Looks to me like the repayment of loans to LOM is being used to pay down debt, which is good. I do not think the loans made by LOM to the Angolans are interest bearing which is a shame (happy to be proven wrong) as we have suffered dilution and taken interest bearing loans to continue operations. However, if the relationships have been built and a higher % ownership of Lulo is forthcoming then this will have been a good investment. The sure thing is that the Angolans are making money on zero investment dollars with Lucapa building schools and infrastructure along the way. I have a large holding and am happy to see how this plays out. Some more communication and some actual results/updates on % ownership would be welcome. It seems it was an off the cuff statement that has had very little follow up. Mothae will sit on the sidelines until VAT decisions are finalised and some plant changes/investment is completed. Should become self sustaining at least in the near future, but positive cash flow appears a way off. Merlin looks promising with energy secured and mine plans progressing. I remain cautiously optimistic of Lulo and will continue to increase holdings by buying the dips. Remember we have mining and exploration licences that expire... If a kimberlite discovery is announced, I expect to see the SP up at around 30 - 50c. The KBSP has been plugging along for quite some time now and the river diversion should be nearing completion. This will be an interesting quarter coming IMO. GLTAH and please DYOR.
LOM Price at posting:
3.4¢ Sentiment: Buy Disclosure: Held
