I've noticed that Gravity and Kimberley have both risen strongly over the past few trading days. GRN is up over 25% today alone and KIM has risen from around $1.19 to $1.33.
The following is rank speculation but GRN announced recently it is about to - and had begun - follow-up drilling at several priority targets, one of which is Ellendale, where the two companies have a promising diamond JV through GRN's 40%-owned subsidiary, DMA.
While GRN is long overdue for a rebound and has much ground to make up yet, it is rocketing back very quickly due to the limited stock available. KIM, on the other hand, had looked to be fully valued and seemed in the throes of a major correction till very recently. Could the turnaround in both companies' fortunes be a result of the market anticipating good results at Ellendale? Or is it merely symptomatic of the turnaround in the wider resource sector?
I have a significant holding in GRN but have no KIM shares.
Conduct your own research. I reiterate that I am merely engaging in a bit of supposition above and any link between the two rising stocks is more likely to be pure coincidence than evidence of a coming announcement.
Gupper
GRN
gravity diamonds limited
