News Bureau

 
November 30, 2019

Lucara expects over 370K cts diamond by H2 2020

According to the operating guidance for 2020 of Lucara Diamond says, revenue is forecast to be between $180 million and $210 million & a capital expenditure of up to $53 million has been approved for early works related to a proposed underground mine at the Karowe Diamond Mine.  An investment decision, subject to receipt of all required authorizations and the arrangement of financing, is expected in H2 2020.

Diamond recoveries are expected to be between 370,000 carats and 410,000 carats; diamonds sold are expected to be between 350,000 carats and 390,000 carats.

Eira Thomas, President & CEO commented: "Building upon the strong operating performance achieved in 2019, Lucara will continue to focus in 2020 on optimizing the base business, growing Clara by adding third party production to the platform and preparing for an underground expansion at Karowe following the announcement of a positive feasibility study earlier this month. 

Anticipated cash flow from operations in 2020 should allow us to pursue early works which are critical to the underground development schedule, while at the same time allowing us to leverage our balance sheet to finance the project in a cost-effective manner."

In 2020, the Company forecasts revenues between $180 million and $210 million, as the proportion of carats recovered from the higher grade MP/KS and EM/PK(S) units increases. These projections include Specials which are diamonds that are 10.8 carats and larger but exclude the sale of any truly unique diamonds such as the 1,109 carats Lesedi la Rona and the 813-carat Constellation. 

Specials are consistently recovered from the Karowe diamond mine and contribute a significant percentage of the Company's annual revenue.  Diamonds recovered are expected to be between 370,000 carats and 410,000 carats and diamonds sold are expected to be between 350,000 carats and 390,000 carats.