Latest news with #MichaelCarvill
Irish Times
16-07-2025
- Business
- Irish Times
Kenmare to take up to $125m charge amid uncertain titanium minerals pricing
Kenmare Resources shares fell on Wednesday as the titanium minerals miner said it expects to take an impairment charge of as much as $125 million (€107.7 million) against its mining assets in Mozambique as it lowered its future revenue assumptions. The Dublin-listed company, which abandoned takeover talks with its former managing director Michael Carvill and Abu Dhabi private equity firm Oryx Global Partners last month, said that pricing for its main product, ilumenite, fell in the first quarter of this year, though it has stabilised since then. The price of zircon and rutile have continued to decline so far this year, Kenmare said in a statement. Shares in Kenmare were down 5.8 per cent in midday trading in Dublin, bringing it close to levels seen before news of the bid approach emerged in early March. READ MORE Ilmenite and rutile are used in the manufacture of everything from paints and plastics to ceramics and textile. Zircon is widely used in the foundry industry. Davy analyst Colin Grant noted that Kenmare booked a $64.8 million impairment charge in the previous commodity price downcycle in 2014. 'Global demand for titanium feedstocks remained robust, supported by improved sentiment among pigment producers outside of China,' Kenmare said. 'This followed the introduction of anti-dumping duties on Chinese pigment producers, which Western producers responded to by increasing plant utilisation rates, leading to anticipated stronger margins and bolstering demand for Kenmare's products.' However, the company, which operates the Moma mine in Mozambique, said uncertainty regarding market conditions in the medium term led it to lower its long-term pricing assumptions and take a charge against its assets. 'While this is disappointing, it will be a non-cash charge with no anticipated impact on our operations, projects or financing facilities or the company's ability to pay dividends,' said chief executive Tom Hickey. Carvill and Oryx's original offer of £5.30 per share – or £473 million (€545.6 million) – was rejected by Kenmare's board in March as undervaluing the company. However, the company allowed the consortium access to its books to carry out due diligence, with a view to improving its bid. Kenmare withdrew from the talks when the consortium indicated last month that it planned to reduce its offer. Mr Carvill, who founded Kenmare in 1986 and stepped down last August, told The Irish Times the that lower proposal was partly down to concerns about titanium minerals prices as the global economic outlook has deteriorated since the initial bid approach, amid concerns about the Trump administration's trade policies and escalating conflict in the Middle East. It also reflected how the Mozambique government is seeking higher mineral processing and exporting royalties from Kenmare, he said. Mr Hickey met with the president of Mozambique in Juen and said that 'constructive discussions' with the government are continuing regarding the extension the royalties contract, or so-called Moma implementation agreement.
RTÉ News
19-06-2025
- Business
- RTÉ News
Kenmare's shares sink as it ends offer talks with consortium
Shares in Titanium and zircon miner Kenmare Resources fell today after it said it had terminated offer talks with a consortium made up of Oryx Global Partners Limited and former managing director and founder Michael Carvill. Kenmare's Chairman Andrew Webb said the company had supported the consortium in its due diligence process and gave the possible offer "extensive consideration", despite its early stage and unsolicited nature. "The Board will continue to review all opportunities to create significant long-term value for all of our stakeholders, including our shareholders," he added. Kenmare operates the Moma Titanium Minerals Mine in northern Mozambique, and its products are used in such items as paints, plastics and ceramic tiles. It had already rejected a proposal from the consortium in March, saying the offer had undervalued its business and its prospects. But in order to facilitate the consortium improving the financial terms of the initial proposal, the company had offered to provide it with access to limited due diligence information. Kenmare said that during its most recent engagement, it was made clear by the consortium that it would only be willing to proceed with an offer at pricing substantially below the initial proposal. But the board of Kenmare, together with its advisers, unanimously rejected that offer on the basis that it significantly undervalued Kenmare's business and its prospects. Consequently, Kenmare said it has terminated all discussions with the consortium. Andrew Webb said he was highly confident in Kenmare's prospects as an independent company and its ability to deliver on its strategic and operational objectives. "Moma is one of the world's largest titanium minerals deposits, with a multi-decade mine life, a consistent low-cost profile, and substantial inherent value. Kenmare remains on track to achieve its 2025 production guidance and has a strong order book for the second half of 2025," he said. He said the Wet Concentrator Plant A upgrade project continues to progress to plan, with commissioning on track to begin in the third quarter of 2025, ahead of the plant's transition to the large Nataka ore zone. "Mining in Nataka will secure long-term production from Moma and will support the company's ability to generate strong cash flow throughout the commodity price cycle," he said. He also said that talks with the Government of Mozambique are continuing regarding the extension of the implementation agreement and Kenmare's Managing Director Tom Hickey met with the President of Mozambique last week to discuss the company's history, significant investments and future plans in the country.
Irish Times
19-06-2025
- Business
- Irish Times
Kenmare ends talks with former MD and Abu Dhabi firm as they lower bid
Kenmare Resources has walked away from takeover talks with its former managing director Michael Carvill and an Abu Dhabi private equity firm after the consortium made it clear it would only be willing to proceed with a bid that was below its initial £473 million (€553 million) proposal. The titanium minerals miner said in a statement on Thursday that its board unanimously rejected the revised pricing 'on the basis that it significantly undervalued Kenmare's business and its prospects'. Kenmare, which operates the Moma mine in Mozambique, confirmed on March 6th that it had received an approach from Mr Carvill, who founded Kenmare in 1986 and led it until his exit last August, and Oryx Global Partners Limited on foot of an Irish Times article that the former MD was circling the business. It said at the time that it had rejected the original proposal, pitched at £5.30 per share, as undervaluing the company. However, it offered to the consortium access to its books carry out due diligence, with a view to improving the offer. READ MORE 'Kenmare supported the consortium in its due diligence process and gave the possible offer extensive consideration, despite its early stage and unsolicited nature,' said managing director Tom Hickey. 'The board will continue to review all opportunities to create significant long-term value for all of our stakeholders, including our shareholders' Mr Hickey said Kenmare is 'highly confident' in its prospects an independent company and its ability to deliver on its strategic and operational objectives. 'Moma is one of the world's largest titanium minerals deposits, with a multi-decade mine life, a consistent low-cost profile, and substantial inherent value. Kenmare remains on track to achieve its 2025 production guidance and has a strong order book for the second half of 2025,' he added. The announcement of the breakdown in talks comes a day before a so-called put-up-or-shut-up bid deadline was due to run out. The Irish Takeover Panel had originally given the consortium until mid-April to make a revised offer, but subsequently extended it twice as talks continued. A key issue in the background has been Kenmare's ongoing discussions with the government of Mozambique on an extension of a production royalty agreement, or what is called an implementation agreement, relating to Moma. A 20-year agreement expired before Christmas last year. However, the terms of that accord remain in place until a new one is reached, allowing it to continue to process minerals and export final products. Kenmare chairman Andrew Webb told the group's annual general meeting last month that the consortium could not make an offer conditional on a new implementation agreement being struck. 'Either you have to take the risk yourself [as a bidder] or wait until it is resolved and then make a bid,' he said at the time. Kenmare said in a trading update in April that it experienced stable market conditions in the first quarter of this year, with encouraging demand for its key product, ilmenite, which is used in the manufacture of everything from paints and plastics to ceramics and textiles. Although demand remained healthy, the market continued to be modestly oversupplied due to new supply from concentrates producers entering the market, it said. This continued to negatively impact average received prices, however prices 'now look to be stabilising', it added. Still, the global economic outlook has deteriorated since the consortium made its initial bid approach, amid concerns the Trump administration's trade policies and escalating conflict between Isreal and Iran in the Middle East.
Irish Times
15-05-2025
- Business
- Irish Times
Former Kenmare CEO Carvill secures second extension to make bid for firm
Kenmare Resources former managing director Michael Carvill and an Abu Dhabi private equity firm have been given second extension to at least announce a firm intention to make a bid for the titanium minerals miner. The Irish Takeover Panel had originally set an April 17th deadline for the duo to make a move, after their initial indicative offer of £5.30 per share – or £473 million (€547 million) in total – was rejected by the company, which Mr Carvill founded in 1986 and led until his exit last August. The time period was subsequently extended to close of business on Thursday. However, Kenmare said on Thursday morning that the Irish Takeover Panel has agreed to another extension of the so-called put-up or shut-up deadline, to June 20th. 'In order to facilitate ongoing discussions with the consortium and to provide additional time for the consortium to progress its due diligence, the board has requested, and the Takeover Panel has consented to, an extension to the date by which the consortium is required to either announce a firm intention to make an offer for the company or announce that it does not intend to make an offer,' Kenmare said. READ MORE [ Michael Carvill knows value of Kenmare's Mozambique mine more than anyone. Is he ready to pay up? Opens in new window ] 'There can be no certainty that any firm offer will be made, or as to the terms of any such offer, should one be made. A further announcement will be made as and when appropriate.'
Irish Times
28-04-2025
- Business
- Irish Times
Rate cuts may spur Irish stock market launches
Continued interest rate cuts could spur Irish companies to float on the stock market, experts say. The number of companies launching on global stock markets for the first time grew by 20 per cent to 291 in the first three months of the year, a report published on Monday shows. However, Fergal McAleavey, corporate finance partner with accountants EY , the report's publishers, says activity in the Republic is more subdued. Companies here more generally raise private capital from investors or to allow shareholders in businesses to cash out, he notes. 'While the immediate landscape appears quite unsettled, continued interest rates cuts by the European Central Bank , together with more market stability in Europe could spur activity here in the domestic market,' he says. READ MORE The European Central Bank is widely expected to cut rates further this year after reducing them by a quarter of a percentage point this month. Interest rate cuts are generally regarded as good for stock markets as they encourage investors to seek assets that give higher returns than cash. However, indications are that the Irish Stock Exchange continues to face defections. Just weeks ago, Dalata Hotel Group said it had hired financial adviser Rothschild & Co to work on a review of its options to raise capital and boost value for shareholders. The same firm is advising titanium miner Kenmare on the bid by its former managing director Michael Carvill and private equity investor Oryx Global Partners to buy that listed company. These moves could end with both companies reverting to private status and leaving the Irish Stock Exchange. The Dublin market has suffered several high-profile departures in recent years. Paddy Power owner Flutter Entertainment, packaging giant Smurfit Westrock and building materials behemoth CRH all decamped to the New York Stock Exchange. Flutter and CRH said their moves reflected a focus on their US markets, and the fact that Wall Street lures huge amounts of capital, making it attractive for large companies. However, turmoil sparked by US president Donald Trump's tariffs and trade policies have increased fear that investors there may rein in activity. Mr McAleavey notes that the volatility had prompted a number of high-profile companies to shelve stock market launches. The Irish Stock Exchange, now called Euronext Dublin , is working to establish a Euronext Access market in Dublin, similar to ones operated by the wider Euronext Group in Paris, Brussels and Lisbon. It is anticipated that the 'springboard' market for small companies will be launched by the middle of this year, as the exchange seeks to reboot listings.
