Moma Update
November 27 2008 - 7:02AM
UK Regulatory
Moma Update
Kenmare Resources plc ("Kenmare" or "the Company")
27th November 2008
Moma Update
Following the recent appointment of new mine management at Kenmare's
Moma Titanium Minerals Mine in Mozambique and against the background
of constrained monthly production rates as previously announced, a
detailed budget and planning exercise has been undertaken and is now
being completed, including a review of forecast production in 2009.
The outcome of this review has resulted in the rescheduling to the
second half of 2009 of the expected date of operation at full
capacity. Notwithstanding this delay, the operation of the mining,
processing and exporting facilities has been demonstrated and
confirmed during the review. Kenmare will continue to make the
necessary process and operational changes to achieve target
production.
Lenders to the project, who largely comprise specialist development
financial institutions, have been advised of the revised schedule for
the achievement of full production. Discussions with lenders have
commenced with regard to agreeing a number of measures, including
deferring Senior Loan principal instalments due in 2009, increasing
access to the Contingency Reserve Account and delaying the final date
for achieving financial completion, in order to preserve liquidity
within the Kenmare group and to accommodate this revised schedule.
Allowing for the year end holiday period, we expect these discussions
to take approximately two months. The Board is optimistic of a
positive outcome and will make further announcements in due course.
In the meantime, the Company has been working through a set of
performance tests with the contractor. The tests are a requirement
under the construction contract and the information generated will
assist implementation of changes to bring the plant to full
capacity. These tests have however been disruptive and have
contributed to reduced production in October and November. Production
in October was 27,000 tonnes of ilmenite.
We are pleased to announce that our first shipment of zircon was made
in early November. Zircon prices have increased substantially in
recent months, and Kenmare expects that further increases will be
forthcoming, which will benefit Kenmare as its zircon contracts are
priced at market price.
For more information:
Kenmare Resources plc
Michael Carvill, Managing Director
Tel: +353 1 671 0411
Mob: + 353 87 674 0110
Murray Consultants
Jim Milton
Tel: +353 1 498 0345
Mob: + 353 86 255 8400
Conduit PR Ltd
Jane Stacey/Leesa Peters/Fiona Hyland
Tel: +44 207 429 6614
Mob: +44 7922 923 306
www.kenmareresources.com
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