Lucapa Diamond Company Ltd sold US$2 million worth of diamonds from the Mothae kimberlite mine in Lesotho, reflecting continued demand despite uncertainties arising from the global spread of Covid-19.

The goods, totalling 3,963 carats, were traded under a cutting and polishing partnership with a major diamantaire for US$505 per carat. 

Stephen Wetherall, managing director of Lucapa, commented, “Despite the current macroeconomic uncertainty brought about by Covid-19 hindering the marketing of diamonds and prices generally, it was pleasing to still see some demand for the higher-quality Mothae-type production.”

Under the agreement, Mothae will receive the rough price upfront and following accounting for the procurement and diamond manufacturing costs, additional margins generated from later sales of the diamonds beyond the mine gate will be shared equally between Mothae and the partner diamantaire.

“Selling the diamonds into a cutting and polishing partnership in this environment provides Mothae with a level of price protection in that Mothae should receive additional margins from the onward sale of these diamonds,” added Wetherall.