Lucapa announces 1H 2019 result!
Lucapa Diamond Company delivered on key operational goals at its high-value Lulo and Mothae diamond mines in the June 2019 Quarter (the Quarter 2) and H1 2019, putting the Company on track to report an operating profit in 2019.
Lucapa is a growing diamond company with high-value mines in Lesotho (Mothae) and Angola (Lulo), where the Company is also exploring a highly-prospective kimberlite field. Lucapa’s vision is to become a leading global producer of premium-quality diamonds from alluvial and kimberlite sources.
Lucapa is well-positioned to build on those results in H2 2019 as mining at Mothae transitions to the higher-margin diamond zones in the southern pit and production is scaled up at Lulo following the arrival on site of an extensive new fleet of earthmoving equipment.
Mothae and Lulo produce large and high-value diamonds, with >75% of revenues from both mines generated from the recovery of +4.8 carat stones. Lucapa’s Board and management team have decades of global experience across all facets of the diamond industry with companies including De Beers and Gem Diamonds.
According to the highlights of Mothae kimberlite mine, Lesotho, diamond carat production and grades ~20% is ahead of plan and recovery of largest gem-quality diamond of 126 carats. Second diamond tender completed in Antwerp; third tender scheduled for July 2019.
Over all Cash operating costs is of US$12.56/tonne - 14% better than plan and EBITDA of M15.5m (US$1.1m) for H1 2019. Dewatering of southern pit is underway to provide access to higher-margin diamond zones in early Q3 2019. Support from major shareholders for refinancing of corporate debt raised for development of Mothae
Highlights at Lulo alluvial mine and kimberlite project, Angola front says, sales of US$10.0m, resulting in an H1 2019 total of US$22.1m at an exceptional average price of US$3,668/carat. Next sale scheduled for July 2019. Recovered 13th +100 carat diamond that is of 130 carats from Lulo mine.
Cash operating costs of US$76/m3 in line with plan and EBITDA of US$11.3m for H1 2019 while arrival on site of extensive new earthmoving fleet to expand production and cash flows. Launch of next kimberlite exploration phase and the last highlight is Value-adding strategy launched with first diamonds sold into cutting & polishing agreement.
