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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 Aug 24, 2018 8:00pm
155 Views
Post# 28515892

RE:RE:Metrics

RE:RE:MetricsClara is 100% owned by Lucara so there will have to be some internal arrangement about how the accounting works for Karowe stones. The price to the customer will have been agreed online and the Bots govt royalty will be 10% of that (to be paid by Lucara). In the case of Botswana, stones for export will also attract 10% export tax which is payable by the exporter (buyer).
Just how much will accrue to Clara vs Lucara from Karowe stone sales has not been revealed yet. It matters because there is a management rake-off from Clara's EBITDA.
We assume that the savings from eliminating middlemen more than covers this and is still a plus for Lucara.



When it comes to stones sold on behalf of other producers it will be a different story; probably a % commission? The producer concerned will be responsible for any royalties due any govt involved. Similarly the buyer will be responsible for any export taxes.
Bullboard Posts