The consumption and strong demand recovered 3Q!

Impacting both rough and polished diamond prices! 

Lucapa Diamond Company Limited presented its activities report for the Fourth Quarter (4Q) ending 31 December 2020. The consumption and strong demand that saw the diamond industry commence its recovery in Q3 2020 continued into the festive period, favourably impacting both rough and polished diamond prices. This momentum has continued into 2021. 

Key Highlights that includes 1: Lulo & 2: Mothae. 

1: Lulo, a: Two +100 carat diamonds recovered, one from MB46 adjacent to the Canguige catchment area, b: Record annual diamond production and carat sales at Lulo & c: Delivery of 15.2 carat polished pink diamond from Lulo’s cutting & polishing partnership.

2: Mothae, a: Recommencement of scaled mining operations at Mothae, b: One +100 carat diamond recovered, Mothae’s most valuable diamond recovered to date, c: Mothae signed a new marketing agreement, including a cutting & polishing partnership, d: ~280% increase in the Mothae kimberlite JORC classified Indicated Resource. 

Lucapa Diamond Company at Corporate front said two, 1: Diamond industry and prices continue to strengthen & 2: Lucapa successfully raises A$10m to fund a 45% processing capacity expansion at Mothae (completion expected March 2021). 

Managing Director, Stephen Wetherall commented “Following a tough 2020 where the diamond market all but stopped, the sector continues to rebound strongly from the pandemic with a better industry balance which has seen diamond pricing return to pre-pandemic levels.” 

“We look forward to 2021 with great optimism following a strong final quarter from our two mines and particularly as the sector continues its positive momentum. The expansion of our Mothae mine will enhance returns expected to flow to Lucapa this year from both our operations and the kimberlite bulk sampling program at Lulo continues to demonstrate its prospectivity.” 

Pleasingly, following the pandemic shutdowns that impacted the mining operations and exploration activities in Q2 and Q3 2020, both Lulo and Mothae have delivered very solid operational performances during the Quarter.