Diamond miners results spark optimism for market recovery

Lucapa Diamond and Petra Diamonds provided a glimmer of hope for the precious gemstones market on Tuesday by posting stronger revenues and production figures, signalling a potential recovery in the depressed diamond market.

Australia’s Lucapa achieved third-quarter revenue of $16.9 million, an 86% year-on-year increase, driven mainly by the sale of high-quality diamonds, averaging $3,033 per carat.

This growth was also attributed to the company’s access to higher-grade mining blocks, a result of strategic river diversions aimed at mitigating the impact of flooding at the Lulo operation in Angola.

Nick Selby, Lucapa’s managing director, expressed optimism about the future, especially with the access gained to the higher-grade Lazaria gravel, historically known for producing large, high-value diamonds.

“We are aiming for a strong finish to the year,” Selby said, noting that the company sold a 176-carat diamond for $3 million, further boosting results.

Africa-focused Petra Diamonds also reported promising figures, with production rising by 7% to 679,625 carats for the quarter ended September 30. The increase was driven by higher grades at the company’s flagship Cullinan mine in South Africa and its Williamson mine in Tanzania.

Petra’s chief executive officer, Richard Duffy, attributed this growth to “solid performances” from these mines, despite weaker market conditions.

To counteract the softness in the rough diamond market, Petra deferred in August the sale of a significant portion of its South African diamonds. Its combined first and second tenders, however, indicated a 13% increase in overall average prices, thanks to an improved product mix, which included a standout 18.85-carat blue diamond from Cullinan that fetched $8.5 million.

Despite ongoing challenges in the global diamond market, both Lucapa and Petra’s results reflect resilience and strategic adjustments, injecting cautious optimism into a sector eager for recovery.

As both companies continue to leverage high-value diamonds and strategic planning, industry observers remain hopeful for sustained market improvements heading into the end of the year holidays, which tend to help boost diamond sales.

Source: DCLA

Angola Seizes 710 Rough Diamonds from Three Guineans

The Criminal Investigative Service (SIC) in Angola seized 710 diamonds of different carats on Sunday in Lucapa, a municipality in the northeastern Lunda-Norte province of Angola.

According to Graciano Lumanhe, the SIC spokesperson in Lunda-Norte, three individuals from Guinea Conakry were found in possession of the diamonds.

Angola Seizes 710 Diamond Stones From Three Guineans
In addition to the diamonds, the officers also discovered a diamond weighing scale, two calculating machines, magnifying glasses, a sieve, and $860 and 68,000 kwanzas in cash during the operation.

All the evidence has been submitted to the Office of the Public Prosecutor as part of the preparations for criminal proceedings against the three suspects.

Source: DCLA

Lucapa recovers 176 carat diamond at Lulo mine in Angola

Lucapa Diamond announced Monday the recovery of the fifth +100 carat diamond found this year, a 176 carat Type IIa gem diamond from the Lulo alluvial mine in Angola.

The 176 carat diamond is the 45th +100 carat stone to be recovered from Lulo and the eighth largest, since alluvial operations began in 2015, the company said.

In 2021, Lucapa announced a 35% increase in the resource carats at Lulo, and the mine’s in-situ resource now sits at 135,900 carats at a modelled average diamond value of $1,440/carat.

The continual recovery of these and other large, high value diamonds has been a major source of revenue for Lulo over the years – in December 2023 Lucapa fetched $17 million for four diamonds recovered from Lulo – as well as being a major informant to the kimberlite exploration program.

Lucapa continues to hunt for the source of these large gems via the kimberlite exploration program which is currently bulk sampling kimberlitesin close proximity to the mining blocks where the 176 carat diamond was recovered.

“The recovery of this 176 carat diamond is yet more confirmation of the massive potential of the kimberlite province where we are focussing our exploration efforts to find the source(s) of these magnificent gems. As can be seen from the image below, the diamond has not travelled far as it still displays sharp, angular edges,” Lucapa CEO Nick Selby said in a news release.

The firm has a 40% stake in Lulo, which hosts the world’s highest dollar-per-carat alluvial diamonds. The rest is held by Angola’s national diamond company (Endiama) and Rosas & Petalas, a private entity.

Source: DCLA

Lucapa concludes special tender worth $12m

Lucapa Diamond Company has sold six diamonds recovered from the Lulo mine, in Angola, in a special tender for $12.4-million.

The diamonds totalled 447 ct and consisted of five white Type IIa diamonds, as well as a pink diamond.

The average price per carat was about $27 700.

MD and CEO Nick Selby deems the tender result pleasing. “Our alluvial project, in Angola, continues to deliver fantastic diamonds that are always in demand through all market cycles and achieve very competitive values.”

Source: DCLA

Lucapa today (25 June) announced the sale of its 70 per cent stake in the Mothae mine, in Lesotho, to a local contractor for a nominal sum.

The Australian miner said it wanted to to focus on its core assets in Africa, where it has a 40 per cent stake in the Lulo alluvial mine, in Angola, and in Australia.

Mothae has produced over 150,000 carats since it started commercial production in 2019, bringing in more than $100m in revenue.

Lucapa says it will sell its stake in stake in Mothae Diamonds (Pty) Ltd to Lephema Executive Transport (Pty) Ltd, which has provided it with long-term contract mining services, for A$10,000 (US$6,660).

Mothae Diamonds, which owns the site, will pay Lucapa A$1m (US$666,000) in outstanding technical services payments.

“This agreement is the result of a period of offer and negotiation involving Lucapa and several interested parties,” said Lucapa managing director and CEO Nick Selby.

“(Lephema) Executive has a successful history with the Mothae Diamond Mine, having provided long-term contract mining services. Lucapa wanted to, as far as possible, see

this mine continue to operate and Executive are best placed to achieve this.

“The signing of this agreement is a key step towards Lucapa streamlining its portfolio and executing the new strategy which will focus on assets in Australia and Angola”.

Mothae has indicated resources of 180,000 carats and inferred resources of 960,000 carats, according to December 2023 figures provided by Lucapa, with a modelled per carat value of $606.

Lucapa said in its sales material that Mothae has recovered 13 +100ct diamonds (largest Type IIa gem 213cts), and 10 diamonds valued at over $1m.

Source: DCLA

Lucapa recovers 195-carat diamond from Lulo mine

Lucapa Diamond announced Tuesday that together with its Lulo alluvial mine partners, Endiama and Rosas & Petalas, the company has recovered a 195 carat Type IIa diamond from its Lulo mine in Angola.

The diamond is the sixth largest and the 44th +100 carat diamond to be recovered from the Lulo mine, the company said, adding that the 195 carat Type IIa diamond is the fourth +100 diamond to be recovered at Lulo this year.

The mine, which hosts the world’s highest dollar-per-carat alluvial diamonds, began commercial production in January 2015. Only a year later, it delivered the largest ever diamond recovered in Angola a 404 carat white stone later named the “4th February Stone”.

Lucapa has a 40% stake in the Lulo mine. The rest is held by Angola’s national diamond company (Endiama) and Rosas & Petalas, a private entity.

Angola is the world’s fifth diamond producer by value and sixth by volume. Its industry, which began a century ago under Portuguese colonial rule, is successfully being liberalized.

Source: DCLA

Lucapa to sell majority stake in Lesotho diamond mine

Australia’s Lucapa Diamond (ASX: LOM) has put its 70% stake in the Mothae mine in Lesotho up for sale to focus on its core assets and is discussing options for the 30% held by the country’s government.

The diamond miner’s board said it was “considering all options for the divestment” and finalizing a data room for interested parties.

“The company’s collaboration with the Lesotho government on the Mothae diamond mine has been rewarding and our management have worked exceptionally well to optimize the plant to recover large diamonds,” Brown noted, adding Lucapa expects there will be “significant interest” from those within the diamond industry and on a wider scale.

Production at Mothae, which the Perth-based company acquired in early 2017, began commercial operations almost six years ago. The open pit mine is known to produce large, high-value diamonds, which makes the operation the world’s second highest-dollar-per-carat kimberlite diamond mine.

According to Lucapa’s December 2023 figures, the mine has 180,000 carats of indicated resources and 960,000 carats of inferred resources, with a calculated value of $606 per carat.

Lucapa finds another +100ct diamond at Lesotho mine
A 101 carat D-colour Type IIa white diamond found at Mothae. (Image courtesy of Lucapa Diamond.)
Mothae is located only 5km from Gem Diamonds’ (LON:GEMD) Letšeng, the world’s highest dollar-per-carat kimberlite diamond mine.

Lucapa also has a 40% stake in the prolific Lulo mine in Angola and is involved in exploration projects in Angola, Australia and Botswana.

Diamond miners have faced a number of significant challenges in recent years, including an excess of stockpiles that has forced top producers to decrease production and lower prices.

Source: DCLA

Lucapa sells three diamonds for $10.5m in first tender

 Lucapa sells three diamonds for $10.5m in first tender

A 203 ct Type IIa diamond as part of Lucapa’s first Lulo tender of the year

Lucapa Diamond Company has sold three exceptional diamonds recovered from the Lulo mine, in Angola, for $10.5-million at tender.

The tender was concluded on April 19 and was conducted by Sodiam, in Luanda.

The three Type IIa white diamonds, weighing 203 ct, 116 ct and 43 ct, made up Lucapa’s first tender of Lulo diamonds for this year.

The total parcel, weighing 361 ct, realised an average price of $29 000/ct.

Lucapa has a 40% interest in the Lulo alluvial mine, alongside Angola’s national diamond company Endiama and a private entity called Rosas & Petalas.

Source: DCLA

Former De Beers Head Joins Lucapa Board

Industry veteran Stuart Brown, who has led multiple diamond-mining companies, will become chairman of the board at Lucapa Diamond Company.

Brown spent 20 years at De Beers, with stints as both interim CEO and chief financial officer. He was also the head of Firestone Diamonds from 2013 to 2018, and CEO of Mountain Province for three years, Lucapa said Monday.

During his time at Firestone, he raised $225 million to develop the Liqhobong mine in Lesotho, Lucapa noted. He is currently a director of Ukrainian iron-ore miner Ferrexpo and of Digby Wells Environmental Holdings, a provider of environmental, social and governance (ESG) consulting services to the mining industry.

In addition, Ronnie Beevor will take a seat on the board. He has experience in investment banking and mining, having been the head of Rothschild Australia. He is currently a director of Canadian iron-ore miner Champion Iron and Canadian explorer Mount Royal Resources. He serves as chairman of gold explorer Felix Gold and has recently retired as chairman of Bannerman Energy.

Meanwhile, Ross Stanley has resigned from Lucapa’s board, the company added.

Source: DCLA

Lucapa finds Lulo mine’s fifth-largest diamond

Australia’s Lucapa Diamond has recovered a 203 carat diamond at its prolific Lulo mine in Angola, the fifth largest ever found at the operation.

The diamond is also the third 100 carat plus stone found at Lulo this year.

Lucapa said the high quality, type IIa diamond was recovered during the processing of run of mine stockpiled ore and its recovery follows those of a 162 and a 116 carat diamonds on successive days last month.

The mine, which hosts the world’s highest dollar per carat alluvial diamonds, began commercial production in January 2015. Only a year later, it delivered the largest ever diamond recovered in Angola a 404 carat white stone later named the “4th February Stone”.

Lucapa has a 40% stake in the Lulo mine. The rest is held by Angola’s national diamond company Endiama and Rosas & Petalas, a private entity.

Angola is the world’s fifth diamond producer by value and sixth by volume. Its industry, which began a century ago under Portuguese colonial rule, is successfully being liberalized.

Source: DCLA

Lucapa Diamonds recovers two diamonds of over 100 ct

Lucapa Diamond Company and its partners Endiama and Rosas and Petalas, have recovered two diamonds of over 100 ct each from the terraces of Mining Block 46 at the Lulo mine, in Angola.

The miner plans to offer the first, a 162.42 carat, type IIa diamond, as part of its normal run-of-mine sales later this month, it said Tuesday. It will sell a 116.14 carat rough, which it discovered the next day, by tender at a future date, along with other high-value, type IIa diamonds the company unearthed from the deposit recently.

Both diamonds were recovered in February, with a 162 ct diamond recovered first, and a 116 ct diamond recovered the following day.

The 116 ct Type IIa diamond will be sold through a tender at a future date, along with other high-value Type IIa diamonds recovered recently, while the 162 ct diamond will be sold as part of normal run-of-mine sales later this month.

Lucapa has assets in Africa and Australia, with interests in the Lulo diamond mine and the Mothae diamond mine, in Lesotho.

Source: DCLA

Solid Performance as Lucapa Sells $102m Rough in 2023

Lucapa reported a slight increase in total rough sales for FY2023 in what it described as a solid performance.

The Australian miner announced revenues of $102.2m, up by 1 per cent on the previous year.

Q4 earnings from its two mines – Lulo in Angola and Mothae in Lesotho – slipped by 1 per cent to $40.8m.

During the year Lucapa sold 11 diamonds from Lulo that fetched a total of $32.7m at two Q4 tenders in Q4. It also recovered two Type IIa diamonds from Lulo, a 208-ct and a 235-ct, the second largest recovery since commercial operations started in 2015.

“Both mines delivered a solid performance against processing and production targets in Q4 and we are pleased with the full year results which saw group guidance achieved,” said managing director Nick Selby.

Mothae performed well despite experiencing a lower dollar per carat average in Q4, which impacted its overall diamond price for the year. Lulo had a good run which saw its high-value recoveries attract firm prices at tender.”

Lulo recovered fewer carats than forecast (30,585) but achieved an average $2,700 per carat, well up on the forecast of $2,300. Mothae recovered more carats that forecast but saw average price per carat down from guidance of $1,000 to an actual $775.

Lucapa said in its ASX announcement that the overall diamond price index began to trend upwards towards the end of 2023, because of India’s two-month moratorium and EU sanctions on Russian goods.
“Tightening economic conditions imposed by central banks and a surge in inflation continues to impact discretionary spending on items such as diamond jewellery,” it said.

“However according to media reports at the end of 2023, there are signs the US market is recovering, however the Chinese market remains slow.”

Lucapa holds a 40 per cent stake in Lulo. The remainder is owned by Angola’s national diamond company Endiama (32 per cent) and by private Angolan company Rosas & Petalas (28 per cent). Lucapa holds a 70 per cent stake in Mothae. The government of Lesotho holds the remaining 30 per cent.

Source: DCLA

Four Large Lulo Diamonds Bank $17M for Lucapa

Lucapa Diamond Company sold four special-size rough stones with a total weight of 609 carats for $17 million at a recent tender in Angola.

The type IIa diamonds, which weighed 41.23, 123.83, 208.78 and 235.47 carats, were recovered from Lucapa’s Lulo alluvial mine in Angola, the miner said Monday. They were part of a tender by Sodiam, Angola’s national diamond-trading company.

The 235 carat stone, which Lucapa unearthed last month, is the second-largest Lulo has yielded. Meanwhile, the 208 carat, retrieved in October, achieved the highest price of all four diamonds, Lucapa noted. The entire parcel averaged $28,000 per carat.

“The outcome of this tender is very encouraging as it once again clearly indicates the strength of the market for these exceptional, rare and high-value stones of which Lulo is a consistent producer,” said Lucapa managing director Nick Selby. “This is a positive result for Lucapa in a year when the diamond industry generally suffered weakness in pricing.

With India about to resume rough-diamond imports and Russian diamonds potentially having a restricted flow into the market in 2024, we are optimistic that we will see improvement and stability in diamond prices across all sectors of the market in the new year.”

Sodiam’s tenders generally include rough from Lulo, as well as from the Catoca and Luele mines.

Source: DCLA

Lulo mine delivers its third largest diamond, weighing 208 ct

Lucapa Diamond has recovered a 208 carat diamond at its prolific Lulo mine in Angola, the third largest ever found at the operation.

The company said the high quality, type IIa diamond was unearthed at the lizeria, or terrace area, of its Mining Block 31 portion of Lulo, known for delivering high value stones.

The diamond is also the second 100 carat plus stone Lucapa retrieved in October, following the recovery of a 123 carat, type IIa rough at the start of the month.

The mine, which hosts the world’s highest dollar per carat alluvial diamonds, began commercial production in January 2015. Only a year later, it delivered the largest ever diamond recovered in Angola a 404 carat white stone later named the “4th February Stone”.

Lucapa finds Lulo mine’s third largest diamond
It is the second 100 carat plus diamond found at Lulo in October.
The operation has delivered 39 diamonds weighing more than 100 carats each to date.

Lucapa has a 40% stake in the Lulo mine. The rest is held by Angola’s national diamond company (Endiama) and Rosas & Petalas, a private entity.

Angola is the world’s fifth diamond producer by value and sixth by volume. Its industry, which began a century ago under Portuguese colonial rule, is successfully being liberalized.

Source: DCLA

Lucapa Diamonds names Selby CEO and MD

Australia’s Lucapa Diamonds has appointed interim chief executive Nick Selby as its permanent CEO and Managing Director.

Selby, an extraction metallurgist who joined Lucapa in 2014, took the helm in August this year following former boss Stephen Wetherall’s decision to step down earlier this year.

The new CEO began his career with De Beers, where he spent 19 years in a range of technical roles. He joined Gem Diamonds in 2005, where he was responsible for various diamond projects in countries including Angola, Australia, the Democratic Republic of Congo, the Central African Republic, Indonesia, Lesotho and Botswana.

Lucapa has a 40% interest in the Lulo mine, in Angola, and a 70% interest in the Mothae mine in Lesotho. The company, debt-free since July, is exploring for more diamonds at Lulo as it works toward bringing its Merlin project in Australia into production.

Merlin is home to Australia’s largest mined rough diamond on record and has the potential to be the only producing diamond mine in Australia, following the closure of Rio Tinto’s iconic Argyle mine in 2020, after 37 years in production.

Source: DCLA

Lucapa debt free as of July 4

 

ASX-listed Lucapa Diamond Company has fully repaid all interest-bearing loans that it borrowed from gold exploration and mining company Equigold and the Industrial Development Corporation of South Africa (IDC).

Lucapa has repaid the final instalment of $1.3-million in principal and interest on the original $15-million Equigold debt, which was raised in 2018.

In addition, Lucapa subsidiary Mothae Diamonds recently made its final interest payment of R7.3-million to the IDC, with the IDC loan now also fully repaid.

Lucapa is now interest-bearing debt free, having repaid about A$30-million in debt and interest over an 18-month period

The company said in a July 4 statement that it would seek to have all securities with respect to those loans released.

Lucapa owns the Lulo mine, in Angola, and the Mothae mine, in Lesotho, and is developing the Merlin project, in Australia. It also explores for diamonds in Australia, Angola, Botswana and Lesotho.

Source: DCLA

Lucapa Diamond Company sells Lulo diamonds for A$30.1m

                     Lucapa Diamond Company

Diamond miner Lucapa Diamond Company has sold seven diamonds from its Lulo mine in Angola for $30.1 million, equating to over $39,000 per carat.

The company and its partners, Endiama E.P. and Rosas & Petalas, placed the “special sized” diamonds on international tender earlier this month. Together, the diamonds weighed a combined 767 carats.

The sold diamonds include a 170-carat fancy-coloured diamond dubbed the ‘Lulo Rose’ alongside three white Type IIa diamonds of over 100 carats and three other special-sized white Type IIa stones.

In late September, Lucapa announced it had recovered its 30th diamond of over 100 carats from Lulo, which has been in commercial production since 2015.

The company kicked off commercial production from its Mothae mine in Lesotho in 2019.

Meanwhile, Lucapa said it was continuing to explore for potential primary-source kimberlites or lamproites with its partners across the Lulo concession in Angola, the Brooking project in Australia, and the Orapa Area F project in Botswana.

Source: DCLA

Lucapa’s Lulo Mine Turns Out 160ct. Rough

 

        160-carat rough. (Lucapa Diamond Company)

 Lucapa Diamond Company has recovered a 160-carat, high-quality rough from its Lulo mine in Angola, the sixth-largest stone the deposit has yielded.

The company found the type IIa diamond at the same alluvial mining block from which it unearthed a 170-carat pink — the Lulo Rose — in July, Lucapa said last week. The new addition marks the 28th diamond over 100 carats from Lulo.

Recently, Lucapa transitioned to mining rough from the lezirias, or flood plain area, of the site, which has led to the recovery of larger diamonds, it said. In the past two months, the miner has found more than 100 special stones — those weighing over 10.8 carats — at the deposit, including four type IIa rough diamonds weighing 99, 81, 74 and 66 carats.

Source: DCLA

Lucapa says 204 carat diamond recovered at Mothae mine in Lesotho

                    

Lucapa Diamond Company yesterday announced the recovery of a 204 carat diamond from the Mothae mine in Lesotho.

According to the company’s statement, the 204 carat white stone is the eighth +100 carat diamond and third +200 carat to be recovered from the Mothae mine since commercial mining commenced in January 2019, underlining its unique large stone nature.

Lucapa Diamond Company is an ASX listed diamond miner and explorer with assets in Africa and Australia. It has interests in two producing diamond mines in Angola (Lulo) and Lesotho (Mothae).

“The large, high-value diamonds produced from these two niche African diamond mines attract some of the highest prices per carat for rough diamonds globally,” the company said.

The Lulo mine has been in commercial production since 2015, while the Mothae mine commenced commercial production in 2019.

Source: DCLA

Lucapa Sales Surge in Buoyant Market

                          

Lucapa Diamond Company’s revenue rose in the third quarter amid strong demand and an increase in sales volume.

Sales from the miner’s Lulo deposit in Angola and Mothae in Lesotho soared 86% to $8.6 million for the three months ending September 30, it said last week. Sales volume jumped 57% to 15,690 carats, outweighing a 14% drop in the average price to $995 per carat.

“The market for diamonds continued to be buoyant in a constrained rough-supply environment,” said Lucapa managing director Stephen Wetherall. “As a result, we have upgraded our full-year guidance.”

Production from Lulo increased 1% year on year during the quarter to 9,444 carats, with the miner recovering 83 diamonds above 10.8 carats. The largest of those was a 94-carat, D-color, type IIa white stone. Lucapa also unearthed several fancy-pink diamonds during the quarter, it noted.

Output from Mothae came to 9,567 carats, with 60 diamonds weighing more than 10.8 carats. The Australia-based miner recovered a 51-carat stone, along with a number of fancy-light pinks and yellows. Lucapa did not produce any rough from Mothae during the same period last year, as the site was on care and maintenance due to Covid-19-related regulations in Lesotho.

Lucapa has made progress toward satisfying the conditions for its acquisition of the Merlin mine in Australia. It believes the final outstanding conditions will be dealt with in the fourth quarter.

The company upgraded its guidance for the full year due to the strong demand. It expects revenue to be between AUD 66 million ($48.9 million) and AUD 71 million ($52.6 million), compared to the AUD 50 million ($37 million) to AUD 56 million ($41.5 million) it forecast in May.

The miner is also conducting exploration at the Brooking lamproite project in Australia and the Orapa site in Botswana.

Image: A selection of rough white, pink and yellow diamonds sold during the quarter.

Source: DCLA