Photo by: Bloomberg
PERTH (miningweekly.com) – Diamond miner Kimberley Diamonds has applied to have its shares removed from the ASX, with the company saying that its shares were trading at prices "materially lower" than the underlying value of its assets.
Kimberley on Tuesday also cited the low liquidity of the company’s shares, a lack of interest in its shares on the Australian market, and the significant cost savings to be achieved by delisting, as reasons for the removal.
The company’s directors also believed that further fundraising was more likely to be successful if the company delisted.
Kimberley will seek shareholder approval for the proposed delisting.
The company’s main asset is the Lerala diamond mine, in Botswana, where in-pit mining was temporarily suspended in October, to allow the company to process and reduce stockpiles.