TSX:LUC

Stock Analysis Report

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Executive Summary

Lucara Diamond Corp., a diamond mining company, engages in the acquisition, exploration, development, and operation of diamond properties in Africa. More Details

Rewards

Earnings are forecast to grow 108.08% per year

Risk Analysis

No risks detected for LUC from our risk checks.


Snowflake Analysis

Adequate balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has Lucara Diamond's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: LUC is not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: LUC's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

-1.9%

LUC

-2.4%

CA Metals and Mining

2.6%

CA Market


1 Year Return

-37.8%

LUC

36.5%

CA Metals and Mining

0.5%

CA Market

Return vs Industry: LUC underperformed the Canadian Metals and Mining industry which returned 36.5% over the past year.

Return vs Market: LUC underperformed the Canadian Market which returned 0.5% over the past year.


Shareholder returns

LUCIndustryMarket
7 Day-1.9%-2.4%2.6%
30 Day8.5%-2.8%13.3%
90 Day-8.9%-12.3%6.0%
1 Year-37.8%-37.8%37.6%36.5%4.2%0.5%
3 Year-77.3%-79.6%42.9%39.8%13.0%2.0%
5 Year-69.9%-77.1%131.9%124.9%49.8%26.8%

Long-Term Price Volatility Vs. Market

How volatile is Lucara Diamond's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Lucara Diamond undervalued compared to its fair value and its price relative to the market?

0.79x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: LUC (CA$0.51) is trading above our estimate of fair value (CA$0.41)

Significantly Below Fair Value: LUC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: LUC is unprofitable, so we can't compare its PE Ratio to the CA Metals and Mining industry average.

PE vs Market: LUC is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate LUC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: LUC is good value based on its PB Ratio (0.8x) compared to the CA Metals and Mining industry average (2.6x).


Next Steps

Future Growth

How is Lucara Diamond forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

108.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LUC is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: LUC is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: LUC's is expected to become profitable in the next 3 years.

Revenue vs Market: LUC's revenue (19.2% per year) is forecast to grow faster than the Canadian market (6.2% per year).

High Growth Revenue: LUC's revenue (19.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LUC's Return on Equity is forecast to be low in 3 years time (14.7%).


Next Steps

Past Performance

How has Lucara Diamond performed over the past 5 years?

-46.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LUC is currently unprofitable.

Growing Profit Margin: LUC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: LUC is unprofitable, and losses have increased over the past 5 years at a rate of 46.8% per year.

Accelerating Growth: Unable to compare LUC's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: LUC is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (93.2%).


Return on Equity

High ROE: LUC has a negative Return on Equity (-7%), as it is currently unprofitable.


Next Steps

Financial Health

How is Lucara Diamond's financial position?


Financial Position Analysis

Short Term Liabilities: LUC's short term assets ($82.2M) exceed its short term liabilities ($33.9M).

Long Term Liabilities: LUC's short term assets ($82.2M) exceed its long term liabilities ($76.3M).


Debt to Equity History and Analysis

Debt Level: LUC's debt to equity ratio (10.1%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if LUC's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: LUC's debt is well covered by operating cash flow (101%).

Interest Coverage: Insufficient data to determine if LUC's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is Lucara Diamond current dividend yield, its reliability and sustainability?

6.73%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate LUC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate LUC's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if LUC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if LUC's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: LUC is not paying a notable dividend for the Canadian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of LUC's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.7yrs

Average management tenure


CEO

Eira Thomas (51 yo)

2.75yrs

Tenure

US$1,908,000

Compensation

Ms. Eira Margaret Thomas, B.Sc., is the Founder and Strategic Advisor of Tectonic Metals Inc. and served as its Chairman till September 17, 2019. She is the Founder of Lucara Diamond Corp in 2007. She has ...


CEO Compensation Analysis

Compensation vs Market: Eira's total compensation ($USD1.13M) is above average for companies of similar size in the Canadian market ($USD593.67K).

Compensation vs Earnings: Eira's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Eira Thomas
Founder2.75yrsUS$1.91m1.33%
$ 2.8m
Zara Boldt
CFO & Corporate Secretary2.58yrsUS$1.03m0.023%
$ 48.8k
John Armstrong
Vice President of Technical Servicesno dataUS$751.00k0.064%
$ 135.0k
Ayesha Hira
Vice President of Corporate Development & Strategy2.42yrsUS$676.00kno data
Naseem Lahri
MD & Director of Lucara Botswana (Pty) Limited7.67yrsUS$820.00kno data
Sophia Shane
Executive Officer of Corporate Developmentno datano datano data
Steven Lincoln
Sales & Marketing Operations Managerno datano datano data
Johane Mchive
General Manager of the Karowe Mine3.42yrsUS$771.61kno data
Robert Eriksson
Investor Relations & Public Relations Officer of Swedenno datano datano data

2.7yrs

Average Tenure

Experienced Management: LUC's management team is considered experienced (2.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Eira Thomas
Founder2.75yrsUS$1.91m1.33%
$ 2.8m
Naseem Lahri
MD & Director of Lucara Botswana (Pty) Limited7.67yrsUS$820.00kno data
Catherine McLeod-Seltzer
Co-Founder & Independent Director2.75yrsUS$140.03k1.11%
$ 2.3m
Lukas Lundin
Chairman of the Board13.58yrsUS$146.57k1.06%
$ 2.2m
Paul Conibear
Lead Independent Directorno dataUS$183.91k0.097%
$ 203.0k
Marie Inkster
Independent Director6.42yrsUS$146.57k0.045%
$ 95.4k
David Dicaire
Independent Director0.50yrno datano data
Peter O'Callaghan
Director0.50yrno datano data

6.4yrs

Average Tenure

61yo

Average Age

Experienced Board: LUC's board of directors are considered experienced (6.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Lucara Diamond Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Lucara Diamond Corp.
  • Ticker: LUC
  • Exchange: TSX
  • Founded: 1981
  • Industry: Precious Metals and Minerals
  • Sector: Materials
  • Market Cap: CA$210.355m
  • Shares outstanding: 396.90m
  • Website: https://www.lucaradiamond.com

Number of Employees


Location

  • Lucara Diamond Corp.
  • 885 West Georgia Street
  • Suite 2000
  • Vancouver
  • British Columbia
  • V6C 3E8
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LUCR.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJul 2008
LUCTSX (The Toronto Stock Exchange)YesCommon SharesCACADJul 2008
LKTDB (Deutsche Boerse AG)YesCommon SharesDEEURJul 2008
LUCBSM (Botswana Share Market)YesCommon SharesBWBWPJul 2008
LUCOM (OMX Nordic Exchange Stockholm)YesCommon SharesSESEKJul 2008
0QUILSE (London Stock Exchange)YesCommon SharesGBSEKJul 2008
LUCSBATS-CHIXE (BATS 'Chi-X Europe')YesCommon SharesGBSEKJul 2008

Biography

Lucara Diamond Corp., a diamond mining company, engages in the acquisition, exploration, development, and operation of diamond properties in Africa. The company holds 100% interests in the Karowe mine loca...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/28 00:24
End of Day Share Price2020/11/27 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.