Kenmare Resources Share Discussion Threads

[cliffpeat] 26/6/2014 08:52

44% owned by:

Prudential plc 482,175,350 19%
BlackRock Investment Management (UK) Ltd 238,213,428 9%
JP Morgan Asset Mangement (UK) Ltd
167,406,945 6%
The Capital Group Companies Inc. 164,678,932 6%
Norges Bank (The Central Bank of Norway) 113,881,619 4%

[a0148009] 26/6/2014 08:51

There is a massive pile of debt to be taken into account see below.
The best solution for shareholders underwater would be an all share offer for the opportunity to recover losses over time - rumored price 20p. There is also capitalised interest to be taken into account post 31.12.2013.


Moma Mine Debt Financing Update

Kenmare Resources (LSE: KMR, ISE: KMR), one of the leading producers of
titanium minerals, is pleased to announce that it has agreed with its
lender group a restructuring of project financing for the Moma Mine in
Mozambique. The restructuring removes the requirement to repay all
deferred subordinated debt by 1 August 2015, and instead reschedules all
deferred subordinated debt that is unpaid as of 31 July 2015.

This restructuring has been designed to enable the Project Companies to
service the project debt in a sustainable manner; and in due course to
pay down the debt on an accelerated basis from available cash while
making distributions to Kenmare.

Managing Director Michael Carvill commented: "We are extremely pleased
to have concluded this milestone restructuring with the co-operation of
the project lenders. This restructuring better aligns the terms of the
project financing with the projected cash flows of the Moma Mine and
offers a sustainable solution for both the Company and our lenders."

Under the terms of the project financing applicable before this
restructuring, if cash is insufficient to pay interest and scheduled
principal on the subordinated loans on a payment date, interest is
capitalised and both interest and scheduled principal are deferred and
become payable on the next semi-annual payment date, subject, again, to
the availability of cash. However, under the previous arrangement, it
was necessary for the Project Companies to be able to repay all deferred
subordinated debt obligations by 1 August 2015. The deferred
subordinated debt and accrued interest as at 31 December 2013 was
US$143.3 million and the weighted average interest rate, including the
additional margin of 1% agreed in 2009, was 10.16%. As at 31 December
2013, the total subordinated debt was US$247.3 million and total senior
debt was US$94.6 million.

The principal provisions of the agreed restructuring are as follows:


-- On 31 July 2015, all deferred subordinated debt will be rescheduled as
follows:

-- 50% of the deferred subordinated debt will be amortised in nine
equal semi-annual instalments commencing on 1 August 2015 and
ending on 1 August 2019.

-- The balance will be repaid in one instalment on 1 August 2019 (the
"Deferred Bullet").

-- Commencing 1 August 2015, the Project Companies will no longer be able to
defer subordinated debt, other than in respect of certain margin elements
described below.

-- The additional 1% per annum margin on subordinated debt agreed under the
Deed of Waiver and Amendment entered into in 2009 will continue to accrue
after Completion (which will occur upon meeting certain financial, legal
and permitting requirements) and shall be payable following the repayment
of all senior debt.

-- A further 2% margin will accrue on the outstanding amount of the Deferred
Bullet from 1 August 2015 and shall be payable following the repayment of
all senior debt.


-- Subject to certain conditions, subordinated lenders will be entitled to
receive 50% of cash available for distributions by the Project Companies,
with the balance of such cash available for restricted payments (i.e.
distributions to group companies). Subject to available cash, such
prepayment would accelerate repayment of subordinated debt prior to its
scheduled maturity in August 2019.

-- As part of the restructuring, the back-stop date for the Project
achieving Completion is removed, but achieving Completion remains a
condition to the Project Companies making restricted payments.

-- Subordinated lenders will receive a risk fee equal to 1% of the principal
amount of subordinated debt outstanding as at 31 December 2013 and
lenders are to be paid work fees totalling US$180,000.

[cliffpeat] 26/6/2014 08:00

Iluka market cap around £1.8bn

[scruffee] 26/6/2014 07:13

Australia's Iluka Mulls Takeover of Kenmare Resources

Today, 7:11 AM

[tommytipple1] 26/6/2014 05:07

Nightmare may soon be over for Kenmare investors | The Times
Today, 5:06 AM

[smalltimer] 25/6/2014 14:57

Thanks to etrader and whitespirit over on LSE:

24 June 2014
Aggreko expands mine power services in Mozambique

Maputo, Mozambique: Aggreko, the world leader in the provision of temporary power and temperature control solutions, will supply a 10 MW interim power solution to the Moma Mineral Sands mine in the north-east of Mozambique, owned and operated by Ireland's Kenmare Resources.

Synchronised with the local electricity grid, the Aggreko plant will provide the Moma facility with high-quality, flexible power to supplement grid supplies during periods of peak demand. This will include providing full prime power, 24/7 during peak summer months and peaking power during evening hours when demands on the grid are at their highest due to increased domestic consumption. The solution ensures that operations at Moma can continue to be powered from the local grid, yet can also operate 100% independently as and when the need arises.

"We chose to work with Aggreko based on their strong reputation in powering African mining operations," commented Michael Carvill, Managing Director, Kenmare Resources. "By combining a stand-alone Aggreko plant with our supply from the local grid we are ensuring a continuous power supply to the Moma facility. This gives us sufficient power to run our operations and ensure minimal disruption caused by unstable grid supply, particularly during the summer months."

"Aggreko has significant experience in powering mining operations across the globe," commented James Shepherd, Managing Director, Aggreko Southern and East Africa. "Here in Mozambique we are helping Kenmare Resources to maintain their production by providing them a highly reliable power supply to supplement the local grid."

Aggreko provides mission critical power supplies to mining projects throughout the world. This is through the supply of full-lifecycle project power from initial project construction and development, to full production and project ramp-down. In situations when existing power supplies go of line due to equipment breakdown or maintenance, Aggreko also provides rapid response, emergency power to keep mines operational.

[jasp2] 25/6/2014 14:18

Anyone looked at SAV? A minnow company with a sizeable heavy mineral sands tenement adjacent to Rio Tinto's in Mozambique, currently on fast track towards JORC. I'm hoping it's another Kenmare in the making (but with excellent management), or at least the owner of a comparable asset.

[nonic] 20/6/2014 08:11

The auction went on for a fair bit longer than normal this morning and then it opened up +10% and its now up 7%.

Someone seems to be interested for a change

[galleon] 18/6/2014 13:55

Oh dear - just paying a visit to check but delighted I got out when I did - first @ 60P having bought at 19p the in again and finally out at around 15p so very very fortunate...not gloating at all - just lucky - but i feel for those still in this mire..just got fed up with the constant daily slide into the abyss; and annoyed at the fairly constant gradings from so called experts telling everyone to either hold or buy and giving valuations which were sky high ( relatively ); also sick of the enormous wages the directors keep on taking ! Hole in the ground, liars on top comes to mind again as a good definition of some mining shares....it really should not be in this situation; good product,infrastructure in place, reasonable demand at fair prices - until recently - BUT obviously bad management ! It should be minting cash by now...might be tempted back in at sub 5p, at which point the Board might well bang in for a massive rights issue to keep their troughs full.....hope it improves for the long termers. Good luck!

[bh61] 17/6/2014 10:29

Guess Carvill hasn't resigned,

[bh61] 16/6/2014 17:09

Carvill must have resigned to make a 10% rise in a day! watch it yo yo down tomorrow

[ron64] 16/6/2014 16:37

556,722 @ 9.95
Nice last trade!

[declan2] 16/6/2014 12:41

Might be about to turn the corner

[donaferentes] 11/6/2014 12:41

It did hit 9.25 at its previous lowest point in May 2010 - so stretching a point, perhaps, it has not totally breached its previous low - we need all the hope we can get here!

[salpara111] 10/6/2014 20:51

Well, it seems to have broken the 10 support line.
They really are pretty much at the mercy of their key commodity prices although they have not helped themselves operationally speaking.
I will keep them on my monitor in case of a turnaround.

[congar9] 09/6/2014 18:42

Bottom fishing.....ok as long as you don't get caught on the bottom!

[congar9] 09/6/2014 18:39

We are only sticking in there because we've lost so much there is no point in getting out. Punters paradise.

[donaferentes] 04/6/2014 14:05

I often wonder what the institutions' view of all this is. Fro example, Black Rock reduced its holding below 9% in March, but still holds 238m of these. They must be sitting on a loss from whatever the price has been as they accumulated them.

Do they believe the share price will revive, or that dividends will start to flow, or simply that they cannot exit fast or discreetly enough without affecting the share price and losing even more?

[ravenheart] 04/6/2014 09:04

Exactly same price it dropped to a tad over 4 years ago. Critical floor here. Will it now bounce ?? or................

[rogen83] 03/6/2014 18:49

16p to 10p in 3 months

Takeover territory

[amj321pixiebristol] 03/6/2014 18:35

bh if you're not a holder, then why do you get so upset with this company ?

[bh61] 03/6/2014 18:06

If this decline continues at the present rate by September the share price will be zero, glad I'm not a holder here, what a debacle the Irish have conjured up here, an absolute farce.