Lucapa Diamond plans increased participation in diamond joint venture
http://www.goldinvest.de/index.php/...re-beteiligung-an-diamant-joint-venture-34341
The Australian Lucapa Diamond (WKN A0M6U8 / ASX LOM) builds on its Lulo concession in Angola very successful from alluvial diamonds. This is done via an operating subsidiary, where the company so far has a share of 40%. But now apparently run conversations in which Lucapa explores whether it is possible to increase this participation.
Stephen Wetherall, CEO of Lucapa, said in an interview that one with both the partners Rosas e Petalas (28%), an Angolan private company, and the state diamond company Endiama (32%) lead discussions on this topic.
Accordingly Endiama thinking about to sell part or all of the investment in the joint venture company Sociedade Mineira de Lulo (SML) for a cash payment, or to be in Lucapa pay Diamond shares. Mr Wetherall According talks with Endiama, however, are not as advanced as the discussions with Rosas e Petalas.
About a decade, the diamond industry had fled to a large extent from Angola, mainly because Endiama insisted on keeping at least 51% on each diamond mine. That, however, changed with the introduction of a new mining law 2011th
As Mr Wetherall explained that, for example, generally known that industry size De Beers was keen to return to Angola. In addition, the Lucapa-CEO further stated, was the Russian Alrosa active with the giant Catoca diamond mine in Angola and have discovered recently a new diamond chimney which need investment of around 800 million dollars. Catoca, the fourth largest diamond mine in the world, is about 150 kilometers distance to Lucapas Lulo concession in Lunda Norte province.
Currently Lucapa promotes on the Lulo project as stated alluvial diamonds. These are widely distributed gems that were worn by their original formation sources through millions of years of erosion in riverbeds.
And at least in the case of Lucapa, these are to a large extent to "special" diamonds from 10.8 carats and up. Actually, as Mr. Wetherall, these diamonds are really very rare. But at Lucapa around 60% of stones are about 100 carats. However, earlier this year discovered a high quality diamond with even 404 carats - the largest ever discovered in Angola such a stone.
Lucapa has sold diamonds weighing 2,670 carats in the second quarter and thus gross proceeds of 4.1 million AUD achieved, which means an average selling price of 1,546 AUD or $ 1,132 per carat. On half-year basis the revenue was from the diamond sales in USD or USD 5,686 per carat 26.2 million. Lucapa is also well funded, the close of the second quarter of around 14.4 million AUD (about 10.8 million USD) in cash.
Lucapa also plans to double the alluvial production to 40,000 tons per month, either by the existing processing plant expands or a new facility built near the mining areas that have especially delivered large stones. The latter, as Mr Wetherall, would be the optimal solution.
Building a second plant would according to the Lucapa-CEO mean lower investment costs and the company also provide more flexibility, the existing plant should fail. Moreover, one would have the opportunity to process Kimberlitmaterial stated Mr. Wetherall, referring to the current Kimberlitexplorationsprogramm with which it is hoped the source of the alluvial diamonds found on Lulo.
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