I agree with all of what you say. I still think I’m a chance of...

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Timmyk

2,220 Posts.

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15/02/24

20:35

Post #: 72431866
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Originally posted by agj26 ↑

The LOM market cap is sitting in the low $40m's which is utterly bizarre, especially considering the USD $10m in funds due to land in LOM's Australian account in the near future, debt from the development of the Mothae mine fully repaid, no need to raise capital, and likelihood for more favourable terms on the Lulo kimberlite JV to be announced soon.

If you discount the cash, our current share price collectively values LOM's assets at something like AUD $30m. Try to make sense of that - Lulo, Mothae and Merlin. $30m.

There are frequently views espoused on this forum about the perils of investing in Angola. Interesting to see this news from the last week - De Beers obviously thinks different.
https://bnnbreaking.com/world/afric...toric-partnership-to-boost-diamond-production

Also interesting to compare the valuation of Minbos with its flagship asset in Angola at ~ $70m. Different markets admittedly, but same jurisdiction. No processing plant, not even a design for said plant. While LOM, with an operational mine generating good returns, and huge potential for the discovery of world class kimberlite pipe(s) is valued at a lowly $30m - throw in Mothae, and Merlin while we're at it.

Time for investors on the ASX to wake up to Lucapa. It's become an absolute joke, and the share price a travesty for her shareholders.

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I agree with all of what you say.
I still think I’m a chance of picking some up at 10c post consolidation though.
And that will be my buying done.

LOM Price at posting: 2.9¢ Sentiment: Buy Disclosure: Held
2 Upvote

0 Great analysis

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