Lucapa Reports 104% Carat Increase and 9% Resource Expansion in Q2 2025

Strong Production Growth at Lulo

Lucapa Diamond Company Limited, despite being under administration since May 2025, has delivered a striking operational update for the quarter ended 30 June 2025. The company’s 40% interest in the Sociedade Mineira Do Lulo (SML) joint venture in Angola saw diamond carat recoveries more than double compared to the same quarter last year, reaching 9,325 carats. This surge was driven by mining in the high-grade leziria floodplain areas at the start of the dry season, which typically offers more accessible and richer deposits.

Revenue from diamond sales during the quarter totaled US$16.5 million, achieved through a combination of tender and run-of-mine sales, with an average price per carat of US$2,323. This contributed to an 8% increase in year-to-date revenue compared to 2024, underscoring the commercial strength of the Lulo operation even amid broader corporate challenges.

Resource Expansion and Exploration Progress

Adding to the positive operational narrative, the JORC classified inferred alluvial diamond resource at Lulo increased by 9% to 249,000 carats. This marks the seventh consecutive year of resource growth, a testament to the sustained exploration and resource definition efforts by Lucapa and its partners. The total diluted gravel volume available for mining also expanded by 15% to 5.8 million cubic meters, securing at least eight years of production capacity at current mining rates.

Meanwhile, kimberlite exploration activities, conducted through the Project Lulo Joint Venture where Lucapa holds a 39% interest, continued with bulk sampling and delineation drilling. Although diamond recoveries from kimberlite samples remain modest at this stage, the ongoing work aims to identify primary diamond sources that could complement the alluvial mining operations.

Corporate Context and Outlook

Lucapa’s Merlin Diamond Project in Australia remained inactive during the quarter, reflecting a strategic focus on the more advanced and higher-value Lulo assets. The company’s administration status, appointed in May 2025, introduces an element of uncertainty regarding future operational and financial stability. However, the recent announcement that Lucapa is set to increase its stake in the Lulo Kimberlite Joint Venture to 51% pending final contract signature suggests a commitment to consolidating its position in Angola’s diamond sector.

Operationally, the strong production and resource growth at Lulo provide a solid foundation for potential recovery and value creation. The detailed technical disclosures on sampling, drilling, and processing reinforce confidence in the quality and sustainability of the resource base. Yet, the administration status means stakeholders will be closely watching for developments on restructuring and capital management.