https://www.miningweekly.com

Good news for Angolan gem companies’ shareholders

9th August 2013

By: Keith Campbell

Creamer Media Senior Deputy Editor

  

Font size: - +

Angolan diamond mining company Catoca Mining, which is the country’s biggest diamond producer, account- ing for more than 75% of the national output of the gemstones, will distribute $131.7-million in dividends to its share- holders, the Angolan weekly Expansão has reported.

These dividends represent the totality of the company’s profits for 2012 and are 35% higher than the dividends paid last year (which came to about $97.62-million) and the year before (some $93.12-million), despite profits for 2012 being some 7% lower than for 2011, when profits totalled $141.6-million. Total sales last year came to $579-million, which represented a $32-million drop on the figure for 2011. The company attributed this fall to the economic uncertainty in Europe and North America and economic deceleration in China and India.

Catoca’s shareholders are Angolan State-owned diamond company Endiama, which holds 32.8%, Russian diamond group Alrosa, which also has 32.8%, China-domiciled LLI Holdings (reportedly part of Israeli diamond mogul Lev Leviev’s group), which owns 18%, and Brazilian conglomerate Odebrecht, which has 16.4%. Endiama and Alrosa will each receive $43.2-million, LLI will get $23.7-million and Odebrecht $21.6-million. Catoca’s mining production in 2012 was 4% higher than expected and 29% greater than in 2011.

The company also invested in new concessions and increasing the availability of equipment used for both prospecting and production. It further invested in improving the productivity of its workforce. Catoca has also made progress in developing its Luemba project and its new concessions at Gango, Gambo, Luangue, Luexe, Quitubia, Tchiafua and Vulege.

During this year, the company plans to further increase its operational effi- ciency, control costs, increase its diamond reserves through exploration (outside as well as inside Angola) and increase its involvement in the diamond trading process. It also wants to capitalise on the investments it has made in its information systems, optimise its organisation and processes, reinforce its internal competences, strengthen its social impact and focus on sustainability.

Separately, listed Australian junior Lucapa Diamond Company announced that it had sold a parcel of diamonds from its Lulo diamond concession, in Angola. The parcel amounted to 496.2 ct and the company’s gross proceeds from the deal came to almost $2.88-million.

The sale was conducted in Luanda by Angolan State-owned diamond sales company Sodiam. This was the first sale of diamonds from the Lulo project, which is managed and operated by Lucapa, but in which Endiama is a partner.

Following the deduction of all commissions, charges, fees, royalties and taxes associated with the sale of the diamonds, plus a share of the gross proceeds paid to Endiama, Lucapa should receive a net income of nearly $2.49-million. The company will invest this income in the Lulo project, restarting operations (including advanced drilling and exploration), further examining recently discovered diamondiferous gravels and commissioning a new 50 t/h dense media separation diamond plant.

“[W]e are certainly pleased with the outcome. The sale confirms that the diamonds we are recovering from Lulo are indeed rare and valuable gems,” affirmed Lucapa MD Miles Kennedy. “We look forward to using the sale proceeds to advance our efforts to unlock the true potential of a diamond concession we firmly believe represents one of the greatest diamond opportunities anywhere in the world.”

Gross diamond production in Angola last year came to 7.8-million carats, worth some $922.9-million, according to Sodiam. Demand for Angolan diamonds continues to outstrip supply by a ratio of 1.4.

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

Comments

Showroom

Werner South Africa Pumps & Equipment (PTY) LTD
Werner South Africa Pumps & Equipment (PTY) LTD

For over 30 years, Werner South Africa Pumps & Equipment (PTY) LTD has been designing, manufacturing, supplying and maintaining specialist...

VISIT SHOWROOM 
Universal Storage Systems (SA)
Universal Storage Systems (SA)

South African leader in Steel -Racking, -Shelving, and -Mezzanine flooring. Universal has innovated an approach which encompasses conceptualising,...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Hyphen, Eva mine, ferrochrome price make headlines
Hyphen, Eva mine, ferrochrome price make headlines
27th March 2024
Resources Watch
Resources Watch
27th March 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.131 0.168s - 90pq - 2rq
Subscribe Now