Diamond miner Lucapa Diamond’s rough diamond revenue for the half-year ended June 30 was $46.8-million on a 100% basis at an average price of $1 633/ct.
Lucapa recovers large and high-quality diamonds from its Lulo alluvial mine, in Angola, and the Mothae kimberlite mine, in Lesotho.
The company’s 100%-owned subsidiary, Australian Natural Diamonds acquired the Merlin diamond project in Australia’s Northern Territory in 2021.
The company is also advancing exploring and evaluation activities on several projects in Africa and Australia.
Owing to continued solid demand for high-value production in the diamond market and strong operational performances from the Lulo and Mothae mines, the group recorded a much-improved result, with a profit after tax of $900 000 for the half-year, compared with a loss of $15.9-million for the six months ended June 30, 2022.
The profit after tax attributable to members of the company amounted to $3.2-million compared with a loss of $13.4-million the previous year.
Earnings before interest, taxes, depreciation and amortisation (Ebitda) was $8.2-million on a 100% basis.
Attributable rough diamond revenue was $22.8-million and attributable Ebitda $3.6-million.
The company recovered 30 927 ct on a 100% basis.
Lucapa continued to settle its debt obligations to the Industrial Development Corporation (IDC) and Equigold, which resulted in closing debt reducing from $6.4-million to $2-million during the period.
The IDC debt was fully expunged by period end and the final repayment was made to Equigold post period end, leaving the group debt free, other than for capitalised lease obligations.
Following plant modifications made during the first quarter, which resulted in improved revenue and with lower operating costs, Mothae achieved an Ebitda of $3.3-million for the half-year, compared to a loss of $0.3-million for the prior corresponding period.
Lulo produced another good performance and reported an Ebitda of $6.1-million, compared with $6.2-million in the previous year.
During the half-year, Lucapa received a $1.4-million net dividend from Lulo, as well as $3.5-million in investment loan repayments.
OPERATIONS
Operations at Lulo in the period were said to have benefited greatly from the previous year’s expansion strategy. The mine completed six diamond sales in the first half of the year, selling 14 337 ct at $2 326/ct.
A total of 15 367 ct was recovered from Lulo in the period under review.
At the Merlin Kimberlite mine development, the feasibility study continued to progress throughout the first half of the year with several workstreams completed or near completion.
The kimberlite exploration programme in Angola advanced considerably during the period, with the dedicated kimberlite bulk sampling plant operating continuously to process a total of 16 bulk samples during the first half of the year, nine returning diamonds with the remaining samples barren.
Seven new kimberlites that were confirmed will now be assessed for inclusion in the bulk sampling programme.
At the Brooking exploration in Australia, approvals for augur drilling on heavy mineral targets were obtained during the half, however, no exploration drilling activities occurred until after the period ended. Tenement E04/2502 was relinquished as no lamproite targets were identified.
At the Orapa exploration project, in Botswana, the renewal of environmental and land-use permits was sought during the first half, to allow drilling over identified targets to begin in the second half of the year.
