Lulo Revenue Up in Second Quarter

RAPAPORT… Sales of rough from Lucapa Diamond Company’s Lulo mine doubled to $10 million in the second quarter, reflecting higher volumes and an increase in the average price, the company said Monday.

Sales volume surged 63% to 5,573 carats, while the average price grew 22% to $1,800 per carat. Production at the deposit in Angola fell 24% to 3,868 carats, as Lucapa focused on processing ore from lower-grade mining
areas, the miner explained.


During the three months ending June 30, Lucapa recovered 124
stones weighing more than 4.8 carats from Lulo. Those included 45 special-size
stones — above 10.8 carats — the largest of which was a high-quality, 130-carat,
white diamond.


Lucapa’s Mothae mine in Lesotho produced 6,349 carats in the
second quarter, with 91 of those stones over 4.8 carats, among them a 126-carat
diamond. The company began commercial production at the deposit at the end of
2018.


In the third quarter, the miner will begin production from
the higher-margin southern pit at Mothae, and will continue processing in that area through
the rest of the year, it said.


The company will begin cutting and polishing some of its
stones in the third quarter, starting with a 46-carat pink it’s holding in its
inventory.


At the end of the quarter, Lucapa had 3,855 carats in its
Mothae inventory and 3,147 carats at Lulo. Its next tender will take place in July, it
added.

Image: Diamonds for sale at the next tender, including the 126-carat stone. (Lucapa Diamond Company)