Record Volumes Processed at Lucapa’s Lulo & Mothae

Rough Market
08/07/2021 15:40

Lucapa diamond company announced a strong first half of 2021 in its Q2 results. Both Lulo (Angola) and Mothae (Lesotho) processed record Q2 volumes and record half-year revenues. 

Lulo continued exceptional large stone recoveries, including three +100 carat founds, and its single largest sale ever of A$28.3 million, representing an average price of US$34,548/carat, led to record revenues for the first half-year of 2021. Mothae also noted exceptional large stone recoveries and regular sales also led to record revenues for the first half of 2021.

According to Lucapa, the diamond market continues its recovery on the back of returning consumer demand and low rough supplies fuelling rising rough diamond prices.

In addition, they strategically acquired the Merlin Diamond Project (100%) for a total consideration of A$8.5 million, adding a near-term mining development opportunity in Australia, with a 4.4 million carat JORC compliant resource and significant exploration upside – conditions precedent currently being satisfied.

Managing Director, Stephen Wetherall commented: “The operational performances at the Lulo and Mothae mines, notwithstanding the adverse influence of COVID-19, inclement weather and expansion optimization delay, have been very solid in the first six months of 2021. The quickly returning retail demand and low rough diamond supplies have combined to fuel rising rough diamond prices, which are now back to levels last seen in 2014. (…) Following the strong financial support received from existing and new institutional shareholders to acquire the historic Merlin Diamond Project in the Northern Territory, our balance sheet and share register has never been stronger and we look forward to driving returns from existing assets and bringing to the market our mine development plans for Merlin which is a strong addition to Lucapa’s asset portfolio.”