Kenmare Resources Share Discussion Threads

[ravenheart] 22/10/2014 08:53

malinkie
21 Oct'14 - 11:56 - 23187 of 23187 0 0


'The share price is well below the level it last was when Iluka made their 20p equivalent offer.'


Let's be clear. The share price was around 9p at the time of the first offer and that offer was equiv to about 16.5p in Illuka paper....not 20p.

[malinkie] 21/10/2014 11:56

The share price is well below the level it last was when Iluka made their 20p equivalent offer. The BOD of Kenmare would need to be complete fools not to take an equivalent or better offer now. It may be announced before Nov 10th or around that time as all the players in the industry will meet at the TZMI conference in Shanghai.

[bh61] 21/10/2014 10:43

Carvill will have a massive golden goodbye written into his contract, it will take a lot to get his snout of the money trough. You are correct Carvill does what is best for Carvill, the shareholders mean nothing to him, 20 years of milking this company has made him a very rich man,

[sg31] 21/10/2014 10:37

Carville will negotiate the best deal for Carville and sod the shareholders. I think the way it is normally done is a big consultancy contract and a load of free shares in the new owner with millions of cheap warrants.

Shareholders get a stick with a lot of smelly brown stuff on one end. Carville will be holding the clean end when he hands it to you.

[bh61] 21/10/2014 09:54

How do you sell half a mine or which clown would buy something and let Carville mismanage it for $2mill US a year, talk sense for God's sake.

[nonic] 21/10/2014 03:01

alamaison5 19 Oct'14 - 13:06 - 23179 of 23181 0 0

What I think? Well I think that a sell of assets is underway. This to repay debts and move on to the most prolific side of the business. KMR, or part of it, is for sale. The deal will happen sooner than you think.
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I have to say that is not a very sensible post.

[malinkie] 20/10/2014 13:28

Punters beginning to realise what an opportunity this may turn out to be. Hard to resist the gold mine analogy..........

[clampit] 19/10/2014 17:15

If they sell the mine what would they have left?

[alamaison5] 19/10/2014 13:06

What I think? Well I think that a sell of assets is underway. This to repay debts and move on to the most prolific side of the business. KMR, or part of it, is for sale. The deal will happen sooner than you think.

[nonic] 19/10/2014 11:39

I could be persuaded to accept that offer price quoted in the Sunday Morning Herald article:-

Iluka interest pushes up Kenmare shares
Date
October 19, 2014 - 3:58PM
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Brian Robins
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Shares in Irish mineral sands producer Kenmare Resources rose strongly Friday on news that Iluka Resources may yet seek to acquire the troubled miner via a share swap.

Iluka said late on Friday that "discussions remain at an early stage," and there is no certainty an offer will be made for Kenmare. This was the first confirmation in several months it is pursuing a merger with the Irish company.

The disclosure helped to push Kenmare shares ahead 4 per cent to €7.05 ($10.90) on Friday, pulling the shares off long-term lows in the process.

Shares in Kenmare, which operates the Moma mine in Mozambique have fallen steadily since not long after Iluka's interest in the miner was initially disclosed, reflecting its underlying lack of profitability amid a high level of debt.

In the six months to June, Kenmare lost €32 million, up from the €10.2 million loss of a year earlier.

Its financial woes has forced Kenmare to renegotiate loan repayments on project debt to beyond mid-2015, while it struggles to maintain cashflows as it seeks to rein in costs amid continued soft product prices.

In the September quarter, Kenmare's ilmenite production rose 6 per cent to 220,200 tonnes and zircon by 239 per cent to 12,900 tonnes.

Kenmare's share price surged to around €17 from €11 when news of Iluka's interest first emerged, although it has fallen steadily since, sinking last week to below €7 on concerns over its outlook.

Iluka is pursuing a range of potential expansion opportunities, ranging from a prospective joint venture in Brazil to new primary production in Australia.

However, continued weak underlying demand, especially amid confusing signs over the outlook for Chinese industrial and construction sector demand is weighing on product prices amid concerns that any recovery after the recent downturn may prove to be elusive.



Read more:


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$10.90 would suit me.........

but I dont think they’ll go that far though

[comane] 18/10/2014 19:21

Lots of hindsight thinking here. Surely it was not wrong to borrow money to develop the mine. If the price of ilmenite and zircon rises we will all say how clever they were. Iluka are in a great position to get it cheap.
I bought a few more at 22p as the price see sawed and I hoped to sell on a slight rise.. I should have learned by now not to try and catch a falling knife. Maybe now is the time? !!!!

[nonic] 18/10/2014 03:57

Not all of the cos. woes are down to rank bad management although I am the first to accuse them of complete ineptitude in turning world class assets into what is almost.......almost a basket case.

But I recall over the whole of the period the mine was in construction....... years, the industry was producing forecasts of ever increasing demand levels and supply shortages stretching into the wide blue yonder.

Iluka are one of the major guilty ones. I commented about two years ago that at a McQuarrie Bank presentation Iluka were trumpeting their prices, profits market share etc etc etc arent we the clever ones........................

and within 6 weeks (I think it was 6 weeks-certainly not very long)they were announcing layoffs, mothballing plants etc etc

The ffffffforecasting in this industry is worse than useless -its positively dangerous.

If the share price of Ilmenite today was $300/tonne none of us would be complaining about the company. The reason it is not is hardly the fault of the company

[amj321pixiebristol] 17/10/2014 16:08

AO14 - couldn't agree more, they should have paid down debt instead of the expansion ego trip !

[gscrawler] 17/10/2014 14:49

Kenmare product prices have reversed their fall and soon will be a steady increase in demand and the prices will be back to where it makes economical sense to mine.
This has not been a tough year just for kenmare so happy days ahead!

[libertine] 17/10/2014 11:49

eurofox

So are you saying the bid for 17p+ which was rejected on the basis that it undervalued the company was a bit irrational.
Perhaps Iluka forgot to look at how much debt was outstanding.

[eurofox] 17/10/2014 11:25

there is so much debt that this could change hands for 1p per share just to transfer the debt

[a0148009] 17/10/2014 10:31

Iluka's indicative non-binding offer was all share which would gives KMR investors the opportunity to stay in the game. The market for their products has deteriorated since the offer and so far no other interested parties have emerged,
if there is an agreed offer it may tease out one of the large miners. The killer is the debt created by the existing management in a grandiose scheme and ego trip to double the capacity of the mine instead of fine tuning the existing capacity generating cash flow, paying down debt and even paying a dividend.

AO

[sorksandnorks] 17/10/2014 09:31

AO - Yes, I think you are right - the KMR share price is in dire straits and, although their latest quarterly report is not as bad as I expected, I suspect that they will bite Ilkua's hand off if they come back with a 15p offer - or perhaps even a few pence more (we all live in hope!)

On the plus side it is good to hear from KMR at last after months of silence and to learn that they are still talking to Iluka. There may yet be a positive change in our fortunes. To those of you still holding like me - don't sell just yet - your losses may be lessened - keep the faith. Good Luck All!

[a0148009] 17/10/2014 09:14

Reading today's IMS I suspect KMR have had second thoughts and awareness of their
dire situation gives them no option but to engage with Iluka, unfortunately the timing could not be any worse with falling demand and growth.

AO

[nonic] 17/10/2014 08:30

Still in takeover talks with Iluka according to todays RNS but not one posting...

till now

[a0148009] 16/10/2014 14:46

Anyone able to change the heading of this thread to
"From Construction to Destruction"!

AO

[sorksandnorks] 16/10/2014 14:27

Well, we've finally got there! For those of you who have been with KMR for as long as I have you might recall that on 8th December 2008 they reached an all-time low of 7.0p. Today - 16th October 2014 - they have finally dropped below that level to 6.95p. The worrying thing is that there seems to be no floor in sight. Just how low can we go? And whatever happened to Iluka's potential offer of 15p? I bet they're glad that came to nothing!

[beeezzz] 16/10/2014 13:56

While considering IKA I came across this article which maybe a benefit to KMR who are looking very weak, personally they should have 10:1 consolidation which would enable them to escape the penny share trap in the near future.

This is also exacerbating the downward trend :