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

That's actors for you - unless everyone says they're wonderful - well, they just aren't.

Your decision highly repsected BPL, but pullleeeeez, don't say it was based on reading informer.

SD

jimwren - i think informer/pro1 has every interst in KMR he is an amature ramper/deramper just learning his trade but not doing a very good job. On other sites (and maybe this one but cant be bothered to read) he was ramping the share like mad a couple of weeks ago and now with the aid of couple alias's trying to bring the price down so he can fill his own boots with this share. Then he will change is nameS again and start ramping it up again. He/she needed to find a much more volatile share rather than this solid dead cert.

ps if sells outstrip the buys by the big majority he says how come the price is hardly moving.

Comment from that so called guru - informer/pro1:

Here's a genuine tip for you. Sell Kenmare and buy African Diamonds (AFD). 117 buys and only 9 sales today (kenmare has 3 buys and 16 sells). It's a share with a future and, best of all, it's going to fly over the next couple of days!!!


AFD is down 8.33% since that comment was made.

That says it all - clueless!

good spot rebel - de beers announced yesterday that they are not interested in buying AD, hence the big drop. Stick with KMR - a real company with real proven resources.

Of all the non-fundamentalist shadows to chase, I think the take over prospect has to be one of the least substantial. Apart from whether it will ever happen, the intervening esntiment is just too volatile to follow, unless you follow streaming prices all day long.

SD

no stockdog - you have to be an expert like informer to profit from those situations.

Ah - got it wrong again. Apologies.

The Out(per)former.

Hey man -like, err easy man. I got African Diamonds too man. ...no man, not on the souls of my shoes (ha-ha ...joke man). Heyman, check it out -it's up again today and my LA bundle is looker safer!!
Hey Kenmare's down again man ...real dog eh?!!

Hey guys -get this man. There is presently a big stream of sell offs. Following the big 11 million share sell-off last Thursday man, it seems the trend of dumping KMR shares is continuing. Must be a good reason behind this man.

Yeh! Brad..it's called profit taking. Not everyone is happy with doubling their money, they look to take profits, institutions have to. Then the next wave of buying goes on. You need to go back to school.
:-)

Hey man ..real rude dude you are too man!! Everyone is checking outta the Kenmare shares hotel man ....and if you got any sense (something I fundamentally doubt too man) you'll do it too. Aint no future in this share man.

Crap Brad! The institutions play with this one. Notice everytime it goes down they put the 6250 sell bot on. Now we are back to the 6250 buy bot pushing prices back up again. If you don't like KMR clear off somewhere else cos' you ain't welcome on here unless you have something constructive to say. So far you are just spouting crap. Go back to your hole.

Hey dude the only hole around here man is that mega-type crap-spouting one in the middle o' your ugly face! Now you wanna be constructive man then ah will be too. But you go gittin on your high hoss now and ah'l git real hornery -okay man?!!! Treat people nice man! ....and before I go I'm telling you this for your own sake -Kenmare is a real bad dude of a share. Ah got my LA bundle riding high on it and ah can't wait to cash it in!!!

Well Pitt then you are a plonker. If you really had shares in KMR you would not be trying to deramp it and if you were waiting to sell why not do so! This makes no sense. If you have any dosh on KMR then it is a short via SB or CFD.
Clear off.

Well hush ma mouth boy!! You seen them there 6250s whipping through the trade counter like a whippowill on a stormy prairie?!! I'm bankrolling this mother and I aint getting out 'til the timin's right. Now you clear off cheeky boy and don'tcha come back agin -hear me there dude??

I ain't a boy I'm a woman with more sense in my little finger than you have got in your tiny brain :-)

Don't rise to it DI! It's a waste of energy.

Opionions on a share, fine - personal abuse is not allowed.

Please refrain from abusing fellow posters.

Ian

Don't worry MP...he's a prat:-)

I've never used the squelch button before, but I feel it coming on.