Kenmare gets extension on deadline to restructure debt

Exploration company has been hit by the fall in commodity prices

Michael Carvill , managing director Kenmare Resources. Photograph: Bryan O’Brien/Irish Times

Michael Carvill , managing director Kenmare Resources. Photograph: Bryan O’Brien/Irish Times

 

Dublin-based Kenmare Resources has announced the extension of a deadline to finalise a deal with lenders on restructuring its debt.

The exploration company, which has been hit by the fall in commodity prices, now has until February 28th to agree a budget with project lenders.

In a trading update, Kenmare said its bank loans amounted to $337.3 million at the end of last year, down from $355.2 million at the end of 2013.

The company, which operates the Moma titanium mine in Mozambique, said ore mined last year increased 42 per cent to 34.1 tonnes.

Managing director Michael Carvill said: “I’m pleased to see production and shipments growth in 2014, notwithstanding challenging commodity markets.

“We expect further production growth this year as the mine benefits from upgrade work completed in H2 2014. I am encouraged by the increase in sales volumes in Q4 and look forward to building on this in 2015.”