Lucapa Diamond share price up as it boasts of $1.6m profit

Angola-based diamond miner Lucapa Diamond Co Ltd (ASX: LOM) this morning revealed a net profit of US$1.1 million (A$1.6 million) …

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Angola-based diamond miner Lucapa Diamond Co Ltd (ASX: LOM) this morning revealed a net profit of US$1.1 million (A$1.6 million) on sales of US$29.4 million for the half year ending June 30, 2019. This is a big improvement on the US$4.3 million loss reported in the prior corresponding half year period.

Over the half the miner’s flagship Lulo mine contributed diamond sales of US$22.1 million at US$3,668 carat. Lulo has now produced Angola’s two biggest recorded diamonds weighing 404 carats and 227 carats. The company co-owns shares in the Lulo and Mothae mines with local investors, which means it effectively only takes a share of sales reported.

Over the second half it’s planning on production expansion at the Lulo mine and a focus on higher margin diamond zones at its Lothae mine.

This morning the shares are 3.3% higher at 15.5 cents to give the company a market value of $76.8 million based on 495.9 million shares on issue.

Another junior Africa-focused miner on the local market is AVZ Minerals Ltd (ASX: AVZ).

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