Kenmare Resource’s former managing director Michael Carvill received $2.64 million (€2.32 million) from the titanium minerals and zircon miner last year as he stepped down after almost four decades at the helm and subsequently went about pursuing a joint bid for the business.
The remuneration includes 12 months’ salary, or $653,272, in lieu of his 12-month notice period as he stepped down last August and a golden handshake payment of a similar amount “on termination of his employment in bona fide compromise of any claims he may have against the company”, the group said in its latest annual report.
Kenmare, which operates out of the Moma mine in Mozambique. confirmed last month that Mr Carvill, who founded the miner back in 1986, and an Abu Dhabi-based private equity firm, Oryx Global Partners, had made a £473 million (€547 million) bid – equating to £5.30 per share – for the company.
However, the consortium has since been provided with limited due diligence material and has until the close of business on Thursday, under a put-up-or-shut-up deadline imposed by the Irish Takeover Panel, to announce at least a firm intention to make a revised offer.
Mr Carvill was perceived to be resistant to Kenmare being subject to a sale before his exit last year, as an activist shareholder JO Hambro campaigned for the business to be put on the blocks.
The executive has remained as a consultant to the company since stepping down to advise on the negotiation of the renewal of a royalties agreement with the government in Mozambique relating to the mine as well as a project to upgrade its main mining plant and relocating it elsewhere within the Moma site.
His consultancy arrangements will terminate at the end of this month, according the annual report.
[ Kenmare earnings tumble as former chief Carvill weighs improved bidOpens in new window ]
“In connection with Michael Carvill stepping down, it was agreed that he would be treated as a ‘good leaver’ for the purpose of his outstanding variable pay awards,” the annual report said.
His package also included a $289,000 bonus and a restricted shares award worth $426,000.
Global demand for titanium feedstocks like ilmenite, which are used in the manufacture of everything from paints and plastics to ceramics and textiles, reached a record high during the year, supported by strong demand from emerging markets such as South America and Asia, excluding China.
However, prices have fallen over the past two years, as a result of a spike in production.
Ilmenite prices are beginning to stabilise, the company said last month.
[ Kenmare shares surge up to 52% on Carvill and Abu Dhabi firm bid for minerOpens in new window ]
Demand for zircon, which is widely used in the foundry industry, has been more challenging, due to weakness in the Chinese market, said Kenmare, which operates out of the Moma mine in Mozambique. Kenmare is now led by managing director Tom Hickey.
There are concerns that US president Donald Trump’s pursuit of tariffs against China may hit global demand for titanium minerals.
Mr Carvill, a Co Down native, owned almost 0.6 per cent of the company by the time he exited in August. He disclosed last month that he also owns stock derivatives in the company, giving him a total interest of 1.04 per cent. Oryx does not hold any shares.
