Market Report: Kenmare Resources shedding up to 20 per cent of workers at its Mozambique titanium mine

 

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There’s no let up for Kenmare Resources. The Irish miner has been locked in emergency talks with lenders, but yesterday admitted it was fighting fires on another front. Despite cost-cutting, the collapse in minerals prices means Kenmare is shedding up to 20 per cent of workers at its Mozambique titanium mine. It comes as a deadline for debt talks looms at the end of this month. Shore Capital’s Yuen Low said the fact that Kenmare had been forced to make these cuts so close to the cutoff period did not bode well. Kenmare collapsed 0.46p to 3.66p.

Before the opening bell, commentators predicted a dive for the FTSE 100 after Greek debt talks collapsed. But the index celebrated a 15-year high, rising by 41.08 points to 6898.13 after record low inflation figures. Traders believe this will encourage spending and consumer stocks rose accordingly. The Guinness-to-Johnnie Walker maker Diageo rose 46p to 1885.5p, cigarette giant Imperial Tobacco put on 66p to hit 3063.5p and consumer electronics chain Dixons Carphone rose 7p to 430p.

Shares in Tullow Oil fell 14.1p to 406.1p as oil prices slipped. Royal Mail also underperformed, falling by 10.4p to 437.6p as Morgan Stanley became the latest investment bank to warn that the postie faces stiff competition and dwindling business.

Rumours of possible bid interest in the money printing specialist De La Rue pushed its stock 26p higher to 546.5p.

Just Eat was 13.8p better off at 369.1p thanks to the support of Barclays. Recent consolidation has left the food delivery service with just one major rival, Hungry House owner Delivery Hero, and the bank believes both should be able to grow commissions over time.

The drone specialist Strat Aero jumped 0.5p to 11p on AIM as it strengthened its links to the US Army. The company has signed a deal with 4D Tech Solutions to jointly undertake contracts with the US Government, including the Army Research Laboratory.

Tri-Star Resources improved 0.05p to 0.14p as Strategic & Precious Metals Processing, an Oman based company Tri-Star has a 40 per cent stake in, agreed a $40m banking facility for a chemical roasting factory in the country.

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