Shares of Lucapa Diamond Co Ltd [ASX:LOM] have been up and down all month. Granted the movements haven’t been disastrous, but to an emerging global company even the smallest shift in volatility can impact the future share price.
Shares were trading at $0.27 on Monday 2 July, but by Thursday 12 July they had dropped to $0.26 — a fall of 3.70%.
This trend continued when Lucapa shares reached $0.27 on 19 July, only to relapse back to $0.26 the next day. They were up again to $0.27 on Monday 23 July, but fell yet again by $0.26 on 24 July. From 25 July to Friday 27 July shares fell again, before rising by 3.70%.
Currently the share price of Lucapa is $0.26.
Lucapa Diamond finds special diamond recoveries
One thing that could potentially stabilise Lucapa’s volatile share price is the discovery of larger diamonds in their Mothae mining programme.
The latest recovery at Mothae, after a sampling program, revealed special sized diamonds. Weighing 89 carats, 25 carats and 12 carats. These provided further evidence that Mothae is another source of large diamonds, complementary to Lulo.
This is exciting for the company and investors alike, as it means all three zones sampled have produced ‘special’ diamonds.
Managing director Stephen Wetherall stated that the special diamond recoveries proved very encouraging, and had validated the Lucapa’s decision to commit to a concurrent bulk sampling program to improve the resource, while the Mothae commercial diamond plant was being built.
What to expect from Lucapa Diamond from here
Wetherall also commented on the future impact that the diamonds recoveries could have on Lucapa’s future goals to expand high value diamond production.
‘To have recovered Special sized diamonds from early sampling tonnages in all three of these areas gives us great confidence we can achieve this goal. It also adds to our excitement as we advance construction of our new 150 tph plant, which remains on track for commercial diamond production later this year to complement the high-value production from our Lulo mine in Angola.’
The Mothae bulk sampling program is still ongoing, but is expected to be completed later in the September quarter.
For Money Morning
PS: If you worried about Lucapa’s potential and feeling uncertain after this month’s exchange, take a look at the 10 mining stocks that our experts believe could contribute the 2018 mining boom! Read our Free Report: 10 ASX mining stocks that could make you huge money in the next 12 months and beyond.