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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: I still have my small position in Lucara Diamonds and it still a diaster. CEO was replaced a couple of months ago and the former CEO came back. Under the former CEO Lucara made an agreement with an Antwerp gem polisher (HB)where they would send there large special diamons, which the Karowe mine in Botswara often find, to HB for polsihing and cutting. Lucara would then get cash flow from the finished products, (potentially higher margin and more steady cash flow). Well the new CEO wants to end that agreement. The open pit mine is still profitable but the development of the under ground mine has hit snags (namely water filtration in the raised shafts) and the finish date has been pushed back another year. What 5i could help me with is a better understanding of the outlook for diamond prices. Every where I look for on outlook on diamond pricing requires a subscription and my position is simply too small to warrant paying a subscription. In the end, should I just dump this dud or hang on a while longer (It is in a TFSA so no tax benefit.)?
Read Answer Asked by Paul on December 19, 2023
Q: The share price seems to have stabilized in the .70-.75 range for 2021. Do you see any long term growth prospect with Lucara? The last couple quarters have not been blow-outs, but have been positive overall. They have been investing in existing operations and increasing capacity, plus finding alternate ways to distribute carats. Are diamond sales expected to increase as the world returns to normal or are they projected to stay relatively flat? Would this be considered a buy/hold/sell at this point?
Read Answer Asked by Daniel on August 16, 2021
Q: Have been watching this one for awhile now and would appreciate your analysis for dividend safety and growth prospects in the next 12 months.
Will the last find of their 1700 carat diamond propel some tailwinds and do you think their upcoming report will be positive or negative.
Is it worth buying or should I wait to see results and earnings call.
Thanks Gary
Read Answer Asked by Gary on April 30, 2019
Q: What are the ten highest yielding Canadian stocks which have a sustainable dividend ?As always, thanks for your expert guidance.
Read Answer Asked by Norman on February 08, 2019
Q: Can you please expand on your overview of this, one of my favourites, for its potential and healthy dividend. Also the new management of Ms Thomas and its blockchain use in a new finch international marketing of their and other diamond producers. They also seem to consistently find huge record sized stones. As usual thank you for your consistent and clear analysis.
Read Answer Asked by Ryczard on February 05, 2019
Q: Hi 5i

What are your views on these 7 holdings in 2019?
Hold, Sell?
Appreciate it
Read Answer Asked by Matt on January 21, 2019
Q: Please update on LUC, specifically PEA for underground and the Clara aquasition which appears to be a game changer in the marketing of diamonds directly to the Manufacturing Jewellers. Cutting out the middlemen. Also how manufactured diamonds are starting to affect the diamond industry (can they manufacture the large diamonds that LUC is find and at what cost?
Read Answer Asked by Doug on July 03, 2018
Q: Hi Guys,

I have a very well diversified portfolio(thanks to you guys)you really do provide an excellent service. My question is why on earth do I own lucara, please give me a reason not to dump. I have a balanced position, don t mind holding for years but also don't mind taking capital loss. Is it worth holding?

Thanks again, keep up the good work.
Paolo
Read Answer Asked by paolo on September 13, 2017
Q: Hello, Lucara sent out a press release today indicating completion of sale of 12 large diamonds totalling $38+ million. Wondering how you feel this will impact the stock price.
Also, I note a large run up in price of Grande West Transportation. Anything other than recent sales (incl USA)? Could this be a New Flyer proxy?
Thank you,
Brian
Read Answer Asked by Brian on November 18, 2016
Q: I am confused on this company and their special .45cent dividend. Yesterday you stated that you felt that the company stock would drop today as its the ex-dividend date.
However the company's news release on 8.4.16 stated that it would be paid to shareowners as of Sept 2nd. I have been careful not to sell my shares until this date and now, as you predicted, the price of the shares have fallen today. My thought was that today's date simply referred to the 1.5cent regular dividend.

Based on the 13% drop in the share price (4.20 to 3.65) I even acquired more shares thinking I would be getting more of the special dividend. However reading your answer from yesterday after my purchase, I might have snookered myself. (Wouldn't be the first time...)
Can you clear up this up for me.
Read Answer Asked by Barry on August 31, 2016
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