Sales Deferral Leads to Lucapa Drop

RAPAPORT... Lucapa Diamond Company's sales fell 49% year on year inthe third quarter as the miner withheld a parcel of large stones until afterAngola's new marketing policy goes into effect. Revenue came to $4.5 million from two tenders during thethree months ending September 30, the company reported Monday. Sales volumesdeclined 4% to 5,058 carats, while the average price fell 47% to $893 percarat. Production slid 14% to 4,561 carats, with the miner recovering 46 stonesweighing more than 10.8 carats each. Lucapa decided to hold back a number of high-value specialstones from its Lulo mine in Angola that it intends to sell during the fourthquarter, it said. It expects the nation's government to release details of itsreformed regulations for diamond marketing in that period. "The company believes that significant additional value willaccrue to Lucapa and its Lulo partners from marketing these select specialsunder the new marketing policy," the miner explained. Sales fell 16% versus a year earlier to $20.4 million in thefirst nine months of 2018, while production for the same period rose 4% to14,126 carats. Lucapa's rough-diamond inventory from Lulo stood at 2,272 carats on September 30 -including the specials it withheld from sale - 33% higher than a year earlier, the mineradded. Last week, the company secured a $7 million investment fromSouth Africa's Industrial Development Corporation to develop its Mothae mine inLesotho, which it acquired in January 2017. Lucapa will begin commercialdiamond recoveries from the asset in early November, it said. Image: A 114-carat white diamond Lucapa recovered during the quarter. (Lucapa)