The ASX-listed diamond miner and explorer, Lucapa Diamond Company, has maintained its production guidance for its Lulo and Mothae mines for the full year.
Reporting on the company’s performance in the third quarter, which ended on September 30, Managing Director (MD) Nick Selby said that Lucapa’s 70%-owned Mothae mine, located in Lesotho, continued to perform strongly and had “a very positive quarter.”
Mothae delivered 9,010 carats of diamonds in the third quarter, marking a 19% year-on-year increase. Lucapa sold 6,836 carats of diamonds recovered from Mothae during the third quarter, a 5% year-on-year increase, while revenue increased by 12% year-on-year to $5.5 million.
For the full year, Lucapa expects 29,500 carats of diamonds to be recovered from Mothae.
The Lulo mine, situated in Angola, in which Lucapa holds a 40% interest, recorded a lower carat recovery and revenue for the third quarter. This was mainly due to lower grades being mined and high-value diamonds being held over for the fourth-quarter tender. Carat recovery at Lulo decreased by 42% year-on-year to 7,578 carats, while rough diamond revenue decreased by 56% year-on-year to $9.1 million.
Lucapa expects 31,000 carats of diamonds to be recovered at Lulo for the full year.
The diamond miner noted that some sectors of the rough natural diamond market, especially smaller goods sold into mainstream jewelry, are feeling price pressure, while large, high-quality, and exceptional diamonds were impacted to a lesser extent.
“As the recent tender results confirmed, large, high-quality diamonds such as those produced at Lulo and Mothae are still attracting strong prices and are in high demand compared to the smaller goods used by mainstream jewelers,” Selby said.
For the full year, Lucapa expects Mothae rough diamonds to achieve an average price of $1,000 per carat and Lulo diamonds an average price of $2,300 per carat.
