Lucapa delivers quarterly jump in revenue, diamond production
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Lucapa Diamond Company has posted $US8.8 million ($11.2 million) revenue for the September quarter, up 83 per cent on the previous quarter, as it continues to produce large and premium value stones from its flagship Lulo project in Angola.
During the quarter, Lucapa (ASX: LOM) produced 68 specials (large diamonds containing greater than 10.8 carats) of which two were 83-carat diamonds and eight were more than 50 carats.
Total diamond production was 5278 carats, up 26 per cent from 4203 carats in June quarter, bringing year to date recoveries to 13,580 carats.
Lulo has previously produced Angola’s two biggest diamonds on record, weighing 404 carats and 227 carats.
Lucapa had $US7 million cash in the bank, excluding $US3.7 million from post-quarter option conversions.
Earlier this month, Lucapa secured $15 million debt financing to bring its second mine Mothae kimberlite project in Lesotho, southern Africa, into production in 2018. The three-year loan was arranged with Singapore’s Equigold.
The company expects to spend $11.3 million during the current quarter of which around $5 million will be spent on development of Mothae.
Lucapa will use cash at the bank, proceeds received of exercised options and the $US15 million financing facility to fund its cash outflows for the quarter.
Lucapa and its partners continue to advance their search for the primary kimberlite sources of the alluvial diamonds, with three rigs available to drill an upgraded list of priority kimberlite targets as part of a systematic program.
The company is also advancing development of Mothae which is similar to Lulo in that it is also known to contain large and premium-value diamonds.
Shares in Lucapa closed 7 per cent lower at 27c, capitalising the company at around $90 million.