Lucara and HB Antwerp Extend Large Stone Deal For 2 Years

Market Analysis
07/04/2021 07:12

Lucara Diamond Corp, owner of the Karowe mine in Botswana and HB Antwerp, the diamond trading and manufacturing company based in Antwerp have agreed to extend the exclusive deal on all of Lucara's +10.8ct diamonds, which account for approx. 70% of Lucara's total revenue, for 24 months. HB Antwerp will continue to get exclusive access to purchase the miner's specials until the end of 2022, for a price determined on the projected polished outcome, and an additional true up, minus handling fee and manufacturing cost, once the diamond is actually sold.

In a press release, Lucara CEO Eira Thomas comments that the move mid last year to enter into the agreement has helped the miner to maintain stable pricing amid the pandemic, but has also broadened acces to a broader marketplace while delivering regular cash flow, ultimately also benefitting the country with increased tax revenue for the country. HB Antwerp CEO Oded Mansori in his comment underscores the transparency and sustainable approach of the unique business model. The extended deal will undoubtedly further boost the Antwerp based innovator in expanding its operations in Antwerp, including the training and recruiting of polishers in the diamond capital.