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Lucapa Gets Boost from Strong Quarter at Lulo

Oct 31, 2022 10:01 AM   By Joshua Freedman
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Sales at Lucapa Diamond Company rose sharply in the third quarter, reflecting solid production even as market conditions worsened.

Rough-diamond revenues jumped 42% year on year to $25.5 million for the period, the company said Monday in an email to Rapaport News. Sales from the Lulo mine in Angola rose 56% to $20.6 million, while proceeds from Mothae in Lesotho increased 4% to $4.9 million, according to a quarterly activities report the company published last week.

Production at Lulo climbed 38% to 13,022 carats, reflecting higher diamond grades and changes to the mix of gravel sources, Lucapa CEO Stephen Wetherall explained. This outweighed a 21% reduction at Mothae, where output totaled 7,596 carats.

“The usual seasonal softness this time of year has been amplified by the global financial backdrop, with the volatility impacting demand and pricing for diamonds,” Wetherall added. “Conversely, the strengthening of the US dollar has provided a partial offset to the lower prices. In the short term, the relaxing of China’s zero-Covid policy should see market conditions improve, and in the medium to long term, we continue to believe in the industry fundamentals in a diminishing supply environment.”

Image: The Lulo mine. (Lucapa Diamond Company)
Tags: Angola, Joshua Freedman, Lesotho, lucapa, Lucapa Diamond Company, Lulo, Mothae, Rapaport News, Stephen Wetherall
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