High-Value Recoveries Drive Lucapa's Revenue Surge
October 25, 24
(IDEX Online) - Lucapa saw revenue from its Lulo alluvial mine in Angola almost double in the three months to 30 September, driven by large, high-value recoveries.
The Australian miner reported "excellent revenue returns", up 86 per cent on last year's Q3 to $16.9m.
Average price per rough carat surged to $3,033, a 188 per cent increase on $1,052.
Lulo generated increased revenue despite a 35 per cent drop in the number of carats sold - down by 35 per cent - through one tender and two run-of-mine sales during the quarter.
In July it reported the sale of six diamonds, total weight 447 carats - for $12.4m at tender (five of them white Type IIa weighing between 195 and 28 carats - and a 14-carat pink)
A 176 carat Type IIa diamond recovered during Q3 was sold post-quarter end for $3m ($17,200 per carat).
"The diamond market overall continues to experience soft market conditions," said Lucapa in its Q3 Summary published on 21 October.
"However, Lulo's large stone population has seen little negative impact on prices it has achieved at recent tenders."
Production was in line with Q3/2023, despite late season flooding, which forced the company to change its mining plan. The lower recovered grade was offset by the processing of a larger volume of gravel, it said.
Lucapa owns 40 per cent of Lulo, which attracts the highest prices per carat for alluvial diamonds globally. Endiama, Angola's state-run national diamond company, owns 32 per cent and the private Angolan company Rosas & Petalas owns 28 per cent.
Pic shows six diamonds, total weight 447 carats, that sold for $12.4m.