A fabulous buying opportunity if you ask me. Yes, KIM put out...

A fabulous buying opportunity if you ask me.

Yes, KIM put out differing cash flow projections and the market is punishing KIM for espousing uncertainty. BUT KIM are making money. They are mining two cash flow positive pipes and the resource keeps growing. The news keeps getting better - prices realised for gems keeps going up. Many more pipes of KIM's or BDI's will prove to be economic.

But here's the big win for KIM. The alluvials. KIM has already found one of the alluvial channel systems and remarkable stones have come out of tests (8.44ct and 7.62ct). Weathering over millions of years concentrates diamonds in these channels. The weathered top of a pipe often has the best stones.

I'm a small investor. I usually buy around $2,000 lots - sometimes as low as $500. But with KIM I feel this is a rare opportunity worthy of a bigger chunk of money.

I'm buying KIMOA to increase my leverage. I'm the only one there today on the buy side. That's my sole order for 5,000 KIMOA at 64 cents. I bought two 5,000 share lots of KIMOA on Friday at an average of 80c.

10/09/2004 B KIMOA 5000 0.76 19.95 3819.95
10/09/2004 B KIMOA 5000 0.84 19.95 4219.95

That equates to KIM at $1.15, which is about the volume average of Friday’s prices on KIM (was $1.12). Maybe some insto is dumping big time and I'll look sad but I think instos don't throw money away. I suspect it is panicked mums and dads dumping KIM. With the weekend to research KIM out properly, the result will be a bounce on Monday and up from then on.

It’s booming out there in the goddam pindam. These gravels will be a windfall. Remember the Smoke Creek alluvials at Argyle – clusters of diamonds concentrated in pockets by the flowing water over millienium. Just that here in the pindam stabilised dunes have hidden these riches – a treasure trove now revealed by the mighty Falcon.