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LUC - Lucara Diamond News Story

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Last Trade - 05/05/21

Sector
Basic Materials
Size
Small Cap
Market Cap £185.8m
Enterprise Value £205.5m
Revenue £90.2m
Position in Universe 535th / 2705

Lucara Diamond mulls partnership to sell world's largest uncut stone

Fri 4th August, 2017 8:43pm
By Susan Taylor 
    TORONTO, Aug 4 (Reuters) - Nearly two years after unearthing 
a tennis ball-sized 1,109-carat rough diamond, Lucara Diamond 
Corp  LUC.TO  is considering forming a partnership to sell the 
stone if it still does not have a deal in the next six to eight 
weeks. 
    Lucara, which failed to sell the world's largest uncut stone 
at Sotheby's auction house in June 2016, continues to receive 
offers, Chief Executive William Lamb said on a conference call 
with analysts on Friday.  
    The Vancouver-based miner is mulling "one or two" options 
for an outright sale, but such bids have failed to meet 
financial scrutiny in the past, Lamb noted. 
    "If that doesn't pan out ... within the next six to eight 
weeks we will most fully look to enter into a partnership," Lamb 
said. "I think we've got to. It's been almost two years since we 
recovered the stone and the market is, I think, chomping at the 
bit, waiting to see what the outcome from that is going to be." 
    Lucara's board regularly discusses how best to capitalize on 
the diamond, Lamb said. 
    In July, Reuters reported that Lucara would need a partner 
in order to cut and sell the rough diamond, second in size only 
to the 3,106.75 carat Cullinan, which was cut into 105 diamonds, 
including several British Crown Jewels.  urn:newsml:reuters.com:*:nL1N1K314M 
    "I think people don't really understand the quantum of money 
we're looking at," said Lamb, a former De Beers  AAL.L  
executive. 
    Bidding at the auction in London stalled at $61 million, 
short of the $70 million reserve.  
    "Everybody on the call will most fully would know one or two 
wealthy people who, on the weekend, could go out and buy a 
Lamborghini at $250,000," Lamb said on the call. "What we are 
asking for, for the stone, is for a company to go out and spend 
the equivalent of 280 Lamborghinis." 
    The diamond was discovered at Lucara's Karowe mine in 
Botswana in November 2015 and is said to be 2.5 to 3 billion 
years old. It was named "Lesedi La Rona" or "Our Light" in 
Tswana, the language of the southern African country. 
 
 (Reporting by Susan Taylor; editing by Grant McCool) 
 ((susan.taylor1@thomsonreuters.com; +1 416 941 8083; Reuters 
Messaging: susan.taylor1.thomsonreuters.com@reuters.net)) 
 
Keywords: LUCARA DIAMOND CUTTING/
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