ASX-listed Lucapa Diamond Company, with operations in Angola and Australia, has posted strong operational and financial results for the quarter ended March 31, showing year-on-year increases in carat recoveries, grade, revenue, and diamond prices.
Lucapa reported a 6% increase in carat recoveries to 6,027 carats, along with a rise in the number of special diamonds—those weighing over 10.8 carats—from 51 in Q1 2024 to 54 in the current quarter.
While diamond sales volume dipped 4% year-on-year to 8,409 carats, the average price per carat surged 42% to $1,523, resulting in a 36% revenue increase to $12.8 million for the period.
“Despite the blockade by local community leaders, this quarter represents a much-improved start to the year compared to 2024,” said Managing Director Alex Kidman.
He attributed the improvement to continued mining in the higher-grade lezirias (floodplain areas) at the Lulo mine in Angola during the wet season.
Kidman also highlighted the finalisation of the Lulo Joint Venture Mineral Investment Contract, which will raise Lucapa’s stake to 51%, enhancing its exposure to future exploration success.
“Once a date is confirmed for the signing ceremony, we will update the market,” he added.
At the Merlin Project in Australia, recent electromagnetic survey results identified two significant base metal targets, one of which aligns with a historical gravity anomaly.
Given their proximity to the MacArthur River Mine, Kidman expressed optimism: “We look forward to updating the market on these developments, along with progress on the 16 identified kimberlite targets, as our 2025 exploration program advances.”
On market trends, Lucapa noted signs of recovery in rough diamond prices during Q1. It pointed out that global natural diamond production is projected to be the lowest since the mid-1990s, potentially supporting further price growth.
However, the company cautioned that recent U.S. tariff changes, introduced after the quarter-end, have created short-term market uncertainty, as buyers adopt a wait-and-see approach, impacting demand and prices temporarily.
Lucapa expects this situation to stabilise once the full effects of the tariffs on global trade are better understood.
