Lucapa Diamond to restart halted Merlin mine

Merlin diamond mine in Australia’s Northern Territory.

Lucapa Diamond has announced plans to restart production at its mothballed Merlin diamond mine in Australia’s Northern Territory.

The phased approach will begin with an 18-month initial phase, requiring A$15 million ($10m) to excavate and dredge five existing pits. This work is expected to recover around 67,000 carats and generate an estimated A$42 ($27m) million in revenue.

The second phase, spanning 27 months, will focus on vertical pit mining at the Gawain pit, targeting the recovery of 247,000 carats and generating A$246 million ($160m) in revenue. The overall project is expected to yield operating cash flow of $110 million, with a pre-tax net present value of A$40 million ($26m)and an internal rate of return of 75%.

Lucapa anticipates recovering gem and near-gem quality diamonds, which historically accounted for 75% of the mine’s production.

Questions remain about how Lucapa will fund its plans, as the company began the quarter with just US$1.3 million in cash. To address this, Lucapa has entered into a A$1 million short-term loan and is also exploring other funding options such offtake agreements, project-level debt, equity, and government facilities.

Smaller, more achievable target
Lucapa, which also has interests in the Lulo diamond operations in Angola and the Mothae mine in Lesotho, acquired Merlin in 2021 for A$8.5 million.

The restart plan follows a 2022 scoping study that proposed a larger $96 million restart, which was halted due to rising capital costs and declining diamond prices.

The new plan includes constructing a 355,000tpa process plant using existing equipment at Merlin, with a proposed five-year mine life aimed at expanding operations into the 2030s.

Lucapa aims to grow the diamond resource beyond the current estimate of 4.4 million carats while also exploring the region for base metals, given its proximity to the McArthur River lead-zinc-silver mine.

Sorce: mining.com

Diamond miners results spark optimism for market recovery

Lucapa Diamond and Petra Diamonds provided a glimmer of hope for the precious gemstones market

Lucapa Diamond and Petra Diamonds provided a glimmer of hope for the precious gemstones market on Tuesday by posting stronger revenues and production figures, signalling a potential recovery in the depressed diamond market.

Australia’s Lucapa achieved third-quarter revenue of $16.9 million, an 86% year-on-year increase, driven mainly by the sale of high-quality diamonds, averaging $3,033 per carat.

This growth was also attributed to the company’s access to higher-grade mining blocks, a result of strategic river diversions aimed at mitigating the impact of flooding at the Lulo operation in Angola.

Nick Selby, Lucapa’s managing director, expressed optimism about the future, especially with the access gained to the higher-grade Lazaria gravel, historically known for producing large, high-value diamonds.

“We are aiming for a strong finish to the year,” Selby said, noting that the company sold a 176-carat diamond for $3 million, further boosting results.

Africa-focused Petra Diamonds also reported promising figures, with production rising by 7% to 679,625 carats for the quarter ended September 30. The increase was driven by higher grades at the company’s flagship Cullinan mine in South Africa and its Williamson mine in Tanzania.

Petra’s chief executive officer, Richard Duffy, attributed this growth to “solid performances” from these mines, despite weaker market conditions.

To counteract the softness in the rough diamond market, Petra deferred in August the sale of a significant portion of its South African diamonds. Its combined first and second tenders, however, indicated a 13% increase in overall average prices, thanks to an improved product mix, which included a standout 18.85-carat blue diamond from Cullinan that fetched $8.5 million.

Despite ongoing challenges in the global diamond market, both Lucapa and Petra’s results reflect resilience and strategic adjustments, injecting cautious optimism into a sector eager for recovery.

As both companies continue to leverage high-value diamonds and strategic planning, industry observers remain hopeful for sustained market improvements heading into the end of the year holidays, which tend to help boost diamond sales.

Source: Mining.com

Lucapa concludes special tender worth $12m

Lucapa Diamond Company has sold six diamonds recovered from the Lulo mine

Lucapa Diamond Company has sold six diamonds recovered from the Lulo mine, in Angola, in a special tender for $12.4-million.

The diamonds totalled 447 ct and consisted of five white Type IIa diamonds, as well as a pink diamond.

The average price per carat was about $27 700.

MD and CEO Nick Selby deems the tender result pleasing. “Our alluvial project, in Angola, continues to deliver fantastic diamonds that are always in demand through all market cycles and achieve very competitive values.”

Source: miningweekly.com

Lucapa Offloads Mothae Diamond Mine

Lucapa today (25 June) announced the sale of its 70 per cent stake in the Mothae mine, in Lesotho, to a local contractor for a nominal sum.

The Australian miner said it wanted to to focus on its core assets in Africa, where it has a 40 per cent stake in the Lulo alluvial mine, in Angola, and in Australia.

Mothae has produced over 150,000 carats since it started commercial production in 2019, bringing in more than $100m in revenue.

Lucapa says it will sell its stake in stake in Mothae Diamonds (Pty) Ltd to Lephema Executive Transport (Pty) Ltd, which has provided it with long-term contract mining services, for A$10,000 (US$6,660).

Mothae Diamonds, which owns the site, will pay Lucapa A$1m (US$666,000) in outstanding technical services payments.

“This agreement is the result of a period of offer and negotiation involving Lucapa and several interested parties,” said Lucapa managing director and CEO Nick Selby.

“(Lephema) Executive has a successful history with the Mothae Diamond Mine, having provided long-term contract mining services. Lucapa wanted to, as far as possible, see

this mine continue to operate and Executive are best placed to achieve this.

“The signing of this agreement is a key step towards Lucapa streamlining its portfolio and executing the new strategy which will focus on assets in Australia and Angola”.

Mothae has indicated resources of 180,000 carats and inferred resources of 960,000 carats, according to December 2023 figures provided by Lucapa, with a modelled per carat value of $606.

Lucapa said in its sales material that Mothae has recovered 13 +100ct diamonds (largest Type IIa gem 213cts), and 10 diamonds valued at over $1m.

Source: IDEX

Lucapa recovers 195 carat diamond from Lulo mine

Lucapa Diamond announced Tuesday that together with its Lulo alluvial mine partners, Endiama and Rosas & Petalas, the company has recovered a 195 carat Type IIa diamond from its Lulo mine in Angola.

The diamond is the sixth largest and the 44th +100 carat diamond to be recovered from the Lulo mine, the company said, adding that the 195 carat Type IIa diamond is the fourth +100 diamond to be recovered at Lulo this year.

The mine, which hosts the world’s highest dollar-per-carat alluvial diamonds, began commercial production in January 2015. Only a year later, it delivered the largest ever diamond recovered in Angola a 404 carat white stone later named the “4th February Stone”.

Lucapa has a 40% stake in the Lulo mine. The rest is held by Angola’s national diamond company (Endiama) and Rosas & Petalas, a private entity.

Angola is the world’s fifth diamond producer by value and sixth by volume. Its industry, which began a century ago under Portuguese colonial rule, is successfully being liberalized.

Source: Mining.com

Lucapa sells three diamonds for $10.5m in first tender

A 203 ct Type IIa diamond as part of Lucapa’s first Lulo tender of the year

Lucapa Diamond Company has sold three exceptional diamonds recovered from the Lulo mine, in Angola, for $10.5-million at tender.

The tender was concluded on April 19 and was conducted by Sodiam, in Luanda.

The three Type IIa white diamonds, weighing 203 ct, 116 ct and 43 ct, made up Lucapa’s first tender of Lulo diamonds for this year.

The total parcel, weighing 361 ct, realised an average price of $29 000/ct.

Lucapa has a 40% interest in the Lulo alluvial mine, alongside Angola’s national diamond company Endiama and a private entity called Rosas & Petalas.

Source: miningweekly

Lucapa Chief to Exit After Nearly a Decade

Nick Selby will take on the role of interim CEO at Lucapa Diamond Company when Stephen Wetherall steps down as managing director at the end of the month.

Selby, who has been with the miner since 2017, is currently executive director of operations. He will lead the company while it searches for a replacement, Lucapa said Monday.

Wetherall will continue to work with Lucapa as an independent consultant following his exit, helping to further the miner’s diamond marketing and downstream initiatives. He joined the company — which operates the Lulo mine in Angola and the Mothae deposit in Lesotho — in 2016. Wetherall was instrumental in creating a manufacturing deal with Graff unit Safdico, and in Lucapa’s acquisition of the Merlin diamond project in Australia.

“I have thrived on the challenges put to me by the board and shareholders,” said Wetherall in the Monday statement. “We have together navigated the company successfully through a difficult pandemic, repaid all the project interest-bearing debt, successfully delivered and expanded two mining operations now generating solid margins, positioned the company for growth with future production from Merlin, and our kimberlite exploration program at Lulo is at an advanced and exciting phase. This is an appropriate time for me to take on other challenges.”

Source: rapaport

Lucapa Recovers Another +100-ct Diamond at Lulo

Lucapa has recovered a 180.87-carat Type IIa white diamond at its Lulo alluvial mine, in Angola.

It’s the second +100 carat diamond of the year so far. In February it found a 150-carat Type IIa D-color white diamond.

And it’s the 37th +100 carat since since the Australian miner began commercial production at Lulo in 2015.

Last November the 170.2-carat Lulo Rose, believed to be the largest pink diamond found in the last 300 years, was sold at tender for an undisclosed sum.

Lucapa, which also operates the Mothae mine, in Lesotho, has reported encouraging exploration results from its ongoing exploration program to discover the primary kimberlite source at Lulo.

Pic of the 180.87-carat Type IIa white diamond, courtesy Lucapa

Souce: IDEX

Lucapa debt free as of July 4

ASX-listed Lucapa Diamond Company has fully repaid all interest-bearing loans that it borrowed from gold exploration and mining company Equigold and the Industrial Development Corporation of South Africa (IDC).

Lucapa has repaid the final instalment of $1.3-million in principal and interest on the original $15-million Equigold debt, which was raised in 2018.

In addition, Lucapa subsidiary Mothae Diamonds recently made its final interest payment of R7.3-million to the IDC, with the IDC loan now also fully repaid.

Lucapa is now interest-bearing debt free, having repaid about A$30-million in debt and interest over an 18-month period

The company said in a July 4 statement that it would seek to have all securities with respect to those loans released.

Lucapa owns the Lulo mine, in Angola, and the Mothae mine, in Lesotho, and is developing the Merlin project, in Australia. It also explores for diamonds in Australia, Angola, Botswana and Lesotho.

Source: miningweekly

Lucapa Diamond Company sells Lulo diamonds for A$30.1m

Lucapa Diamond Company

Diamond miner Lucapa Diamond Company has sold seven diamonds from its Lulo mine in Angola for $30.1 million, equating to over $39,000 per carat.

The company and its partners, Endiama E.P. and Rosas & Petalas, placed the “special sized” diamonds on international tender earlier this month. Together, the diamonds weighed a combined 767 carats.

The sold diamonds include a 170-carat fancy-coloured diamond dubbed the ‘Lulo Rose’ alongside three white Type IIa diamonds of over 100 carats and three other special-sized white Type IIa stones.

In late September, Lucapa announced it had recovered its 30th diamond of over 100 carats from Lulo, which has been in commercial production since 2015.

The company kicked off commercial production from its Mothae mine in Lesotho in 2019.

Meanwhile, Lucapa said it was continuing to explore for potential primary-source kimberlites or lamproites with its partners across the Lulo concession in Angola, the Brooking project in Australia, and the Orapa Area F project in Botswana.

Source: The market herald