I was fortunate to find an opportunity in Botswana by providing De Beers with a solution for their unpromising AK6 kimberlite pipe.
This very AK6, now the Karowe Mine, continues to yield large, high-quality diamonds.
THREAD 🧵: On a Date with Lucara Diamond
#1. History
In 2007, Eira Thomas and Catherine McLeod-Seltzer, in partnership with Lukas Lundin, formed Lucara Diamond Corporation (LDC).
They had been successful in their individual mining operations and wanted to explore larger prospects in Africa.
In 2009, a site called AK6, discovered and explored by De Beers in the 1970s, became available.
AK6 was located near the productive Orapa diamond mine, currently operated by Debswana, a partnership between the Government of Botswana and De Beers.
The AK6 project was not developed into a mine because De Beers concluded it was uneconomical due to limited quantities.
However, when LDC examined samples extracted in the 1970s, they became excited. Advances in technology had made AK6 a viable project.
LDC, confident in AK6's potential, acquired it from De Beers and its junior venture partner, African Diamonds, to establish the Karowe Mine.
In 2015, the first large gem, the Lesedi La Rona, was discovered and later sold for USD 53 million.
#2. Operations
LDC, a Canadian diamond exploration and mining company, operates a producing mine and holds exploration licenses in Botswana.
Karowe Mine
Its wholly-owned mine is renowned for producing large, high-quality Type IIA diamonds over 10.8 carats.
Type IIA diamonds are rare and highly valued, containing minimal nitrogen. They are mostly colorless or may have brown, purple hues, making up just 1%-2% of all diamonds.
A carat measures diamond weight, equal to 0.200 grams and subdivided into 100 points.
Clara Diamond Solutions
A secure, digital platform revolutionizing the diamond supply chain with transparency and authenticity. We guarantee provenance and ethical sourcing from mine to market, giving buyers unparalleled trust in every purchase.
#3. Competitors
Debswana
Botswana's largest diamond producer by value, operating four mines:
- Jwaneng
- Orapa
- Letlhakane
- Damtshaa
However, LDC has installed advanced technologies in its process, resulting in the continuous discovery of bigger gems.
Botswana produces 20% of the world's diamonds, alongside major players Russia, Canada, and the Congo.
Botswana's high-quality gems boost its economy, while Russia has vast reserves, Canada uses advanced tech, and the Congo has rich, untapped resources.
#4. Share price,
3.90 BWP per share as at Aug 16,
3.90 BWP per share on the 3rd of Jan 2024
14th most valuable stock on the BSE with a market cap of BWP 1.79 billion,
27th most traded stock over the past 3 months to Aug 15, 2024
456,177,393 issued shares
#5. Shareholding,
The major shareholder of LDC is Nemesia S.à r.l., a private Luxembourg company controlled by trusts settled by the late Adolf H. Lundin.
Letko, Brosseau & Associates Inc. is the second largest shareholder, an independent investment manager
#6. Management
Naseem Lahri - Managing Director (MD)
A seasoned accountant with a Master's in Strategic Management who became MD in May 2018
She has 17+ years in mining, with 10 years in senior roles at Debswana, a partnership between Botswana and De Beers.
Each week will be on a Date with a company listed on the @TheOfficialBSE.
The purpose of this thread is to have a minimum appreciation of listed firms.
Disclaimer: Do not misconstrue this thread as investment advise DATE companies before you buy its shares