Lucapa Diamond produced 7,058 carats of diamonds in the third quarter of 2024 at its 40%-owned Lulo alluvial mine in Angola, which was a 7% drop compared to 7,578 carats realised a year earlier.
However, the company Lulo’s carat production was in line with Q3/2023, despite the change of mining plan due to late season flooding.
The lower recovered grade was offset by the processing of a larger volume of gravel. During the third Quarter, the team completed one river diversion and commenced a second, to gain access to the higher grade Lazaria (floodplain) gravels.
Managing Director, Nick Selby, commented: “Mining at Lulo in the third quarter consisted of a mixture of terrace and leziria blocks. Leziria mining was ramped up following the late season flooding experienced in Q2. We are encouraged by the early outcomes from mining in leziria Block 1 and look forward to the results to come from the higher grade Block 6 after completing the river diversions. Block 6 has historically produced large, high value diamonds, and we are aiming for a strong finish to the year in terms of Lulo’s production.”
Lulo sold 5,587 carats through one tender and two run of mine sales in Q3 for revenue of US$16.9 million at an average price per carat of US$3,033. As announced to the ASX in July “Six Lulo diamonds sell for US$12.4 m at tender” the 447 carat parcel achieved US$27,700 per carat.
A 176 carat Type IIa diamond recovered during Q3 was sold at tender post quarter end for US$3 million or US$17,200 per carat.
The diamond market overall continues to experience soft market conditions; however, Lulo’s large stone population has seen little negative impact on prices it has achieved at recent tenders. Major diamond producers are limiting rough sales for the remainder of 2024 to combat the oversupply in polished inventory which has resulted from the sluggish demand from the US and China. Some diamond producers are also allowing more flexibility towards their buyers. Several jewellery retail commentators have expressed cautious optimism for healthy festive season sales in the US, leading to a more positive outlook for the rough diamond market. India has replaced China as the world’s second largest diamond market after the US. Industry observers have pointed to a potential uptick in diamond jewellery sales in India for the last quarter of 2024, which is the wedding and festival season.
Mathew Nyaungwa, Editor in Chief, Rough&Polished from Saurimo, Angola
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