Cornavirus: Lucapa Partners with Diamantaire to Sell Polished Stones

By John Jeffay / April 13, 2020 / www.idexonline.com / Article Link

(IDEX Online) - Lucapa has sold polished diamonds worth $2m, sidestepping coronavirus restrictions on its usual rough tender in Antwerp.

The Australia-based miner has agreed a high-end cutting and polishing partnership with a high-end diamantaire for stones from its Mothae kimberlite mine in Lesotho so it can sell polished rather than rough stones.

Lucapa receives the rough price upfront from its unnamed diamantaire partner, and margins after manufacturing costs are equally split.

It has sold 3,963 polished carats, averaging $505 per carat, including a 64-carat top-color diamond.

Managing director Stephen Wetherall said: "Despite the current macroeconomic uncertainty brough about by COVID-19 hindering the marketing of diamonds and prices generally, it was pleasing to still see some demand for the higher-quality Mothae-type production.

"The sale of diamonds into the cutting and polishing partnership in this environment provides Mothae with a level of price protection in that Mothae should receive additional margins from the onward sale of these diamonds."

Generic picture of Lucapa rough diamonds

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