At the AGM I did not see anyone else writing stuff down so I guess I better.
Please forgive my lack of presentation as I figured others would be doing minutes.
Please dont be silly enough to base any investment decisions on a retired scrap metal
dealers interpretation of a presentation by men infinitely more clever than I.
I spoke with SW prior to the meeting and he confessed he never looks at the share
price as it may cloud or influence his decisions. His plan is written out in intricate
detail and unless something significant interferes, they put their heads down and just
keep boring ahead. Re price, he mentioned that every year the SP languishes during
the wet and there are no finds to stimulate it.
There were about 45 people there in the audience....right hand side was 20 or so
journos, techs, market type people in suits mainly and the Westar finance people also.
Left side no suits, but we did have the biggest shareholder in our front row. His
phone rang half a minute into the preso and Myles quipped quick as a flash,
“that will be Dennis’s broker, Tell him to buy more.” Much laughter.
I will concentrate on Lulo info that I think came out in addition to what I noticed in
the official programmes we were given and Ive flicked thru the threads.
Firstly, this mornings info is the drill is now down to 72 metres and still in coarse
kimb material. SW says excellent..... ‘coarse large material = coarse large products’.
The latest find has been attributed to the latest technology being employed and the
helicopter survey finding E14 2 klm with that tech. Yes, 2 klm upstream....but it
turns out that is a double signature and its under the river.
They dont seem at all concerned. Seems diverting the river in Angola is not going
to cause a headline like if a miner wanted to divert the Swan or the Yarra. It will
happen if it needs to. Where they need to divert it is not very wide at the end of
the dry but a raging wide torrent in the wet and still pretty full now.
In the last 2 weeks of dry, they have been able to confirm a further 4 Kimbo pipes.
Now that the dry is allowing access, Mining pits 6 and 8 should give up more good
diamonds.
Turns out the little Land-cruiser Sedi drill is the hero that gets to drill the kimbos
first with its auger capacity to help the geos find where best to drill cores.
To access some of this acreage is easy for a 4wd land-cruiser with a drill mounted.
Can leave in the morning and have the target augured by smoko which beats 3
weeks building a road and a makeshift bridge so the big drills can get there.
Meanwhile the geos get their shallow samples quickly to see if its worth drilling.
Within the first minute of SW presentation, he declared that no matter how many
Kimbos we find, we will definately find the one that has produced the large top
quality diamonds we are finding scattered in the alluvia’s, just a matter of working
thru them.
No longer do they send a ute with 7 blokes in the back and 3 in the cab.....they
have a bus that ferries them in and out as needed. (I think I paid half of that bus).
SW concedes its a day traders delight.....more shares traded (334 million) during
2016 than the total register.
Notes that the directors accounted for 1 million to the till.
The plan is to keep 4 years mining lined up in front. As an area is exhausted,
new areas will be identified. 50 kilometres of river is a lot of territory to explore
and process so no danger of nothing to explore.
Re talent, nah, I will do another post later.
Management are very pleased that they have a workforce of 270 people, mainly locals.
Some had never seen a bicycle yet have been trained by Lucapa to dump truck drivers
and all sorts of operators etc.
The batch of kimbo core will take 2 months to analyse before we get results.
All resos passed unanimously.
Of the 4 questions, one I asked of Myles during question time was had they moved on
the oversize stockpile? He said the bad news is that they have churned through most
of the oversize stockpile during the wet and not found another whopper, but as SW
quipped, the heavy diamonds would have fallen thru to the bottom of the estimated
2,500 tonnes of O/size remaining.
So, still in with a chance.
I will call this a take and address Staff, Ellendale, Mothae (pronounced by management
as My-tye) and Botswana tomorrow.
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