Anyone think there might be some M&A activity on the horizon for...

Anyone think there might be some M&A activity on the horizon for the diamond industry?

The whole sector has been in the doldrums for what seems like a long time, with the market caps for some of Lucapa's peers looking similarly grim.

Gem Diamonds: 14m GBP
Petra Diamonds: 92m GBP
Lucara Diamond Corp: 162m CAD
Mountain Province Diamonds: 37m CAD
Burgundy Diamond Mines: 255m AUD

The point of difference between Lucapa and others in the industry, IMO, is the heavy debt burden that some are carrying. Lucapa also arguably has one of the most, if not the most, prospective pieces of diamond real estate in the world in Lulo.

I can't see any of Lucapa's peers lobbing a takeover bid, it's more likely to come from one of the majors. But the whole sector is looking ripe for some M&A activity, IMO.

As far as Lucapa is concerned, it's hard to see anything happening before the new MIC is formalised - but things could get interesting later this year if things do eventuate as Lucapa has forecast.