LOM

2.33%

4.4¢ lucapa diamond company limited

Good benchmark for LOM... potential AK6 deposit Botswana From an...

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19/06/16

09:16

Post #: 18066340
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Originally posted by Quicksilvasurfa ↑

I would only add two things to this.

1/ I would not be using numbers from what the board said at a general meeting, I would be trying to work out actual cost so far from the cash flow reports.

2/ There is absolutely no point in using a market standard PE ratio, or even comparing PE ratio's from other diamond companies when trying to work out a valuation for LOM. One of the biggest factors that goes into deciding a PE ratio for a mining company is life of mine.

The best way I can think to explain this right now is, if a company was making $100 million per year, for 2 years production then the PE ratio would be extremely low as the company only stands to make $200 million over its life, therefore its market cap would be low. I mean you are not going to have a company that only stands to make $200 million in its life, valued at $1 billion.

However a company that was making $100 million per year for 15 years would have a higher PE ratio and market cap as they would stand to make $1.5 billion over the mine life therefore valuing that company far higher.

As far as the kimberlite goes, well it would definitely add some value to your valuation, but until it is actually found and proven, that value would be negligible.

To be honest, I have no idea what the current mine life for the alluvial's is, so I wont attempt to put a value on the company.

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Good benchmark for LOM... potential

AK6 deposit Botswana
From an indicated resource of 51 million tonnes containing 8.2 million carats of diamond, the mine design delineates Probable Reserve of 36.2 million tonnes of ore, containing 6.3 million carats of diamond in an open pit to a depth of 324 metres. The reserves are mined over an 11 year mine life.

LOM Price at posting: 34.5¢ Sentiment: Buy Disclosure: Held
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(20min delay)
Last 4.4¢		Change 0.001(2.33%)		Mkt cap ! $12.76M

Open	High	Low	Value	Volume
4.2¢	4.5¢	4.2¢	$26.27K	608.5K

Buyers (Bids)

No.	Vol.	Price($)
1	11355	4.4¢

Sellers (Offers)

Price($)	Vol.	No.
4.5¢	105818	3

View Market Depth

No.	Vol.	Price($)
1	11355	0.044
1	24000	0.040
1	77958	0.039
1	45446	0.038
2	113000	0.037

Price($)	Vol.	No.
0.045	105818	3
0.046	180000	1
0.048	150000	1
0.055	8000	1
0.062	120000	1

Last trade - 15.54pm 01/11/2024 (20 minute delay)

LOM (ASX) Chart

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