Lucapa to sell majority stake in Lesotho diamond mine
Australia’s Lucapa Diamond (ASX: LOM) has put its 70% stake in the Mothae mine in Lesotho up for sale to focus on its core assets and is discussing options for the 30% held by the country’s government.
The diamond miner’s board said it was “considering all options for the divestment” and finalizing a data room for interested parties.
“On review, it is clear the company should streamline the portfolio to focus on our core assets in Africa and Australia,” chairman Stuart Brown said in the statement.
“The company’s collaboration with the Lesotho government on the Mothae diamond mine has been rewarding and our management have worked exceptionally well to optimize the plant to recover large diamonds,” Brown noted, adding Lucapa expects there will be “significant interest” from those within the diamond industry and on a wider scale.
Production at Mothae, which the Perth-based company acquired in early 2017, began commercial operations almost six years ago. The open pit mine is known to produce large, high-value diamonds, which makes the operation the world’s second highest dollar-per-carat kimberlite diamond mine.
According to Lucapa’s December 2023 figures, the mine has 180,000 carats of indicated resources and 960,000 carats of inferred resources, with a calculated value of US$606 per carat.
Mothae is located only 5 km from Gem Diamonds’ (LSE: GEMD) Letšeng, the world’s highest dollar-per-carat kimberlite diamond mine.
Lucapa also has a 40% stake in the prolific Lulo mine in Angola and it’s involved in exploration projects in Angola, Australia and Botswana.
Diamond miners have faced several challenges in recent years, including an excess of stockpiles that has forced top producers to decrease production and lower prices.
The growing popularity and affordability of laboratory-made diamonds is also seen as key contributor to the market current issues.
