PERTH (miningweekly.com) – Diamond miner Lucapa is set to receive its first A$7-million in revenue from its cutting and polishing partnership at the Lulo mine, in Angola.
The company on Tuesday said that the first A$2.6-million payment will make up Lulo’s share of cutting and polishing profits from diamond manufacturer Safdico International with a further A$4.4-million from the sale of a 46 ct pink rough diamond from Lulo.
“Given the recent market uncertainty and disruption caused by Coronavirus, we and our Lulo partners believe the sale of the 46 ct pink diamond to Safdico under a partnership agreement will unearth the true potential and value of this exceptional stone,” said Lucapa MD Stephen Wetherall.
“We look forward to seeing the polished diamonds produced from this exceptional Lulo gem, which we are confident will see additional value created by the partnership.”
Under the partnership agreement, Lucapa is paid upfront for the rough market value of the Lulo diamonds sold to Safdico, with both companies sharing in the resultant margins generated.