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Guest Post Sam Bottell: Kenmare Resources – Equity Placing on the Way?

Tom Winnifrith Tuesday 15 January 2013

 

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I spent two years working along Sam Bottell as he worked with minesite.com and oilbarrel.com and he is a good, honest and clever chap. Now that he is starting his career freelance writing as well as an organiser of the UKInvestor Show I have no hesitation in helping him along via this blog as a guest contributor. As such I bring to your attention a share tip & perhaps breaking news from him from TradingResearch Point covering a company from the old country ( er…Ireland)

I argued a few days ago that shares in Kenmare Resources (KMR) were good value but I now flag up a minor caveat – there appears to be a risk of an equity placing. A secondary caveat is that Kenmare appears to have issued a minor profits warning without actually publishing an RNS – it merely guided down expectation via an analyst’s presentation. That is not quite cricket but does this alter the investment case materially?

The presentation flags up that there has been a one month delay in the start of commissioning the Moma mine expansion project – that was due to kick off in December. In the greater scheme of things for a mine with a 140 year life I can live with that but it is another nuisance that that has plagued Kenmare over many years.

More critically, there is an update on the company’s outlook for 2013.

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Tom Winnifrith is the editor of TomWinnifrith.com. When he is not harvesting olives in Greece, he is (planning to) raise goats in Wales.
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