London-listed Kenmare Resources plc, operator of the Moma titanium minerals mine in northern Mozambique, has secured a funding package to refinance a maturing revolving credit facility (RCF) and a five-year term loan facility.
Rand Merchant Bank (RMB), acting as the initial mandated lead arranger on the deal, as well as one of the lending banks, worked with Kenmare to structure a new five-year US$200-million RCF. The tailored facility allows Kenmare to meet its strategic objectives in the most efficient way possible, giving it the financial flexibility needed to position the company for future growth in this bespoke commodity sector.
Kenmare has a strong track record of successfully executing several growth and business improvement projects, having invested more than US$1.4 billion into the Moma mine since inception. Its focus on environmental, social and governance (ESG) has resulted in more than 90% of the electricity it consumes being derived from low-cost hydroelectric power, and in 2022, Kenmare was awarded the ESG Producer of the Year at the Mines & Money Outstanding Achievement Awards.
Having worked with Kenmare since 2019, RMB has developed a sound understanding of the company’s strategic priorities at both a corporate and project level, leading to a differentiated funding solution that allows the company to continue focusing on some of its core objectives. These include the ability to operate both sustainably and responsibly, ensuring a strong balance sheet while allocating capital efficiently and delivering value to shareholders, and maintaining long-life, low-cost production via the move of one of its processing plants to a new orebody that will underpin production sustainably for decades.
Kenmare continues to be the largest employer in the Nampula province and has contributed more than US$200 million in taxes and royalties. Through the Kenmare Moma Development Association, it has also implemented development programmes in the mine’s host communities, investing US$16 million to date.
“RMB’s commitment to expanding the resources sector in Africa, combined with our extensive knowledge and experience in Mozambique, played a crucial role in successfully securing this deal. This transaction highlights our capability to orchestrate syndicated deals across the African continent, with a specific focus on the mining sector. It represents the culmination of thorough diligence and unwavering dedication to understanding our clients’ unique requirements,” says Andre Lubbe, resources sector focus lead at RMB.
