Friday 22 September 2017

Kenmare shares up after board reshuffle

A mine
A mine

SHARES in Kenmare rose as much as 3.2pc in London yesterday after the company announced a series of board changes.

The shares advanced as the Dublin-based miner said Japie Deysel has decided to step down as a director to focus on his role as chief operating officer at the company's Moma mine in Mozambique.

"Kenmare's directors respect Japie's decision, are grateful for his contribution to the board and look forward to continuing to work with him as chief operating officer," chairman Justin Loasby said.

Kenmare's shares have fallen by one-third since the miner said in October that it would sell new shares to raise £66.3m (€78.7m) in short-term liquidity after weak pricing for minerals and lower production caused a funding squeeze.

Kenmare placed 250.3 million new ordinary shares, representing 9.9pc of its existing share capital at a price of 26.5p per share. The shares were trading at around 19p yesterday. The placing was conducted through an accelerated book-build process and fully underwritten by RBC Europe and Davys.

Kenmare said it decided it needed a capital injection following a 40pc fall in shipments over the summer period, which had been hit by lower-than-expected sales to China, and a weak pricing outlook.

Irish Independent

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