RE:RE:MediaLucara Diamonds C$1.61, C$611m Karowe Mine produces 1,111 carat diamond Lucara Diamonds has recovered a 1,111 carat gem quality stone from the South Lobe of the Karowe Mine. This will be the worlds second largest stone ever recovered. The stone was recovered by a newly installed XRT machines and measures 65mm x 56mm x 40mm. The largest ever diamond found was 3,106.75 carats and was cut into 105 diamonds including Cullinan 1 the Great Star of Africa. Conclusion: This is great news for Lucara who are now mining mainly from the South Lobe which has been a source of higher value stones. It also vindicates the operational strategy of the team who have re-aligned the operating process to recover high value and large stones using XRT technology. Focus will now be on how this stone will be marketed in the rough. The company is already sitting on a cash pile of US$122.7m as at the end of the last quarter and a special sale since then. It is unlikely to be marketed in this financial year but could form a significant part of revenues for next year. Full year guidance is for US$200-US$220m and we are confident that they will be or could beat the upper end of this range. The author of this note recently visited the Karowe mine and was impressed with quality of the mine, process from extraction to sales and the management team. We have yet to initiate but this could easily be the top pick in the sector. https://www.proactiveinvestors.co.uk/columns/sp-angel/23661/today-s-market-view-including-noricum-gold-leed-resources-johnson-matthey-and-lucara-diamonds