KimCor Diamonds Plc is a mining company owning and operating a suite of diamond mining and exploration properties that include underground, alluvial and dump processing operations complemented by a diamond cutting and polishing business.
KimCor also owns and operates an industrial division supplying sand and aggregate, Ready Mix cement and bricks to the Northern Cape Province of South Africa. The industrial division operations have been developed as sustainable businesses utilising waste products generated by the diamond mining operations.
KimCor was admitted to AIM in March 2006, and raised approximately £3.35 million for expenses for the construction and development of a diamond recovery plant to process tailings at its Bellsbank site. At the time of listing, KimCor was capitalised at £4.87 million. From the outset, KimCor has placed an emphasis on production rather than exploration and outlined its intent to grow the Company through acquisition of producing mines or advanced exploration projects.
In September 2007, KimCor completed the reverse takeover of Dwyka Diamonds Holdings Limited, a subsidiary of Dwyka Resources Limited ("Dwyka") and acquired Dwyka's four producing mines and a number of advanced exploration projects. Subsequent to the takeover, KimCor's market capitalisation has risen to £17.4 million. Full details of the acquisition are set out in the Admission Document dated 21st August 2007 (report).
At the time of it's original listing, KimCor's projected diamond production from its Bellsbank operation was approximately 50,000 carats per annum. With the acquisition of Dwyka's producing assets and following a number of capital projects designed to increase production rates on all operations, total diamond production is scheduled to progressively increase to 200,000 carats per annum.
Production based around underground, alluvial and tailing reprocessing operations provides the scope to meet the majority of buyer requirements in terms of diamond quality, size and per carat value. The two underground mines, Blaauwbosch and Newlands generate a high percentage of stones in the 1 to 5 carat size range that provide an ideal product for the value added process of cutting and polishing provided by Anmic, a subsidiary in which KimCor, through its subsidiary Free State, holds a 50 per cent interest and an option to acquire the balance of equity. Bellsbank and SMI4 Superkolong, the two dump reprocessing operations are low cost bulk mining projects producing large quantities of lower value diamonds predominantly for export. Nooitgedacht, the one alluvial operation which also supplies sand and aggregate as a by-product from diamond mining, has a long history of producing large high-value diamonds including the Venter diamond, the largest recorded alluvial diamond recovered in South Africa at 511 carats.
KimCor has a highly qualified management team with extensive experience in diamond mining and exploration. The synergies resulting from the geographical proximity of the majority of producing mines around the company's Kimberley head office have contributed to a more efficient streamlined operation.
The KimCor board is of the opinion that further consolidation in the Diamond Sector is both inevitable and necessary and the company will continue to seek out further opportunities that provide the right strategic fit and additional value for shareholders.
Production and Exploration
KimCor has five producing mines generating the full range of diamond sizes and grades attributable to underground kimberlite mines, alluvial gravel operations and dump reclamation projects. In addition, KimCor has a number of advanced exploration projects.
KimCor's properties surrounding Kimberley in the Northern Cape of South Africa (clickable)