ASX-listed Lucapa Diamond registered a 13% growth in first-half earnings before interest, taxes, depreciation and amortisation (EBITDA) to $1.4 million from continuing operations compared to $1.3 million a year earlier.
This was attributable to the company's 40% share in Sociedade Mineira Do Lulo (SML), which owns the Lulo alluvial diamond mine in Angola.
However, per carat sold, attributable rough diamond revenue from continuing operations decreased from $2,326 in the first half of 2023 to $1,977 for the current period.
During the half year, Lucapa received a $1.8 million net dividend from SML.
In addition, SML, which is treated as an associate and not consolidated into Lucapa’s financial statements, held $1.3 million cash as well as 2,565 carats in diamond inventory which included high-value specials sold in July 2024 for $12.4 million.
Meanwhile, Lucapa said SML produced 10 700 carats at Lulo in the first half, down 33% compared to 15 367 carats in the same period last year.
Operations at SML were impacted by a severe wet season, which caused flooding in the Lizeria (floodplain) areas.
Mining, said Lucapa, was therefore largely focused on the terrace levels, resulting in lower carats recovered and lower grade compared to the prior period.
However, the lower grade was largely offset by higher quality and value of recoveries. Specials for the half year included individual diamonds weighing 203, 116, 162, and 195 carats, as well as other smaller high-value stones.
Mathew Nyaungwa, Editor in Chief, Rough&Polished
