The miner's operations in Angola and Lesotho generated total annual revenue of A$149 million, including $62 million for the December quarter from the sale of rough diamonds thanks to record levels of processing, and significantly higher diamond prices.

 

Lucapa's share of full-year rough diamond revenue was $69 million.

 

Managing director Stephen Wetherall said Lucapa's operations had set new records, including record capital returns from Angola, and "very positive exploration results" delivering tangible evidence that the Lulo kimberlite province hosts primary sources containing special-sized diamonds with some of the best results yet.

 

The record total processing volume for the quarter was 564,455 tonnes, up 19% year-on-year, recovering 25% more carats at 15,016ct in total, or 7704ct attributable, including four plus-100ct gems and several fancy coloured stones.

 

At the 40%-owned Lulo in Angola, total quarterly production was up 137% year-on-year at 9358ct, in part due to the successful bulk sampling program.

 

Production for 2022 was 35,398ct, a 44% increase over 2021 thanks to the record processing level and improved grades, generating record revenue of $117 million for the joint venture.

 

A tender of exceptional Lulo diamonds generated some $30 million in sales.

 

At Mothae (70%) in Lesotho, work continues to resolve processing bottlenecks, while optimisation modelling has been completed, with a trial planned to assess an option to improve revenue while it hopes the new government will repeal a tax bill.

 

Mothae recovered 5658ct in the December quarter, with grades falling as expected in the mine plan, partially offset by higher processing rates.

 

In Australia, with a renewed mining lease and native title agreement over the suspended Merlin mine in the Northern Territory locked in, the focus is on finalising the feasibility study in the near future.

 

Financially, Lucapa's cash and attributable cash and receivables balance was $16.7 million at December 31.

 

Lucapa's debts were reduced to $9 million, and are expected to be paid off by the end of the September quarter.

 

The diamond producer's shares were up 6.5% this morning at 4.9c, capitalising the company at $71 million.

 

The stock has traded at 3.7-9.1c over the past year.