Kenmare's shares sink as it ends offer talks with consortium
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.
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