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

And obviously I don't fully understand how to post either

you can say that again! lol.

you can say that again! lol

EGM Kinsella out,

AGM news on Bronagh J in ??

KMR price holding up well in current nervous market.

Bronagh J has arrived at their jetty , see new photos on their site.

last piece in the jigsaw. 1 here we come.

Yes this, and sufficient production levels for the first shipment to take place should be the next news.

Interesting, market makers are there to make the market but here we see a clear case of market manipulation. The usual spread for KMR is about 0.5%. That was obviously not enough for the market makers, and despite steady positive progress by the miner, they have jerked the price around for no particular reason and it has fallen from 64p to 51p over the last two months.Oddly the latest news has had little effect on price so far, perhaps a good time to top up our holdings.
As far as I know the prices of their products are steady.

All small miners are down even the good ones, AFE, CEY,ZOX, GFM, VML, but KYS and LRL are holding up well.

23,ooo tonnes of ilmenite dispatched. second ship now being loaded.up up and away?

Any news on further shipments ?

Zeibcmva, Aldwick, Humpback321, any idea as to when any uranium news is likely ?

I think Required field, you may find that just like any new mining company they will be too busy at this stage sorting out any production problems and related equipment.
They are new boys on the block and I have a feeling that currently they are pushed to complete their orders.
However the longer term prospects remain excellent and the uranium factor for KMR will eventually come into play.
Nuclear power`s future is now brighter than ever.

cannot see this moving any way but sidewards until ramp up in production is announced. All current news good and not so built in at 56p IMO. After saying that being static on the SP. is good news in this current climate.

Uraniam news is a long way off, that is just a long term bonus if it ever comes to fruition. Keep holding/adding!

Thanks, everyone!

When are the results due ?

Around the 25th April. I dont think they will be profit making until at least next year maybe longer.

Use http://www.investegate.co.uk/ to help track RNS's.

Thanks Kivver. That is a useful site.

Looks like we are developing some institutional interest in KMR now.
Prudential 16.88% and Capital Res. 8.19% currently.

A temporary setback and buying op if you ask me (i did, top-up, that is) 46p now.

http://www.investegate.co.uk