Lucapa Diamond Company (ASX:LOM) nets $3.2M from diamond sale

The Lucapa Diamond Company (LOM) has sold diamonds for $3.2 million from its kimberlite mine in Lesotho to a high-end diamantaire.

A diamantaire is a gemologist and expert gem cutter who specialises in diamonds.

This sale comes as Lucapa was unable to sell its diamonds to its regular partner in Belgium, due to lockdowns and travel restrictions arising from COVID-19.

As a results of Lucapa’s high-quality diamonds, the 3963 carats have been sold for a total of US$2 million (AUD$3.2 million), which equates to US$505 (AUD$809) per carat.

“Despite the current macroeconomic uncertainty brought about by COVID-19 hindering the marketing of diamonds and prices generally, it was pleasing to still see some demand for the higher-quality Mothae-type production,” Managing Director Stephen Ward commented.

“The sale of diamonds into the cutting and polishing partnership in this environment provides Mothae with a level of price protection in that Mothae should receive additional margins from the onward sale of these diamonds,” he continued.

Lucapa’s Mothae kimberlite mine is located in southern Africa, in Lesotho’s diamond-rich Maluti Mountains which is within five kilometres of the world’s highest US$ per carat kimberlite diamond mine, Letseng.

The company owns 70 per cent of the mine, while the Government of the Kingdom of Lesotho owns the remaining 30 per cent.

Diamonds unearthed from Mothae confirm that it is a source of large and premium value diamonds, similar to its Lulo Diamond Project in Angola, Africa.

Mothae has produced three diamonds over 100 carats, with one of them being 220 carats.

Lucapa’s share price is up a slight 3.39 per cent and shares are trading for 6.1 cents each at 1:17 pm AEDT.

Courtesy: THEMARKETHERALD