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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 puma1on Dec 22, 2018 11:02am
93 Views
Post# 29150196

RE:RE:RE:RE:RE:SP

RE:RE:RE:RE:RE:SP
interesting opportunity costs here now for LUC.

1) there are a number of good oil & gas companies that have also had a most brutal 1 month 25% or so decline. so they are on equal footing here.

2) on a 3 month comp LUC is down a third whereas many of  the O & G ones are down 50% from only 3 months ago but there is more informtion out on the O & G than for LUC in that period.

3) some of these  O & G hae already cut their divdends for Q4 whereas LUC will presumably cut it in Q1 of 2019 so on an income basis a substitution could be profitable.

so, do you unwind LUC and risk that oil will recover faster than diamond commodity pricing and any meaningful traction of CLARA in the marlet place?

the Q3 update for LUC gave a pretty broad summary of where the company was operationally and strategically so while it is easy to see why the O & G had such a rough month, it is much harder to understand the relative performance of LUC.

a total cut of the dividend and a marginal resource acquisition by LUC in the next quarter could have a very hard effect on the price of LUC.
Bullboard Posts