Thursday 27 November 2014

Kenmare shares rise on back of Mozambique debt restructure

Sarah Stack

Published 01/08/2014 | 15:38

Kenmare resources

Shares in exploration firm Kenmare Resources rose as it announced it had restructured its debt for the Moma mine in Mozambique.

Under the terms of the deal with a group of lenders, half of an estimated $160m (€119m) due in August 2015 will be paid in nine equal semi-annual instalments over four years. The remainder will be paid in August 2019.

It is understood the amounts will be subject to exchange rate fluctuations as some of the debt is Euro denominated and subject to interest rate movements as some of the debt has floating interest rates.

Separately, Barclays-owned Absa has agreed that payment of a $20m loan owed by Kenmare has been pushed back a year to March 2016.

"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,” said Michael Carvill, managing director of the the titanium mineral exploration firm.

Shares in London jumped by almost 3.5pc to 15.00p during the day.

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