Kenmare Resources Share Discussion Threads

[sg31] 30/1/2015 11:30

Chris, If they can't pay their debts or arrange extensions/new debt they are insolvent. Shareholders lose everything. The bondholders takeover the assets depending on seniority of debt. (Junior debt can also be wiped out).

As dona stated the mine is worth what someone will pay but in a distressed situation and low commodity prices it will be a fire sale price unfortunately.

If they want to extend the debt and they have no other option then they are over a barrel and have to pay what is asked. The bond holders might not actually want them to go bust. They might prefer to keep the company operating but so deep in debt they are a zombie company. They let them struggle on until the market improve and then pull the rug from under them at that stage when the asset is worth more.

There are loads of possibilities but being heavily in debt with poor cash flow is never good. The current price is an option on survival. It's a long shot but could be a good return if they do survive. Consider it the same as betting on an outsider in a horse race.

[donaferentes] 30/1/2015 11:05

the mines are worth what someone will pay for them

[chrisjwb] 30/1/2015 10:31

can anyone answer if funding was pulled i guess the assets would be the banks to sell what is the value of the current mines had a look in accounts but cant see?
Would this be another HIBU where shareholders get nothing?
And if financing was rearranged extended etc assume the rate will be higher which will affect profits is the whole thing viable with commodity prices where they are today staying there for the next 2 years?
Any help would be appreciated.

[nigthepig] 30/1/2015 08:47

Just to balance the comments on this board. I do not see this as 'a stay of execution'. As ever do your own research.

[bh61] 30/1/2015 07:43

RNS positive on production, Ilminite still in the doldrums but positive on Zircon, stay of of execution on finance, still a massive risk, BoD looking at dilution again as lenders probably turning the screw.

[bh61] 30/1/2015 07:43

RNS positive on production, Ilminite still in the doldrums but positive on Zircon, stay of of execution on finance, still a massive risk, BoD looking at dilution again as lenders probably turning the screw.

[h2owater] 28/1/2015 12:52

Up 10% in Ireland

[sg31] 28/1/2015 12:48

bh, I couldn't agree more.

[bh61] 28/1/2015 12:43

Pump & dump arsxholes, LSE is full of em.

[sg31] 28/1/2015 12:41

I've been out for ages.

I stick around because I want to see what happens to KMR. I'm hoping Carvill gets his just deserts.

I will also continue posting as and when I choose.

If KMR do survive I will be glad for the sake of the long term holders who I've known and respected for years.

Ideal situation for me would be the institutions kicking Carvill and his like out and extending the credit

[h2owater] 28/1/2015 12:15

Sg31If it's going bust please move on!Only 2 days to go! Your either in or out!

[21trader] 28/1/2015 12:11

bh61

Spot on. Pump and dump copy and paste merchant multiple boards and possibly
multiple names see SBLM thread he was terrible on there then vanished.

[h2owater] 28/1/2015 12:07

Bh61 filtered for being a plonker!Ahh that's better!

[sg31] 28/1/2015 12:05

If he's trying to ramp he's a bit rubbish at it.

It's not a good start when you try to ramp and all the posters who have been on the BB for years tell you the company is likely to go bust. Especially if they know the company inside out.

Try IFL that might be an easier ramp.

[bh61] 28/1/2015 11:23

H2o. Your 06-09 post is word for word a post on the LSE board at 06-08 under another liquid avatar, ridiculous obvious ramping .

[h2owater] 28/1/2015 10:31

Bh61??????No idea what you talking about!

[bh61] 28/1/2015 10:17

H2O how many LSE tampers are you bringing with you ?

[h2owater] 28/1/2015 06:09

Kenmare produces ilmenite for both chloride and sulphate feedstock for the titanium oxide pigments industry.

In a recent note to clients, JP Morgan noted that China's pigment producers are likely to increase imports of sulphate feedstock, so that it makes sense for Iluka to be eyeing Kenmare.

"With production at Murray Basin likely to be cut short, Moma's chloride ilmenite stream could be used to feed Iluka's SR [synthetic rutile] kilns," it told clients. "The sulphate ilmenite stream can be sold into the Chinese sulphate market.

"Therefore, notwithstanding the potential price paid for Kenmare, the potential impact on Iluka's balance sheet and any potential operational risks, we believe a likely acquisition of Moma could make sense."


Read more:

[bh61] 27/1/2015 22:27

And I thought all the armholes were on the Lse board

[jdk14] 27/1/2015 18:45

....and with very old news!!

[21trader] 27/1/2015 17:45

I see the h2owater pump and dumper has arrived here with his cut and pastes !

[sg31] 27/1/2015 17:40

Come on guys this is the most pathetic pump I've ever seen.

How about £1 by Friday.

[h2owater] 27/1/2015 17:20

Kenmare output and shipments up


17 October 2014 | 07:52am


Kenmare's ilmenite production rose to 220,200 tonnes in the third quarter - 6% upon a year ago - while primary zircon output jumped by 239% to 12,900 tonnes.

Kenmare - which operates the Moma titanium minerals mine in Mozambique - said total shipments of finished products in Q3 increased 24% to 183,200 tonnes (Q3 2013: 147,400 tonnes).

The company also confirmed that discussions regarding a possible offer from Iluka Resources Limited were ongoing.

Managing director Michael Carvill said: "During the quarter we have continued to focus on previously stated plans of conserving cash and controlling costs against a background of market conditions that have adversely impacted cash generation. The upgrade of the non-magnetic circuits in Q2 2014 helped contribute in Q3 2014 to a substantial increase in primary zircon, a significant part of our revenues."

[jdk14] 27/1/2015 15:51

They may agree an extension to discussions - especially if Iluka are involved!