Diamond production and sales highlights are,
1: Total 14,162 carats recovered from Lulo and Mothae,
2: 16,408 rough carats sold from Lulo and Mothae,
3: Three Type IIa +100 carat diamonds recovered from Lulo,
4: Total tonnes treated up 14% on Q1/23 to 673,053t &
5: Lulo high value diamond sale realised US$10.5M post quarter end!
Lucapa Diamond presents its production and sales report for the period ended 31 March 2024 (Q1). The Lulo mine in Angola sold 8,746 carats through two run of mine sales for the period for revenue of US$9.4 million.
There were no exceptional diamond tenders during the Quarter, therefore the revenue from the exceptional stones recovered during Q1 will be realised in Q2/24.
The diamond tender that took place post quarter end attracted US$10.5 million for three high-quality Lulo diamonds. The cutting and polishing partnership produced US$0.2 million in additional margins for Lulo Mine in Q1. The Mothae mine in Lesotho generated US$3.7 million in rough diamond revenue for Q1 after selling 7,662 carats and an additional US$0.2 million from polished diamond margins.
Managing Director Nick Selby commented, “We head into the second quarter with a refreshed board and welcome the new perspectives and diverse experience this brings to our strategy and the portfolio of assets. The separation of high value stones for a tender meant revenue was down for the first Quarter. However the tender, which took place in early Q2 and achieved US$10.5 million for the three Lulo diamonds, has boosted the balance sheet.
The diamond market is steadily recovering and diamonds larger than two carats are in high demand. Although Lulo was forced to mine in lower-grade areas due to flooding this wet season, the amount of material we put through the plants was not affected due to the availability of stockpiled material. Mothae also performed well against physical targets, but the lack of high quality stones recovered has negatively impacted their revenue line.”
