Lucara Diamond Corp T.LUC

2021 report

[nyoni]

.
https://lucaradiamond.com/newsroom/news-releases/lucaras-2021-annual-revenue-of-230-1-million-inc-122838/

[Gerrywerry]

Solid results but Clara still not getting third party supply . They need to sell it or get a partner . 

[nyoni]

It might be that the Clara story won't start to develop properly until the postponed sales agreement  deBeers and the Bots govt.is settled.  Next deadline for that is 30th June. (I think)

[nyoni]

End of June confirmed. https://www.diamonds.net/News/NewsItem.aspx?ArticleID=68141&ArticleTitle=De%2bBeers%2band%2bBotswana%2bExtend%2bSales%2bDeal%2bAgain

[nyoni]

 "The number of buyers on the platform increased to 88 at December 31, 2021 with the Company maintaining a waiting list to manage supply and demand.  While most of the stones transacted through the platform came from the Karowe Mine, during the last half of 2021, certain secondary market stones were also offered for sale through the platform, with good results

[KingFox]

I've never been a big fan of the Clara purchase, but I've come around to see the value of the platform. You should never say never but the price better be highly accretive to our bottom line. Which given current share price, how can it not be...... how about IPO'ing it, keeping some of it ? This company is so frustrating.

[nyoni]

I prefer the idea of just spinning it out so that we shareholders keep all of it.

[Gerrywerry]

We haven't been able to get third party sellers on board and don't see how that will change without a partner that can get those elusive sellers on board , I'd rather have  half of a lot than one hundred percent of nothing , as we currently have .

[nyoni]

We don't need a partner to get the elusive sellers on board - we need something quite different. and much more compelling. Think hard.

[nyoni]

"Longer term, I think in order to entice other producers to sell through Clara, it probably makes sense to create an independent vehicle that is not owned by a mining company.” https://www.diamonds.net/News/NewsItem.aspx?ArticleID=67885&ArticleTitle=Lucara+Mulls+Clara+Spin-Off%2C+New+Botswana+Mine

[Gerrywerry]

Obviously third parties don't think it's an attractive option to sell through Clara. Will spinning it  off make these elusive sellers any more profit .?   If it was attractive to  use Clara they would do it irrespective of who owns it .  In the end it's all about the bottom line .

[nyoni]

If third party producers are getting the most for their product, why is there a secondary market developing? Secondary market means rough stones from other mines being sold through Clara by middlemen. The answer is much more subtle.

[nyoni]

Here's a bit of reading from 2015. Take note of the last paragraph. https://www.cbc.ca/news/business/diamond-royalties-a-closely-guarded-secret-in-ontario-1.3062006

[Gerrywerry]

I hope you are right and by spinning it out the third parties will start selling on the platform , I'm not convinced and time will tell.  I really do hope you are right 

[nyoni]

IMO the delayed deBeers/govt sales agreement is what we've been 'stayed tuned' for.  Covid is the reason given for the delay. Whether you believe that or not is now moot;  the point is that covid is now over as far as diamonds are concerned. https://www.mining.com/web/de-beers-returns-diamond-sights-to-gaborone-as-travel-opens-up/

[Gerrywerry]

And yet we were told that Covid was an opportunity for Clara 

[KingFox]

Very true. However, now we are dealing with Russia and its rather large influence on the diamond market. Sanctions etc are having a big impact on oil, gas, gold, palladium etc  These commodities all have a structure real time market and have shot higher. It should be no surpise that diamond prices are shooting higher in a similar fashion. This can only be good news for Lucara's smaller