Kenmare Resources Forum

(2014-08-04) The Irish company Kenmare Resources, which is exploiting the titanium-bearing heavy mineral sands in Moma, on the coast of the northern Mozambican province of Nampula, announced on Friday that it has extended a loan provided by Absa Bank. As a result, the 20 million US dollar loan will now be due for repayment on 31 March 2016. The company has also restructured debt to project lenders so that repayments due in August 2014, February 2015 and August 2015 will now be made under a mechanism dependent on the level of cash generated at the mine. According to Kenmare’s Managing Director, Michael Carvill, “we are pleased to have concluded this agreement with the project lenders and Absa which will enable us to conserve cash and provide greater flexibility during the current period of low product prices”. In July, the company announced that it had produced record levels of ilmenite and zircon in the second quarter of 2014. The company revealed that ilmenite production in the first half of this year totalled 445,600 tonnes, which represents a 47 per cent increase compared with the same period in 2013. Zircon production rose to 21,400 tonnes, an increase of twelve per cent. As a result, shipments of finished products rose by 36 per cent to 399,000 tonnes in the first half of 2014. However, Carvill warned that product prices remain subdued. Ilmenite (iron titanium oxide) and rutile (titanium dioxide) are used to make white pigments for paints, paper and plastic. Titanium can be extracted from these ores and used to manufacture metallic parts where light weight and high strength are needed. Zircon (zirconium silicate) is used for abrasive and insulating purposes.

lumphammer whats happening on the 27th?

Maybe someone more knowledgable about takeovers could explain.

Below I have posted Irish takeover panel releases I keep getting from KMR - does this mean a shuffle is taking place ready for Iluka?

FORM 38.5(a) IRISH TAKEOVER PANEL DISCLOSURE UNDER RULE 38.5(a) OF THE IRISH TAKEOVER PANEL ACT, 1997, TAKEOVER RULES, 2013 DEALINGS BY CONNECTED EXEMPT PRINCIPALTRADERS WITH RECOGNISEDINTERMEDIARY STATUS AND DEALING IN A CLIENT-SERVING CAPACITY 1. KEY INFORMATION Name of exempt principal trader (GS) GOLDMAN SACHS INTERNATIONAL Company dealt in KENMARE RESOURCES PLC Class of relevant security to which the dealings being disclosed relate (Note 1) 0.06 ordinary shares Date of dealing 12 August 2014 2. DEALINGS (Note 2) (a) Purchases and sales Total number of relevant securities acquired Highest price paid (Note 3) Lowest price paid (Note 3) Total number of securities disposed Highest price received (Note 3) Lowest price received (Note 3) 2,217 0.1375 GBP 0.1350 GBP (b) Derivatives transactions (other than options transactions) Product name, e.g. CFD Nature of transaction (Note 4) Number of relevant securities (Note 5) Price per unit (Note 3)

Even in a situation where there is zero demand growth per annum the titanium ore market should remain under-supplied globally, at least through 2014, Hassan Ahmed, head of research at Alembic Global Advisors, wrote in a company note. As a result, mining companies such as Australian-based firms Rio Tinto and Iluka are greatly inflating the costs of ilmenite and rutile, which contain up to 63% and 95% of TiO2, respectively. Iluka raised rutile prices by 70-75% from July 1, 2011 - to a weighted average of $1,340/tonne (€1,021/tonne) - compared with the first half of the year, and recently announced another 80-85% hike on top of that, effective January 1, 2012. In response to these concerns, several TiO2 producers are backward-integrating to secure raw-material supplies in an attempt to stem future cost hikes. "Mining companies are being much more aggressive in terms of prices," said Luis Rebollar, managing director of Titanium Technologies Europe, Middle East and Africa at US-based DuPont. "We are working to secure supply as the price of ores will escalate ­dramatically."

Agree with Machine100. Illmenite prices are set to rebound. It's perfect buyout time too.... see what happens in two weeks.

Illlmenite prices are set to rebound... see article Bloomberg in April 2014

It is stock only. The balance sheet does not support a cash component. Finished here now. Remember my two posts .... when it happens.

ILU.AX Iluka is coming back with a revised offer, but patience will be required by existing shareholders. I have no indication what the revised terms will be or the potential mix between cash and stock. Living in Melbourne has its advantages...........