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Kenmare Resources Boosts Credit Line to $230 Million, Eases Covenants
Kenmare upsizes RCF by $30m and waives debt covenants through 2026 as titanium market weakness persists. The move signals management expects no quick recovery in pricing or EBITDA.
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Kenmare Resources bought itself time and extra cash. The London-listed titanium miner told the market Thursday it increased its revolving credit facility from $200 million to $230 million and secured an implicit bet from its lenders: the covenant tests that would have forced repayment in 2026 have been waived.
The additional $30 million came from the same four banks that already held the facility – Absa, Nedbank, Rand Merchant Bank, and Standard Bank. A syndicate that adds capacity during a downturn, when most lenders are pulling lines, signals belief that the asset will ride out the slump. Moma, the northern Mozambique mine, supplies about 6% of global titanium feedstocks. When the commodity cycle turns, that scale becomes a competitive advantage.
Chief Financial Officer James McCullough framed the extra liquidity as a tool for "selective investments in plant and machinery" and further market development. The full statement:
The covenant waiver is the real tell. Companies only ask for net debt-to-EBITDA and interest coverage relief when they expect EBITDA to stay depressed through most of next year. McCullough did not say when he expects titanium prices to recover. The waiver effectively tells the market: do not count on a quick turnaround.