Lucapa Diamond Company has entered voluntary administration and is now pursuing a dual-track process of recapitalization and potential sale. The company’s administrators, KordaMentha, will conduct an urgent review of Lucapa’s operations, which span across several diamond projects including Brooking Diamonds, Heartland Diamonds, and Australian Natural Diamonds.

Among Lucapa’s most valuable assets is its 51% stake in the high-value Lulo mine in Angola. Other key interests include the Merlin diamond project and the Brooking exploration project in Australia. Earlier, Lucapa had divested its Mothae mine in Lesotho to streamline operations amid industry headwinds and weak diamond demand.

The move into administration follows a difficult year for Lucapa, with the company reporting a net loss of $1.5 million in 2024 and a 31% drop in revenue to $54.5 million, driven by falling diamond prices. In response, the company had raised $1.9 million through a share placement and purchase plan.

Despite financial pressures, Lucapa increased its stake in the Lulo mine from 39% to 51% in March, aiming to boost returns from the project. The company is now actively seeking investors or buyers for its assets, with administrators inviting expressions of interest. Meanwhile, the Australian Securities Exchange has suspended trading of Lucapa shares, citing concerns over the company’s financial viability.