Lucapa Diamond - Make way for new price increases...

Lucapa Diamond - Make way for new price increases

http://www.goldinvest.de/index.php/lucapa-diamond-bahn-frei-fuer-neue-kursanstiege-34023

While the market difficult was under pressure in the recent past, and capital was withdrawn in huge quantities from the mining sector, was the Australian diamond producer Lucapa Diamond (WKN A0M6U8 / ASX LOM) one of the few bright spots - mainly due to the exceptional size and quality of diamonds that promoted the company.


Despite the difficult overall situation Lucapa could accommodate about 20 million AUD to capital and use it in the last two years, namely, to make significant, operational progress. This included especially the expansion of alluvial production, but also the discovery of a 404 carat diamond which was sold from Lucapa and their partners for 22.5 million AUD. This made the company's stock to rise up to 0.49 AUD. Then, however, the paper was back up to 0.32 / 0.33 AUD.Why?

Well, Lucapa had outstanding approximately 68 million options with an exercise price of $ 0.30 AUD, which expired on April 29 this year. As might be expected, the stock was pushed toward the strike price, but since last week, since the options are no longer traded, the share was already recovering. The pressure on the shares should thus be history. It is now to be expected that the share price may develop minor again in the future and therefore a resumption of the upward trend previously observed is possible.

Lucapa reported that you could redeem some 9 million AUD from the exercise of options and considers that, in coming few dollars more. (Potentially, the exercise of all options, a profit of 18 million AUD would be possible.)

This means that cash to increase considerably. A portion of this capital is expected to use it to purchase plant and equipment to double in the coming months the alluvial diamond production to 40,000 cubic meter per month. This should also lead to the operation yields more cash.

And all the news about the extent and quality of kimberlite pipes on the Lulo project - in particular kimberlite L259 where Lucapa the source of numerous exceptional diamonds suspected that you block 8 and 6 found in the mining areas - can therefore affect the price, without the "distraction" would by the widely traded options in the way.