Lucapa Diamond Company Limited (ASX: LOM) was able to generate around $5.7 million by its recent diamond sale. There are still a number of premium diamonds which the company holds with itself to sell it on a later date.
From the Lulo mines in Angola, the company is able to make a year-to-date diamond sales worth $33.5 million. The company is able to gain an average price of $1850 per carat. Recently, the company was able to generate an average of $1670 per carat by the sale of 3411 carats.
The investors of Lucapa were informed that the latest sale made by the company has excluded “select parcel of large and premium value Lulo diamonds”. These diamonds are expected to sell later in the upcoming quarter after the arrival of new marketing policies in Angola.
This policy which passed in the month of August 2018, was introduced to attract and increase the foreign investment in the diamond sector of Angola. It will also add significant value to the Lucapa as well as its Lulo partners through these upcoming new marketing policies as addressed to the investors from the company. Lulo is considered as the top asset of Lucapa. Till date, this project was able to produce over 11 diamonds which was more than 100 carats till date. It is also considered as the highest dollar-per-carat sedimentary diamond mine in the world. Lucapa in the month of November expected its first commercial diamond recoveries from its second African mines. Also, the company was able to start its commissioning of its Mothae projected situated in Lesotho. This is a 1.1-million-tonne-per annum project which was a non-coastal country surrounded by South Africa.
In the trial phase of its mining, Lucapa has recovered about 23,400 carats. It included “specials” which was of 254 carats and there were 96 individual stones whose weight was more than 10 carats.
Some of the diamonds which were produced during the initial mining phase were able to generate $78,000 per carat.
By the end of September 2018, the miner had $4m cash in the bank.
Since the inception of the company, the performance of the company was -29.36%. The 1 year, 5 years and 10 years of the company was -11.54%, 25.89% and -29.53%. In the current quarter, the company has used US$1.676 million from its operating activities where the major cash flow was due to the exploration and evaluation, staff cost and administration and corporate cost. The net cash used in the investing activities was US$5.509 million. The major cash outflow was due to payment made to acquire plant, property, and equipment as well as other investments. The net cash used in financing activities was $0.007 million. The cash and cash equivalent at the end of the quarter was $2.960 million.
Today by the end of the day i.e. November 19, 2018, the market price of the share was A$0.220. Since morning the price of the share has gone down by 4.348% with the market capitalization of A$107.45 million.