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

Tom Winnifrith
Tuesday 15 January 2013

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.

on TradingResearchPoint | Comments
About Tom Winnifrith
Bio
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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