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LOM - Lucapa Diamond Company

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9th July LOM

Lucapa Diamond Company advised that it has now recovered 12 kimberlite diamonds from preliminary surface sampling of priority kimberlite pipes at the Lulo Diamond Concession in Angola. Four diamond-bearing kimberlite pipes (Se251, Se019, Se257 and Se170) have been identified at Lulo to date. Six Lulo kimberlite diamonds from two pipes (Se251 and Se257) have been confirmed as Type 2A gems, which are among the world's rarest. Preliminary testing of priority kimberlite pipes at Lulo is ongoing.

The SP jumped $0.12 on the announcement.
 
Well I've just sold out of this one as it has run very fast and hard over the last couple of days. Based on nothing more than gut feeling, my opinion is that there in more downside than upside in this stock at the moment. Will still be watching it with interest though as there is clearly a lot of potential in this one. However I will need more good news and or the share price to fall to a level more appropriate for a junior explorer before getting back into this one. One possible scenario for holders to think on is if/when management prove a mineable resource in one of the kimberlite pipes, how will they find the capital to pay for mine development? Will they undertake another capital raising? Will they look make the company attractive for a takeover by one of the majors? Take on debt? However this is all hypothetical and at some point in the distant future. Like I said all of the above is just my opinion and I get things wrong regularly so DYOR and form your own opinions.
 
Warning to the oppie holders out there (esp those who are looking to buy).
1) If you don't exercise asap you're gonna miss the 1:2 free oppies (massive dilution/price falls)
2) If you buy today your oppies won't settle in time for conversion, and you'll diluted as above.
Thus the 5c disc to intrinsic value on the options atm
 
Trading Halt:
A 35-year Mining License has been granted.
Here's one happy holder :)
 
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01592254
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01592593

You would've thought that secured finance and the show of some early mining results would have created more of an interest. But Ms Marquette remained rather coy. Aren't "diamonds a girl's best friend"?

LOM n 22-01-15.gif

ah well - leaves more shares for me ;)
 
Looks like those loyalty options are going to expire worthless.

Just more of the same in this never ending story.
 
pixel said:
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01592254
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01592593

You would've thought that secured finance and the show of some early mining results would have created more of an interest. But Ms Marquette remained rather coy. Aren't "diamonds a girl's best friend"?

View attachment 61261

ah well - leaves more shares for me ;)
Click to expand...

Hi Pixel,

What are your thoughts on the chart? I am a little nervous at the moment.
 
Yeah, I am patiently waiting for the next announcement to make real the triple bottom to blue sky theory but getting very nervous given the downward pattern of the chart. I do find the current volume strange when comparing against prior trending, either side of announcements, but I don't know what to read into it.

We'll see soon enough I guess.
 
65 carat type 11a diamond found to add to the list. Slight lift in SP but IMO someone is accumulating and holding the price down. Can't wait for the results from sale of next parcel as well as Bridging Loan details.

GLTA
 
Tsubodai said:
65 carat type 11a diamond found to add to the list. Slight lift in SP but IMO someone is accumulating and holding the price down. Can't wait for the results from sale of next parcel as well as Bridging Loan details.

GLTA
Click to expand...

How can accumulation keep a price low?
 
Tsubodai said:
Let me rephrase. IMO there is manipulation of the SP occurring, in an attempt to keep it @ or below 20c for the purpose of accumulation.
Click to expand...

Very unlikely to be manipulation yesterday as volume was significantly above average. The low close was more serious selling pressure. Today's effort will confirm...or not.
 
Tsubodai said:
Let me rephrase. IMO there is manipulation of the SP occurring, in an attempt to keep it @ or below 20c for the purpose of accumulation.
Click to expand...

Interesting theory, but does it stack up to actual trading?
Below is a Report of LOM trades between Jan-5 and Apr-13, sorted by Net Value. Generally, I consider Commsec and E*Trade to be mainly used by retail clients. Investors with "deeper pockets", i.e. those that may have the clout to manipulate and accumulate, would usually liaise with larger firms.

LOM BrokerRep 5Jan-13Apr 2015.png

At least that's my theory fwiw :2twocents
 
pixel said:
Interesting theory, but does it stack up to actual trading?
Below is a Report of LOM trades between Jan-5 and Apr-13, sorted by Net Value. Generally, I consider Commsec and E*Trade to be mainly used by retail clients. Investors with "deeper pockets", i.e. those that may have the clout to manipulate and accumulate, would usually liaise with larger firms.

View attachment 62305

At least that's my theory fwiw :2twocents
Click to expand...

Thanks for the spread sheet Pixel and I do appreciate your opinion.
I notice that Commsec and E*TRADE are carrying the burden for most of the buying, while the big firms at the top of the report are heavily weighted towards selling.
For me as a novice, this looks as though large investors are gradually getting out while the retail clients are buying in. And of course this is the opposite of my original thoughts on someone accumulating. This concerns me, especially given Miles Kennedy has reduced his own investment in the company?
 
Tsubodai said:
Thanks for the spread sheet Pixel and I do appreciate your opinion.
I notice that Commsec and E*TRADE are carrying the burden for most of the buying, while the big firms at the top of the report are heavily weighted towards selling.
For me as a novice, this looks as though large investors are gradually getting out while the retail clients are buying in. And of course this is the opposite of my original thoughts on someone accumulating. This concerns me, especially given Miles Kennedy has reduced his own investment in the company?
Click to expand...

Miles may need some cash; have you read the annual Report that was issued at the end of March? http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01613159
From 2013 to 2014 he copped a hefty payrise :rolleyes:
Also, check where they find those diamonds: The search for the kimberlite pipes is still ongoing and one can only hope one will be located very soon. Otherwise, the next capital raising won't be far away.

Having said all that though, I too hold a speculative position because, IF they stumble upon a pipe or two and make a suitably-worded announcement, Retail trade will go ballistic. :xyxthumbs
 
pixel said:
Miles may need some cash; have you read the annual Report that was issued at the end of March? http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01613159
From 2013 to 2014 he copped a hefty payrise :rolleyes:
Also, check where they find those diamonds: The search for the kimberlite pipes is still ongoing and one can only hope one will be located very soon. Otherwise, the next capital raising won't be far away.

Having said all that though, I too hold a speculative position because, IF they stumble upon a pipe or two and make a suitably-worded announcement, Retail trade will go ballistic. :xyxthumbs
Click to expand...

Thanks again Pixel. I intend to hold as long as I can.
 
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01618033

3rd parcel sold; while proceeds don't appear spectacular, they're sitting well above global average.
The next parcel, due for sale in May, will include the most recent "pebble", which could attract substantial interest.

My concern remains, however, that no pipe has been located as yet, so we're still scratching around, relying on luck rather than targeted success.

I'll hold what I've got, but am reluctant to commit any more funds at this stage.


LOM n 22-04-15.png
 
The worm appears to have turned.
I increased my holding.

LOM n 25-05-15.gif

I see support at 20c; first target 24.5
however, the recent reports (pipes, directors, price per carat, ...) could push the price higher still.
 
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