Higher-Grade Ore Boosts Lucapa Production

RAPAPORT... Lucapa Diamond Company's output rose in the third quarter,as the miner fully transitioned to the higher-grade portions of it Mothae andLulo deposits. The miner recovered 7,007 carats from its Mothae mine inLesotho during the three months ending September 30, exceeding its plan by 30%, itsaid last week. Sales of 4,412 carats from the site, which began commercialproduction in December, totaled $2.1 million, at an average price of $476 percarat. "The move to the southern pit met with early success, withrecoveries including an exceptional 64-carat D-color, type IIa gem -which subsequently became the first commercially produced diamond from Mothaeto achieve a sale price in excess of $1 million," the company noted. Output at the miner's Lulo deposit increased 67% to 7,603carats, as the recovered diamond grade jumped 88% over the same period lastyear. Sales of rough from the Angolan mine rose 49% to $6.7 million, as thecompany produced a larger number of higher-quality diamonds. The average pricejumped 28% to $1,143 per carat. "The decline in global rough-diamond demand throughout 2019brought about by factors including macroeconomic uncertainty, risinginventories and liquidity in the midstream has impacted the revenues of alldiamond producers and industry sentiment," explained Lucapa managing directorStephen Wetherall. "However, in line with the more recent tender resultsreported by other producers, we were encouraged to see a distinct uplift incompetitive bidding in our most recent Mothae tender, which was reflected inthe prices achieved." During the July-to-September period, the miner recovered 432stones weighing more than 4.8 carats and 136 over 10.8 carats. At the end ofthe period, Lucapa had 6,378 carats in its Mothae inventory and 4,903 carats atLulo. In September, Lucapa sold its first rough stone - a36-carat, D-color diamond - into a new cutting and polishing partnership, itsaid. The company expects to sell the polished in the fourth quarter, generating extra profits. Lucapa also owns the Brooking lamproite project in Australia andthe Orapa exploration site in Botswana, which it has put on hold to focus on Mothaeand Lulo. Image: A selection of stones from Mothae offered at tender. (Lucapa Diamond Company)