Ann: Mothae Diamonds Sell For A$5.3 Million, page-28

Just a small addition to my last post, production can go either way - and usually early stage production (of any mine) is often plagued with problems. My view is that today with modern day technology early stage production doesn’t tend to have the 12-18 month delays of the past... Better machinery, better technology, faster processing reduces risk whilst increasing through put - so we get to the high grade stuff quicker.

I see the key to Mothae just like GEM Diamonds operation as being when we start pulling specials. If that’s today or 12 months away I don’t know. But when Mothae starts doing this profitability becomes exponential - let’s say Mothae needs 6000 cts a month to keep the mkt happy - and let’s say that Mothae can deliver this MoM - should we find one special - that’s all profit, should we find 2 well that almost pays for the year - should we find more well we then have a company that’s pulling in more profit than its current mkt cap. 

finally the LOM BOD are experienced with mine production (unlike other company’s that I have owned in the past whereby they didn’t - that’s a HC lesson in its self...) and that’s the point of difference with any new project coming online. It’s no guarantee of success, but it certainly helps. 

In the meantime, downplaying a companies ability to survive at such early stage production and highlighting risks is no “new news” it’s actually why I’m here - as the potential upside makes the risk worth it. From my experience the only time you really know is after the event, it is what it is. Most of all it’s no different to any other early stage producer. Remember we produce in low cost regions, a HQ commodity. We’re not trying to hand make plastic buttons down Pitt St in Sydney... (although the current LOM SP would say otherwise) 

Full respect to those who move on, as everybody has there own mkt strategy. 

have a great weekend LOMers