The Second Largest Diamond in History!

On August 21st, local time, Canadian diamond exploration company Lucara Diamond announced that it had discovered a 2492-carat diamond at the Karowe diamond mine in Botswana, making it the second-largest rough diamond ever found.

The Second Largest Diamond in History Emerges

On August 21st, 2024, Canadian diamond exploration company Lucara Diamond officially announced on its website the discovery of a 2492-carat diamond at the Karowe diamond mine in Botswana, marking it as the second-largest rough diamond ever unearthed. This extraordinary diamond was detected and recovered using the company's Mega Diamond Recovery ("MDR") X-ray transmission technology, which was installed in 2017 and is specifically designed to identify and preserve large, high-value diamonds. It is known that the largest natural rough diamond ever found was the Cullinan Diamond, discovered near Pretoria, South Africa, in 1905, weighing 3106 carats.

(Official statement from Lucara Diamond. Source: lucaradiamond)

Public information reveals that Lucara Diamond is a Canadian diamond exploration company with a producing mine and exploration licenses in Botswana. Its wholly-owned Karowe mine is one of the world's leading producers of large, high-quality Type IIA diamonds. Lucara Diamond also owns Clara Diamond Solutions, a secure digital sales platform aimed at modernizing the existing diamond supply chain and ensuring traceability from mine to consumer. Additionally, Lucara Diamond is a member company of the Lundin Group and is listed on the Toronto Stock Exchange, the Stockholm Stock Exchange in Sweden, and the Botswana Stock Exchange, with the stock code "LUC."

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According to financial data from Investing.com, the company's stock traded on the Stockholm Stock Exchange in Sweden surged significantly today, with an increase of over 80% as of the time of writing.

It is understood that the Karowe mine is renowned for discovering giant diamonds. In 2015, Lucara found the 1109-carat Lesedi La Rona diamond at the mine, which was the second-largest diamond in the world at the time and was eventually sold for $53 million. The mine also produced an 813-carat diamond, setting a sales record of $63 million. Both of the aforementioned diamonds are the most precious Type IIa diamonds. Following the announcement of the discovery of the 2492-carat diamond, Lucara Diamond officially stated that this find further establishes the reputation of the Karowe mine as a world-class asset and consolidates Lucara's position as a leading producer of large, high-quality diamonds.

William Lamb, President and CEO of Lucara Diamond, commented on this historic discovery: "We are extremely excited about the recovery of this extraordinary 2492-carat diamond. This discovery not only showcases the immense potential of our Karowe mine but also reflects our strategic investment in advanced XRT technology. The ability to fully recover such a large and high-quality diamond demonstrates the effectiveness of our diamond recovery methods and our commitment to maximizing value for our shareholders and stakeholders."

Currently, Lucara Diamond has not disclosed whether a comprehensive assessment of the diamond has been conducted, so the value or quality of the diamond remains undetermined. President Mokgweetsi Masisi of Botswana is scheduled to view the giant diamond later on Thursday, local time. As one of the world's leading diamond-producing countries, Botswana's economy is heavily reliant on the diamond industry. It is understood that Botswana is one of the largest diamond-producing countries in the world, accounting for approximately 20% of global production.Global Diamond Industry in a Slump

It is worth noting that Lucara's discovery comes at a time when diamond prices are falling, and the entire industry is facing headwinds in almost all major markets. Analysts believe that oversupply and synthetic diamonds in certain categories have a significant impact on the market. As of tonight, the share price of Lucara Diamond has fallen by about 15% since the beginning of the year.

Furthermore, data from the online diamond purchasing platform StoneAlgo shows that, taking the price of a 1-carat diamond as an example, the current price ranges from $1,374 to $9,596, depending on the diamond's shape, color, clarity, and other factors. The average price of a 1-carat diamond is currently $4,115, which has dropped by 7.51% since March.

(1-carat diamond average price 12-month change trend. Source: StoneAlgo)

According to previous news, Botswana's Minister of Mines, Lefoko Moagi, stated last Tuesday that after the diamond market downturn, the country intends to renegotiate the proposal to acquire a stake in the Belgian gem dealer HB Antwerp, aiming to double its shareholding without incurring additional costs. The weakness in the diamond market has also affected the company's valuation, providing the country with room for renegotiation.

Lefoko said, "We will not inject more capital, but we will get more shares for the same amount proposed in 2023. We will negotiate for a 49.9% stake for the same amount initially proposed, instead of 24%."

Botswana's budget document in February showed that the country has allocated 890 million Pula (approximately $65.95 million) to purchase a 24% stake in HB Antwerp, after previously valuing the Belgian company at around $275 million.