Lucapa boosts Q3 Lulo output as Mothae dips

Lucapa Diamond produced 13,022 carats during the quarter that ended 30 September 2022, an increase of 38% compared to 9,444 carats in the corresponding prior year period.
It said among the recoveries during the period were 270 carats recovered through the retreatment of tailings stockpiles through the X-ray transmissive (XRT) technology.
Lulo also recovered 156 specials during the quarter, the largest of which was the 170-carat fancy-coloured Lulo Rose.
Four other white Type IIa diamonds were also recovered during the quarter - weighing 160 carats, 131 carats, 113 carats and 101 carats.
Lucapa said 13,747 carats from Lulo were sold during the quarter generating $20.6 million at $1,499/ carat.
Meanwhile, the company’s 70%-owned Mothae mine in Lesotho recovered 7,596 carats during the quarter, a 21% drop compared to 9,567 carats produced, a year earlier.
Mothae also sold 6,527 carats during the quarter for rough revenues of $4.9 million, with an average price of $751 per carat.
Although the diamonds sold during the quarter were 17% less compared to 7,886 carats during the third quarter of 2021, Mothae’s revenue grew 11% from the previous year’s $6.4 million.  
“Looking at the market, the usual seasonal softness this time of year has been amplified by the global financial backdrop, with the volatility impacting demand and pricing for diamonds,” said company managing director Stephen Wetherall.
“Conversely, the strengthening of the US dollar has provided a partial offset to the lower prices. In the short-term, the relaxing of China’s zero-COVID policy should see market conditions improve and in the medium- to long-term, we continue to believe in the industry fundamentals in a diminishing supply environment.”

Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished