On 5 December 2018, Lucapa Diamond Company’s (ASX: LOM) shares uplifted by 2.5 percent after the company announced that the commercial diamond recoveries have commenced at Mothae mine in Lesotho.
Currently, Lucapa is having a 70% interest in the Mothae Kimberlite mine, and as per Lucapa Managing Director Mr. Stephen Wetherall, the commencement of commercial recoveries through the new 1.1 Mtpa Mothae plant represent another key milestone in Lucapa’s strategic development plan. As per the company’s announcement, the Mothae plant will be ramped up to its 1.1 Mtpa nameplate capacity after the implementation of a second plant operating shift. Mr. Stephen also said that the company is going to be one of a few listed diamond companies which will be producing from more than one mine.
The company’s Mothae plant is having advanced diamond recovery technology which recovers large and rare type of IIa diamonds before they go for the secondary crushing circuit. Through this technology, the company is able to reduce the potential diamond brokerage.
In the month of November, the company announced the results of the latest sale of diamonds from the Lulo alluvial mine. The company reported that a parcel of 3,411 carats achieved gross sale proceeds of US$1.2 million which brought the year to date total sale of Lulo Diamonds to US$24.5 million at an average price per carat of US$1,353.
During the September quarter of 2018, Lucapa and its respective project partners made significant progress across its diamond projects. In the September quarter, the company mined large and premium-value diamonds at Lulo mine, and it also advanced one of the largest systematic kimberlite exploration programs in the diamond industry at Lulo to discover the hard-rock source(s) of the exceptional alluvial diamonds.
During the September Quarter, the company appointed an experienced resources industry figure Mr. Ross Stanley for the role of non-executive director after the resignations of non-executive directors Mr. Gordon Gilchrist and Mr. Albert Thamm.
In the first half of 2018, the company reported a loss after tax of $4.291 million which was $1.149 million in the corresponding previous period. The basic loss per share was 1.09 cents, and the diluted loss per share was 1.08 cents in 1H18. As at 30 June 2018, the company was having total current assets of $12.38 million which was $9.6 million in the corresponding previous period. The net cash used in operating activities was $3.259 million, and the net cash used in investing activities was $11.744 million as on 30 June 2018.
In the last six months, the share price of the company decreased by 28.57 percent as on 4 December 2018. LOM’s shares traded at $0.205 with a market capitalization of circa $93.44 million as on 5 December 2018 (AEST 4:00 PM).
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