6mthly Post Pro's and Con's

This is a continuation of my first Post on LOM in Nov 17- Pro's and Con's

Good luck to all.

Con’s
Angola

1. Repatriation of money- not seen much change in the process as yet.
2. Company has been slow to provide an updated JORC reserve statement for alluvials, not updated since 27^th Mar 17
3. Processing and turnaround of kimberlite drilling samples in SA is very slow
4. Kimberlite exploration is proving more complicated than initially hoped
5. Mining Blocks 6 and 8 are becoming depleted

Pro’s
Angola

1. Oil price is rising which augers well for financial stability of new government
2. Recent moves to re-regulate diamond sales through Endiama and access the Antwerp International Diamond market are positive
3. LOM is well connected in Angola and could potentially act as a farm in partner for other multinationals given the positive changes in political landscape
4. Other alternative mines for investing funds such as Mothae and potentially Brooking give LOM better bargaining power in negotiations for any potential Kimberlite mine
5. Potential expansion of alluvial resource to flood plains and other areas yet to be sampled and explored

Con’s
Mothae

1. Political instability in neighbouring SA is increasing

Pro’s
Mothae

1. Bulk sampling plant is commissioned and producing diamonds latest announcement today, 89 carat yellow from South Lobe
2. Bulk sampling plant is being used for sampling of areas beyond the 1m carat JORC resource. This is critical work because any upgrade in resource will positively extend mine life and NPV of Mothae. This has a double benefit for future cashflows and confidence in funding for this project and future projects.
3. Construction of 150tph plant is on target and within budget

Con’s
Brooking

1. Will only be a disappointment if a commercial resource cannot be discovered

Pro’s
Brooking

1. Sensational first discovery of diamondiferous lamproite in Jan 18
2. Drilling underway at Little Spring Creek and other priority targets
3. Potential company maker if it becomes the next large Australian diamond mining district.

Pro’s and Con’s Botswana

1. This is just another option at this time. The company will not be disappointed about the delays to the exploration program given all of the other focus in Angola, Lesotho and Australia.

Summary- Second half should see an increase in news flow from the company. The successful commissioning of Mothae may provide impetus for an increased institutional presence on the share register and or a significant discovery at Brooking. Mothae investment may eventually prove to be a strategic master stroke from the BOD.
The share price has oscillated between 20 and 34 cents in 1718 and is about 27 cents today. There seems to be a higher probability for continuation of positive news flow over 1819 which IMO should underpin interest in LOM.
Next Post Dec 18
Previous Post 25^th Nov 2017