A new philosophy for Kimber?
posted on
Dec 03, 2009 09:04PM
Creating value through Exploration and Development in the Sierra Madre of Mexico
Having talked to Kimber regarding their measured and indicated resources, I realized that there are many more questions that now come to mind.
The following is just speculation on my part. I havent confirmed this with anyone at Kimber, but I'd like others opinion.
I have found myself scratching my head wondering what the heck is going on after the last 2 news releases. I think that is because I had been expecting and looking for a big number of oz...and I did not see them.
I invested in Kimber because there are a lot of smart people involved behind the scenes. Puplava, King, Sprott, Barron, Lemerande etc. I subscribe to the pac man theory. I was able to buy at $20-25/oz in the ground. I believe in the gold bull market. AND I THOUGHT kimber was to model itself on Silver Standard....building the largest possible in ground resource to be sold at a later date when the POG is much higher.
Now I am questioning whether there has been a change in philosophy for kimber. It seems they are trying their hardest to make the economics of Carmen look as attractive as possible with the resources they already have defined. Could they be following Jim Sinclairs advice that he gave in a recent interview with Eric King. That is, to get a small mining operation going that will provide cash flow for further expansion. It makes sense to me. If you are a junior and the market is not recognizing your value then you will suffer heavy dilution with each new financing you do. So why not get the economics of the Carmen deposit proven, get it into production and use the cash to further exploration and development. If the market still doesnt recognize the value, the cash could be used to buy back shares.
I wish Kimber would do a better job of explaining the numbers and detailing their intentions through their news releases.
Your thoughts anyone? Is this a new philosophy for Kimber?
Golden Kiwi