Lucapa Diamond Announces Quarterly Activities and Cash Flow Update

  • Jan 16, 2019 AEDT
  • Team Kalkine
Lucapa Diamond Announces Quarterly Activities and Cash Flow Update

Lucapa Diamond Company Limited (ASX: LOM) is a growing diamond company. It has quality assets for production, development and exploration. The company operates in Angola, Lesotho, Australia, and Botswana. The company focuses on the production of high-value diamonds.

The company today (i.e., 16 January 2019) provided an update about the quarterly activities report for the period ended December 31, 2018. The company revealed about two important milestones which will be a growth catalyst of the company going forward. Firstly, it has started commercial diamond recoveries at the new Mothae kimberlite mine in Lesotho, delivering a high-value production. Secondly, it has got approval for the new regulations related to diamond marketing, which will help the company and its partners to start marketing exceptional and large diamonds from the Lulo mine through a better international competitive bid process. These milestones will help the company strategically to pursue its value-adding partnerships with the leading global manufacturers and diamantaires for cutting and polishing of high-value diamonds.

The company made significant improvements on projects during the quarter ended December 31, 2018. The company has constructed and started activities on the Mothae 1.1MTPA diamond mine. It has achieved its first commercial diamond recoveries. The company continued production of premium value diamonds with a record annual throughput rate at Lulo mines in Angola. It has discovered a new source of premium quality diamonds from alluvium within the plains of Cacuilo River valley.

Moreover, the company has finalized an agreement to sell products from the Lulo mines via international competitive bid process which is scheduled to close on 31 January 2019. The company has declared to repay a US$4 million debt to Lucapa, and distribution of US$4 million to Lulo partners on a pro-rata basis. It has also completed the exploration program at Brooking, in Western Australia.

The company has also come up with its quarterly cash flow report for the quarter ended 31 December 2018. It reported a net cash inflow from the operating activities of US$29,000 for the quarter ended; however, it reported an operating cash outflow of US$5.22 million approximately for the year to date period. On the investing activities front, the company had a net cash outflow from investing of US$2.82 million for the quarter with respect to US$ 19.75 million outflows on a YTD basis. However, there is a financial cash inflow of ~US$8.0 million for the December ended quarter.

Now let us quickly have a look at the performance of the stock of Cygnus Gold Limited and the returns it has produced over the past few months. The stock is currently trading at $0.185 with a market capitalization of ~$87.4 million. The stock opened at $0.185 which is the day’s low as well; however, it touched a day high of $0.195. It has a 52-week high price of $0.315 and a 52-week low of $0.165, with an average trading volume of 279,003. The company has generated negative returns of 17.78% and 2.63% over the last three months and one-month period, respectively.


Disclaimer

This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.

 

All pictures are copyright to their respective owner(s).Kalkinemedia.com does not claim ownership of any of the pictures displayed on this website unless stated otherwise. Some of the images used on this website are taken from the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image.

 

There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.

Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.

As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.

CLICK HERE FOR YOUR FREE REPORT!
   
x
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK