Lucapa Diamond is an Australian based diamond producer and successful operator of the Mothae kimberlite mine in Lesotho (hard rock) and the Lulo alluvial mine in Angola (river bed). Both mines have the so-called Type IIa diamond, which is in great demand internationally and also achieves top prices in sales.
Recently Lucapa was able to negotiate with both governments for better sales opportunities of the diamonds. Now Lucapa also wants to earn money in the process chain of cutting and polishing the valuable rough diamonds and developed concepts with well-known partners such as Graff Diamonds. CEO Stephen Wetherall and his team are very keen to use additional sources of income to counteract the diamond price, which has been extremely weak for years.
The timing for Lucapa's next stage of development could turn out to be optimal, should more investors demand the material value of diamonds due to the worldwide pressure orgies of the central banks.
Besides the expansion of diversified diamond production sites, analysts see a huge leverage in the discovery of the kimberlite source for alluvial river diamonds on Lulo in Angola. If this could be discovered through ongoing exploration, it will definitely be reflected in the price of Lucapa shares and would be the icing on the cake for investors.
In recent years, the areas for the potential source have already been narrowed down considerably, which is why Lucapa is considered a secret favorite.