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 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

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

Lucapa finds Angola mine’s second-largest diamond

 

Australia’s Lucapa Diamond has unearthed a 235 carat type IIa diamond from its prolific Lulo mine, the second largest recovered at the Angola operation since it opened in 2015.

The find comes barely a week after the recovery of a 208 carat diamond at the same mine, which is the third-largest ever recovered from Lulo.

The new diamond was dug up from Mining Block 550, immediately south of Mining Block 19, which Lucapa said is the area that has yielded eight precious rocks over 100 carats to date.

Not surprisingly, the mine is considered the world’s highest dollar per carat alluvial diamonds operation, in which Lucapa has a 40% interest. The rest is held by Angola’s national diamond company (Endiama) and Rosas & Petalas, a private entity.

The partners have now recovered 40 diamonds weighing more than 100 carats and four over 200 carats at Lulo. In 2016, only a year after beginning commercial production, Lulo produced the largest ever diamond recovered in Angola a 404 carat white stone later named the “4th February Stone”.

“Lulo continues to demonstrate it is a prolific producer of large diamonds. To unearth three +100 carat diamonds with two being over 200 carats in such a short space of time from different areas of the concession, makes us more determined to find the primary source, by dedicating even more resources to the exploration program,” Lucapa managing director, Nick Selby, said in the statement.

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 lessening government regulations and restrictions in favour of a greater participation by private entities.

Source: DCLA

Lucapa Recovers Another +100-ct Diamond at Lulo

Lucapa has recovered a 180.87-carat Type IIa white diamond at its Lulo alluvial mine, in Angola.

It’s the second +100 carat diamond of the year so far. In February it found a 150-carat Type IIa D-color white diamond.

And it’s the 37th +100 carat since since the Australian miner began commercial production at Lulo in 2015.

Last November the 170.2-carat Lulo Rose, believed to be the largest pink diamond found in the last 300 years, was sold at tender for an undisclosed sum.

Lucapa, which also operates the Mothae mine, in Lesotho, has reported encouraging exploration results from its ongoing exploration program to discover the primary kimberlite source at Lulo.

Pic of the 180.87-carat Type IIa white diamond, courtesy Lucapa

Source: DCLA