RE:Scotia Updatewhen you read their thoughts below you can appreciate that our new CEO really , really knows the geology side of the business..................... maybe the expansion in reserve understanding will almost be equivalent to her finding a new mine
soxman wrote: From ScotiaBank:
Latest Research June 28 2018:
OUR TAKE: We've updated our model to reflect LUC's updated resource estimate that incorporates a significantly larger high-grade EM/PK(S) zone, particularly at depth. We expect the high-value EM/PK(S) ore to improve the economics of the South Lobe underground project and as a result our NAV has increased by 5%; we think the upcoming feasibility study (FS) in 2H/18 could be a meaningful catalyst for the shares.
More importantly, it's now clear that LUC has really only scratched the surface of the EM/PK(S) zone, which was the source of most of the largest stones found at Karowe. Overall, this resource update increases our confidence in LUC's ability to regularly deliver high-value diamond production going forward, which we believe is key to the stock re-rating from its multi-year low valuation (~0.65x NAV). Reiterate Sector Outperform.