Kimber Resources

D flat,

Allow me to correct a false impression I seem to have provided, that being that my Evolving Gold is one-tenth what I paid price-wise. Actually, my position is one-tenth what it was at its high in terms of number of numbers of shares, not price. I've bailed on the bulk of it, mostly in the .35 to .36 range. My average cost when I had the entire position was about .90 or so.

I keep a small amount of Evolving Gold toilet paper just to remind me how these juniors with great prospects can fritter them away through mismanagement, which brings us to Kimber.

Yes, I do listen to Puplava, although not as closely as I once did. Puplava contradicts himself, relies on the same tired cliches ("dollar is the best house in a bad neighborhood" is a current favorite). He also dispenses information that at times is flat-out wrong, like proclaiming again and again a few months back that no U.S. president ever was re-elected when unemployment was over 7 percent. "Ever heard of Franklin Roosevelt?" I asked him in an email, and now he says, since Roosevelt.

I'm also amused by his "premium" content. I've never heard one Puplava interview worth paying for. I guess if Kimber was doing better, he wouldn't be trying to eke out a few bucks by charging for his patronizing interviews.

If you listen closely, Puplava evidences signs of memory problems, too. I've heard him refer to guests by the wrong name, and repeat himself painfully in interviews. As to his Kimber interest, let me just say that he remains on the board according to the Kimber web site. I do believe those occasional vague junior references of his are to Kimber, at least I believe some I've heard in the past were Kimber. But I've also heard -- and never bothered to confirm -- that he, and/or his firm, have dumped a lot of their Kimber stock. I also have heard he's cooled considerably on the Kimber prospects. A few years back he led a coup against management. I guess that didn't turn out so well in terms of improving stock returns.

As for the Sprott loan, I'm not too crazy about 12 percent interest and the other "inducements" Sprott takes away from this, just as I'm not too crazy about the date of the updated resource estimate being consistently pushed further into the future.

I'm not sure the Indian buying season is going to be of the customary impact due to economic problems in that country ranging from a disappointing monsoon season, to electrical failures that leave hundreds of millions in the dark at a time, to other financial maladies. Regardless, I can envision the price of gold going up big time, and Kimber and Evolving Gold not participating due to moronic management.

Bottom line, all the reasons for gold and juniors to move up in coming months have been there in some way for a year or more, with only poor results. Is it different now? I hope so.

If Kimber pops to anywhere near my break-even price in the low .90s, I think I'm gone. If this pig finally performs again, I hope you are around for the ride.

Poor management. Poor shareholder communication. Poor market performance. That's the Kimber hat trick. It's become very, very wearisome. As Kimber delays and dithers, it may be closing the window on a Mexico-based claim being properly valued. There is a creeping plague, it seems, whereby financially-short goverments look to appropriate business interests that can't readily be moved. Mines would fall under that category. U.S. politics has become a game of class envy. Clearly that's the name of the game in South America, too -- see Argentina, Chile, Bolivia, etc. For Mexico to be immune seems unlikely. So, Kimber better get going before the whole Mexican holding is nationalized -- in the name of fairness, of course.

We're living through "Atlas Shrugged." I presume you've read it. If not, take the time to do so. It's more than 1,000 pages in length, written about 60 years ago, but it reads a lot like what's happening now.

Spoiler alert-- no happy ending.

C, do you ever listen to Financial Sense? JP refers to a "junior" that often got hammered at day's end. The "management" inquired to the powers that be, and the authority's response was to audit the junior miner. He mentioned it again this past Saturday.

I remember clearly that KBX would fall at day's end when I first began investing. That seems to have moderated a bit this year. But would you know if he's referring to Kimber?

Also, do you find any solace in the Sprott bridge loan? One assumes Mr. Sprott views KBX as money-good.

Now, I'll close with some sanguine, golden vagaries: it is August, the summer fades, Indian buying season is upon us, the market is stirring with renewed hopes of QE, Draghi has made his promises, Ben his inferences, and most importantly, the POG has held the bottom of a declining wedge for a year. Those who sold in (the middle of) May and went away will return to find things not all that much different.

Relative to KBX specifically, I think a lot of folks have played this stock at liesure, and they are left bemused and distant as POG treads water. Should POG take off in Autumn, these same folks may be back.

I cannot say that their linking of POG to KBX is valid. But as a plundered long, I don't much care.