Lucapa Diamond has reported a 35% increase in the resource carats at its 40%-owned Lulo alluvial diamond mine in Angola to a new high of 135,900 carats from the previous 100,700 carats.
However, the mine's diamonds are now modelled at an average value of $1,440 per carat from the previous year's $1,620 per carat.
Lucapa said the total diluted volume of gravel available for mining in the updated Lulo Diamond Resource increased to 2 million cubic metres, which equates to a minimum of four years throughput at current processing rates.
"As per prior updates, the Lulo Diamond Resource is continually being added to, as the alluvial exploration drilling and pitting program continues in the areas yet to be explored," it said.
Meanwhile, Lucapa said record performances across its operating mines, in Angola and Lesotho with a supported pricing environment, has led to a strong first quarter of 2021.
The group generated a consolidated EBITDA of $3.5 million for the quarter or an adjusted EBITDA of $4.1 million, which includes 40% of Sociedade Mineira Do Lulo (SML)'s EBITDA.
"After a testing 2020, the recovery in the diamond sector has continued its momentum, resulting in strongly supported prices across the diamond industry," said Lucapa managing director Stephen Wetherall.
"This together with the stellar performances at our mining operations has resulted in record recoveries, mining volumes and diamond revenues delivering outstanding quarterly operating profits and cash flows."
The group's cash and diamond sales receivables balance at quarter-end was $9.3 million with 2,259 carats held in Mothae's diamond inventory.
SML associate held a cash balance of $5.2 million as well as a 3,652-carat diamond inventory at quarter-end.
Meanwhile, Lucapa said it produced 4,655 carats at Lulo during the quarter, which was 5% weaker compared to 4,891 carats recovered the previous year.
Recoveries for the quarter included 136 diamonds greater than 4.8 carats, which in turn included 65 specials.
It said Mothae recovered 5,264 carats for the quarter down 23% from 6,853 carats in the first quarter in 2020.
The diamonds recovered in the quarter included 96 diamonds of more than 4.8 carats and 19 specials, including the high-value 213-carat D-colour Type IIa white diamond.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
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