SP Angel say BUYLucara Diamonds (CVE:LUC) C$2.51, Mkt Cap C$380m Results come in at top end Buy Target Price C$2.80 Revenues of US$223.8m at the upper end of guidance and beats our expectation at US$220.1m. Revenues achieved on 377,136 carats at US$593/carat with a higher carat per value achieved based on continued strong pricing for exceptional stones. For exceptional stones the price achieved was US$31,597/carat down 3% on last year with regular tenders at US$335/carat up 5.3% compared to 2014. EBITDA of US$134m is above our expectation at US$124m. Year to date costs per tonne at US$29/t better than forecast at US$34.7/t. Year end cash of US$134m higher than our forecast at US$98m reflecting a better performance at the EBITDA level due to operating costs and lower capex at US$36.3m against our forecast of US$55m. The companys first exceptional tender for FY 2016 is expected to close in April 13 2016 this will not include the large stones recovered in November last year. For next year the company is forecasting revenues of US$200-US$220m which excludes the sale of the two large stone Lesedi La Rona (the 1,111 carat stone) and the 813 carat. Ore mined of between 3-3.5/t with waste mined of 13-14 Mt with operating cash costs of US$33.5 to US$36.5/t our forecasts are based on the lower end of the range. Conclusion: These are good numbers with a small beat at the revenue line from our forecast with better than expected performance on operating costs improving EBITDA and lower capex than we had been projecting increasing year end cash to US$134m. For next year the base line of revenues without the two large stones is guided at US$200-US$220m we are at the lower end of that number with our revenues for next year reflecting our estimate of US$100m for the sale of the two large stones. Either way FY 2016 should be a bumper year for Lucara Diamonds with base line sales and the sale of Lesedi La Rona and the other large stone adding to the cash piles. We continue to be buyers. https://www.proactiveinvestors.co.uk/columns/sp-angel/24334/today-s-market-view-including-avenira-lucara-diamonds