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Lucara Diamond Corp T.LUC

Alternate Symbol(s):  LUCRF

Lucara Diamond Corp. is a Canadian diamond mining company with a producing mine and exploration license in Botswana. It is an independent producer of large Type IIa diamonds from its 100% owned Karowe Diamond Mine in Botswana. The Karowe Mine is the focus of the Company's operations and development activities. Its 100% owned Karowe mine is a producer of large Type IIA diamonds, more than 10.8 carats, including the historic 1,758 Sewelo, the 1,109 carat Lesedi La Rona and the 813-carat Constellation.


TSX:LUC - Post by User

Bullboard Posts
Comment by nyonion Sep 23, 2017 9:27am
129 Views
Post# 26734088

RE:RE:RE:RE:RE:BNN comment

RE:RE:RE:RE:RE:BNN comment
The stone to focus on is not the Constellation but the 374ct fragment of LLR that sold for $17.5M.

Assuming the same quality for 1109ct of the same stone, my estimate is:-

(1109/374)^2 x 17.54 = $154M

Both the Botswana govt and Lucara have an interest in selling it for the highest price possible, not only for the immediate revenue accruing but for making sure that future sales of high value stones are not compromised by establishing low precedents.

If the govt bought the stone to remove it from the market, their costs would be ameliorated by:-
a) 10% immediately from Lucara for royalty.
b) a further huge slice in taxes from Lucara.
c) a cost-benefit to the Botswana economy by supporting their number one revenue earner.

Bullboard Posts