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Lucapa sets new revenue records

8th July 2021

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – Diamond miner Lucapa has reported a strong first half of production for the 2021 calendar year, on the back of record volumes from both its Lulo and Mothae mines during the second quarter.

The Lulo project, in Angola, recovered 6 551 ct of diamonds during the quarter ended June, up 123% on the previous corresponding quarter, generating record revenues of A$38.3-million for the quarter, and A$50.6-million for the half-year.

The Mothae operation, in Lesotho, recovered 9 603 ct of diamonds during the quarter ended June, generating revenues of A$6.4-million for the quarter and a record A$21.2-million for the half-year.

“The operational performance at the Lulo and Mothae mines, notwithstanding the adverse influence of Covid-19, inclement weather and expansion optimisation delays, have been very solid in the first six months of 2021,” said Lucapa MD Stephen Wetherall.

“The quickly returning retail demand and low rough diamond supplies have combined to fuel rising rough diamond prices, which are now back to levels last seen in 2014. This has seen Lucapa exceed its financial target for the first six months of 2021 and places the company well on track to achieve the upper end of our market guidance with respect to revenue and cash operating margin,” said Wetherall.

Looking at the full year, Lucapa is expecting production to reach between 40 400 ct and 42 600 ct, generating revenues of between A$50-million to A$56-million, at margins of between 33% and 36%.

Cash operating costs for the full year are targeted at between $638/ct and $657/ct.

Edited by Creamer Media Reporter

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