Shares in titanium minerals miner are down 33% over past 12 months with investors unsettled by disappointing trading update before Christmas
A leading shareholders in Kenmare Resources has written to the board of the titanium minerals miner calling on it to assess its “strategic options”, adding that it favours an outright sale of the Dublin-listed company as its stock languishes at a depressed value.
Titanium minerals such as ilmenite and rutile are feedstocks for the production of titanium dioxide pigment, which is used in the manufacture of paints and other coatings, plastics and paper as well as cosmetics, food additives, ceramics and textiles. Kenmare currently produces 7 per cent of global titanium feedstocks.JO Hambro also noted that Kenmare, led by managing director Michael Carvill for the last 38 years, had tweaked its dividend guidance in December.
“We believe large elements of the shareholder base would agree with this view and, as a result, we have written to the board calling on them to assess strategic options,” the newsletter concluded.