Kenmare Resources - From Construction to Production

5 to buy for 2007

31 December 2006

Kenmare Resources* (KMR) at 44p. When we first tipped Kenmare (at 16.5;p) four years ago its idea of building an ilmenite mine at Moma in Mozambique seemed a bit of a dream. But Kenmare is almost there. The first shipments will start within weeks and very soon it will be producing at 800,000 tonnes per annum before an eventual ramp-up to 1 million ounces. That ramp up will be announced in 2007. as the cash starts coming in the stock will be re-rated or Kenmare will be taken over (or both). The DCF value of Moma is clearly in excess of 80p per share and as output starts the market will start to recognise that.