Lucapa Measures COVID Impact, But Optimistic

Mining and Exploration
30/07/2020 08:59

At its Annual General Meeting presentation, Lucapa, the Australian company operating two of the world's highest $ per carat diamond mines, Lulo in Angola (alluvial) and Mothae in Lesotho (kimberlite), sized up the effects of the COVID pandemic on the company's operations and performance. After an initial good start of 2020, continuing on the earlier strategy of optimizing revenue through partnerships with diamond manufacturing entities, Lucapa was forced to close both mines as the pandemic broke out, in March 2020 and started revising operations and expenditure. While the Lulo operation reopened relatively quickly, plans to reopen Mothae, potentially after the winter months, are pending approval of a proposal made to the Lesotho government recently. Despite the dramatic effects of COVID-19 on the entire diamond industry, the company is optimistic about the future, as it continues to explore (among others) 16 high interest kimberlites in Angola (5 are located in the Canguige Catchment) hoped to be the source of Lulo's high value diamonds, with bulk sampling results from pipe 71 expected to come in in the next weeks. Cautious signs of demand recovery, especially in China and specifically in the domain of high value diamonds are also encouraging, the company said.