Kopane Diamond (KDD)

Monday, 1st February 2010 21:36 - by Boredmum

For anyone who is a shareholder of the company in the title - Kopane Diamond (TIDM code: KDD) - you may have been like me last week...bewildered. You see, a very positive RNS came out with news that an M.O.U. (Memorandum of Understanding) had been reached with a partner to co-develop their highly valuable Liqhobong mine. Now, 80% of the costs would be funded by this mystery partner for 51% of the 75% that KDD own. 80% of the costs equate to $64 million dollars - a huge amount of funding to be raised in the current climate. I do sometimes think that I find the market reactions hard to fathom and this was one of those occasions. The share price opened at 15p, giving a market capital of £45million, and quickly fell. In fact, it fell so quickly it was unbelievable. As of now, the market capital is around £34million with a share price of 11.5p. The share price is now lower than before the news came out. Like I say, I sometimes struggle to work these things out. I am still a holder as I know there is great value there. I know it was only a M.O.U. and there are still some uncertainties like who it is with or when and if it will be concluded, but surely the share price has to be worth more? Of course, with hindsight in all its glory, I could have sold around 15p and bought that same day at a much lower sp. It’s just that I, like many, expected the sp to go the other way.