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

SD You can be my guard dog...woof woof.grrrrrrrrrrrrrrrrrrrrrrr Kill Kill

oh no KMR DOWN 0.5p its all down hill from here. disaster! IT aint going to work brad-tit-lookalike/pro1/and all your other names. You aint gonna be able to buy them at your cheap deramped prices get in now before it is too late!! And support it like you know you should. Go on you know you wanna.

well ah say, well ah say boy, if ah aint mistaken that there informer/pro1 doggone got himself another handle man...time to saddle up boy, the prairie dawgs will getcha an it won't be pretty. BUY.

Hey man, there were (at close) 97,175 of buys but guess what you silly rampers ...err...duh...there were also 265,869 of sales!!! Shucks! ...don it just make you wanna sell up and git outta town real pronto tonto?!?!! Ah also see that someone sold two batches of 340,250 shares. Guess he/she didn't feel too confident eh? Caint say ah blame 'em.

brads spitt lookalike

Whats your gripe?

Not enough commodity?

Mine construction not going fast enough?

Commodity prices not increasing fast enough?

Not enough financing awards?

Or did you bail out at 20p and sorry you did so?

Who cares what you think anyway, off to the coast for the weekend while you do some research. LOL!

As a well travelled subsrcriber to am I have not yet been priviledged to read many of the informed postings by Mr Brad Pitt Lookalike, apparently hailing from deepest Arkansas. I do however detect an almost uncanny resemblence in the logic and thinking skills of that other investment guru, Mr Informer, in particular the razor sharp analysis that both have conducted by looking at the daily buys and sells.

It would seem that both these geniuses have developed a ground-breaking model wherby the price of a stock will drop when the number of sales outsrtrips the number of buys and, wait for this, the inverse is also true. Even though he dines on prunes and all-bran these days, Warren Buffet must be kecking in his boxers distraught that finally his investment secrets are being divulged to the lucky posters of MoneyAM.

Ian T

I don't think that any of the recent posts about brad pitt lookalike have abused him. Given his obvious lack of a brain, they are probably the best things he is ever going to hear about himself so we should regard them as terms of endearment. He needs all the sympathy we can give him.

amazing isn't it... you can juust pituuure this Brad Pitt look alike....Ugly must have nothin on him if he has to post under that pseudonym... poor bastard.. Lets humour him!!!

Brad babay... KMR is a resources stock, not the local bar wher you pic up a mare who looks like Ken....We are in Europe not the mid west..... sweet dreams and don't forget to put the pillow over both heads!!!!

Brad pressed down on the mental accelerator, the shrivelled old lemon started throbbing furiously and then suddenly yet another stroke of genius. If I can persuade Kenmare holders to sell stock then the value will drop and I'll make a killing. The cunning old fox.

All the conflict, adispute, arguments and insults bandied about regarding Kenmare only serve to show that the share just simply isn't worth the risk. If I want to risk good money then I shall do so -but on another share.
African Diamonds is one that is waiting to move quite quickly quite soon. I bought at 64p earlier in the week then topped up nicely at 60p when people sold. It's now 65p and much better value than Kenmare will ever be.

The weekly update.
afd = 65p
kmr = 27.5p

I admire and respect your decision.

Bye

SD

informer

no insults, just a question. When you talk about the weakness of KMR are you basing it some technical analysis of its SP or on the prospects for the Company?
Do you believe that KMR's MOMA mine has no potential ?

Good luck with AD

Informer, there is a thread specifically for AFD - please talk about it there and not here.

jimwren, no, Moma is just a pipe-dream. Rampers put it forward to gullible people telling them it's a dream-come-true for tomorrow. No such thing. It's a pipe-dream! I've sold Kenmare and am simply putting the alternative argument.

ive read all your posts on most sites under all of your handles, but you have not given one reasoned argument against. You just keep saying 'sell' and 'dont buy' but not one reason. Unles you call ''its just a pipe dream'' an argument. Go to the KMR website, is that a figment of somebodys imagination or just pipe dream?

I bet you say annoying things like 'i can't see the wood for the trees' or 'we'll have to suck it and see' (apologies to anyone who use those annoying phrases, brings back bad memeories of lecturer at uni who could never give you a straight answer, bit like informer really) and tell me were you bullied at school?

Hey man, all this bitchin about man, like cos someone expresses an opinion. Like it's a free country man and if someone feels that Kenmare resources is a bad share then they're entitled to that opinion man, like without being slagged off. Sounds like you holders of Kenmare shares are real insecure people man and afraid of something real bad if one guy can rattle you all so much. Maybe you should sell your shares man if you aint so confident and buy into something that gives you a bit more confidence.

Hey man, check this out man:

African Diamonds:...Buy:.155,948.....Sell:.1,300
Kenmare: ...........Buy:.nothing!!...Sell:23,947

No contest!!

hey man, do one!

informer

can you expand a bit on your "pipe dream" theory ? MOMA doesn't exist ? The finance is not in place ? Offtake agreements have not been signed ? Construction hasn't started ? Independent analysis hasn't taken place ?

Are you operating on some conspiracy theory or are you just seriously weird? We would all love to know.