If the outcome is positive, expect trading to commence after the announcement, and then the market will decide what price the shares should sit at. I don't expect a wild ride on the share price, it'll hover back to the prices around when the diamond sale was announced - as this is the price that would've had the sale built into it.
If the outcome is negative, I expect LOM will request a suspension in trading to need more time to figure out what to do - proceed with the strike: how long can they strike until the money runs out, and the Angolans' declare that LOM isn't a feasible operating entity anymore, and grant the licenses to someone else. Or, alternatively, find some more funding.
Sale or not, I don't know what striking will achieve, they need to keep finding more diamonds, and selling more diamonds, the sale of the 131ct was just a short term revenue funding requirement - which they can achieve by other means. But of course this would dilute shareholder value.
Personally, I'd rather see my shares be diluted, and keep the company ticking along, than to strike, and potentially lose it all.
LOM Price at posting:
0.4¢ Sentiment: None Disclosure: Held
