Lucapa Diamond Company has entered voluntary administration to restructure its capital and prepare for the possible sale of the business.
The miner’s administrators from advisory firm KordaMentha will be undertaking an “urgent assessment” of the group and its operations, which also include Brooking Diamonds, Heartland Diamonds and Australian Natural Diamonds, the company said Friday. Aside from the Lulo mine in Angola, Lucapa owns the Merlin project, for which it was seeking a $16 million investment, and the Brooking exploration project, both in Australia.
Last year, Lucapa sold its high-value Mothae mine in Lesotho in an effort to streamline its portfolio and focus on core assets, amid a depressed diamond industry and a prolonged slowdown in demand. In March, the miner reported a net loss of $1.5 million for 2024, while revenue fell 31% to $54.5 million as prices for its diamonds weakened. During the period, Lucapa raised $1.9 million in funding through a share placement and purchase plan.
However, despite its money woes, in March, Lucapa upped its share in Lulo from 39% to 51% in the hope of receiving increased returns from future projects at the site.
The administrators are inviting feedback from parties interested in funding or buying Lucapa and its assets. Meanwhile, the Australian Securities Exchange has suspended Lucapa, given its “financial condition is not adequate to warrant the continued quotation of its securities,” it noted.
Image: Rough diamonds from the Lulo mine. (Lucapa Diamond Company)
