Could a mine opening ceremony be a catalyst to LUC’s share price?
Lucara Diamond Corp ($LUC on the TSX big board) is a Lundin Group diamond mining and development company that I owned and wrote about last year. I entered at an average cost of $.87 cents and sold at $1.11 (Sources: 1, 2).
For those new to the resource sector, the Lundin Organization is in the vanguard of resource activity worldwide. They are an all-execution, no nonsense group—with tremendous guts (and glory). The family wealth is in the multiples of billions.
Lucara ($LUC) shares last traded at $.58 cents and I smell an opportunity. Here’s why:
- It’s August. Historically, summer months are the best times to accumulate resource shares.
- Along with other commodities, diamonds prices have disappointed–leading mainstream opinions to become negative on diamond stocks. (many a rich man have said, it pays to be a contrarian).
- Yesterday an icon of the resource business, Mr. Lukas Lundin, Chairman of Lucara, President of Botswana, Lt. Gen. Seretse Khama Ian Khama, and over 300 delegates held an official ceremony of the Karowe mine opening. I’m privvy to this because I was invited on the trip, but despite my non-attendance, disappointingly—I imagine many of the delegates were analysts and institutional investors. I have not heard word yet on how it went but I expect it was an inspiring day—which theoretically could create material enthusiasm in the open market.
So there you have it: Pomp and circumstance. The Lundin brand. The timing. I think this could be a good trade.
This is the dawn of a new age for Lucara, from development-stage to producer.
Keep in mind mining investments are extremely risky, and I could be wrong. I have been before.
Always do your own due diligence. This is not investment advice. Talk to your own investment advisor before making any investment. I don’t think I own any shares right now (hard to keep track sometimes!). I might buy some personally next week and would be looking to sell them at a profit and reserve the right to do so without notice. This is just a FYI for legal purposes.