JOHANNESBURG (Business Day) -- Since July 23, Le Riche has been buying KCM shares regularly at about 48c or less. When the company listed on the JSE in late May, it opened at 100c and touched an intraday high of 150c. Since then, it has been driven down by the negative sentiment that has hit resources shares across the board, but junior and exploration companies hardest.
Le Riche held 20-million KCM shares or 4,4% of the company at listing. He has since bought another 277,000 shares at a cost of R142,230, to bring his stake to 4.5%.
Yesterday the shares had shed 6.25% to 45c, despite KCM's announcement that the minerals and energy department had given it the nod to start bulk sampling of its Shone kimberlite pipe.
Le Riche said share price should not be at current levels. Many people seemed to be selling the shares at a discount. He had faith in the company's future, as it had great resources that needed to be explored further to unlock value.
KCM said initial analysis of samples from the Shone pipe showed potential for diamonds. The mineral chemistry was similar to garnets from well known diamond pipes.