Lucapa Diamond Company has announced a remarkable surge in revenue from its Lulo alluvial mine in Angola, reporting an impressive 86% increase year-on-year for the third quarter of 2024. The company’s total revenue reached $16.9 million, driven primarily by the recovery of high-value diamonds, demonstrating the continued strength of its mining operations.
The standout performance was marked by a substantial rise in the average price per rough carat, which soared to $3,033—a staggering 188% increase from $1,052 in the same period last year. This growth comes despite a 35% decrease in the number of carats sold, showcasing the exceptional value of the diamonds being recovered.
In July, Lucapa achieved a significant milestone by selling six diamonds totaling 447 carats for $12.4 million at tender. Among these were five impressive white Type IIa diamonds, weighing between 195 and 28 carats, alongside a striking 14-carat pink diamond. Furthermore, the company reported the sale of a 176-carat Type IIa diamond post-quarter end for an impressive $3 million, equating to an astounding $17,200 per carat.
Lucapa acknowledged the broader challenges in the diamond market, stating, “The diamond market overall continues to experience soft conditions. However, Lulo’s large stone population has seen little negative impact on prices achieved at recent tenders.” This resilience is a testament to the unique value of Lulo’s high-quality diamonds.
Despite facing challenges such as late-season flooding that necessitated adjustments to its mining strategy, Lucapa’s production levels remained consistent with Q3 2023. The company effectively countered a lower recovered grade by processing a larger volume of gravel, demonstrating its operational flexibility and commitment to maximizing output.
Lucapa holds a 40% stake in the Lulo project, which is recognized globally for attracting some of the highest prices per carat for alluvial diamonds. The project is a joint venture with Endiama, Angola’s state-run diamond company, holding a 32% stake, and the private Angolan company Rosas & Petalas, which owns 28%.
This remarkable performance reaffirms Lucapa’s position as a key player in the diamond mining industry, further solidifying its reputation for excellence in high-value recoveries.
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