The vast majority of the US49 million will not be needed for another 2.5 years as it relates to the development phase two mining of the mothae mine.
Drilling costs at Lulo is covered from repatriated funds that is kept in a Angolan bank account.
The revenue from Alluvial diamond mining at lulo is expected to increase substantially as the mining operation has been fully developed as of the end of the last dry season.
Over the past two years revenue had been limited due to the huge spend on upgrades of camp,roads.bridges.workshops.dms plant and extra earth moving equipment.
All that money that was spent on the above will now not need to be spent resulting in extra revenue over future years on top of extra revenue created from the upgrades.
The next Block 6 and 8 mining figures will show investors the real potential for revenue from diamond sales.
IM tipping another US60 to US100 million in diamond sales before the next wet season,because surly that 404 carat diamond was not the only one to be found.
LOM Price at posting:
33.5¢ Sentiment: Buy Disclosure: Held
