Kenmare Resources managing director Tom Hickey has had more facetime and eartime with investors than he might have expected when he stepped into the role almost 11 months ago.
Hickey told Peel Hunt analyst Peter Mallin-Jones on a podcast in recent days that he has been on to holders of more than 60 per cent of the stock since he told his predecessor, Michael Carvill, and Abu Dhabi private equity firm Oryx Global Partners to take a hike last week. They had made it clear they would only proceed with a bid that was below their initial £473 million (€553 million) proposal in early March.
The investors were “very comfortable” with the board’s decision to walk away from talks, he said, adding that the process was useful at “shining a light on the value” of the titanium minerals miner, which operates the Moma mine in Mozambique, where it has been producing for the past two decades. Moma has a lifespan of a further century, according to the company, based on its current output.
“They may come back, or somebody else may come along. Who knows,” he said. “There are no sacred cows in Kenmare.” He insisted that the board would support a deal if the “right value” were pitched.
Hickey’s not tapping his fingers waiting, though. The managing director reiterated an interest in Kenmare buying another asset in the medium term. “Whether it’s an exploration asset, a development, or a production asset, who knows,” he said.
Carvill and Oryx’s original offer of £5.30 per share was rejected in March as undervaluing the company. However, Kenmare allowed the consortium access to its books to carry out due diligence, with a view to improving its bid.
Carvill told The Irish Times the lower proposal was partly down to concerns about titanium minerals prices as the global economic outlook has deteriorated since the initial bid approach, amid concerns about the Trump administration’s trade policies and escalating conflict in the Middle East. It also reflected how the Mozambique government is seeking higher mineral processing and exporting royalties from Kenmare.
Kenmare’s main product is ilmenite, which is used in the manufacture of everything from paints and plastics to ceramics and textile.
While Hickey said that Kenmare had hoped that titanium mineral prices would bottom out this year, having fallen back from peak in 2022, he now reckons that has been pushed out into 2026. At least that’s the hope.
