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Australia Investing
Lucapa to Sell Diamonds via New Angolan Marketing System
Sep. 17, 2018 02:55PM PST
The Australian diamond miner will sell gems recovered from its Lulo alluvial mining project through these newly established channels.
As part of widespread diamond sector reforms in Angola, Lucapa Diamond (ASX:LOM) will be one of the first miners to participate in a new marketing system designed to usher in transparency and combat the blood diamond market.
Lucapa, along with its regional partners Empresa Nacional de Diamantes and Rosas & Petalas, has supported and worked with the Angolan government to establish the technical regulations for the newly formed diamond marketing policy.
The Australian diamond miner will sell gems recovered from its Lulo alluvial mining project through these newly established channels.
The stones up for grabs were discovered during run-of-mine production at Lulo, and were specifically held over from previous sales in anticipation of this new marketing policy. The exceptional gems include six top-color Type IIa white diamonds weighing a total of 449 carats, as well as a 46-carat pink diamond.
“The discussions with our Angolan partners regarding the policy changes taking place in the Angolan diamond sector have reached a stage where we are now able to plan for the sale of these large premium-value Lulo diamonds held over from previous sales,” Stephen Wetherall, Lucapa’s managing director, said in a company announcement.
He continued, “[w]e look forward to marketing these exceptional diamonds as soon as the necessary arrangements are put in place to continue showcasing Angolan diamonds to the world.”
While the exact price tag for the special stones is unknown, during the latest run-of-mine production 2,270 carats worth of gems sold for US$2.5 million, representing an average per carat price of US$985.
In addition to the news out of Angola, Lucapa recently sent a parcel of 2,500 carats discovered at its Lesotho-based Mothae mine for valuation. The large diamond parcel contains yellow diamonds weighing 89 carats and 25 carats, as well as other special diamonds of up to 28 carats.
The diamonds will likely be included in a future diamond tender after they are assessed in Antwerp.
Lucapa’s share price was slightly down on Monday (September 17), ending the trading day at AU$0.235.
Image courtesy of Lucapa Diamond.
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Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.
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