LOM

I am new to HC, and am interested in buying some shares in LOM. I like the diamond producer space, especially after reading the below tweet from WSJ only the other day, if anybody has anything to add, or if I have missed anything feel free to correct me where I am wrong:


WSJ Wall Street Journal
A looming global diamond shortage is driving companies and workers to brave harsh weather in southern Africa https://t.co/ehDu0xQkhH
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Diamond demand seems to be picking up (globally) at the same time supply looks to be peaking, makes for interesting  dynamics to come in the sector.

The Economist published an interesting report re: why diamond production may be about to peak:

https://www.economist.com/blogs/economist-explains/2017/03/economist-explains-5

Why LOM ?

Well, I feel that fundamentally LOM is an interesting diamond play, and may I add one of the few that actually have a mine in production – even if it is an alluvial operation – one has to start somewhere when it comes to exploring for diamonds, and having an alluvial operation running at a good profit is a start. I remember the old days of listed diamond stocks on the ASX, and these guys were always drilling J Kimberlyte or not, very few ever actually turned a profit along the way, hence making LOM interesting to me simply because atleast they are out of the starting blocks And hey maybe with some further drilling upside now that the wet season is over LOM might be able to deliver exploration upside – unlike the old days whereby there was no  production, and you’d have to wait 9 weeks for the drillers to get the rig out in the middle of nowhere, sink a few holes, then wait for the results…by the time that was all done, another capital raising would be on the cards J

Should the drilling turnout to be less than impressive, atleast LOM has the Mothae Project to fall back on in 2018 – which going by Hartleys latest research 11^th July 2017, has a potential payback period of 18 months:

http://www.lucapa.com.au/sites/luca...remium-Value Diamond Production -Hartleys.pdf

Anyway going by the recent poor performance in the share price, which unless I’m missing something, going by the latest HC posts, seems to be more to do with the largest shareholder  by the name of Carrington Corp – who currently hold 4.97% of the stock. To me it seems like LOM is caught up moreso in a very large shareholder trying to sell down there holding issue vs strong LOM fundamentals – CASH/Drilling upside/2^nd mine production 2018/Strong Alluvial diamond production 2017 – and a strong outlook for Diamonds.

Sorry about the long list, let me know if I’m missing something.

I suppose the $64k question is what is Carrington Corps real intentions ?