News

February 29, 2008

KimCor Packs Projects Into Its Portfolio And Looks Towards Profits This Year

By Our Man in the City

The trouble with being a listed company is that the movers and shakers behind the stock market are never satisfied, as KimCor Diamonds is finding out. It has become a much larger producer - albeit still in the junior bracket - since it bought Dwyka Resources’ diamond operations last September. This transformation, it appears, has gone unnoticed.

True to its word, KimCor has hit operational targets and completed the first phase of a planned upgrade to a former De Beers project that will eventually see production nearly trebled, and costs halved. The company’s schedule also includes developing underground operations and expanding a diamond recovery plant. There is hard work ahead but the end-goal is certainly achievable. So why has the company’s share price fallen near six-fold in the past two years?

Well, it’s fair to say that KimCor...