RE:RE:4th Special?
Hi smoothedge
Lamb made comments about the May regular tender results not seeing any drop off in
prices/demand for rough diamonds. Given the diamond market can change at anytime ------>
I would think Lucara makes July their largest execeptional diamond tender so far. Following the July results (which will be enormous) I see Lucara declaring a special one time dividend of
4 cents a share. Keep in mind they also have a regular diamond tender in June - so
in the next month or two they will adjust their F14 YE revenue estimates.
I just wish we could get the SP well north of $ 2 before they announce the July tender results and then we could well see a run-up of the SP past $ 3 ..........
Given the current rate of diamond recoveries I see the value of a Lucara share
going up from $ 3.75 to between $ 5 and $ 6 now..... If they keep finding
more of the exceptional stones at the rate they have found in 2nd quarter - then even that valuation is understated... At current large stone recovery rates a 4th exceptional diamond tender is a possibility especially if prices/demand for rough diamonds keeps rising - apparently by 2018 demand for diamonds in China will surpass US demand..
Look for some financial analysts raising the LUC target stock prices over the next week or so ...(apparently BMO has already raised their F14 revenue projections for Lucara today).
-DS