KIM kimberley diamond company nl.

response to "Speeding ticket"

  1. 29,246 Posts.
    lightbulb Created with Sketch. 80
    Note especially the UK valuations of KIM.
    Any substance to that you reckon?

    Company Announcement


    Response to ASX Share Price Query

    KIMBERLEY DIAMOND COMPANY NL. 2002-11-13 ASX-SIGNAL-G

    HOMEX - Perth

    +++++++++++++++++++++++++
    Thank you for your letter. We respond seriatim as follows.

    1. No.

    2. Not applicable.

    3. Kimberley Diamond Company reported a number of significant events
    in its September quarterly report dated 30 October 2002 including, in
    summary:

    - an interim result of 7.5 million tonnes established from surface to
    60 metres in a portion of Ellendale Pipe 4 grading 11.34 carats per
    hundred tonnes (cpht) for 851,000 contained carats with an inground
    value exceeding $115 million;

    - an extension of the surface enriched zone on a portion of Ellendale
    Pipe 4 yielding 181,000 tonnes grading 18.5 cpht for 33,000 contained
    carats with an inground value exceeding $4.5 million;

    - the discovery of major new paleodrainage systems near Pipe 9 and
    near Pipe 4;

    - the continuation of major bulk testing of fissure lamproites
    particularly at Pipe 23 with results expected shortly. Kimberley has
    said it expects the tuffaceous phase of this pipe will carry
    substantially higher grades then previously recorded in the magmatic
    phase;

    - the expectation, subject to completion of ongoing studies, that the
    existing operation will be considerably enhanced by production
    increasing in the second half of 2003 from the current rate of 100
    tonnes per hour to, in the order of, 300/400 tonnes per hour.
    Kimberley hopes to release the interim results from this study before
    the end of November 2002, as we have previously said; and finally

    - that diamond production has been in line with, or better than
    originally forecast.

    Two recent independent valuations of Kimberley by Keith Docking and
    WH Ireland in the United Kingdom have placed a value of 87 cents and
    $1.00 per share on Kimberley.

    For all the above reasons and notwithstanding the increase in the
    share price from 33 cents to 42.5 cents today, I believe the Company
    is currently undervalued.

    4. We confirm that the Company is in compliance with the listing
    rules and, in particular, Listing Rule 3.1

    M Kennedy
    CHAIRMAN


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    GZ
 
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