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Mining giant Kenmare in share buyback after strong growth

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Michael Carvill, managing director of Kenmare Resources

Michael Carvill, managing director of Kenmare Resources

Michael Carvill, managing director of Kenmare Resources

Irish mining giant Kenmare Resources has announced a tender offer to return more than €70m to shareholders on the back of strong cash flow.

Kenmare, which operates the Moma mine in northern Mozambique, is one of the leading global producers of titanium minerals and zircon.

The firm said on Tuesday that it was returning up to £61.8 million (€73m) to eligible shareholders at £4.17 (€4.93) per ordinary share.

Shareholders holding 500 shares or fewer will be entitled to have up to 13.5pc of their shares purchased by the company until December 9.

The firm announced its intention to return 20pc of its profits after tax to shareholders in 2018, and announced earlier this year that it was targeting an increased dividend pay-out for 2021 of 25pc of profit after tax.

Kenmare said in a statement that the move comes on the back of successful capital projects, strong operational performance and commodity market strength this year.

In its half year financial results the Group reported profit after tax of US$48m (€42m), quadruple what it made in the same period in 2020, with record production at its Mozambique mine in the three months to September 30.

The Tender Offer is subject to shareholder approval at an extraordinary general meeting on December 9.

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