News

April 21, 2009

Kalimantan Gold Aims To Turn Profits From Coal Into Exploration For Gold

By Charles Wyatt

It is an interesting commentary on the availability of funding for junior mining companies that Kalimantan Gold could only raise half of a proposed C$1 million non-brokered placement at Christmas, but that the latest effort has encountered so much demand that it has had to be increased - and then some. The pity is that Kalimantan Gold has its primary listing on the TSX Venture Exchange and its secondary listing on AIM, as this leads to a number of discrepancies, not least because all the trade takes place here. In fact practically all the stock in this latest placing went to European investors and a chunk to Indonesian, but virtually none to North Americans. That may be because they do not know where Indonesia is, let alone Kalimantan.

However the Canadian primary listing means that placings have to be priced in C$s and there is a major differential between the TSX price and the AIM price. A comparison of the share charts of the two companies over the past year bears this out. The patterns are completely different and the one to study is the AIM chart which shows that the shares peaked at around 9p last June, fell with the rest of the market right down to 3p, and are now trading at 6.5p. A very sturdy performance given the...