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Irish Times
3 days ago
- 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.
Zawya
09-07-2025
- Business
- Zawya
Oryx Global Partners secures Fund Manager License and signs the Abu Dhabi Sustainable Finance Declaration
London, Abu Dhabi – Oryx Global Partners ('Oryx'), the investment firm dedicated to facilitating the energy transition and securing supply chains through strategic investments in the minerals value chain, announces that it has secured a Category 3C (CAT3C) fund manager license from the Financial Services Regulatory Authority (FSRA) of ADGM, and signed the Abu Dhabi Sustainable Finance Declaration. Highlights: Oryx invests in the minerals value chain, targeting critical and strategic minerals assets in favorable jurisdictions where they can create a positive impact. Oryx secured the Category 3C fund manager license from the FSRA of ADGM, providing a robust regulatory framework for Oryx to manage investment funds and portfolios, whilst leveraging Abu Dhabi's exceptional infrastructure and global connectivity. By signing the Abu Dhabi Sustainable Finance Declaration, Oryx reinforces its position as a pioneer of responsible and sustainable practices in the minerals investment space, creating value for its investors and broader stakeholders. The license enables Oryx to manage investment funds and portfolios, with their focus on advancing responsible and sustainable investment strategies in the minerals value chain, targeting critical and strategic minerals assets, in favorable jurisdictions. ADGM has established itself as a leading hub for innovation in finance, committed to fostering a financial ecosystem that is trusted and progressive. The fastest growing financial center in the region, it is home to almost 150 asset and fund managers and almost 3,000 operational entities [1]. Oryx benefits from ADGM's infrastructure as well as its strategic location and connectivity to both Eastern and Western markets, allowing the team to reach its key markets and investors with relative ease. Reinforcing its commitment to responsible and sustainable investing, Oryx has also signed the Abu Dhabi Sustainable Finance Declaration. This voluntary initiative launched by ADGM brings together financial institutions and industry leaders to drive sustainable finance and growth. By joining this collective effort, Oryx affirms its dedication to working collaboratively to achieve the United Nations Sustainable Development Goals (SDGs) and advance the sustainable finance industry. Zeno van Gils, Managing Partner of Oryx, said: 'We are proud to have secured our fund manager license in ADGM, which marks a significant step in our mission to facilitating the energy transition and securing supply chains through strategic investments in the minerals value chain. 'We'd like to thank ADGM for the efficient process and their support as we worked through the license application. ADGM provides us with a strong regulatory framework, access to a global financial hub, and a strategic location at the heart of international commerce and investment. We are excited to work in this well-established and dynamic region.' Paul Schaffer, Managing Partner of Oryx, said: "Signing the Abu Dhabi Sustainable Finance Declaration reflects our commitment to responsible and sustainable investing, which has been at the heart of Oryx's strategy from the outset. We look forward to supporting ADGM's work in promoting sustainable practices within the finance industry.' Arvind Ramamurthy, Chief Market Development Officer, ADGM, said: 'Oryx Global Partners' focus on advancing sustainable investment strategies aligns well with ADGM's commitment to a responsible, world-class business environment. We look forward to supporting Oryx's efforts as they contribute to the Abu Dhabi financial ecosystem and the growth of a resilient global economy." [1] ADGM, February 2025: About Oryx Global Partners Limited Oryx Global Partners is a specialist investment firm dedicated to securing supply chains and facilitating the energy transition through strategic investments in the minerals value chain. The Oryx team, composed of financial, technical, and operational experts with extensive resources and investment management experience, utilizes a proven investment process to identify high-quality investments and deliver significant operational value-add. Oryx is committed to delivering market leading returns to its investors and a net positive impact through its operations. Their responsible and sustainable approach enables Oryx to create lasting value through industry that benefits both its investors and broader stakeholders. Media contacts Camarco: oryx@ Georgina Whittle Amrith Uppuluri
Irish Times
29-06-2025
- Business
- Irish Times
Kenmare boss leaves door ajar for another approach
Kenmare Resources managing director Tom Hickey has had more facetime and eartime with investors than he might have expected when he stepped into the role almost 11 months ago. Hickey told Peel Hunt analyst Peter Mallin-Jones on a podcast in recent days that he has been on to holders of more than 60 per cent of the stock since he told his predecessor, Michael Carvill , and Abu Dhabi private equity firm Oryx Global Partners to take a hike last week. They had made it clear they would only proceed with a bid that was below their initial £473 million (€553 million) proposal in early March. The investors were 'very comfortable' with the board's decision to walk away from talks, he said, adding that the process was useful at 'shining a light on the value' of the titanium minerals miner, which operates the Moma mine in Mozambique, where it has been producing for the past two decades. Moma has a lifespan of a further century, according to the company, based on its current output. 'They may come back, or somebody else may come along. Who knows,' he said. 'There are no sacred cows in Kenmare.' He insisted that the board would support a deal if the 'right value' were pitched. READ MORE [ Kenmare ends takeover talks with former MD and Abu Dhabi firm after they lower bid price Opens in new window ] Hickey's not tapping his fingers waiting, though. The managing director reiterated an interest in Kenmare buying another asset in the medium term. 'Whether it's an exploration asset, a development, or a production asset, who knows,' he said. Carvill and Oryx's original offer of £5.30 per share was rejected in March as undervaluing the company. However, Kenmare allowed the consortium access to its books to carry out due diligence, with a view to improving its bid. Carvill told The Irish Times the 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. Kenmare's main product is ilmenite, which is used in the manufacture of everything from paints and plastics to ceramics and textile. While Hickey said that Kenmare had hoped that titanium mineral prices would bottom out this year, having fallen back from peak in 2022, he now reckons that has been pushed out into 2026. At least that's the hope.
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.
Bloomberg
06-03-2025
- Business
- Bloomberg
Miner Kenmare Rebuffs Takeover Attempt by Former Executive
Kenmare Resources Plc shares surged by more than 50% after the titanium minerals producer rebuffed a takeover offer made by a former executive at a hefty premium. The Dublin-based miner's board unanimously rejected a non-binding proposal from a consortium comprised of Oryx Global Partners and former managing director Michael Carvill at 530 pence per share, saying it 'undervalued Kenmare's business and its prospects,' according to a Thursday statement.
