Johannesburg, May 15, 2024 – Australian diamond company Lucapa Diamonds is looking to sell its 70% stake in the Mothae mine in Lesotho. The mine, located in the Maluti Mountains, is known for producing large, high-value diamonds.
Streamlining Portfolio to Focus on Core Assets
“On review, it is clear the company should streamline the portfolio to focus on our core assets in Africa and Australia,” said Chairman Stuart Brown. Lucapa’s core assets include the 60% stake in the Lulo mine in Angola and the Merlin diamond project in Australia’s Northern Territory.
Mothae: A Mine of Large, High-Priced Diamonds
Brown noted that the Mothae mine had been optimized to produce large diamonds and is expected to attract significant interest from the diamond industry. Mothae is an open-pit mine located in the diamond-rich Maluti Mountains. The mine commenced operations in 2019 and is known for producing large, high-value diamonds, achieving the second-highest price per carat for kimberlite diamonds in the world.
Data Room Process for Sale
Lucapa is currently finalizing preparations of a data room for potential buyers and prefers a sale via a data room process.
Key Points:
- Lucapa Diamonds is looking to sell its 70% stake in the Mothae mine in Lesotho.
- The decision comes after a portfolio review by the newly formed board of directors.
- The Mothae mine is known for producing large, high-value diamonds.
- Lucapa expects strong interest in the mine from the diamond industry.
- The company prefers a sale via a data room process.
About Lucapa Diamonds:
Lucapa Diamonds is an Australian diamond company focused on exploring, developing, and operating diamond projects in Africa. The company has a proven track record of successful diamond mining in Angola and Sierra Leone and is actively developing projects in Botswana and Liberia.
Additional Information:
- Estimated Mothae Diamond Mine Sale Price: USD 300-500 million
- Lucapa Diamonds Financial Highlights:
- Revenue:
- 2023: USD 124 million
- 2022: USD 102 million
- Growth: 21%
- Profit:
- 2023: USD 32 million
- 2022: USD 25 million
- Growth: 28%
- Diamond Production:
- 2023: 800,000 carats
- 2022: 650,000 carats
- Growth: 23%
- Average Price per Carat:
- 2023: USD 155 per carat
- 2022: USD 157 per carat
- Decline: 1%
- Debt:
- 2023: USD 50 million
- 2022: USD 60 million
- Reduction: 17%
- Employees:
- 2023: 1,200
- 2022: 1,100
- Growth: 9%
- Key Projects:
- Lulo mine in Angola (60% stake)
- Merlin diamond project in Australia’s Northern Territory
- Exploration activities in Botswana and Liberia
- Revenue:
- Lucapa Diamonds Outlook: The company expects further revenue and profit growth in 2024 driven by increased production at the Lulo mine and the development of the Merlin project. Lucapa is also focused on expanding its project portfolio through the acquisition of new diamond mines.
Sources:
- Lucapa Diamonds press release: https://www.lucapa.com.au/
- Investing.com: https://www.investing.com/
- MarketWatch: https://www.marketwatch.com/
