Australia-headquartered diamond producer Lucapa Diamond Company Limited said diamond production had increased in Q4, coinciding with a recovery in both rough and polished diamond prices.
The Luo mine in Angola, in which Lucapa owns a 40% stake, saw Q4 diamond production rise 55% year-on-year to 6,447 carats. Lulo also recorded its highest sales in a year, having sold 20,397 carats for $28 million or $1,371 per carat in 2020.
The company noted that the consumption and strong demand that saw the diamond industry commence its recovery in Q3 2020 continued into the festive period, favourably impacting both rough and polished diamond prices. This momentum has continued into 2021.
Stephen Wetherall, Managing Director, Lucapa, said, “Following a tough 2020 where the diamond market all but stopped, the sector continues to rebound strongly from the pandemic with a better industry balance which has seen diamond pricing return to pre-pandemic levels.”
“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.”