Mr Alexandre Alexander, the former executive chairman of Kimberley Diamonds Ltd (Kimberley Diamonds), was on 25 June 2018 found not guilty on two counts related to issuing false or misleading information to the market following a jury trial in the District Court of NSW. On 26 June 2018 the jury was not able to reach a unanimous decision in relation to two other charges of misleading the market.
Following an ASIC investigation, Mr Alexander was charged with four offences under the Corporations Act relating to false or misleading statements made by Kimberley Diamonds to the Australian Securities Exchange (ASX) between October 2013 and March 2014.
The court result followed a seven-week retrial as a result of a jury not being able to reach a unanimous verdict at the conclusion of a four-week trial in April 2017 on the same charges.
The matter was prosecuted by the Commonwealth Director of Public Prosecutions.
Background
ASX-listed Kimberley Diamonds was an Australian-based diamond exploration and mining company with assets in Australia, Botswana and Spain. Its main diamond producing mine located in Ellendale, in Western Australia, was the world’s leading source of rare yellow diamonds. The diamonds mined at Ellendale were sold by Kimberley Diamonds to Laurelton Diamonds Inc, a subsidiary of Tiffany & Co.
Between March 2013 and May 2014 Kimberley Diamonds was in negotiations with Tiffany & Co that were aimed at increasing the price that Kimberley Diamonds would be paid for its diamonds.
On 12 May 2014, Kimberley Diamonds announced to the market that price increase negotiations with Tiffany & Co had failed and, consequently, the company’s earnings forecast for the last quarter of the 2014 financial year was revised down from $7.5 million to $1.5 million. The price of Kimberley Diamonds’ shares fell by 41.5% following the announcement.
On 1 July 2015 Kimberley Diamonds announced that Kimberley Diamonds Company Pty Ltd, a wholly owned subsidiary of Kimberley Diamonds, and the owners of the diamond mine at Ellendale, had been placed into voluntary administration.
On 21 March 2017 Kimberley Diamonds was delisted from the ASX Official List and following the failure of their Botswana mining operation, on 10 June 2017 an external administrator was appointed to Kimberley Diamonds.
The matter is listed for mention on Friday 13 July 2018 to advise whether the matter will be proceeding to a further trial of the two charges on which the jury were unable to reach a decision.
Editor's note:
The matter of Alexander Alexandre was listed for mention in the Sydney District Court on 13 July 2018, to advise the court whether the matter will be proceeding to trial again on the two counts the jury on which was unable to reach a unanimous decision in the recent trial.
The Court was advised that the Commonwealth Director of Public Prosecutions had determined a third trial would not be pursued.