Lucapa delivers profit of $1.1 million in second half of 2019

Lucapa reported that it had "delivered on key development and operational goals at the Mothae and Lulo diamond mines" during the first half of 2019. The junior diamond miner reported a consolidated net profit after tax of US$1.1 million, opposite a US$4.3 million loss in the first half of 2018.

"This result was achieved during a challenging period for many diamond miners globally, particularly those producing primarily lower-value goods. The June half result has put Lucapa on track for a stronger performance in the second half of 2019  as mining at Mothae transitions to higher-margin diamond zones and the production expansion at Lulo is delivered," Lucapa said in a news release.

Highlights from the Mothae kimberlite mine in Lesotho were:

• The volume of diamond production was 36 percent ahead of plan during the mine's first six months of commercial operations;

• No less than 229  of +4.8 carat rough diamonds were mined, including a 126- carat gem-quality stone, confirming Mothae as a large-diamond resource;

• Operating costs were 14 percent lower than planned, at f US$12.56 per ton of ore mined;

• The major shareholders are supporting the refinancing of Mothae's development debt.

Highlights from the Lulo alluvial mine and kimberlite project in Angola were:

• A first international tender of Lulo diamonds contributed to sales of US$22.1 million at $3,668/ carat during the first half  

• The mine produced 216  +4.8 carat diamonds including two more +100 carat stones;

• Part of the extensive, new earthmoving fleet arrived toward the expansion of production and the ensuing increasing cash flow;

• A value-adding strategy to begin manufacturing was put into action by the cutting and polishing of a first batch of diamonds and their sale;