Turnover in Lonrho Mining (ASX code: LOM) shares is running hot after the company confirmed what some in the market seem to have worked out last week — that it had recovered a 131 carat diamond in Angola.
More than 100 million Lonrho shares have changed hands in the first hour of trading, although the price has actually lost it sparkle, falling 0.2 cents to 1.3 cents after the run that last Friday earned it a "speeding ticket" from the ASX.
Lonrho directors suspended trading in the company's shares after the ASX query on why its price had jumped from 0.9 cents to 1.6 cents, and they were only returned to trading this morning after announcing the discovery from the Lulo gravels in the Cacuilo River area of north-eastern Angola.
Clearly Lonrho chairman, and British "penny share" entrepreneur David Lenigas had no heads up on the results of the latest exploration outcome because he was still selling down his holding up to a week ago.
Lenigas's Lonrho Africa (Holdings) disclosed that on August 10 its stake in the locally listed outfit had finally fallen below 5 per cent. In preceding weeks it had been selling stockin lumps of 3 million and 4 million shares at a time.
Lonrho's response to the ASX query on Friday morning, that was only released after the trading halt just after 11am that day, suggests that the proverbial cat had left the bag and travelled to the sharemarket without the board knowing exactly what was happening.
"The company is seeking to verify information in relation to its ongoing diamond exploration activities in Angola where daily communication is difficult," said the statement, "The company is endeavouring to verify this information within the next 24 hours."
It would seem that punters had less difficulty than Lonrho in getting the information out of Angola.