Lucapa Diamond is targeting an average diamond production of about 153,000 carats per year at its wholly-owned Merlin diamond project in the Northern Territory of Australia.
The annual processing capacity is about 1.2 million tonnes per annum, treating a total of 14 million tonnes over the 14-year life.
Company managing director Stephen Wetherall said the results of an updated scoping study reconfirmed great potential for a 2.1 million carat production target at the mine using Lucapa’s innovative hybrid mining plan.
“With rough natural diamond prices increasing by [about] 42% in just three months, the material and positive impact on the financial metrics as shown in the Merlin updated scoping study significantly strengthen the economic potential for a long-life producing mine at Merlin,” he said.
“As previously noted, there are clear opportunities to deliver additional value through mineral resource extensions, underground development and exploration as there are a significant number of anomalies on our tenements that have the potential to deliver new source discoveries. We look forward to delivering the Merlin feasibility study this year.”
Lucapa is projecting diamond revenue of between A$1.6 billion and A$2.3 billion (including 5% increment estimated for additional cutting & polishing margins), while average EBITDA is projected to range from A$50 million to A$88 million per year.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
Exclusive
Dmitry Fedorov: I want our jewelry to be displayed at a museum in the future
Dmitry Fedorov is the founder of the eponymous jewelry house. His main focus is the creation of Orthodox-inspired premium luxury jewelry of high artistic merit. He told Rough&Polished about his journey in the jewelry industry, about choosing the ‘Orthodox...
28 october 2024
Responsible business practices ‘no longer optional’, says WDC President Feriel Zerouki
The president of the World Diamond Council takes time out of her busy schedule to tell Rough&Polished readers about the critical work of the WDC. Zerouki, the first female present of the body, which includes all the important industry organizations among...
14 october 2024
James Campbell: Botswana Diamonds optimistic as it enters uncharted territory of using AI for mineral exploration
London-listed Botswana Diamonds has expressed optimism about the company’s use of artificial intelligence (AI) to scan the exploration database in Botswana to look for new mineralised deposits. Company managing director James Campbell told Rough...
07 october 2024
Artur Salyakayev: For me, happiness is freedom to make my ideas happen and create valuable products
Artur Salyakayev is an art entrepreneur, founder of the International Jewelry Academy (IJA) and the INCRUA jewelry company. He has initiated and developed successful projects in jewelry industry and services sector. He is also a leading expert...
30 september 2024
Paul Zimnisky: China key for sustained recovery in demand for natural diamonds, prices
The curtailing of upstream and midstream natural diamond production in the past months is starting to have an effect on prices, according to the New-York-based independent diamond and jewellery analyst and consultant, Paul Zimnisky. He told Rough & Polished’s...
23 september 2024
