Lucara Diamond Corp T.LUC

Lukas

[tadjames1]

Just heard an interview from him and his kid and he said they have done stuipid things before. I think the dividend policy was one of the biggest ones.  Lucara would be in much better shape financiallyat this time. Anyone agree ?

[Gerrywerry]

No great surprise that I agree with that James . It was close to a company destroying decision. We will survive the decision but even with a slight bit of sense lundin wouldn't have put us in this position  but he did . It wasn't William or eiras fault it was all down to lundin .

[nyoni]

They have the big picture - we don't.

[Gerrywerry]

The picture is blatantly obvious . They had a pile of money and knew they needed a pile of money for the underground and didn't hold any money back for what they knew was coming down the line. What other picture can there be . The proof of the disastrous decision is shown in the share price .  Don't you agree?

[nyoni]

I'm not so sure that going underground was a given. Ostensibly,  EMPKS was only discovered during pre-feasibility drilling. Up to that point they may have been  intending to sell Lucara off....Perhaps giving rise to the  "We don't have to go underground" remark? In which case milking the dividend would have been a reasonable move.

[bricksnmorter]

Nyoni, I concur.

[Gerrywerry]

In that case they should have waited until they knew one way or the other if the underground was going ahead or not before deciding on the dividend or not .  Even if the underground didn't go ahead they would have needed the dividend funds  to secure an alternative future for Lucara . In every  scenario I can think of the dividend was just implemented to early. If you can think

[nyoni]

But there was something that pulled the rug from under cash they could have expected to receive  in the run-up . Covid.

[Gerrywerry]

They took a chance and unfortunately for us it didn't work out .  All they had to do was hold back 100 million and we would have had no issue with the underground and if  it turned  out we didn't need that 100 million for the underground we would have got it in dividends just a bit later .  It just prudent  house keeping . Don't you think it would have made