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KIM, KIMBERLEY DIAMOND COMPANY NL
krisbarry
post Posted: May 14 2014, 08:28 AM
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KDL is the new code for Kimberley Diamonds.





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NCR
 
wolverine
post Posted: Jul 20 2007, 09:21 PM
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from CitiSB

The Cavalry Arrives
A70¢ cash bid - Gem Diamonds Ltd has bid 70¢/share for KIM, a 33% premium to the prior share price. KIM directors have unanimously recommended the bid and GEM will immediately acquire 14.9% of KIM stock from a range of shareholders. A $2m break fee has been agreed.

Great result for KIM shareholders - We rate KIM a Sell (3S) with a valuation of 42¢/share but with a warning that costs remained too high and that the rising A$ could materially affect earnings and cash flow. Therefore the GEM bid is a good result under the circumstances. Note that KIM's holding in Blina Diamonds represents 7¢/share of our valuation.

The pain wasn't over for KIM - The KIM chairman stated that the company has faced challenges outside its control, chief among these being the A$ strength. Indeed GEM has provided KIM with $10m for working capital indicating possible cash flow issues not long after the ~$15m capital raising in May'07.

We recommend selling - Given our modest earnings profile for KIM that would be negatively impacted by possible higher A$ forecasts we recommend selling into the deal or into a stronger price emerges when the stock resumes trading.

GEM an aggressive acquirer - GEM was listed in the UK in February '07 and produces gem quality diamonds from Lesotho and Indonesia with development projects in Botswana, The Congo, The Central African Republic and potentially Angola. KIM would provide geographic diversification and gems quality stones.




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TOO MANY CHIEFS

NOT ENOUGH INDIANS
 
haspete
post Posted: Jul 19 2007, 09:32 PM
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In reply to: haspete on Thursday 19/07/07 07:05pm

Lol Wolve,
(the board are acknowledging their ability by recommending this bid.)
They must be cling to straws imo..
This Co needs better than this imo.
Why dont they sell there Berlinda's or is it too much like a Holden.. lol
Cheers Pete..



 
haspete
post Posted: Jul 19 2007, 09:05 PM
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In reply to: wolverine on Thursday 19/07/07 06:40pm

Lol Wolve,
Short term they will be killing you in their sleep lol .....
Long term or mid term they will love you...imo
This is not good..imo
Unless the boats go wink.gif
Cheers Pete

 
wolverine
post Posted: Jul 19 2007, 08:40 PM
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In reply to: haspete on Thursday 19/07/07 08:30pm

hi haspete

i talked someone out of buying at 46c.

needless to say they ain't too happy with me. ooops.

the board are acknowledging their ability by recommending this bid.



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TOO MANY CHIEFS

NOT ENOUGH INDIANS
 
haspete
post Posted: Jul 19 2007, 08:30 PM
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In reply to: wolverine on Thursday 19/07/07 08:15am

Lol Wolve.
As I said if 45c holds... but I didn't think it would to be honest and still don't imo.. wink.gif
At least you need to get rid of Miles and the boat...lol
Cheers Pete..

 


arms38
post Posted: Jul 19 2007, 11:21 AM
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Are we getting ripped off? In a different environment the answer is probably yes but at the moment I would say no.

I think the letter to shareholders puts the case very clearly, at A$ .64 the mine was viable at the current rate and with production costs increasing but diamond prices falling it is a very borderline operation, other miners can obsorb the cost increases due to increased metal prices etc but kimberely cannot.

The other option I guess the board had was to try and raise further cash to continue on until things improve, if and when, but at what price would this have been achieved.

Maybe the price will be raised, maybe another offer who knows, but to me its get out of jail free card and if .70 is the final price I will be ahead around 10% which may be better than would have been achieved otherwise.

Time will tell.

Arms

 
wolverine
post Posted: Jul 19 2007, 10:15 AM
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have Gem paid sweeteners in previous x2 TO's?



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TOO MANY CHIEFS

NOT ENOUGH INDIANS
 
wolverine
post Posted: Jul 19 2007, 10:11 AM
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In reply to: wolverine on Saturday 14/07/07 02:30pm

QUOTE
geez chaps the world isn't ending


told ya



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TOO MANY CHIEFS

NOT ENOUGH INDIANS
 
ozybuddy
post Posted: Jul 19 2007, 10:09 AM
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bargain price at 70cents. We are getting ripped off! I dont think shareholders will support it. Our directors are not doing us any favours. They should reject it and wait for a better bid. The SP has only dipped under 70 cents because of market manipulators. It was no accident; they must think we are dumb



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After a certain point, money is meaningless. It ceases to be the goal. The game is what counts.
- Aristotle Onassis
 
 


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