KCM - KCM - Trading update and cautionary announcement
KCM
KCM
KCM - KCM - Trading update and cautionary announcement
Kimberley Consolidated Mining Limited
(Incorporated in the Republic of South Africa)
(Registration number 2007/010470/06)
JSE share code: KCM
ISIN Number: ZAE000119996
("KCM" or "the company")
TRADING UPDATE AND CAUTIONARY ANNOUNCEMENT
In light of the acute and swift global economic downturn and the reduction in
the demand for rough diamonds, coupled with the dramatic volatility and drop off
in purchase prices offered for rough diamonds, the board of directors of KCM
("Board") has carefully considered the options available to the company.
In keeping with its stated objectives of protecting the interests of its
shareholders in the long term, the Board has resolved that until such time as
the volatility in the market subsides and the purchase price for uncut diamonds
is restored to economically viable levels, the company will scale down active
mining and prospecting operations at its Bo-Karoo mine. KCM will only pursue
full mining activities once the uncut diamond prices return to normal and
subject to KCM`s working capital requirements. KCM is in the process of
disposing some of its moveable assets to improve its cash flow so as to protect
reserves and will hire equipment as and when it is required going forward. The
company will seek shareholders approval for these disposals if required. The
board is further considering making use of subcontractors at its Bo Karoo mine
to enhance production as soon as the current diamond downturn has subsided.
The above have negatively impacted on KCM`s results and cash flow. KCM executive
management is busy preparing revised profit and working capital forecasts and
shareholders should exercise caution in trading in KCM shares until a further
announcement in this regard is made.
12 March 2009
Cape Town
Date: 12/03/2009 15:31:04 Produced by the JSE SENS Department.
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