Industry News by Nemesis

Lucara Mulls Lesedi La Rona Partnership

August 10, 2017

 

Lucara Diamond Corp. could enter into a partnership to sell the Lesedi La Rona diamond having failed to secure a buyer in the time frame the company had planned.

If no one purchases the stone in the next six to eight weeks, the Canada-based miner will consider a revenue-sharing deal to sell the 1,109-carat rough diamond, Lucara CEO William Lamb said in an earnings call last week. Under such an agreement, Lucara would likely sell a stake in the stone to another company, while retaining the rights to a percentage of future polished proceeds. 

While Lucara does have “one or two options for [selling] the rock,” Lamb said in the call transcribed by Seeking Alpha, efforts so far have yielded no results. After the diamond missed its reserve price at a Sotheby’s auction in June 2016, Lamb told Rapaport News in December that the miner planned to sell the piece by the end of June, but this did not occur. 

The rough diamond — the second-largest ever found — was recovered in Botswana in 2015 and is valued at about $70 million, or “the equivalent of 280 Lamborghinis,” according to Lamb. 

Excluding the potential sale of the Lesedi La Rona, Lucara still expects revenues of $200 million to $220 million for the year, the CEO added. 

 

Source: Rapaport

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