The Lucapa Diamond Co Ltd (ASX: LOM) share price is up 11% or 2 cents to 20 cents today after the diamond miner reported it had sold US$16.7 million (A$22.9 million) worth of diamonds at an Angolan auction.
In total it sold seven diamonds weighing 498 carats from its Lulo alluvial mine and this brings the total diamonds sold to US$141 million over at an average carat price of US$2,105.
For the quarter ending December 31 2019 Lucapa posted an operating cash profit of US$29,000 thanks to a VAT refund received according to its 4C quarterly report handed to the ASX.
It took in no sales revenues for the quarter and has cash on hand of US$8.2 million, although it appears much of this is down to "proceeds from borrowings".
The group also reports it has diamond mines or expiration projects in Botswana, Lesotho and Australia.
According to Commsec the diamond miner has a market value around $85 million and micro-cap enthusiasts should be sure to go through the cashflow statements and business model carefully prior to considering an investment.
