Lucapa gaze a strong outlook for 2022

Rough diamond price rock over by 40% 

Lucapa Diamond Company Limited presented its unaudited financial results for the year ended 31 December 2021. During the period, record operational performances from both SML and Mothae diamond mine with record volumes processed, carats recovered & sold and exceptional diamond recoveries.

Lulo exploration sampling includes the discovery of 13 diamonds from the Canguige catchment area, including eight Type IIa diamonds, three new high-interest targets identified at Brooking, WA and successful completion of a A$21.7 million capital raising to fund the 100% acquisition of Merlin diamond mine, expedite exploration programs, advance feasibility studies and general working capital.

The completion of the acquisition of Merlin for a total consideration of A$8.5 million and release of Scoping Study showing strong economics for a long-life mine. Lucapa Diamond published the Merlin Scoping Study demonstrating strong economics for a long-life mine:  

1: Production target of 2.1 million carats from 14 million tonnes treated; Life of Merlin is of 14 years, 3: Repaid A$5.9 million of debt, 4: Revenues of ~A$1.6 billion; 5: EBITDA of ~A$702 million; 

6: NPV7% (pre-tax) of ~A$343 million; 7: Initial capital estimates of A$96 million (includes A$18 million waste pre-strip). 8: Expected payback (pre-tax) by end of second year of production; 9: Significant value and benefits for nearby communities and Northern Territory; 10: Lucapa already progressing feasibility study, and successful completion of a A$21.7m capital raising to fund the Merlin acquisition, expedite exploration programs, advance feasibility studies and general working capital.  

Significantly positive year for the diamond industry with the rough diamond price index increasing by over 40% in 2021 and a strong outlook for 2022.