Kenmare Resources, the Dublin-listed titanium minerals miner, has committed to providing additional disclosures in its financial statements to appease the accounting watchdog.
It comes at a time when the company’s founding managing director, Michael Carvill, and Abu Dhabi-based private equity firm Oryx Global Partners Limited are weighing making a fresh takeover offer for the business, after Kenmare disclosed earlier this month that it had spurned a $473 million (€565 million) bid from them.
The Irish Auditing & Accounting Supervisory Authority (Iaasa) said on Tuesday that following an inspection by its officials of Kenmare’s 2023 annual financial statement, the company has agreed voluntarily to provide additional disclosures in future to back up an asseassertiont it has an automatic right to extend its mining licence contract (MLC) on its key Moma mine in Mozambique out to 40 years.
Kenmare has recorded a life assumption of 40 years for the Moma mine for the purpose of valuing property, plant and equipment in its financial accounts – even though the company estimates that the mine has enough resources to support production for more than 100 years at current rates.
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Kenmare has also undertaken voluntarily to provide further information in future financial statement about the impact of environmental risks and other factors on the future cash flow projections arising from the ongoing use of the Moma mine.
Shares in Kenmare have jumped almost 50 per cent in Dublin within the past two weeks, after the company confirmed that Mr Carvill had made a bid approach.
It followed an Irish Times report that Mr Carvill had been seeking find financial backers to mount a takeover bid for the titanium minerals and zircon miner after exiting the company last August following almost four decades at the helm.
Sources say that Kenmare also received a bid approach from British-Australian mining giant Rio Tinto last year. However, that has not progressed.
