Kenmare Resources Share Discussion Threads

[murraybasin] 30/5/2018 19:59

Odd bunch, like goldfish in a bowl. Someone could explain something very well to them in terms even a child could understand and they'll be back after five minutes asking the same thing again. Probably the sort of people who buy 'own brand' products in Sainsbury's. Unclear why some of the others bother wasting time on them. Must be therapeutic or something, or pity.

[donkey40] 30/5/2018 00:37

Haha Buck - now you are getting the numpties that think they either are all knowing or know something pulling your tail. Come over to TOU - they got hundreds of them over there. You only got 2 dummies to give a good smacking - easy peasey mate !

[donkey40] 29/5/2018 20:27

Well if KMR have only 12m of unused tax losses c.f., I must have been following the a different company all these years.

[donkey40] 29/5/2018 10:47

Never ceases to amaze me how certain types on these boards think they have some claim or right to requiring you to answer their questions or explain on’s own posts. Skid and Supa really do need to learn the odd bit of manners.

[murraybasin] 28/5/2018 08:40

I think this is straight forward. Little bit of chicken and egg for now. As performance continues to filter through the share will continue to become more attractive and the liquidity/risk issue will gradually diminish.

Discussion points:

1. That since M&G and friends blocked the ILU takeover, they would hamper another. M&G are in the business of making money so their likely involvement in any future takeover attempt will be to ensure that they maximise the opportunity. ILU was opportunistic; the reason M&G got in the way of that was to preserve the future opportunity. They know what the mine is worth.

2. That a suitor would only offer 20% premium. That would be an obvious starting point but there is no way any of the majors would take anything south of £500m for the business. So, if any offer comes along it will probably lead to a protracted set of negotiations and eventual sale of the business at a significant premium to the current market capitalisation.

3. That Lomon Billions might find it difficult to get permission to spend outside of China. The number on the table for Sichuan Anning Iron and Titanium Co. which they just backed away from was $800m. Because they had been tyre kicking in Brazil, I suspect they know the funding is a problem they can solve.

4. That liquidity is a barrier to entry for IIs. I agree with this. This will take a bit of time but a net profit of $30+ for H1 and $60+ for FY 2018 off $100+ EBITDA along with prospective dividends will start pushing this in the direction that generates the required interest and liquidity. This is counter intuitive, but the share price will need to go up in advance of material interest from additional IIs, following which they will drive it.

5. EIB, not a natural share holder. I agree with this. If they want out, why would someone offer them a premium when the alternative is the open market which would force them to sell at a discount. What are the possible ways out for EIB? (a) Open market (b) Negotiate block sale[s] (c) Trickle feed over time (d) Stay long pending inevitable correction and gradually sell into the market improving liquidity.

[donkey40] 28/5/2018 00:04

Thank goodness it didn’t degenerate into a production focussed discussion - there is enough of than on the boards these days. What with boys and their toys and big trucks and pressurised liquid pipe cleaning.
I thought the moron guy did ask a valid question which sadly was not that well answered. Your thoughts ?

[murraybasin] 26/5/2018 09:31

It was all going very well until some utter moron started to prattle on about the share price. There's always one though, isn't there.

[donkey40] 25/5/2018 13:22

That was a laugh a minute. Guess who wanted to drain the energy out of everyone in the room

[donkey40] 23/5/2018 09:21

Anyone planning on attending AGM ?

[donkey40] 19/5/2018 21:23

Pistols and whips

[murraybasin] 19/5/2018 16:02

What's the dress code this year, Hawaiian and 762?

[murraybasin] 19/5/2018 09:49

Well, irrespective of cost of finance, the sweep rules would apply. However, it appears the cash is set-aside for other purposes. There was a mention in one of the presentations earlier in the year that 9.2 (or 9.8) m$ had been paid, nothing more.

[donkey40] 18/5/2018 21:38

Cap - the cost of debt is currently very cheap. There is zero incentive to early pre-pay.

[donkey40] 18/5/2018 19:33

I hope that gobby Bucklefern fella attends the AGM. He likes to ask hard questions.

[murraybasin] 18/5/2018 18:33

Oh, I think you'll see a bit of "2.05 after 3.50 after talk of 'Bonanza'" alright.

Or, why the f@@k didn't you get the finger out in light of clearly suspicious trading activity.

Suspect there'll be plenty of looking at the ground involved. Unless they've timed something specifically to coincide with the AGM.

[donkey40] 18/5/2018 14:22

And the Lender issue looks like continuing - I don’t see major news of there shares being sold or placed in the week ahead prior to AGM. Damnation and drat. I hope then the AGM turns a bit feisty with a few disgruntled shareholders asking a few awkward questions. It needs to be done !!

[donkey40] 18/5/2018 12:51

So Majedie were the reason for recent volume, not the Lenders. Dang. They reduced their shareholding by 663k shares.

[murraybasin] 17/5/2018 21:03

I make it 1.2, which will get you closer to 780p.

[donkey40] 17/5/2018 10:40

How about - a lot. Or - I need to study for a diploma in corporate finance. Or maybe - 750p.

[murraybasin] 16/5/2018 19:06

If you could acquire a business that could make 200k per year (net of all costs and ongoing investment) that has assets of 800k, what would you expect to pay for it? The answer is 'depends' but have a stab at it.

[donkey40] 16/5/2018 13:25

Better than down 10% I suppose. But given the road travelled - no I would not be happy with 10% return here in 2 years. And there is an AGM ahead and I hope some proper questions are asked for a change. Rather than shyness and quiet acceptance

[murraybasin] 15/5/2018 20:42

Surely if you've 1m down you're happy with your 100k return?

[donkey40] 15/5/2018 19:59

Hmmm sigh. Yes Sir; No Sir. Was that the plan

[murraybasin] 15/5/2018 18:30

Kenmare is up 10%+ on the 2016 open offer price. You should be happy.

[donkey40] 15/5/2018 16:20

Then why is the share price still a bag of keegh?