Lucapa Sells Seven Lulo Diamonds for AU$22.9 Million in Angola

Lucapa Diamond (ASX:LOM) has pocketed AU$22.9 million in what the company calls a “historic tender” of diamonds from its Lulo alluvial mine in Angola.

The sale comprised seven large and top-quality diamonds from Lulo that weighed 498 carats and sold for a total of US$16.7 million, or AU$22.9 million, representing an average price of US$33,530 per carat. Included in the sale were six white gems of up to 114 carats, and a pink 46-carat diamond.

“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,” a statement from Lucapa read.

This sale marked the first sale of Lulo diamonds on an international basis under the country’s new diamond marketing policy. Run by Sodiam, a state-owned diamond marketing company, the auction came as part of the country’s plan to entice foreign investors towards its diamond sector.

“Lucapa and its partners are extremely excited and proud that diamonds from our Lulo mine have been selected to start a new chapter in Angola’s diamond mining history,” Lucapa Managing Director Stephen Wetherall said in a statement announcing the auction in December 2018.

With this fresh revenue under its belt, total sales of Lulo diamonds have reached US$141 million to date, reaching an average per carat price of US$2,105.

The company’s last sale of diamonds from Lulo came in November 2018 when Lucapa sold a “parcel” of 3,411 carats for a total of US$4.2 million, or AU$5.7 million.

Lucapa grew 8.33 percent on Friday (February 1), closing the day of trading on the ASX at AU$0.195 per share.

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Securities Disclosure: I, Olivia Da Silva, hold no direct investment interest in any company mentioned in this article.