I would like to suggest KMR as my second selection ~ they could do very well, especially in the 2nd half of 2006 when the construction of their mine is finally completed
They are building a titanium sands mine at Moma in Mozambique
Recently on 12th December 2005 they indicated that the construction of the Moma mine was 62% complete and was running slightly ahead of schedule. By next summer Kenmare will have secured enough offtake deals for Moma to meet the entire projected production which will start in Q4 2006.
Kenmare will probably to commit itself to expand output to 1 million tonnes per annum from 2007. It has sufficient funds to do this.
During 2005 the market price of ilmenite, rutile and zircon have risen sharply, largely in response to increased demand for China and other rapidly industrialising nations. A number of the offtake agreements historically negotiated by Kenmare for Moma were on a fixed price, or part-fixed price, basis so not all of this increase will flow through to the bottom line. However offtake agreements being negotiated at present and concluded in recent months are at pricing levels some 25% higher than the earliest offtake agreements.
