Lucara anticipate prosperous 2024
Two weeks ago, Voice Money reported that Lucara Diamond Corp had revised their yearly revenue target, seeking between US$ 160 – 190 million instead of the $230 million highs initially envisioned for 2023.
The Canadian-based, Karowe Mine owners are confident of bouncing back big time next year, however, aiming for around $220-250 million.
“The company plans to use its sales channels to maximize revenue and generate consistent cash flow to support operations and its investment in the underground expansion project. The company expects to seek opportunities to sell its higher value specials through agreements whereby the rough stones are manufactured, giving the company exposure to polished prices and regular cash flow from the highest value portion of the Karowe production. Quarterly tenders and regular sales through Clara, primarily for stones smaller than 10.8 carats in size, will continue,” reads the company update.
In 2024, Lucara intends to cash in on the +10.8 carat stones currently stocked in its inventory, although the revenue forecast for the year does not include amounts related to the inventory.
“A portion of the tonnes mined in 2024 will be stockpiled, prior to the end of open pit mining in mid-2025. Stockpiled material is planned to be processed between 2025 to 2027 before the mine transitions to underground operations. Ore from the underground development is expected to supplement lower grade stockpile material during the transition to underground, beginning in 2027,” revealed the Canadian miner.
Meanwhile, the William Lamb led mining company is anticipating capital costs for the Karowe underground expansion to reach $100million in 2024 with focus on shaft sinking activities and station development.
The underground expansion is expected to extend the Letlhakane-based mine’s life to at least 2040 and is forecast to contribute approximately $4 billion in additional revenues.