Lucara is almost below the TSX lows made in 2008. If you bought equity in the company anywhere in the last 10 years you are losing money. The company is in debt to finance the construction of new mining facilities and has been taking their sweet time.
However, the owners are Lundin and they know how to play the game with equity, marginal pricing, debt, balance sheet shenanigans, and leverage. I would not at all be surprised if the debt in the company's balance sheet is mostly owned by the family and they are just taking out their pay in the form of debt repayments instead of in the form of dividends.
Diamonds are famous for being used in drilling, I'm not sure if Lucara sells diamonds for drilling, but Trump's policy is drill baby drill. Even if Lucara does not sell diamonds for drilling they should benefit from the news cycle and public perception.
This is a very speculative play and it depends of a series of factors, but I reckon there is a good chance it goes to 0.88 USD/share, 1.10, even 1.45.
However, the owners are Lundin and they know how to play the game with equity, marginal pricing, debt, balance sheet shenanigans, and leverage. I would not at all be surprised if the debt in the company's balance sheet is mostly owned by the family and they are just taking out their pay in the form of debt repayments instead of in the form of dividends.
Diamonds are famous for being used in drilling, I'm not sure if Lucara sells diamonds for drilling, but Trump's policy is drill baby drill. Even if Lucara does not sell diamonds for drilling they should benefit from the news cycle and public perception.
This is a very speculative play and it depends of a series of factors, but I reckon there is a good chance it goes to 0.88 USD/share, 1.10, even 1.45.
trader itcha
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trader itcha
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.