Lucapa Diamond Company delivered a strong financial performance in the first quarter of 2025, reporting a 36% year-on-year increase in revenue. The company earned $12.8 million from three run-of-mine diamond sales and one tender of goods from its Lulo mine in Angola during the quarter ending March 31.

The average diamond price per carat rose by 42% to $1,523, reflecting improved market conditions and a focus on higher-grade mining zones. Lucapa recovered 6,027 carats in Q1, up 6% from the same period in 2024. A 74% rise in the grade of ore mined helped offset the impact of a temporary production halt caused by a community-led blockade.

Managing Director Alex Kidman attributed the strong start to continued operations in the higher-grade lezirias (floodplain areas) during the wet season, noting that the performance represents a marked improvement over the same period last year.

Despite the positive trends in pricing and production, Lucapa flagged potential risks ahead due to recently introduced U.S. import tariffs. Although the tariffs came into effect after the quarter closed, the company said market uncertainty remains, with some buyers pausing purchases amid ongoing trade tensions.

Diamond prices rose sharply at the beginning of April in response to announcements of new U.S. import tariffs, and then stabilized later in the month when the U.S. delayed the tariffs by 90 days.

The RapNet Diamond Index (RAPI™) for 1-carat goods edged up 0.7% during the month. The index for 0.30-carat diamonds continued to strengthen, rising 2.8% in April and 13.2% since the beginning of the year. The 0.50-carat RAPI increased 0.6%, while 3-carat stones saw a minor decline of 0.3%. VVS collection goods of 0.30 carats performed well due to increased Indian demand and a slight improvement in China.

The industry operated amid unprecedented uncertainty due to the continuing tariff negotiations between the U.S. and India, respectively the world’s largest diamond-consuming and -manufacturing countries. Trading slowed in centers outside the U.S. However, business within the U.S. was steady and prices rose, reflecting part of the expected tariff costs. The market is closely monitoring end-consumer reactions.

U.S. inventories are elevated, as American traders purchased goods before the tariffs’ anticipated start date, and global trading centers — especially Indian exporters — shipped popular goods to the U.S. Diamond imports to the U.S. are now experiencing a slowdown. Elongated fancy shapes saw strong demand in April, both internationally and in the U.S.

Diamond and jewelry retailers are finishing preparations for Mother’s Day on May 11, one of the key U.S. sales holidays. A survey by the National Retail Federation (NRF) projected that consumer spending on jewelry would be slightly lower than last year.

The rough market was quieter than in March, which was a particularly active period. Anglo American predicts that its customers will remain cautious about buying rough amid the ongoing macroeconomic uncertainty and the impact of U.S. tariffs. De Beers’ sales slid 44% year on year in the first quarter to $520 million as slow demand and a buildup of polished inventory led the midstream to restock more slowly.

De Beers has conducted its first diamond auction in Botswana following the company’s strategic relocation from Singapore, aiming to streamline operations by consolidating its trading activities in Gaborone. The move, according to De Beers, strengthens Botswana’s role in the global diamond value chain.

The initial event, held as a small-scale trial during De Beers’ third sales cycle, was targeted at sightholders and reportedly drew “substantial interest.” The company noted a high level of customer engagement, with most parcels sold to a wide array of participants.

Building on the success of the trial, De Beers announced it will now begin hosting regular auctions in Botswana, open to all registered customers holding the necessary licenses. The next auction is scheduled for Cycle 4.

Paul Rowley, Executive Vice President of Diamond Trading at De Beers, described the results as “encouraging,” and added that the company anticipates “increased customer participation in the coming months.”

“It is exciting to now have our diamond trading operations officially united under one roof in Botswana, and we are confident that this move will contribute to the continuing development of Botswana’s diamond sector,” Rowley stated.