Yeah that's correct del .. Lucara have never said it was not economic.. at the time they decided they didn't have the money to develop the two mines and pay a dividend to the shareholders.. " shareholder value" ( $27m in 2014 out the $100m balance ) so they choose to continue to develop Karowe which at the time a greater portion of their cash balance was already assign to do.. and Karowe was shaping up as something very special.. where would you want to spend your limited cash in development? and be able to continue paying dividend the following year to the shareholders to keep them happy?
If they had of decided to develop Mothae the shareholders wouldn't get any dividend.. they wouldn't be happy campers would they? Mothae during trial mining was consistantly exceeding their expectations .. they had done several CR's to fund Karowe development while Mothae was on C & M and you can see why they were so excited about Karowe as that was just producing stunning results.. Paragon failed to meet the funding deadline and Lucara had to hand Mothae back to the GOL.. Paragon had two independant studies carried out on Mothae to prove it was an
Economical project..
Further more.. quite a few larger stones were broken during the trail mining..
LOM Price at posting:
26.0¢ Sentiment: Buy Disclosure: Held
