Industry News by Nemesis

Lucapa Upbeat Despite Global Headwinds in the Diamond Sector

October 27, 2019

Lucapa Diamond has achieved year to date to September sales of $38.2 million, with a further $10.4 million in sales already booked post quarter-end from its 70%-owned Mothae mine, in Lesotho and 40%-owned Lulo mine, in Angola against a backdrop of challenging global diamond market conditions.


It said total sales in 2019 were achieved at an overall average price of $1,249 per carat.


Year to date to September quarter output was 35,113 carats from both mines.


Mothae recovered 7,007 carats in the third financial quarter, which was 30% ahead of plan, while Sociedade Mineira Do Lulo (SML) produced 7,603 carats during the same quarter, a 67% increase over the previous corresponding period.


This was primarily due to an 88% increase in the recovered diamond grade of 10.5 carats per 100 cubic metres as more material was processed from the new higher-grade flood plain Mining Blocks 19 and 31.


“Our continued focus on operational and productivity improvements and reductions in operating costs at Mothae and Lulo have enabled Lucapa to deliver robust results, including record production of premium-quality diamonds, in the face of global headwinds in the diamond sector,” said company managing director Stephen Wetherall.


“The decline in global rough diamond demand throughout 2019 brought about by factors including macroeconomic uncertainty, rising inventories and liquidity issues in the midstream has impacted the revenues of all diamond producers and industry sentiment.”

 

Source: Rough&Polished

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