Lucapa Diamond Company faced a decline in revenue during the fourth quarter as demand for its rough diamonds slowed, coupled with a drop in prices. Sales from its mines reported a 1% year-on-year slip to $40.8 million, with the average selling price experiencing a 9% decrease to $2,458 per carat. This overshadowed a 9% rise in volume to 16,600 carats.
Specifically, at Lucapa's Lulo mine in Angola, revenue dropped by 4% to $34.9 million, with sales volume plunging by 32% to 5,663 carats. Notably, the company conducted two tenders of exceptional stones during the quarter, contributing to the overall revenue. The first tender, held in Luanda in October, featured high-value diamonds ranging from a 10-carat pink to a 180-carat white, type IIa stone. The second tender, in December, included four high-value diamonds weighing 41, 123, 208, and 235 carats.
On the other hand, revenue from the Mothae mine in Lesotho rose by 14% to $5.9 million, driven by a 56% rise in sales volume to 10,947 carats, which more than compensated for a 27% drop in the average price to $541 per carat.
The overall output from both mines increased by 6% to 15,954 carats during the October-to-December period. For the full year, group revenue grew by 1% to $102.2 million, with the average price per carat climbing by 7% to $1,682, despite a 6% drop in sales volume to 60,774 carats. The production for 2023 decreased by 4% to 63,469 carats.
Lucapa Diamond Company holds a 40% stake in Lulo and 70% in Mothae, with government and local entities holding the remaining shares. Additionally, the company owns the Merlin mine, the Brooking Lamproite exploration in Australia, and the Orapa site in Botswana.
