Re: Kimber NOT on Mad Money 10/31/11
in response to
by
posted on
Nov 01, 2011 11:29PM
Creating value through Exploration and Development in the Sierra Madre of Mexico
Considering Cramer's track record, the fact that he DIDN'T mention Kimber likely is a good thing.
But the gold report (theaureport.com) had a Kimber mention in a 10-31-11 article interviewing David Gougen. This is what he said about Kimber:
TGR: Which other companies might be ripe for acquisition as they derisk?
DG: Kimber Resources Inc. (KBR:TSX; KBX:NYSE.A) is a good example of a discovery from the early 2000s that is going through a process of derisking. It is currently drilling to expand the resource at their Monterde project for inclusion in a revised NI 43-101 resource calculation. The new data will be incorporated in a prefeasibility expected in Q212.
The prefeasability will effectively assist in derisking the asset and leaving the company open to possible acquisition or a decision to go it alone. There are a number of existing producers in the Sierra Madres for whom this asset would make a good fit. Kimber's Monterde is profiled to produce 60 thousand ounces gold and 1.9 Moz silver per year for about 12 years. The capital costs there are going to be somewhere in the order of $125M. It's the typical profile of a small, yet executable, profitable, low-risk acquisition that companies can achieve without getting involved in an extremely competitive process on overly sought-after assets.
Kimber is gaining a better understanding of the geological controls at depth and making some discoveries on its Monterde deposit in the Sierra Madres below the 400m level. It is encountering high-grade, multi-ounce material and opening up the specter of a significant increase in the deposit size. This puts a little fire under any potential acquirers to make a move as Kimber exhibits the continued propensity for new ounces at the Monterde project.