Good post, Bungy!Well, anyway, it inspired me to put my hand up...

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Bagman22

9,397 Posts.

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02/02/24

15:22

Post #: 72208271
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Originally posted by bungy234: ↑

Diamonds are such an important commodity to Angola, that any significant change in the gazetted terms of a kimberlite will require approval from the president, João Lourenço.

From the limited narration by LOM on the subject over the past few years, I think we can assume that our two partners have agreed that LOM should receive a majority stake.

This is not only important for Lulo kimberlite development going forward, but it also brings the MIC terms into line with Angola’s current policy.

The way I see it is that if LOM failed in its goal to acquire a majority stake, and we pulled out, the Angolans will have to attract a new partner.

That’s HIGHLY unlikely to occur, unless they offer a new partner a majority stake, and that majority stake could be more that what LOM’s after.

It’s very difficult to analyse the cause of the hold up, but if we call upon our experience dealing with the Angolans, then we can assume that the delay is solely due to red tape.

Furthermore, the Angolans approach to timelines is very much a laissez-faire attitude. The fact that the current gazetted contract will expire in several months time, will have minimal motivation for the Angolans to expedite the new MIC.

No offence, it’s in their culture, and it needs to be respected!

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Good post, Bungy!
Well, anyway, it inspired me to put my hand up yet again; not that I needed much inspiration. According to my screen, the MC of Lucapa Diamond Company, using 3c as the mkt. price is ~$43m. which is a total joke given current assets and potential, which we have highlighted here ad infinitum. There looks to be real value to be had here. I'm hoping that Warwick was right, hinting that Simon Lee might have another look at it, but if it's not him it will be someone else, I don't think this environment can last a lot longer without attracting attention. Perhaps, the MIC and % adjustment is what will bring some life back to the stock in coming weeks.
All IMHO!
B22.

LOM Price at posting: 3.0¢ Sentiment: Buy Disclosure: Held
19 Upvote

3 Great analysis

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