March 10th, 2010
Kenmare Resources has announced that it plans to raise 179m sterling through a share placing of almost 1.5 billion shares at 12 pence each.
The company says the funds raised will be used to increase capacity at its mine at Moma in Mozambique. The firm says this round of fund raising is the second largest by an Irish firm in the last 12 months.
Kenmare's Moma mine produces titanium dioxide feedstock which is heavily used in industry for making paints, paper, plastics and pharmaceuticals. Experts claim that global demand looks set to increase rapidly in the next three years. The mine has about 150 years of reserves.
The company estimates that when it is finished, the Moma mine could be producing 10% of the world's titanium feedstock and 6% of global demand for zircon.
'We are excited about the opportunity to expand our capacity at Moma and to take advantage of the market supply deficit expected to develop by 2012, seize first mover advantage and deliver increased financial returns while maximising the utilisation of existing facilities, infrastructure and technology', commented Kenmare's managing director Michael Carvill.
Meanwhile, the company today reported after tax losses for the year ending December 2009 of $30.4m. Revenues for the six months to the end of December from July to December rose to $26.7m and the cost of sales was $35.2m.
The company said the losses came as a result of both the slower than planned ramp-up of Moma and the depressed feedstock market situation.
However, the company said that since the start of the year, both production and market conditions - current and projected - are now healthier. It said this provides encouraging indications of a significant improvement in operational and financial performance for the year ahead.
Kenmare Resources has announced that it plans to raise 179m sterling through a share placing of almost 1.5 billion shares at 12 pence each.
The company says the funds raised will be used to increase capacity at its mine at Moma in Mozambique. The firm says this round of fund raising is the second largest by an Irish firm in the last 12 months.
Kenmare's Moma mine produces titanium dioxide feedstock which is heavily used in industry for making paints, paper, plastics and pharmaceuticals. Experts claim that global demand looks set to increase rapidly in the next three years. The mine has about 150 years of reserves.
The company estimates that when it is finished, the Moma mine could be producing 10% of the world's titanium feedstock and 6% of global demand for zircon.
'We are excited about the opportunity to expand our capacity at Moma and to take advantage of the market supply deficit expected to develop by 2012, seize first mover advantage and deliver increased financial returns while maximising the utilisation of existing facilities, infrastructure and technology', commented Kenmare's managing director Michael Carvill.
Meanwhile, the company today reported after tax losses for the year ending December 2009 of $30.4m. Revenues for the six months to the end of December from July to December rose to $26.7m and the cost of sales was $35.2m.
The company said the losses came as a result of both the slower than planned ramp-up of Moma and the depressed feedstock market situation.
However, the company said that since the start of the year, both production and market conditions - current and projected - are now healthier. It said this provides encouraging indications of a significant improvement in operational and financial performance for the year ahead.
