Lucapa: Solid Q4 & Positive Outlook Soften COVID-Blow

Mining and Exploration
25/01/2021 11:33

Lucapa reports strong Q4 results at its Lulo operations in Angola (volume of carats mined was up 55%, grades were up 47%, amount of carats sold was down 48% (4,269ct) but prices were up 31% y-o-y. For Mothae in Lesotho, both grades and mined carats were down (26% and 33% respectively), and sales of diamonds from the mine, where operations are currently suspended due to a nation-wide lockdown) are part of a new cutting and polishing agreement, achieving a record price per carat earlier this month in Antwerp. In total, in a year that was impacted heavily by the global pandemic, Lucapa successfully sold 30,5kct of rough diamonds in 2020 for US$32,1m translating in a 42% revenue drop compared to 2019. The continued recovery of large, high quality rough diamonds from both Lulo and Mothae in recent months underscore the potential of both operations, with the Mothae expansion expected to be completed by the end of Q1 2021 and exploration at the Canguige catchment continues. 

“We look forward to 2021 with great optimism following a strong final quarter from our two mines and particularly as the sector continues its positive momentum. The expansion of our Mothae mine will enhance returns expected to flow to Lucapa this year from both our operations and the kimberlite bulk sampling program at Lulo continues to demonstrate its prospectivity.”, Stephen Wetherall, Managing Director Lucapa commented.