Lucapa and Petra Diamonds Signal Potential Recovery for Diamond Market with Strong Q3 Results

Both companies reported increases in revenue and production, hinting at a possible recovery for the previously sluggish gemstone market.

Lucapa achieved third-quarter revenue of $16.9 million, marking an impressive 86% increase year-on-year. This growth was primarily driven by the sale of high-quality diamonds, with an average price of $3,033 per carat. The company’s performance was bolstered by access to higher-grade mining blocks, made possible through strategic river diversions at its Lulo mine in Angola, which mitigated the effects of earlier flooding.

Nick Selby, managing director of Lucapa, expressed optimism about the company’s future, particularly with new access to the Lazaria gravel—an area historically known for producing large and high-value diamonds. “We are positioning ourselves for a strong finish to the year,” Selby noted, citing the sale of a 176-carat diamond for $3 million as a major contributor to the company’s successful quarter.

Meanwhile, Africa-focused Petra Diamonds also posted encouraging results, with production rising 7% to 679,625 carats for the quarter ending September 30. This growth was largely driven by higher grades at its flagship Cullinan mine in South Africa and the Williamson mine in Tanzania.

Richard Duffy, CEO of Petra Diamonds, acknowledged the softer global market conditions but attributed the company’s positive performance to solid operational results from both mines. "Despite the challenging market, we've seen strong contributions from our key assets, positioning us for further growth," Duffy commented.

In response to current market weakness, Petra had postponed a large portion of its South African diamond sales earlier this year. However, a combined first and second tender yielded a 13% increase in average prices, aided by an enhanced product mix that included an 18.85-carat blue diamond from the Cullinan mine, which sold for an impressive $8.5 million.

As both Lucapa and Petra continue to leverage strategic operations and focus on high-value diamonds, their strong third-quarter performance has sparked cautious optimism for a broader recovery in the diamond industry. With the year-end holiday season approaching—a typically strong period for diamond sales—there is hope that this momentum will continue, signaling a brighter outlook for the global diamond market.