Ann: Annual Report, page-47

Against my better judgement, I made the decision to up my stake in LOM today.

I was reflecting on the Annual Report of 2023 compared to the Annual Report of 2013. To be fair, the business has come a long way.

The good news, as I see it.

1. Lucapa is undoubtedly becoming a mature business, and with a market cap of $50m and net asset value of $120m, our share price feels a long way off fair value.
2. Zero or potentially negative value is currently attributed to Mothae. It feels like they may be close to unlocking some value and positive cash generation from Mothae. As always, there is the potential for one extraordinary diamond recovery to change things. The debt owing to Lucapa is also significant and accruing interest. A turnaround here could be a big value driver.
3. Feasibility study for Merlin close to being finalised. The last quarterly report indicated the results will be published in Q2 - ie next two weeks. I'm tipping a good report. Interested to see the impact of the plant recently purchased by LOM.
4. Bulk sampling activity at Lulo. We all know the potential. I'm tipping a big second half of 2023.