LOM 6.67% 5.6¢ lucapa diamond company limited

Valuation & Price target for Wednesday, page-36

  1. 6,543 Posts.
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    Ok this bit from Canaccord report means a lot:

    . This could include a possible optimisation of the existing on-site 100 tph processing plant, including a reconfigured front end and improved recovery circuit, potential for in-pit screening, and assessment of leased versus purchased mining fleet for future possible expansions. On our initial early stage assumptions (throughput, grade, etc), we estimate the alluvial project could produce between 40,000-50,000 cts per year. LOM recently reported that it had excavated and sampled 9,452 bcm of gravels during the SepQ, recovering 696 stones with an average stone size of 0.77 cts. Included in this were two special stones comprising 10.15 ct and 16.5 ct Type IIa gem quality diamonds. Some fancy coloured stones (pinks and yellows) were also recovered. We see these results as encouraging, with both fancy colours and a larger average stone size supportive of higher possible diamond values and project economics.

    Now what that means is the tonnage going through the DMS will soon be refined that what was originally say a 100 tons of soil going through will now be screened through a process that takes the same 100 tons and turns that into say 50 tons allowing to a degree up to double the production at half the cost.
    Now put that into your recovery rate per carat/ton and it allows you to calculate the actual economics soon reduced to the equivalent of 2 dms's...yer you like that,say ello to my liddle dms...
    Dont quote me on that exact screening process as i'm still looking in to it...but its a win win
 
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