I am not getting too excited yet, but a great stepping stone. remember Australia only have 2 working mines and Argyle is winding down with view to close 2020 as it is mainly low grade material they are recovering now and they have always had a higher % percentage commercial to the rest of the industry and Merlin Diamonds in the NT and they are loosing their shirts presently cash flow wise. So to get from the result to a working mine I think is a long journey. Our best bets for short to mid term would still be the 2 African assets.
Now remember that Argyle is not a kimberlite mine, so hard to draw comparisions. It is I think the only mine ever to mine lamprolite pipes instead of kimberlites on that scale.
Think while the sample is showing very high numbers lets see if it is a very small pocket or the mother load, which will take time.
I have been on this train for a few years and see it doing amazing things in the next 3-5 years, but where we will have the most success is anyones guess but i believe we will hit pay dirt on a large scale in one of the areas (hoping anyway). Lulo to me is the best bet with the sheer volume and size in the alluvial.
Will be interesting to see what the anticipated payout to the company is from lulo after they finalise accounts etc and they may indicate the extent of any CR that may be neccessary. It would be good if they started to payout a percentage of each sale moving forward instead of waiting to end of year financials.
LOM Price at posting:
26.0¢ Sentiment: Hold Disclosure: Held
