Mothae diamonds sell for US$1.5mn

Mothae produce large and high-value diamonds 

Lucapa Diamond Company announced the results of the third diamond sale in 2021 from the Mothae kimberlite mine in Lesotho. The 3,617 carat parcel of rough diamonds was sold for US$420/ carat or US$1.5 million (A$2.0 million or A$543/ carat). 

As per the Diamond Sales and Purchase Agreement with Safdico International, Mothae will receive a minimum average cash flow value of US$630/ carat for the first twelve months of the Agreement. The difference between minimum average cash flow value and the selling price will be recouped by Safdico from sales delivered in the future with an average price higher than US$630/ carat.

As per the Mothae JORC Resource Statement announced to the ASX on 15 October 2020, the South lobe of the Mothae kimberlite has an expected modelled value range of US$377 to US$748 for its three zones (average of US$635/ carat). The total average diamond price achieved in the three sales to date in 2021 is US$936/ carat. 

Lucapa is a niche diamond producer with high-value mines in Angola (Lulo) and Lesotho (Mothae). The 0.5 million bulk cubic metre per annum Lulo alluvial mine and 1.6 million tonnes per annum Mothae kimberlite mine both produce large and high-value diamonds, with >75% of revenues generated from the recovery of +4.8 carat stones. 

The Mothae mine in diamond-rich Lesotho commenced commercial mining in 2019 and has produced five +100 carat diamonds to date, including a 213 carat D-colour Type IIa stone. Lucapa has funded a ~45% expansion in the processing capacity of the Mothae mine, which when ramped up in early Q2 2021 will see capacity grow from 1.1 Mtpa to 1.6 Mtpa. 

Lucapa’s Board, management team and strategic investors have decades of diamond industry experience across the globe and right through the diamond pipeline, particularly in extracting value from large and high-quality diamonds.