Kenmare Resources has rejected a takeover offer worth £473m (€564m) on the basis that it undervalued the business and its prospects.
The titanium and zircon mining company turned down the all cash offer from Oryx Global Partners, led by Kenmare founder and managing director Michael Carvill, who stepped down last August.
The consortium valued Dublin and London-listed Kenmare Resources at £5.30 per ordinary share.
Kenmare has offered to provide Oryx with access to limited due diligence information to facilitate an improved second offer.
The consortium must announce a firm intention to make a new offer by 5pm on 17 April under Irish takeover rules.
"There can be no certainty that a firm offer will be made, or as to the terms of any such offer, should one be made," Kenmare said in a statement.
Kenmare Resources shares have jumped 45.1% in value on the London Stock Exchange since the announcement was made and are now trading at £3.99 per share.
The Oryx offer represented a 93% premium on the price of Kenmare Resources shares at close of business on Wednesday (£2.74).
Kenmare paid $48m in dividends and invested over $140m in capital programmes last year, primarily to upgrade its largest mining plant in Nataka.
The company operates the Moma Titanium Minerals Mine in northern Mozambique.
“Kenmare delivered a strong finish to 2024, exceeding the midpoint of our production guidance for ilmenite and the upper end of the guidance ranges for all other products," managing director Tom Hickey said in January.
"We also passed the milestone of 2m hours worked without a Lost Time Injury in late December. These achievements are testament to the hard work and commitment of our team at site during a challenging period."
Heavy mineral concentrate production of 1.44m tonnes in 2024 was broadly in line with 2024 as record excavated ore tonnes were offset by lower ore grades.
Ilmenite production of 1.1m tonnes in 2024 represented a 2% increase year-on-year due to higher ilmenite content in the heavy mineral concentrate and stronger recoveries.
Shipments of finished products of 1.1m tonnes in 2024 were up 4% year-on-year following a strong performance in the second half of the year.
The company said that sales are expected to continue to exceed production in 2025, and that it would spend $155m on development projects and studies this year.
Kenmare Resources made profit after tax of $131m in 2023, down 36% year-on-year, after seeing a 12% drop in revenue to $437.1m due to weaker markets.
Photo: Tom Hickey. (Pic: File)
