Lucara Diamond Corp T.LUC

1080cts White Latest find

[mfundisi]

This should cause a bit of a bump in the sluggish stock price!

[AndersS]

My guess is that diamond will sell for 50 million dollars. Current market cap is only 135M USD.

[nyoni]

Yes, This latest stone is comparable in size to Lesedi and is of gem quality, unlike the Sewelo and the other big clivage stone recovered. Lesedi went for $53M if I remember rightly.

[bricksnmorter]

Which in hindsight from all the commentary we were swindled by Graff and the fiasco of the auction

[Gerrywerry]

Lamb took him on and lost badly

[Prillan]

I think lucara should start paying dividends for everything that comes in from the exceptional stones. is still not included in any calculations or forecasts. I think the share price would rise quite a lot

[Gerrywerry]

That would be financial suicide . 

[bricksnmorter]

Gerry, most companies have a level of gearing. By paying a dividend it would become more attractive to investors - not financial suicide at all. Not pying a small dividend, shows the market the company is not confident in its future cashflows and is not managing cash effectively. At the moment we neither get any return on our investment through income or capital gain - who would want to invest

[Gerrywerry]

Couldn't afford the previous dividend as the funds were needed for the underground repeating the mistake would be madness . The market doesn't like companies that start a dividend but can't maintain it .it's not that we were never going to get a dividend but we should have got it from the finish of the underground to the end of the mine life . A bigger delayed and affordable

[bricksnmorter]

Gerry, perhaps not every shareholder wanted to invest in the underground at a time when it was not a certainity.  By paying a dividend from profits, those who wanted to were welcome to purchase additional shares. I'm quite happy with dividends I received thank you very much. I'm also not opposed to the company having debt to finance the UGP this is common practice. 

[Gerrywerry]

Don't think we will ever agree on this one

[AndersS]

The 1080 carat diamond is one of the finest to ever come out of Karowe, to date, according to Dr. John Armstrong. (Said at the conference call).  

[nyoni]

Why wasn't Eira on the conference call?

[Gerrywerry]

Was a bit odd

[AndersS]

They did fine without Eira, it was a good conference call! Maybe Gerrywerry finally got his wish come true?  

[KingFox]

locked in a room negotiating with lenders ........ I assume. September 1 coming up very quickly.

[Gerrywerry]

With Clara not performing as hoped and the underground 2 years behind schedule , where should the buck stop?

[nyoni]

Maybe Eira is elsewhere inspecting the new humunga.

[Gerrywerry]

It seems significant that she wasn't there 

[AndersS]

Makes me a bit worried when I consider this section of the Q2 report: "The Company has near-term commitments under the Facilities, including the maturity date of the WCF and the requirement to fund a cost overrun facility. Due to these near-term commitments, there is doubt regarding the Company’s ability to meet its commitments and discharge its obligations in the normal course of

[Gerrywerry]

Monetising the latest find sooner rather than later would be helpful.  Financing the underground was more difficult than it should have been due to lucara not  putting cash away for this purpose . 

[nyoni]

".. doubt regarding the Company’s ability to meet its commitments and discharge its obligations in the normal course of business." How did the Board of Directors allow this situation to develop?

[AndersS]

Very strange indeed that they have allowed this to happen. I just went back to the coference call and now noticed that they did not mentioned whatsoever why the CEO, Eira, was not on the call. Also seems very strange to me.  

[Gerrywerry]

They seemed to be emphasising a potential problem regarding meeting their commitments . Not sure why they were doing that . Seemed like they were deliberately trying to put a bad spin on things .

[AndersS]

I thought the same when I listened to the conference call again. I asked Google Bard about this and got the reply below (which does not have to be correct). Do they have to mention this to protect themselves? ---------------- If the directors or board knew or ought to have known about the financial difficulties and failed to disclose them, they could be held personally liable for any losses

[nyoni]

Is it a portent of an upcoming issue of equity?

[nyoni]

If so, with the share price at an all-time low, you could expect serious dilution.

[Gerrywerry]

Engineer a situation where  you issue shares for your own benefit and  the bbenefit of your largest shareholder  ,  lucara would never do that !

[Gerrywerry]

All readers of this chat should reach out to lucara for them to confirm there will be no further dilution of the share.