Lucapa Diamond receives dividend from Lulo

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Lucapa Diamond receives dividend from Lulo

Lucapa Diamond Company Limited has announced it has received the 2021 interim dividend payment which was approved by the shareholders of Sociedade Mineira Do Lulo based in Angola.

The A$5.0 million (US$3.6 million – net of withholding tax) payment was in respect of Lucapa’s 40% associate share of the approved A$14.0 million (US$10.0 million). The 2021 dividend was declared by shareholders following a record year for Lulo where record volumes processed and carats recovered resulted in revenues of A$104.8 million (US$78.1 million) being achieved at US$2,808 per carat.

SML, which operates the Lulo project, is co-owned by Angola’s State-owned mining company Empresa Nacional de Diamantes and a private Angolan company called Rosas & Petalas. As per ASX announcement on 14 August 2020, New Azilian (a company associated with major shareholder and Non-Executive Director, Ross Stanley) is due a bullet principal payment of A$10.5 million on 28 February 2022. This loan was attracting a 9.8% interest charge. The Company will make the principal payment as scheduled.

Lucapa also expects to soon settle a loan it has with New Azalian, for an amount of A$10.5-million. New Azalian is a Perth-based resources investor, an existing shareholder in Lucapa and is associated with nonexecutive director Ross Stanley.

About Lucapa

Lucapa Diamond Company Limited is an ASX listed diamond miner and explorer with assets in Africa and Australia. It has interests in two producing diamond mines in Angola (Lulo) and Lesotho (Mothae). The large, high-value diamonds produced from these two niche African diamond mines attract some of the highest prices per carat for rough diamonds globally.

The Lulo mine has been in commercial production since 2015, while the Mothae mine commenced commercial production in 2019. Lucapa has recently acquired the Merlin Diamond Project in the Northern Territory of Australia. It consists of a 24km2 mining lease and a 283km2 exploration lease encompassing the mining lease. The mining lease contains 11 previously discovered kimberlite pipes in three kimberlite clusters with a 4.4 million carat JORC 2012 compliant resource.

There are two known diamondiferous kimberlites on the exploration lease. Lucapa and its project partners are also exploring for potential primary source kimberlites or lamproites at the prolific Lulo concession in Angola, the Brooking project in Australia and the Orapa Area F project in Botswana.

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