GREY:PGDIF - Post by User
Post by
justanormalguyon Jul 26, 2016 12:40pm
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Post# 25085192
Lucara
LucaraLucara was on BNN this morning at 11:40 ET. There was some talk about M&A. Basically, they are very knowledgeable about the current diamond industry and keep up to date. They say it's very difficult to find high margin diamond mines. Sounds like they are open to make a deal and want to diversify their diamond asset base. That's good news for the diamond industry.
I think consolidation is finally coming. And it might not be from those having diamond assets, but rather those who want to diversify their mineral base (ie. Agnico Eagle, Ivanhoe), remote and cold climate operating experience, and a supporting balance sheet. I get the sense the banks are starting to come around again, lending to those that actually have a physical product, not some dream with low barriers to enter.
Why do I get the feeling that RF/EF's price is very, very high, which is fine. I've done/been through a lot of deals in another space. Having leverage on the table and holding a full house rocks, that means you run the show, on your time, on your requirements, on your conditions, at your price.