have completed sea trials shortly and mineral separation plant processing. see kenmare web pages for pictures.

I expect this one to continue rising up to the first shipment and beyond.

Long term stock I fancy this one.

GF...I have fancied KMR for years...in from 14-33p and still holding for a long term super duper ride :-)...now the mine is actually up and running I expect a nice chart like GFM up, up up and away.
dyor etc.
Di

Same here Di, off hand I think I first bought at 16p when Winnie recommended it somewhere.

I see our friend the 6250 buy bot is back again :-)

check out new photos on www.kenmareresources.com. shipments cannot be far away.

Had a look HB. Your very much right.

Could we see a spurt upwards.

I think you could be right GF. thats why my only holding at the present is KMR, I know a mugs bet!. Any genuine advise views to my current dilema would be welcome . I'm holding a large holding (for me) in shares and intend to hold these. My problem lies with my SB June. i'm 26k in front but don't like the associated costs involved with servicing this particular bet, but i have a gut feeling there's more to come. My instinct tells me to rollover and run the bet but my common sense screams bank the profit. Any genuine opinions appreciated.

very hard to advise anyone who has made a decent profit on a share whether to hold or sell and the old saying 'a bird in the hand is worth two in the bush' springs to mind, but it is hard to see any negatives with this one. fraud (unlikely). terrorism (possible).fire (unlikely).sinking of shipments(insured). this share has the possibility to substantialy increase over the next few weeks, months, and the added bonus of uraniam licences which have been kept very qiuet. i am totally biased having a small holding,but if anyone knows any downsides to this one lets hear.

and the possibility of a buy-out of course!!!

Uranium update at AGM?
Is M Carvilles' wife also called Bronagh?

Expect a lot of buying in the next few weeks as institutions start to buy this in anticipation of entry to FTSE 350.

Did'nt see that coming, what a unexpected ending.

Is this what TAers call a break up on the chart?.

It's a 'Breakout', goldfinger, and very nice it is too. Onwards and upwards.

Very pleased i followed my instinct and rolled over into Dec. by which time all will have become clearer.

hell of a stockpile of mineral. see photo on website.