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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) 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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Motley Fool contributor Tom Richardson has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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