“As a result of a solid overall operational performance combined with the resurgent demand and constrained supply driving rough prices to levels last seen in 2014, Lucapa is, notwithstanding Mothae expansion ramp up limitations, guiding the market to the upper end of the cash operating margin guidance of A$17 million – A$21 million,” comments MD Stephen Wetherall.
“With the support of our shareholders, Lucapa, its mine partners and the operational boards and management teams worked determinedly during the height of the pandemic in 2020 to ensure our assets were well positioned to produce expected returns when the diamond market normalised.
“The diamond market has now normalised and these record financial results for the first six months of 2021 are a testament to our strategy and the efforts of all our teams.”
“We continue to look at avenues to grow margins at our operations, with additional production improvements and technologies already in the pipeline, such as the Lulo infield screening plant ordered and continuous miner technology about to be trialled at Mothae which will have a read across for Merlin.”
“We are pushing the kimberlite exploration program at Lulo forward, with kimberlite bulk samples already excavated for processing in Q3. In addition, a standalone crushing module, bulk sampling plant and support fleet are scoped, with some orders already placed.
“With this kimberlite sampling plant, we will be able to continually process kimberlite bulk samples without impacting alluvial diamond production.”
“The conditions precedent to the Merlin acquisition are being addressed feverishly by both Lucapa and the liquidators and given where the market has moved to since we took an interest in Merlin and how we see the natural supply and demand fundamentals going forward, we look forward to bringing what will be Australia’s largest diamond mine into operation in the not-too-distant future.”