Kimcor Diamonds Share Discussion Threads

[ceckyspunt] 12/6/2008 12:50

hard to get these figures, which is why the share price is under pressure...relatively new company, spent a load on new equipment and upgrades, lots of bullish statements from the company but yet to show on the "bottom line", so the question is "has the money spent delivered the improvements to efficiency and therefore profits?"...time will tell, but for now its a bit of a gamble, but at this share price the rewards could be significant...they are certainly in the right sector...

[orm5] 12/6/2008 12:40

Just having a look at these – they look very interesting. A few questions: 1) Does anyone know the production costs? 2) what has been the reason for the past declining share price ? Thanks

[philjeans] 11/6/2008 17:13

OK; fair do's but still not exactly expensive is it for such a valuable and productive asset?

I bought because it's completely overlooked at present and has tremendous upside.

[biggerbil] 11/6/2008 15:32

Never trust the ADVFN summary - hope you didn't invest because of it.

From the Kimcor website:

268,265,577 share issued
currently about 4.2p each

Mcap = £11.3M

[philjeans] 11/6/2008 15:14

I'm looking at ADVFN summary - what are you looking at?

[cesc2] 11/6/2008 15:12

philjeans

mkt cap is 11.40 m

[philjeans] 11/6/2008 15:03

£2.7M M/C for a fully producing diamond mine, with great potential for much greater output and profit, is a drop in a bucket to a large scale miner!

Will be swallowed up for sure.

[cesc2] 11/6/2008 14:45

maybe they need a change of broker

[teemore] 11/6/2008 14:25

Sounds good but the share price is still no more than it was 3 weeks ago!

[dcroston] 11/6/2008 12:04

Lets not get too carried away philjeans.....its too soon to be predicting anything. The next 2-3 months should give us a better idea.

[philjeans] 11/6/2008 11:56

Monthly production up from 2000 cts to 5000 is a fantastic increase and must spell big $.

Can't see this going down!

[dcroston] 11/6/2008 11:23

I expect we will see a steady rise from here.

Could be De Beers I suppose cesc2.

[cesc2] 11/6/2008 10:24

Any guesses who they might be in negotiations regarding Nooitegdacht ?

[hyper al] 11/6/2008 10:21

We are now getting into real production mode, certainly looks like the bottom.

[hyper al] 11/6/2008 10:18

Looks good

[philjeans] 11/6/2008 10:15

Good time to buy- at the bottom of the chart and an excellent update.

Just grabbed another 50k.

[dcroston] 11/6/2008 10:01

I would have liked a bit more detail as regards operating costs but other than that the announcement is very positive. KIM are definitely heading in the right direction though. Hopefully we will start getting regular monthly updates soon with a little more detail on costs. It is nice to know that operating costs are down for all mines and should come down even more with the further enhancements which will be in place soon.

Didnt that person who wrote the magazine article also mention something about a takeover? Oh Yes he did! That might yet prove to be the only worthwhile statement in his article.

[barker haines] 11/6/2008 09:54

Holders should thank Shares mag for stirring this hopeless management into providing a long overdue update! Operations appear to be picking up but too little too late for long suffering shareholders? Churchmouse should go then maybe sentiment will really start to improve.

[philjeans] 11/6/2008 09:45

Looks as if the Shares Mag article got it completely wrong then!

Seems like a very big bargain to me.

[dcroston] 11/6/2008 09:10

An excellent update.

[ceckyspunt] 10/6/2008 23:29

dcroston,

i agree, clearly this is a recovery stock, we all know that, the question is when and not if the share price will recover...the money is spent, the work is done, now all there is is to see the bottom line improve.

[dcroston] 10/6/2008 13:07

Thanks Cesc

Difficult to believe such a thrown together article like this could send the share price tumbling, but it seems to have done the trick.

There are a couple of things you can't really disagree with in the article though but to be honest it is blatantly stating the obvious. Yes, of course sentiment is poor towards KIM and share price movement is very sensitive on any buying or selling. It has been like that for quite sometime and he could say that about any number of companies, take your pick really. As regards the market not being impressed by resent positive statements that is a fair comment but that is perhaps because most of the plant modification have only recently been implemented so we have yet to see the true benefits of these yet, though there would appear to be plenty of room for optimism.

This article takes a cheap shot at Bellsbank. But didnt menton that after the acquisition of Dwyka Diamonds, Bellsbank was never going to be the focus of operations. Yes, Bellsbank has been a logistical nightmare but it's quite rightly been put on hold until a mining strategy is reviewed. Bellsbank has approximately 3 years mine life so assuming operations resume sometime in the next 6 months or so then it is certainly not a disaster by any means. The plan has always been to process Bellsbank tailings first with a view to bringing Bosele into production so the timing would still seem on track considering Bosele is still in the early exploration stages.

Briefly mentioned is SM14 but surprise surprise, there is no mention that SM14 will be processing at 150,000 tpa in the near future which is nearly three times more than it currently processes, with further plans to increase to 250,000 by the end of the year.

At Newlands, tailings are processed to cover costs of underground development. UG development is being undertaken to open access to the current ore to be processed. This strikes me as progress but still no mention of it.

No mention of the industrial side of Kimcor either, Supermix had become cashflow positive and this is projected to continue. Supermix also has the scope to cover approximately 60 per cent of the diamond mining operating costs at Nooitgedacht.

The author doesn't appear to know whether its undervalued or not and doesn't even mention Blaauwbosch which is Kimcore's flagship operation which started processing ore from its underground mine back in April and with any kind of positive update would see the share price moving north fairly rapidly. There is no mention of any of Kimcore's exploration prospects either, so to my mind not a very convincing article one way or the other.

I have to say that I am surpised that anyone would sell at this moment in time and off the back of such a poor article though I suspect the larger market is biding its time and waiting for further news before it decides, like me.

DC

[cesc2] 10/6/2008 11:03

STEER CLEAR

KimCor Diamonds - Lacks the X factor

Undervalued? Perhaps, but this £12 million stock is swimming against the tide. The market doesn't care that it has become a larger producer since buying Dwyka Resources' diamond operations in 2007. The share price has more than halved in the past year, drifting on minuscule trading volumes.

There is little to suggest that this downward trend is going to change. As a business, it has some small but tidy assets. Just not enough to excite investors in weak markets. It has spent several months modifying plants to increase production rates. At the latest operations update, in April, KimCor said its SMI4 tailings plant was processing around 2,000 tonnes a day for an average six carats per hundred tonnes recovery.

Phase two expansion was due as Shares went to press, targeting 9,000 carats per month. The Newlands plant is set to process more kimberlite ore and the Nooitgedacht alluvial mine is beating recovery grade targets by 50%. It keeps issuing (mostly) positive trading updates, but the market is unimpressed. The Bellsbank project continues to struggle with water problems, and the mining and processing strategy is under review.

Another problem is that Dwyka Resources owns 48% of the stock. This restricts liquidity and it dampens any speculation (which there is) that KimCor will be taken over. Dwyka isn't going to want full ownership as it is too busy with iron ore and other metal projects in Africa and now coal in the Philippines. It has already scaled back its holding from 50.09% to 48.2% to avoid having majority ownership.

If you want to invest in a diamond or gemstone company, it is always worth considering quality of assets and costs of production. In this case, market sentiment is equally as important. Sentiment can change, of course, but at the moment it says stay clear of KimCor.

[dcroston] 10/6/2008 10:56

well, it worked.......the panic sellers have arrived.


What was the article and what did it say cesc2?

Cheers,
DC