Kenmare Resources (LSE:KMR), one of the leading global producers of titanium minerals and zircon operating the Moma Mine in northern Mozambique, has increased its revolving credit facility from $200 million to $230 million and secured the suspension of its key financial covenants for all 2026 testing dates.
The upsizing, provided by existing syndicate members Absa, Nedbank, RMB and Standard Bank, comes with a higher cost of debt: the base margin rises to 5.70% over the Term Secured Overnight Financing Rate (SOFR) from 4.85%, with an additional 1.5 percentage point top-up on drawings against the new $30 million tranche through the end of this year, climbing to 3.0 percentage points in the first half of 2027.
Both the interest coverage ratio and net debt to EBITDA covenants are waived entirely for 2026, replaced by three lighter balance-sheet tests for which the company's 2025 outcomes sat well inside the required thresholds.
The facility steps back down in phases, returning to $200 million by 30 June 2027 and reaching $150 million by 31 December 2028, with the maturity date unchanged at 11 March 2029.
Chief Financial Officer James McCullough said the amendments "provide important additional financial flexibility for Kenmare as we navigate a period of market weakness, giving us the confidence to make selective investments in plant and machinery."
Closing is expected before the end of June 2026.
