The 300-employee KCM listed 450-milion shares at R1 a share, and its market capitalisation rose to R495-million after the first trade and to R499-million after the second.

KCM, headed by CEO Hein le Riche, is a diamond mining, exploration and development company with alluvial and kimberlite projects primarily in the Kimberley and surrounding South African regions. Its assets include an operational alluvial Bo-Karoo mine in the Orange River as well the new order prospecting right over the Carter Block, close De Beers' Finsch mine in the Northern Cape.

Le Riche told Mining Weekly Online that KCM would not raise capital at this stage, but would, through the listing, be able to do so should it wish to increase production significantly in the future.

Currently KCM was financially self-sustaining, having sold diamonds worth R150-million since beginning with the Orange River project in 2005. It was expecting to generate R91-million in sales in the year ended February 2009, and had already achieved close to a third of that in sales this year.

Le Riche said that alluvial mining was volume intensive and, should the company want to increase that volume significantly, it would have the capability go to the market to raise capital in order to increase its production.

In order to exploit its 25 000 ha Carter Block kimberlite-alluvial prospect, it had entered into an agreement in which the JSE-listed Trans Hex would spend R30-million on exploration and earn-in 51% with a view to undertaking full-scale mining in 24 months, depending on results.

"Our expertise is in alluvial, so we will get in partners, like Trans Hex, to help us with kimberlite mining," Le Riche said.

The company has, however, completed all the necessary micro-sampling on its 2,6 ha kimberlite pipe, which had shown Finsch-like chemistry.

Prices were exceedingly buoyant and, although average prices from the company's Orange River alluvial project in its prelisting statement were given as $1 900/ct, but the company was already selling them at $2 400/ct.

Huge demand was driving up the price, Le Riche said.

KCM’s Bo-Karoo properties are on the Orange’s southern bank, 35 km south west of Douglas, and the Carter Block 40 km east of Postmasburg.

The company also has properties in Taung, 130 north of Kimberley, and Batloung, close to Barkly West. In Africa, it has aspirations in Sierra Leone, Angola and Lesotho.

KCM’s main black economic empowerment partners, who hold 18,7% of the shares, include Phemelo Sehunelo, Ranthoko Rakgoale, Trevor Pikwane and Mzwandile Shawababa.

The comany is reportedly forecasting a maiden profit of R4,5-million, as at February 2009.

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