Lucapa Reports Strong Q1 2021

Market Analysis
19/04/2021 15:06

Lucapa’s quarterly activity report for Q1 shows the company had a strong first three months in 2021. Both operating mines (Lulo and Mothae) noted record performances and the continuing recovery of the entire diamond industry provided a robust pricing environment for rough and polished diamonds.

Lucapa recovered five +100 carat diamonds and three large pink coloured diamonds of 54, 40 and 27 carats at the Lulo mine in Angola during Q1 2021. During this quarter, processed volumes were 47% ahead of the prior comparative period, marking a new quarterly processing record. During Q1, 4,655 carats were recovered, including 136 +4,8 carat diamonds and 65 specials. From January to March 2021, 5,313 carat rough diamonds from Lulo were sold for 9.5 million USD, achieving an average price of 1,796 USD/carat.

At Mothae in Lesotho, Lucapa recovered a high-value 213 carat D-colour Type IIa white diamond in February, which was sold in Antwerp in March. It’s the fifth +100 carat diamond recovered in the mine since commercial production commenced in January 2019 and the largest gem-quality diamond recovered to date at Mothae. In general, 5,264 carats were produced during Q1 2021, including 96 +4,8 carat diamonds and 19 specials. Lucapa sold a total of 10,295 carats in Antwerp during Q1 2021 for a new quarterly record of 11.5 million USD, achieving an average price/ carat of 1,117 USD for their Mothae goods.

Managing Director, Stephen Wetherall commented “After a testing 2020, the recovery in the diamond sector has continued its momentum, resulting in strongly supported prices across the diamond industry. This together with the stellar performances at our mining operations has resulted in record recoveries, mining volumes and diamond revenues delivering outstanding quarterly operating profits and cash flows.”