Good buying under 20c

Great posting today @EagleOnEagleSt well covered.

Green light from @bungy234 re: Mothae speaks volumes. Thats worth more than any Euroz research report.

Here's why LOM is a Buy under 20c as of today:

Cash & Cash Equivalents at end of period: US $8.2m - most speculators didn't see LOM making it through Jan 2019... due to lack of cash & cash burn concerns - todays cash flow report shows that we are doing fine.

The increased recovered grade at Mothae helps with the Mothae JORC - and also makes for a higher valuation of the Mothae assets. First sale of commercial run of mine diamonds from Mothae Q1 2019, in Antwerp. No 12 month wait here - its Q1 2019.

Increased grade, full production, sale process in Q1 2019, cash equivalent of US3.9m @ end of Quarter and 3089 carats inventory is a fantastic start to ANY new mine - as production risk is always an early stage risk. Should Mothae start pulling specials this asset alone looks to be significantly undervalued by the mkt - So I rate Mothae Medium risk from here on in - no longer high risk.

Lulo - cash and equivalents @ end of quarter US $5m and a diamond inventory of 1935 carats - plus specials. Plus a significant drilling program - for a moment there I thought that Lulo was a drag on LOM - not the case.

Brooking - results pending late Jan/Feb.

Botswana - 2 year extension to the Orapa Area F License.

So there is nothing in either report today that makes me think that the TP on the next Euroz report should change, if anything the analyst has a problem as the grade increase at Mothae matched with increasing diamond production makes for an exciting next quarter cash flow positive forecasting (which he's not allowed to do, as research by law has to be reflective) this means that he should actually be increasing his current TP on LOM (61c) on the back of todays reports.

As for todays 18.5c - a quick comment having ridden out 6 tough weeks on HC - heavy selling from 22c Nov 19th 2018, to 17c on Dec 28th 2018 - bring us to 18.5c today has been mkt concern driven that LOM simply wouldn't make it - yep, Mothae is a curse, no money in the bank matched with blow out cash burn throwing LOM back into the emergency capital raise bin. This risk has now been removed - we dont need any money. Large volume selling on LOM's secondary listed German exchange shows a break in ranks of some larger long term shareholders - the word is capitulation, that is one buys in at 50c stock drops below 20c and one simply cannot take the pain any longer, we've all been there. I feel that the selling should start to wane from here on in, as the final dump down of tired holders slows up and new buyers start to enter the mkt. Should LOM be cash flow positive by next quarter, then we have what the industry calls a "tail wind" and thats when small to medium sized institutions start looking at cheap cash flow positive assets.

Have a great week LOMers - todays announcements are positive, and makes LOM a great punt under 20c. Let see what Euroz says