LOM 4.55% 6.3¢ lucapa diamond company limited

Sorry if the translation is not perfect but I just translated...

  1. 120 Posts.
    Sorry if the translation is not perfect but I just translated what was said. It's mostly a summary of the London presentation with a few additions.

    Lucapa diamond corporation is a growing diamond explorer and producer. It is listed on the ASX and the Frankfurt Stock Exchange. The company released 323 Million shares and has a market cap of approx 146 Mil AUD.

    The cash reserves are at a comfortable 9 Million AUD.

    The board and the management around CEO SW consists of experienced diamond and mining experts. Lucapa is already in production at it’s Lulo project in Angola. This project has a concession size of 3000 SQ KM and from 2015 the production is taking place.

    In it’s first year in 2015, a revenue of 9.5 Mil AUD was achieved, 8400 carat were produced and 113928 cubic meter were processed.

    2016 brought a massive increase in revenue to 51 Million AUD and many investments were done into fleet and plant. In addition to that, 195% of the average price per carat sold were achieved (2983AUD) as well as volumes and “Grad” (not sure what that meant).

    As a result of this, a strong cash flow was achieved which puts the company into a healthy position. The highlight was the sale of a diamond of 404 carat in February for 16 Million USD. 5 further diamonds weighed over 100 carat and 30 diamonds more than 50 carat. Additionally, there are the so-called specials representing diamonds of 10.8 carat or more. As a total, the company produces a high proportion of top Type 2a diamonds which additionally often come in rare colors.

    Though those earnings, further investments into XRT technology were made possible through the identification of Carbon 6. The production of low luminescing high-value - and type IIa diamonds could be improved significantly. Larger sizing screens were used to sort through the material and to process these in the XRT. The larger screens allow to identify rocks of up to 1100 carat. More than 20,000 cubic meter over-sized material are still stockpiled.

    Lucapa also invested into a new sort house and a new deeb boiling facility. From an investor point of view, it’s also interesting to see Lucapa’s long-standing relationship with Endiama (which started in 2008), Rosas & Petalas. With approximately 7% of the world’s diamond production, Endima is one of the world’s largest diamond producers. Rosas Petalas is a local partner and the "original seller”.

    Lucapa is operator of the Angolian Mining Firm SML and the explorational operation - the Lulo Project.

    Now let us take a look at the exploration itself:

    At Lulo the drill capacity was increased by adding a second drill rig to the kimberlite exploration. A third drill rig can dig as deep as 2000 meter and is on its way. To accelerate the exploration, a large airborne EM survey is being seeked to determine additional non-magnetic targets and to further determine the known targets. The new kimberlite programs were approved by the Lulo partners and are, more importantly, fully financed.

    Lucapa also owns further projects in Botswana and Australia. The results are yet to be obtained for Botswana but in Australia micro and macro diamonds could be found in the first phase of exploration.

    Lucapa is on the right path to become a mid-sized alluvial diamond producer which is about to start the third year of production in 2017 entailing a further growth in production and exploration.

    Through its local partners, the risk of operating in Angola as a country was decreased while the profitable production provides the company with much flexibility. Take a look at the company and paint your own picture. Thank you for watching this and bye from Munich.
 
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