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LUC.TO - Lucara Diamond


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Hey all:


Anybody else investing/analyzing Lucara Diamond (LUC.to, LUCRF)?


They are a diamond miner in Botswana, Africa.


Balance sheet is great, and they pay a dividend, sometimes also pay out special dividends too.


This was the company that has the world's 2nd largest diamond.


They just had sale on 5.11.17 that brought in $55mm USD.  I don't know if this was above or below expectations.


Stock is getting close to 52 week low, and I'm kicking the tires...

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Roughly $120M in FCF over the past decade & returned more than that in dividends without levering up!


I have a lot of experience in stones from a previous life (an ultimately, unsuccessful biz but learned a lot.)


If these guys manage their inventory well (not everything sells ALL the time but it all eventually goes away) & are able to "curate" a continuous collection of important, large & colored pieces from their Botswana ops & they keep returning cash as in the past (I prefer buybacks...)


I'd like to see a breakdown of the CCC's they have in inventory & what their reserve estimates are (Morningstar shows a 4x BV FWIW - the hidden value is literally sunk in the ground & could be worth a lot more or less.)

[edit: forgot to add the all important 4th C]


I watched the mining & corporate videos & they are indeed seductive (will listen to their last earnings call.)

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