Lucapa Reports Modest Sales at Latest Tender, Continues Holding High-Value Stones

Rough Market
21/11/2018 15:35

Australian miner Lucapa Diamonds earned $4.2 million from its latest tender of rough goods from its Lulo alluvial mine in Angola, as it continues to hold back high-value goods until it can take advantage of Angola's new marketing policy. The sale involved 3,411 carats and earned an average price of $1,220 per carat, and brings the miner's total sales of Lulo diamonds for the year to $24.5 million at an average price per carat which now stands at $1,353, a figure which has declined from an average price per carat of $1,642 as of the half-way point of 2018. As previously announced, the miner has been witholding seven large and premium-value specials (+10.8 ct.) for sale at a later date. This parcel includes a 46-carat pink, and top-color Type IIa white diamonds weighing 114 (pictured), 85, 75, 70, 62, and 43 carats respectively.

The sale of these exceptional diamonds was delayed pending implementation of Angola’s new diamond marketing policy, one of the measures being introduced by the new Angolan President, Joao Lourenco, to increase foreign investment in the country’s diamond sector. The changes will be quite significant for diamond mining companies in Angola, Lucapa CEO Stephen Wetherall told us in early October. Once the technical regulations for the new diamond marketing policy are gazetted and in force, producers will likely have the ability to determine which new channels the majority of their product is sold through, and to which buyers. This ‘majority’ has been said to be up to 60% of production and the ability to use multiple competitive channels for price discovery will result in producers achieving international market prices.