MINING GROUP Kenmare Resources expects to recruit more institutions as shareholders – with obvious implications for its share price – as a result of being admitted to London’s FTSE 250 index of leading shares later this month.

The Irish company, which operates a titanium mine in Moma in Mozambique, east Africa, confirmed yesterday that it would be admitted to the index on Monday week, September 20th.

Although it stayed level at 24.5 cent yesterday, its stock rose earlier this week.

It opened at 23 cent on Monday morning, and increased over the next two days, creeping past 25 cent at one point before settling at around last night’s closing price.

Tony McCluskey, Kenmare’s finance director, said yesterday that the recent increases in the stock’s value were partly down to interim results released last month showing that production from the mine was on schedule, and the increasing likelihood that it was going to be admitted to the FTSE index.

The move to the index will mean that a number of pension fund and institutional investors who have been interested in buying the stock – but could not because it was outside the index – may now do so.

Other funds that track the index will automatically buy into the company. “It allows us to broaden our shareholder base,” said Mr McCluskey.

Around half of Kenmare’s existing shareholder base is made up of large, well-known institutional investors, such as Prudential and State Street.

Mr McCluskey said it was likely that another 15 per cent of the company would be bought by bigger institutions.

However, he added that the immediate impact could well be factored into the share price at this point.

Kenmare’s Moma mine moved into full production late last year.

In August the company reported that sales for the six months ended June 30th were €31.5 million.