Kenmare Resources Share Discussion Threads

[resourceful] 20/1/2015 10:38

back after tghe shock of $10m
$844k for MC makes more sense
forget the bobuses
forget the shares worthless
big but not huge for the size of company

banks may have little option but to support the project and mgmt..the value of a hole in africa
but it is only when the boys go
and when we are diluted to death

[donaferentes] 20/1/2015 09:52

thanks,, libertine, interesting article, telling us rather more than the BoD ever do.

[libertine] 19/1/2015 18:54

Kenmare seeks debt restructure as fall in commodity prices hits.

People close to the talks say the miner’s lenders — among them a number of development banks — are inclined to be supportive and reject comparisons with London Mining, saying Kenmare’s mine is more important in global markets. “The quality of the asset is such that the lenders are not panicking,” said one person.

[tompaul] 19/1/2015 11:16

Nig - I really do hope that you are right and I am wrong. Good luck to all.

[nigthepig] 18/1/2015 17:16

Tompaul - what utter rubbish.

[tompaul] 17/1/2015 11:53

Afraid I have seen this sort of thing before when a company moves towards its endgame. One of the reasons they rejected the Iluka offer is that there was a risk of a board clear out at the top. Carvill and Co are riding the gravy train for as long as they can until the company hits the buffers. They are taking a cynical and devious stance to getting as much as they can before KMR goes under. Some may remember a company called Vocalis, developing voice recognition software, about 12 year ago. Not selling much, increasing debt and heading for receivership they laid of 100 staff at the end of the FY. At the average wage of £25k that was about £2.5m. At the start of the next FY the board voted themselves a big pay rise to the tune of, yes you guessed it - £2.5m. I am afraid KMR will soon be wound up and Carvill and co will be set for life. The law on regulation in these circumstances need radical reform to stop shareholders being exploited in this manner.

[petomi] 16/1/2015 13:27

Re Board remuneration I agree they are overpaid but according to the 2013 annual report p56 total board pay is $3.1m (2012: $3.0m) with no bonuses in either year. [This would exclude the IFRS cost for share-based payments eg options but according to note 3 p100 that is not significant.]

So the savings from reducing Board remuneration, or them being paid in shares, would not be huge.

But yes they are certainly overpaid with the new Kenmare Incentive Plan (KIP) arrangements meaning (see p55) that the MD earns a minimum of $844k (basic pay etc), $1.79m for 'on-target' performance (whatever that means as they don't specify the targets) and $2.74m for 'maximum' performance (ditto). And I nearly fell off my chair when reading (p49) that there is an additional 'Initial' KIP award "that resolves retention issues caused by the introduction of the new KIP" - did they really think the poor darlings would walk away from their highly paid jobs, and who would be hiring them with their track record? The Chair of the Rem Cttee which bizarrely agreed this is ostensibly independent but looks like one of the family since she used to work for KMR on the Moma development association strategy.

It is encouraging that they have been able to hire a senior guy from Rio's Richards Bay operations as COO but the board looks very weak and I hope the lenders ensure there is a clear out at the top if they are allowed to pass the next crucial 31 Jan financing test and survive.

[donaferentes] 16/1/2015 11:58

They should take a leaf out of IRON's book - a start-up miner in S Africa - where the board are taking their salaries in shares and so are some of the contractors.

[sg31] 15/1/2015 17:58

Resourceful, The high rewards paid to the board for poor performance is why some of us are so frustrated.

[resourceful] 15/1/2015 17:21

10m........i should pay attention

[resourceful] 13/1/2015 10:11

fair popint
i really did not pay attention to his salary

[bh61] 12/1/2015 16:11

Carvill still trousers $800k + 150% bonus a year, he feels no pain, on $2 mill a year he is immune from pain.

[resourceful] 12/1/2015 15:29

if only
his two decades on me gives him time to recover

[amj321pixiebristol] 12/1/2015 15:09

Je Suis Carvill....

[sg31] 12/1/2015 15:01

Good for you

Carvill meanwhile...

[resourceful] 12/1/2015 14:53

you took the risk,as did I
I have worse

[sg31] 12/1/2015 14:19

I feel for all the shareholders who trusted "Carvill the untrustworthy".

[resourceful] 12/1/2015 13:13

best will be extreme dilution to convert debt to equity
Iluka should wait
nothing to lose
Yep,expanding out of troubler has cost me dearly so feel for them

[amj321pixiebristol] 12/1/2015 08:15

There is an old saying in business, " never try to expand your way out of trouble". It seems Kenmare did not heed this. I believe it is this fact that has led to the current situation, together with them losing sight of their cost of production. In fact, with a high, uncontrolled production cost, the increased output from the expansion added fuel to the fire. So a combination of poor project and operations management is to blame. At least one of them had the decency to fall on his sword. I cannot now imagine an outcome that will benefit shareholders.

[bh61] 09/1/2015 18:49

Also Blackrock got rid of 19 million and JP Morgan dumped 10 million, just goes to show fund managers know fa same as punters.

[libertine] 09/1/2015 17:32

9/01/2015

Majedie Asset Management Limited

Holding increased by 19m shares to 89.9m (3.23%)

[resourceful] 09/1/2015 08:40

what is going on is awful to witness
we will be at best diluted at worst in receivership
likely to be somewhere in the middle
no point in iluka taking the debt
a debt writoff and takeover at buttons is an answer
a brave experiment

[albo] 08/1/2015 14:47

Anybody know how long the Iluka offer period has to run?