Lucapa targets 60K cts of high-value diamonds!
Lucapa Diamond continued its growth as a global producer of high-value diamonds in the September 2019 Quarter, the 3Q, delivering record quarterly diamond production from the Lulo and Mothae mines, while also building on the cutting & polishing strategy to generate additional margins beyond the mine gate.
The results leave the Lucapa group on track to achieve the 2020 production target of 60,000 carats of high-value diamonds from both the Mothae and Lulo mines (on a 100% basis). Lulo and Mothae continued to underline their status as large stone resources during the Quarter, with combined recoveries of 432 +4.8 carat diamonds, including 136 Specials (+10.8 carat diamonds).
Against a backdrop of challenging global diamond market conditions, Mothae and Lulo achieved year to date to September 2019 YTD sales of US$38.2 million, with a further US$10.4 million in sales already booked post Quarter-end. Total sales in 2019 have been achieved at an overall average price of US$1,249 per carat.
Managing Director Stephen Wetherall commented: “Our continued focus on operational and productivity improvements and reductions in operating costs at Mothae and Lulo have enabled Lucapa to deliver robust results, including record production of premium-quality diamonds, in the face of global headwinds in the diamond sector.”
“The decline in global rough diamond demand throughout 2019 brought about by factors including macroeconomic uncertainty, rising inventories and liquidity issues in the midstream has impacted the revenues of all diamond producers and industry sentiment. However, in line with the more recent tender results reported by other producers, we were encouraged to see a distinct uplift in competitive bidding in our most recent Mothae tender, which was reflected in the prices achieved.”
Over all Mothae remained up over the plan in Tonnes treated by 11%, Carats recovered up 30%, Recovered diamond grade up 17% & Cash operating costs per carat reduced by 21% in 3Q 2019, while Lulo remained in Q3 2019 in Volumes treated down 11% to the same 3Q 2018. Carats recovered up 67%, Recovered diamond grade up 88% YoY & Cash operating costs per carat reduced by 46% to the same 3Q 2018.