Lucapa Diamond Company announced a $1.3 million loss for the first half of 2024, attributing the downturn to a market slowdown that has decreased the prices of rough diamonds. This loss marks a significant reversal from the $64,000 profit reported during the same period last year.
For the six months ending June 30, the company saw its total revenue fall by 24% to $35.6 million. The average price of diamonds also dropped by 26%, reaching $1,213 per carat. Production declined by 12%, totaling 27,362 carats.
In the first quarter, there was steady demand for diamonds over 2 carats, but this demand diminished in the second quarter. However, diamonds weighing more than 10 carats maintained consistent demand throughout the period.
Revenue from Lucapa’s Lulo mine in Angola fell by 18% to $27.2 million. Sales volume decreased by 4% to 13,761 carats, causing the average price to drop by 15% to $1,976 per carat.
During this period, Lucapa conducted four run-of-mine diamond sales and one special tender, which brought in $10.5 million. This tender included the sale of two large diamonds, weighing 203 and 116 carats. However, a second planned tender, which included a 195-carat rough diamond along with other high-quality diamonds, was postponed to July. This delay contributed to a lower average price, according to the company.
Lucapa also completed six diamond sales from its Mothae mine in Lesotho through an agreement with Safdico, achieving $8.4 million in revenue. This represents a 38% year-on-year decline. The drop in high-value rough diamond recovery led to a 43% decrease in the average price, which fell to $540 per carat. In June, Lucapa sold the Mothae mine to Lephema Executive Transport, a Lesotho-based mining service provider.
