diamond news, page-3709

MOTHAE DIAMOND SALE by Bonas in Antwerp: 25 Feb - 1 March 2019

(as per Bonas website).

SML Lulo Mine is scheduled to have a SODIAM OPEN Inaugural Diamond Tender with 7 great Specials (as we all know)... its in January 2019 - nobody knows when ??? and its the end of 10 January 2019 now (1/3 month gone).  

YET Mothae can say exactly when in February 2019 it is having its second Mothae diamond sale (1st commercial production, last sale was trial mining).

Do wholesale buyers NOT attend Angola, Luanda to inspect the stones?  Perhaps they have seen some of them already 6 months ago?

Does SODIAM presume new buyers - who have not transacted prior, now openly allowed, not view or attend at end of sale - these new players just TRUST??

It is perhaps nice to see the second Mothae stone sale is basically 3 months after the first sale - perhaps establishing a quarterly sale program?

Is this something LOM should tell ASX?

Do other Hot Copper participants expect this is ROM - run of mill... sell all diamonds Mothae has - especially as PROJECT Cashflow is challenged at start-up?

Mothae BOD seems to have quite long ago through LOM told ASX that a project loan is in process or sought?  This was said to return project establishment funds (mentioned when talking about PLANT) to LOM eg a cashflow issue... shoud some Banking Application update occur after what seems like months?  I am unsure if this is supposed to include some amount of the acquisition fee for 70% think was US$8m?  If It does the larger amount to LOM is relevant given multiple works underway & 15% interest South African loan LOM has in place.

Logically debt "borrowings" will be low % of assets valuation on a new "untried" (and sort of untested?) Operation, also conscious of OPEX and trading cashflow positive or slightly negative for duration banker content with (influenced by volatility of diamond industry pricing / Mothae stone type revenue volatility - mine scheduling - high grade ore).  It seems the realised first Mothae sale revenue may have caused delay / DD banker queries imo.

I guess all borrowings / real Cashflow, will be updated in QAR, was SML distrivution funds to LOM used "promptly" 2 Jan 2019 to pay US$1.875m (of US$15m facility) or is this yet to be repatriated?

President L. undertaking 22/12/2018 for funds up to US$5m PROMPTLY - really is tranaction 1: repayment of capital US$4m & second issue "dividend" US$1.6m making up US$5.6m less FEES sent/received to LOM in Australia.  BOTH enacted & CLEARED RECEIPT OF FUNDS?US$1.6m is for ongoing LOM (not SML) Angolan kimberlite exploration on exploration tenement - do not expect to leave Angola so US$4m RECEIVED OZ?

GLTA - definitely an interesting, revealing  7 weeks ahead of us.