Lucapa Diamond Company Limited (ASX: LOM) is an emerging global diamond company with operations in the mining and exploration of metals. The company has a diversified portfolio of mining, development and exploration assets of high quality. With evaluation and exploration interests, Lulo project focusses on diamond mining in Angola.
On 01 February 2019, the company and the Ministry of Petroleum and Natural Resources and Sodiam have announced the outcome of the first historical sale of exceptional diamonds under Angola’s new diamond marketing policy.
Seven large and top-quality diamonds from the Lulo alluvial mine which weighs around 498 carats were offered for sale via electronic tender organized by Sodiam in Luanda. It, however, achieved a total sale price of US$16.7 million approximately, that is A$22.9 million, which represents an average price of US$33,530 per carat.
The exceptional sale prices achieved for the Lulo diamonds reflected the highly-competitive bidding from leading international diamantaires and large stone manufacturers from eight countries that participated in the tender.
It is the beginning of a new period for the Angolan diamond mining industry, since this is the first Angolan production offered for sale via competitive tender under the new diamond marketing policy. The policy was enacted by the Angolan President, His Excellency Joao Lourenco. The total sales of Lulo diamonds till date inclusive of this sale amounts to US$141 million at an average price per carat of US$2,105.
Earlier in the day, the company requested a trading halt to be placed on its securities effective immediately pending the announcement of the result of the sale of the seven Lulo Specials on a tender in Angola. It requested, the securities to be in a trading halt until the earlier of the announcement to the market or the beginning of trade on 5 February 2019, Tuesday.
The company on 24 January 2019, had released quarterly report for the period ended 31 December 2018. It reported a net cash inflow from operating activities of US$29k for the quarter and an operating cash outflow of US$5,224k for the year to date. However, the cash outflow from investing activities stood at US$2,824k for the quarter, whereas it was US$19,759k for the year to date. The cash inflow from financing activities as reported by the company was US$8,066k for the December quarter and US$25,108k for the year to date.
Now let’s look at the Lucapa Diamond Company Limited’s stock performance and the return it has posted over the last few months. The stock last traded at a price of $0.195 and significantly increased by almost 8.33% during the day’s trade, with a market capitalization of $85.45 million. The stock opened at $0.190 with its day’s low at the same and a day’s high price of $0.210. The stock has generated a negative YTD return of 2.70% and posted negative returns of 30.77%, 18.18% and 12.20% over the last six months, three months and one-month period respectively. It has a 52-week high price of $0.315 and a 52-week low of $0.165, with an average trading volume of 253,856 approximately.
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