Ann: Consolidation/Split - LOM, page-15

There have been plenty of things in Lucapa's history that have caused me a degree of outrage, but I don't mind this. I'm as unhappy as anyone else about our share price performance, but we are where we are. 3.2c yippee.

We will all hold proportionately the same number of shares post a 5:1 consolidation. I don't see this as a license to the board to start issuing new shares like confetti (as has occurred in the past). It is well understood that some funds and investors prefer a smaller register. So our board obviously thinks this could attract new interest, new investors to the register. I don't imagine this would have been put to shareholders without Ross Stanley's support. He has more to lose than just about anyone.

I recall LOM shares doing quite well post the last consolidation - before the many cap raises, and value eroding decisions. But the company is now in good shape, debt free, and expecting some significant cash returns. We are all hoping for a good outcome with the new Lulo kimberlite MIC - and we are all certainly hoping to see uplift in our share value.

There is a certain irony in restoring the share value to what it was 5 years ago through removal of 80% of the SOI. But nevertheless, I'm in favour of the 5:1 consolidation. If a cap raise follows, I'll be the first to grab my pitchfork.