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

Read the naked trader - didn't like the style, but enjoyed some of the thoughts. Often think of trying a bit of trading - quick 10-20% profit then out and move on - but I'm too sporadic with my time.
Portfolio is crap - my fault, never learn when to cut losses.
Get well again soon.
best
sd

Market makers at it again with KMR -- moving the price about again with only 138 shares traded this morning so far, they will also mess around with the spread and this will go on until we have some more news.

Has Donald Kinsella been a naughty boy then ?

What again ?

He is the deputy chairman, you can read his CV on the KMR web site.

I know who he is.

I watch these as opposed to hold them, some large buys going through.
2517

The usual suspects, the market makers, just moving the price around to make the extra on the spread.
Wish I had a contact in Mozambique.Has that barge started it`s journey ?

next news nov.9th ? extraordinary general meeting.

Could be, but the reason for the EGM was the decision on Mr Kinsella.

Oct 24, 2007.Minesite Report.

Minesite tells us that the progress of Bronagh J, the transfer barge, is being monitored with the help of Google World. Each day it`s position is sent to Kenmare`s Dublin office. Barge due to arrive early Nov.
The delivering agents may be Redwise Maritime Services, but no information about Bronagh J on their site, although they provide details about their current deliveries of vessels.

Thats old news, but new holders may have missed it.

Yes,and that is all there is for now, let`s hope for a progress report on 9th at the EGM.
The Bronagh J is now the key to the whole operation.

Yes,and that is all there is for now, let`s hope for a progress report on 9th at the EGM.
The Bronagh J is now the key to the whole operation.

anyone know what the amending terms of the warrants may be at the EGM. on the 23/11 07 ?.

Apparently they want to reduce the price of the warrants to buy shares from 19p to 17p for limited period until 2 Dec ( I think) I presume anyone who has warrants can cash them in for ordinary shares for 17p a share instead of 19p Not very up on this, don't hold any only heard from a friend who doesn't fully understand it either

Apparently they want to reduce the price of the warrants to buy shares from 19p to 17p for limited period until 2 Dec ( I think) I presume anyone who has warrants can cash them in for ordinary shares for 17p a share instead of 19p Not very up on this, don't hold any only heard from a friend who doesn't fully understand it either

Apparently they want to reduce the price of the warrants to buy shares from 19p to 17p for limited period until 2 Dec ( I think) I presume anyone who has warrants can cash them in for ordinary shares for 17p a share instead of 19p Not very up on this, don't hold any only heard from a friend who doesn't fully understand it either

ditto

ditto