ASX-listed Lucapa Diamond Company, which has assets in Angola and Australia, has recorded year-on-year increases in carat recoveries, grade, revenue and diamond price for the quarter ended March 31.

Carat recoveries increased by 6% year-on-year to 6 027 ct. The number of special diamonds, those weighing more than 10.8 ct each, also increased to 54, from 51 in the first quarter of 2024.

Although diamond sales decreased by 4% year-on-year to 8 409 ct, the average price increased by 42% year-on-year to $1 523/ct, taking revenue for the period to $12.8-million – a 36% year-on-year increase.

“Despite the blockade by local community leaders, the quarter marks a much-improved start to the year compared with 2024, with revenues up 36% due to mining [at Lulo, in Angola] being maintained in the higher-grade lezirias (floodplain areas) during the wet season.

"Finalising the Lulo Joint Venture Mineral Investment Contract was an important milestone, with Lucapa to increase its stake to 51%, delivering Lucapa an increased share of any exploration success. Once a date has been set for the signing ceremony, we will update the market," Lucapa MD Alex Kidman says.

He adds that the results from the electromagnetic survey at the Merlin project, in Australia, were "very promising" with two large base metal targets identified.

"One of these is associated with a gravity high reading from an historical gravity survey. With their proximity to the world-class MacArthur River mine, we look forward to bringing the market further news and updates on these and the additional 16 kimberlite targets as we further our exploration programme over the course of 2025.”

Reflecting on the state of the rough diamond market, Lucapa notes that there have been signs of improvement, with rough diamond prices having recovered throughout the first quarter of the year.

"The diamond production guidance announced by the major diamond producers means global natural diamond production for this year is forecast to be the lowest since the mid-1990s, which bodes well for maintaining rough diamond price growth over the course of the year.

"The overall effect of the tariffs introduced by the US post quarter-end are still yet to be fully understood, with many buyers taking a wait-and-see approach during April, which has impacted demand and therefore prices for those producers still trying to sell. This is expected to be a short-term situation until the effects on overall global trade by the tariffs become clearer," Lucapa states.