Lucapa Diamond Company Limited recently announced the recovery of yet another +100 carat diamond from the Lulo alluvial mine in Angola. This one is a 128 carat stone and the 12th +100 carat diamond recovered to date from Lulo.

The Company pointed out that this continues “to underline the large-stone nature of the prolific Lulo diamond field”.

The latest recoverywas among the Specials recovered recently from Mining Block 6, along with a 7.5 carat fancy purple pink gem. “Testing on a Yehuda colorimeter has confirmed the 128 carat stone is a top-colour white Type IIa diamond,” Lucapa stated.

“The recovery of the 128 carat diamond and 7.5 carat fancy purple pink follows the recent historic tender of seven large, top-quality Lulo diamonds achieving US$16.7 million (US$22.9 million) at an exceptional average price of US$33,530 per carat in the first international sales event under Angola’s new diamond marketing regulations,” the Company noted. “The Lulo partners will likely include the 128 carat diamond and 7.5 carat fancy purple pink in the next international tender, along with the 75 carat Type IIa top-colour diamond recovered in Q4 2018 and other Specials recovered.”

Lucapa and its partners, Empresa Nacional de Diamantes E.P. (Endiama) and Rosas &Petalas, have plans to further expand production by more than 25% at Lulo in 2019.

Soon after reporting this significant recovery, Lucapa also announced that the Company has decided to prioritise high-value diamond production and resources.    

This understanding was arrived at after Lucapa’s Board conducted a review of the Company’s diamond asset portfolio, “even as Lucapa continues its strategy to evolve into a global niche producer of large and high-value diamonds,” the Company said.

“The review was undertaken to reflect the current investment climate, where the focus has moved to companies which are maximising cash generation from producing assets,” Lucapa explained. “It also accounts for the changing dynamics of the global rough diamond market, where high-value diamond production is favoured.”

Lucapa noted too, that it was able to differentiate itself from its diamond peers in 2018 “by delivering a second producing asset”. This has put the Company “in the enviable position of having two mines with high-value production”, Lucapa stressed.

Thus, “Lucapa will prioritise production and cash generation from these two high-value diamond mines to ensure shareholder value is maximised,” the Company announced today.

Lucapa, elaborating on the Board’s strategyand outlining its immediate priorities, said these will include:

• Expanding high-value diamond production and accelerating cash generation from the Lulo alluvial mine in Angola and the Mothae kimberlite mine in Lesotho
• Advancing the year-round Lulo kimberlite exploration programme to identify a possible source of the world’s highest-value alluvial diamonds and
• Cutting and polishing select Special diamonds to accrete additional value beyond the mine gate

As a direct result of itsprioritising, the timing of future work programmes for Lucapa’s two earlier-stage diamond exploration assets – the Brooking project in Western Australia and the Orapa Area F project in Botswana – will be reviewed.

Lucapa Managing Director Stephen Wetherall said: “Growing shareholder value is our major imperative which, in the current climate, we believe warrants a complete focus on our high-value and cash-generating assets.  Lulo and Mothae are two of the highest US$ per carat diamond mines in the world. The ability to increase production at our two mines, coupled with the significant marketing policy changes in Angola, leaves Lucapa ideally positioned to deliver additional value in 2019. Our ongoing Lulo kimberlite exploration programme will continue unabated, supported by the strong belief and confidence of the Board and our Angolan partners that the hard-rock source of the world’s best alluvial diamonds will be a significant global discovery.”

Pic Cap: 128 carat top-colour white Type IIa diamond, the 12th +100 carat diamond recovered to date from Lulo

Pic Courtesy: Lucapa Diamond Company Limited

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