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Lucapa Diamond Company reported an increase in sales since the start of the year, as the mining of higher-grade ore from its Lulo mine in Angola outweighed a slide in the average price.
Revenue for the six months from January to June grew 8% year on year to $29.4 million, the company and its administrators said last week. The gain is primarily due to a 13% increase in sales volume to 15,532 carats as the ore grade improved 92%. Meanwhile, the average price for the six months was down 4% year on year to $1,890 per carat. Lucapa recovered 15,352 carats, a 49% jump versus the equivalent period last year.
For the three months that ended June 30, revenue slipped 7% year on year to $16.5 million. Sales volume rose 42% to 7,124 carats, partially offsetting a 35% slide in the average price to $2,323 per carat. Production soared 104% to 9,325 carats. During the April-to-June period, the company held two run-of-mine sales and one tender.
Lucapa mined ore from the leziria floodplain areas, known for producing higher-grade ore, it said. At the close of the period, the miner had 3,885 carats in inventory, a 51% increase from the previous year.
In May, the company announced it was entering administration due to financial difficulties stemming from the prolonged weak diamond market. The administrators are seeking funding or buyout options for Lucapa and Lulo. Last year, the miner sold its other major asset, the Mothae mine in Lesotho, in an effort to streamline its portfolio. It also owns the Merlin diamond project in Australia, for which no activities were carried out during the quarter.
Image: A rough diamond from the Lulo mine. (Lucapa Diamond Company)
