Lucapa reported that it had "delivered on key development and operational goals at the Mothae and Lulo diamond mines" during the first half of 2019. The junior diamond miner reported a consolidated net profit after tax of US$1.1 million, opposite a US$4.3 million loss in the first half of 2018.
"This result was achieved during a challenging period for many diamond miners globally, particularly those producing primarily lower-value goods. The June half result has put Lucapa on track for a stronger performance in the second half of 2019 as mining at Mothae transitions to higher-margin diamond zones and the production expansion at Lulo is delivered," Lucapa said in a news release.
Highlights from the Mothae kimberlite mine in Lesotho were:
• The volume of diamond production was 36 percent ahead of plan during the mine's first six months of commercial operations;
• No less than 229 of +4.8 carat rough diamonds were mined, including a 126- carat gem-quality stone, confirming Mothae as a large-diamond resource;
• Operating costs were 14 percent lower than planned, at f US$12.56 per ton of ore mined;
• The major shareholders are supporting the refinancing of Mothae's development debt.
Highlights from the Lulo alluvial mine and kimberlite project in Angola were:
• A first international tender of Lulo diamonds contributed to sales of US$22.1 million at $3,668/ carat during the first half
• The mine produced 216 +4.8 carat diamonds including two more +100 carat stones;
• Part of the extensive, new earthmoving fleet arrived toward the expansion of production and the ensuing increasing cash flow;
• A value-adding strategy to begin manufacturing was put into action by the cutting and polishing of a first batch of diamonds and their sale;