Also important to remember that this Company is an Explorer transitioning to a Miner (and Explorers are a category that has seen a huge loss of investor confidence with the crash of commodity prices [regardless of the fact that diamond prices have not crashed, it is still within the Explorer category])
Additionally this is in the Diamond Exploring business... which has a success rate of 1 in 1000... so another thing to scare away investors.
I agree that If/When they can show a positive cashflow for 2 consecutive quarters this Stock will be rerated from an Diamond Explorer to a Diamond Miner, which will have a very positive influence on Investor Confidence.
Things to watch for as turning points in the next 5 months.
1) Finding of Very Large stone
2) Consistent high quantity of Large and Special stones
3) Confirming another Diamondiferous Kimberlite
4) Indicating that 1 of the Diamondiferous Kimberlites is showing strong numbers to indicate it beinger Commercially Economic
5) Bridging Loan
6) Increasing our 40% Stake in the project as we have been said to have first options on that
7) New Heavy Machinery Fleet arriving to site
8) Take over talks (unlikely)
Talk of getting options exercised to boost Cash... I think shareprice would need to remain at 40-50c range for a good 2 weeks close to expiring.. and then you might only get 50% exercised.
ALL MY OPINION ONLY
LOM Price at posting:
21.5¢ Sentiment: Hold Disclosure: Held
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