Lucapa delivers H1 profit, enters H2 debt free

Aug 28, 2023

Lucapa is a producer of large and high-quality diamonds from its Lulo Alluvial Mine in Angola and the Mothae Kimberlite Mine in Lesotho. Both mines produce diamonds which attract some of the highest prices per carat in the world. The individual mines earn extra returns from beyond the mine gate form cutting and polishing margins which are generated through a partnership with a high-end diamantaire.

The Company’s 100% owned subsidiary, Australian Natural Diamonds Pty Ltd acquired the Merlin Diamond Project in the Northern Territory in 2021. A Feasibility Study into the development of the Merlin Diamond Project is expected to be completed in 2023.

The Company is also advancing exploration and evaluation activities on several projects in Africa and Australia. The most advanced of these programs is the prospective Lulo kimberlite exploration joint venture in Angola which is searching for the primary source of the large, high-value alluvial diamonds regularly recovered by SML’s mining operations.

Key takeaways from the June half that include,

1: Rough diamond revenue: US$46.8 million (A$69.2 million) on a 100% basis at an average price of US$1,633 per carat;

2: EBITDA: US$8.2 million (A$12.6 million) on 100% basis;

3: Attributable Rough diamond revenue: US$22.8 million (A$33.6 million).

4: Attributable EBITDA: US$3.6 million (A$5.5 million),

5: 30,927 carats recovered on a 100% basis;

6: Net profit before tax: US$1.1 million (A$1.8 million),

7: Group is debt free after expunging interest-bearing debt post H1 end;

8: Mothae plant upgrade drives turnaround;

9: Part reversal of Mothae impairment charge &

10: Repatriated US$5.0 million (A$7.4 million) in capital loan repayments and SML dividends.

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