Lucara continues to deliver despite weak market
Despite the diamond market’s high-profile struggles, Lucara continues to deliver solid sales through its ever-reliable Karowe Mine.
The Letlhakane-located mine once again delivered decent revenue for the Canadian enterprise, raking in $41.1 million (just shy of P559 million) for the first quarter of the year (January to March).
It marks a slight drop from the $42.8 million recorded over the same three-month period in 2023.
The money was made through Lucara’s three sales channels, with the HB sales agreement – the sale of rough diamonds above 10.8 carats – responsible for $23.2 of the incoming millions.
Tenders generated $13 million, while the company’s digital sales platform, Clara Solutions, sold $4.9 million worth of goods, of which Karowe was responsible for two-thirds.
Voicing his satisfaction at the Q1 returns, Lucara Diamond Corp Chief Executive Officer (CEO), William Lamb, said, “Our Karowe diamond mine delivered another solid operational quarter, continuing its track record of sustainable diamond production from this world-class asset.
“The company’s high-value diamond production forecast remains robust, underpinned by our focus on operating practices aligned with leading environmental, social and governance standards. Lucara is well-positioned with our exceptional diamond production profile and our innovative process facilities and sales mechanisms to navigate this environment. We will continue executing our growth strategy while maintaining financial discipline to create sustained value for all our stakeholders,” said Lamb, who assumed the CEO role in August last year.
There was also plenty of Pula going out during the quarter, with the Karowe underground development gobbling up $17.9 million, money spent on surface infrastructure and shaft sinking.
Expected to expand the mine’s lifespan to 2040, the underground project is anticipated to start reaping rewards by 2028.
With the total cost of the project at $683 million, the capital expenditure stood at $332.5 million as of 31st March.
“Work on the underground expansion project at Karowe also progressed well during the quarter. This key growth initiative remains on track with the rebase schedule and budget, positioning us to access the higher-value ore from the underground portion of the ore body, early in 2028,” revealed Lamb, adding that this year alone, Lucara expect to splash $100 million on the project.
Meanwhile, Lucara has made no changes to the production targets with $220 – 250 million in revenue expected for 2024 from sales of 345 – 375 000 carats.
