Lucapa Diamond Company has garnered $4 million in revenue from the first share of proceeds through its manufacturing partnership with Graff unit Safdico, it said Tuesday.
Under the partnership, which Lucapa announced in January, Safdico has the rights to buy up to 60% of annual rough production from Lucapa’s Lulo mine in Angola. Safdico will then cut and polish those stones, with part of the profits from the sale of the polished diamonds returning to Lucapa.
Safdico paid Lucapa $2.5 million for a 46-carat pink rough diamond. Lucapa will also be entitled to a portion of the proceeds from the sale of any resultant polished stones. In addition, Lucapa earned $1.5 million from two sources: run-of-mine diamonds it sold to Safdico in 2019, as well as the share of polished proceeds from certain rough stones the manufacturer had previously bought from the miner.
“Given the recent market uncertainty and disruption caused by coronavirus, we and our Lulo partners believe the sale of the 46-carat pink diamond to Safdico…will unearth the true value of this exceptional stone,” said Lucapa CEO Stephen Wetherall. “We look forward to seeing the polished diamonds produced from this exceptional Lulo gem, which we are confident will see additional value created by the partnership.”
Image: The 46-carat pink diamond. (Lucapa Diamond Company)