News

Jan 14, 2020

Lucapa Achieves a Significant Milestone with the First Results of its Cutting & Polishing Partnership Strategy

Lucapa Diamond Company Limited has lauded the successful outcome of the Company’s first cutting & polishing partnership, which, it said, marked “a milestone for Lucapa’s move along the diamond value chain”.

“The 36 carat rough diamond from the Mothae kimberlite mine in Lesotho (Lucapa 70%; Government of the Kingdom of Lesotho 30%) was manufactured into six polished D-colour diamonds under a cutting & polishing partnership with a leading international diamantaire,” the Company said in its announcement statement.

Lucapa went on to reveal that the two largest polished diamonds produced from this stone were both graded as D-colour and Flawless by the Gemological Institute of America (GIA), including the exceptional 8.88 carat Pear diamond.

“The market value of the polished diamonds represents a significant increase over the rough stone,” the Company added.

Lucapa went on to reveal that under the partnership agreements, net profits from the sale of the polished diamonds are shared equally with the diamantaire. Lucapa’s share of the profits will be recorded in the Company’s annual accounts in accordance with IFRS, the Company averred.

Expressing his satisfaction that the first diamond placed into the cutting & polishing strategy had produced such spectacular results, Lucapa Managing Director Stephen Wetherall said: “The exceptional diamonds manufactured under our first profit-sharing cutting & polishing partnership represent another milestone for Lucapa’s growth as a global diamond group as we progress along the diamond value chain. This strategy was implemented to maximise the rough value of our diamond production from our Mothae and Lulo mines and to access additional revenue streams for Lucapa and our mining partners into the future.”

Lucapa said it will soon announce the first results from the cutting & polishing of Lulo production. This became possible, the Company noted, as a result of the significant diamond sector reforms enacted by the Angolan Government in 2019.

Pic Cap: Exceptional 8.88 carat Pear diamond produced from the 36 carat rough stone

Pic Courtesy: Lucapa Diamond Company Limited