KCM - KCM - Trading update and renewal of cautionary announcement
KCM
KCM
KCM - KCM - Trading update and renewal of cautionary announcement
Kimberley Consolidated Mining Limited
(Incorporated in the Republic of South Africa)
(Registration number 2007/010470/06)
JSE code: KCM
ISIN: ZAE000119996
("KCM" or "the Company")
TRADING UPDATE AND RENEWAL OF CAUTIONARY ANNOUNCEMENT
Shareholders are referred to the trading update released on SENS on 29 January
2009 and to the trading update and cautionary announcement released on SENS on
12 March 2009, wherein it was stated, inter alia, that KCM`s results and cash
flow had been negatively impacted by the 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. In addition it was
stated in the aforementioned announcements that the KCM executive management
were 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.
The continued and protracted global economic downturn and the negative effect
same is having on the diamond industry, continues to have a negative effect on
KCM`s results and cash flow. In order to alleviate the cash flow constraints,
KCM has disposed of some of its movable assets, placed shares in terms of its
general authority to issued shares for cash and has entered into negotiations
with various parties in order to conclude a transaction that will strengthen its
cash resources, including China National Geological and Mining (HK) Ltd, as
announced in the renewal of cautionary announcement of 29 April 2009.
Given all of the uncertainty surrounding the above, the KCM executive management
cannot accurately prepare revised profit and working capital forecasts and same
will not be published until the executive management is satisfied that same can
be accurately relied upon by shareholders and the market. Accordingly
shareholders are advised to continue exercising caution when trading in KCM
shares until a further announcement is made in this regard.
Cape Town
5 May 2009
Designated Advisor
PSG Capital (Pty) Limited
Date: 05/05/2009 17:13:01 Produced by the JSE SENS Department.
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