Lucapa Diamond Company has entered voluntary administration as it seeks to restructure its capital and explore a potential sale of the business.
The company announced on Friday that administrators from advisory firm KordaMentha will conduct an urgent assessment of Lucapa’s operations and assets, which include Brooking Diamonds, Heartland Diamonds, and Australian Natural Diamonds.
Lucapa’s portfolio spans both Africa and Australia, with key assets such as the Lulo mine in Angola, the Merlin project in Australia—previously seeking $16 million in investment—and the Brooking exploration project.
In 2023, Lucapa sold its high-value Mothae mine in Lesotho to streamline its portfolio and concentrate on core assets.
This move came amid a prolonged slump in the global diamond market and weakening demand across the industry.
Financial challenges have persisted. In March, Lucapa reported a net loss of $1.5 million for 2024, with revenue plunging 31% to $54.5 million due to falling diamond prices. To maintain liquidity, the company raised $1.9 million during the period through a share placement and purchase plan.
Despite these setbacks, Lucapa increased its ownership stake in the Lulo mine from 39% to 51% earlier this year, hoping for stronger future returns from the Angolan operation.
The administrators are now inviting expressions of interest from parties willing to invest in or acquire Lucapa and its assets.
In the meantime, the Australian Securities Exchange (ASX) has suspended the company’s listing, citing that Lucapa’s financial position no longer supports the continued quotation of its securities.
Lucapa’s restructuring efforts come at a critical time as the company tries to stabilize its operations and attract potential investors or buyers in a challenging diamond market.
