Lucapa sees record year of diamond production from African mines

ASX-listed Lucapa Diamond Company has reported a record year of production from its two African mines – Mothae in Lesotho and Lulo in Angola.

The two operations produced 49,120 carats of diamonds in 2019 which helped the company make combined sales of US$55 million from the mines over the course of the year.

Lucapa’s 70%-owned Mothae kimberlite mine achieved record tonnes processed and grade in the December quarter to produce 167 stones grading more than 4.8 carats and 46 stones at more than 10.8 carats.

In Angola, the 40%-owned Lulo alluvial mine recorded full-year production of 19,000 carats despite a weaker December quarter due to heavy rainfall. The two mines produced a combined five diamonds at more than 100 carats.

In a statement to the ASX, the diamond miner said operational efficiencies countered a decline in global rough diamond demand, which has impacted prices and revenues for producers.

“While 2019 was a challenging year for all diamond producers in respect of sales prices, the year ended on a more positive note with a turnaround in mid-stream demand and prices – as evidenced in a number of rough diamond tenders and sales – and strong holiday season jewellery sales in America,” the statement read.

@ABNetworkOnline