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Lucara Diamond Corp
Symbol LUC
Shares Issued 382,619,334
Close 2018-03-01 C$ 2.21
Market Cap C$ 845,588,728
Recent Sedar+ Documents

Globe says Lucara Diamond may be a value hunter's dream

2018-03-02 08:01 ET - In the News

The Globe and Mail reports in its Friday, March 2, edition that Lucara Diamond appears to be a value hunter's dream -- a high-performing company with a spotless balance sheet selling for a below-market multiple. The Globe's Ian McGugan writes that Lucara operates a diamond mine in Botswana and has a history of unearthing massive gems. It has been consistently profitable since 2013, pays a 4.4-per-cent dividend and does not have a penny of debt. It trades for a mere 11 times earnings. Most companies fetch much higher valuations, and many are levered to the moon, those numbers would seem to qualify Lucara as a rare bargain. Earlier this week, chief executive officer William Lamb suddenly decided to "retire" from the top job. It was an unexpected move. Mr. Lamb, however, will continue to serve as a technical adviser to the company. Eira Thomas, a co-founder of Lucara and one of the more successful leaders in Canadian mining, will step into the CEO role. BMO Capital Markets analyst Edward Sterck says, "Given Ms. Thomas's many years of experience ... we believe that Lucara remains in good hands." He rates Lucara "outperform." Five analysts who follow Lucara also have a "buy" on the shares.

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