Money of Mine cover image

Money of Mine

Will a 93% takeover premium spur M&A drama?

Mar 10, 2025
A tantalizing takeover saga unfolds as a London-listed miner rejects a staggering 93% premium offer. The hosts dive into the intriguing world of mineral sands, discussing the strategic movements of major players like Rio Tinto and Kenmare Resources. They explore the complexities of the titanium market amid geopolitical tensions and reminisce about outrageous visible gold discoveries. Historical anecdotes from Australia’s gold mining heritage add a rich layer to the conversation, blending industry insights with humor and reflection.
49:34

Podcast summary created with Snipd AI

Quick takeaways

  • The mineral sands market is facing instability due to political upheaval and operational challenges, particularly affecting Kenmare Resources' growth plans.
  • Oryx Global Partners' substantial takeover bid for Kenmare, despite a high premium, received a tepid market response indicating skepticism about the offer's sincerity.

Deep dives

Mineral Sands Market Overview

The mineral sands market has been experiencing instability since late 2022, largely due to a combination of political upheaval and resultant operational challenges in regions like Mozambique. Kenmare Resources, a significant player, operates the MoMA titanium mine, which has faced scrutiny over loyalty agreements and shareholder reactions due to escalating investment phases that have agitated some investors. As the fourth largest global producer of titanium feedstocks, Kenmare has seen its market cap now standing at £360 million, reflecting recent investment guidance of $150 million for the current year to support growth plans. The market sentiment around such investments remains cautious due to previous volatility and overall market conditions, challenging future corporate strategies.

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