Lucapa Diamond Company reported a net loss of $1.5 million for 2024, citing lower diamond prices, production disruptions and challenging market conditions.
The result represented a narrowing of the miner’s loss from $17.2 million in 2023, it said last week. Revenue for the 12 months fell 31% to $54.5 million, reflecting a weaker pricing environment.
Flooding at the Lulo mine in Angola impacted production, as did global geopolitical and economic uncertainties that pressured diamond prices, the miner explained. The company also faced infrastructure challenges, including the mismanagement of a river crossing project that disrupted access to key mining areas.
Despite these setbacks, Lucapa recovered 25,341 carats of rough from Lulo during the year. Sales volume came to 27,364 carats, at an average price of $1,980 per carat. The mine yielded five diamonds over 100 carats during the year. Prior to its sale in July, the Mothae mine in Lesotho produced 19,839 carats.
Lucapa also initiated a capital raising to strengthen its financial position, securing $1.9 million in funding through a share placement and purchase plan. Looking ahead, the company is focused on stabilizing operations at Lulo, progressing the Merlin project and navigating the continued volatility in the diamond market.
Image: Rough diamonds from the Lulo mine. (Lucapa Diamond Company)
