Kenmare Resources - KMR Stream Log

Sometimes it is better to give a rights issue a miss, as the share price can fall after the issue, and you can pick up extra shares that way. As it is no one knows what way this will go as regards the issue, so we will have to wait and see, and hope for the best.

Paladin, allow me to clarify. The company is raising $175m. That translates to £117m. If the company went to the market today at.55p they would need to issue 21.2 billion new shares. That is 7.6 times more than the 2.8 billion shares currently in issue. For each of us to maintain the value of our holdings we would need to buy 7.6 shares for each share we currently own. This means investing £4.18 for each share we own JUST TO STANDSTILL. If we dont or cant invest this money the VALUE of our shares is reduced by a factor of 7.6 Taking today's price the VALUE of each of our shares (post the capital raise) is .072p. If they increase the issue price by, say, 4 times .55p then we have to buy 1.9 shares (7.6 divided by 4) for each share held today BUT we pay four times more. The end result does not change. In this whole scenario, the true value of shares today is sadly .072p

My colleague has over 35 year of banking experience (mining) so hopefully he is right. Soon I will increase the number of shares to 200k. KMR is a long time investment I am 27y old.

In january 2013 a colleague told me to buy some shares in kenmare resources (35p) until last week I have waited to invest small in KMR. I have bought 70k shares for 0.55p.

Kenmare is hoping to raise fifty million pounds from shareholders, but with a market cap of fifteen million pounds this morning, it looks like major dilution. I suppose if the share price gets to one and a half pence, they could then announce a share placement or rights issue of two for one and say that it is a fifty percent discount.

Sounds positive: [link]

Very volatile, high risk. Have seen the SP going up beginning of year, and ending down at the end of day...

[link]

I like the sound of this bit of the RNS: SGRF, a sovereign wealth fund of the Sultanate of Oman, has approved in principle an investment of US$100 million in the firm placing via one of its subsidiaries, subject to and conditional upon, inter alia, agreement of a subscription agreement, agreement of arrangements with the Group's project lenders on the Group's capital structure, procurement of commitments from other shareholders in respect of an additional minimum US$75 million capital, necessary Kenmare shareholder approvals, and finalisation of a prospectus.

MC Is on a cushy sum $731,000 rate of pay for 2015 not bad for running the company into the ground