Lucapa Diamond Company is on track to increase its ownership stake in the Lulo Diamond Mine from 39% to 51%, a move that promises to enhance its exploration capabilities. The new agreement, currently under negotiation with the Angolan government, is expected to be finalized in early 2025, according to CEO Alex Kidman.
Unlocking the Value of Lulo
The Lulo mine, operational since 2015 through a partnership between Lucapa and the Angolan government, is renowned for its large, high-value diamonds. This reputation contributed to a stellar 86% revenue increase in the third quarter of 2024, reaching $16.9 million.
Strategic Portfolio Streamlining
Earlier this year, Lucapa sold its 70% stake in the Mothae mine in Lesotho to Lephema Executive Transport, a local mining services company. The sale reflects Lucapa’s focus on streamlining its portfolio and investing in core assets like Lulo.
The company is also pursuing funding for its Merlin mine in Australia. With a $16 million production plan in place, the Merlin project aims to deliver up to 314,000 carats over the next five years.
A Confident Future
Kidman highlighted the strategic importance of the Lulo deal:
“Increasing our share in Lulo to 51% gives us significantly more exposure to exploration success, and we’re confident the revised agreement will be signed in early 2025.”
Lucapa’s increased stake positions the company to capitalize on Angola’s diamond potential and secure its place as a leader in the global diamond industry.