Lucapa Diamond

About Lucapa Diamond

Lucapa Diamond Company Limited is an established diamond producer and explorer, founded in 2004, with a portfolio of assets across Africa and Australia. The company's business model is centered on the mining and exploration of high-value diamond deposits, generating revenue through the sale of rough diamonds. These sales occur via a combination of regular run-of-mine sales, special tenders for exceptional stones, and a cutting and polishing partnership with Safdico International, a subsidiary of Graff. This partnership allows Lucapa to share in the polished margins, capturing value beyond the initial rough sale.

The company's flagship asset is the Lulo Alluvial Mine in Angola, where it holds a 40% interest and acts as the operator. Commercial production at Lulo commenced in 2015, and the mine is renowned for producing large, premium Type IIa diamonds that command some of the highest prices per carat for alluvial diamonds globally. Notable discoveries include the 404-carat “4th February Stone.” Operations involve open-pit alluvial mining, with a 1.1 million tonne per annum processing plant that utilizes X-Ray Transmission (XRT) technology to recover diamonds up to 1,100 carats. Lucapa also holds a majority 51% stake in the Lulo Kimberlite Exploration Joint Venture, which is actively searching for the primary hard-rock source of these exceptional alluvial stones.

Until recently, Lucapa operated the Mothae kimberlite mine in Lesotho, holding a 70% stake in partnership with the Government of the Kingdom of Lesotho. This mine, which began commercial production in 2019, is also known for producing large, high-value diamonds, including rare Type IIa gems. However, in May 2024, the company announced its intention to sell its interest in Mothae to streamline its portfolio. The company's Australian interests are headlined by the Merlin Diamond Project in the Northern Territory, acquired in 2021. Lucapa is implementing a two-phase restart plan for the historic mine, which previously produced Australia's largest-ever rough diamond. The company is also engaged in early-stage exploration at the Brooking Project in Western Australia.

The management team and board possess extensive experience in the diamond industry. Nick Selby, an extraction metallurgist with 40 years of experience, including 19 years at De Beers, joined Lucapa in 2014 and was appointed CEO in October 2023 before stepping down for health reasons in November 2024. He was succeeded by Alex Kidman, a geologist with over 15 years in the diamond industry who joined Lucapa in 2017. The company's former CEO, Stephen Wetherall, who led the company from 2014 to 2023, guided its transition from an explorer to a multi-asset producer.