Stockbroker Hartleys said it saw little value in Kimberly, after the diamond miner slashed revenue forecast, by 30 per cent per annum over the next three years.
Hartleys said the downgrade reinforced its earlier concerns about development risk, uncertainty surrounding resource estimates and its low cash balance.
Kim has forecast a 38 per cent increase in capital expenditure to 78.5 million dollars over three years, but operating costs are expected to remain at similar levels.
Hartleys said shareholders were advised to SELL IMMEDIATELY and interested buyers should AVOID the stock until the feasibility study is delivered next month, and the ellendale stage 2 expansion is proven to be a winner.
Saturday September11,in the West Australian.
With recommendations like this it could be back to 40 to 50 cents. Stand back.
Namakwa shareholders may have to watch carefully as the credability of Simich could damge sentiment on this stock.
KIM
kimberley diamond company nl.
