Market Update

General - Lucapa

Good afternoon and a Happy New Year to everyone!

I am sure it will be as exciting as the last few...and I sincerely hope, that we will see the positive side of Trump - otherwise it could well be an ugly year!

It´s certainly interesting to see, how the president, who got voted in by the voter without a voice, will satisfy them with a cabinet of billionaers and more or less questionable Wall Street figures! I am pretty sure, that he will be good for business, bad for the enviroment, and dangerous for a safe we might as well try to make most of it, anyway.....

Consumer Confidence is very strong, manfacturing around the world is doing well,  car sales looking good, China continous to kick along, and inflation numbers are rising - this should be a good year for commodities. And Yellen continous to find excuses for not increasing interest rates...Gold might be in for a pleasant surprise, as physical demand is recovering, and financial investors have already sold!

Australia is still in heavy holiday-mode - not much is happening in terms of news....but the year has started with cautious optimism for equities - like everywhere else!

Lucapa Diamonds - updated on the Dec-Quarter production of their Diamond mine in Angola. Lulo produced a record amount of diamonds for the wet season, which starts in Nov and finishes in March. 5.313 ct of were produced, two parcels of diamonds were sold for 14.6 mill US$, an exceptional 3.111 US$/ct. The averagee size was 1.9ct, and the average grade per 100 cubic meteres was 10.6ct. The company finished the year with a large inventory of about 3000 ct, to be sold at the next sight this month. All excellent figures - the problem remains, that alluvial production is ( correctly ) not really priced by the market. While LOM have shown good consinstency in their production, the forecasts for alluvial production will always be pretty tentative. The main game in town is to find the source of these alluvials, and LOM continue to work on this. They have stated, that they will update on exploration before the Quarterly Report, indicating to me, that they might have something positive to say. Success here would open up very substantial upside to the stock, and probably, would result in corporate action....

have a nice evening and enjoy the the rising gold price!


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