News Bureau

Lucara Diamond sales revenue grew by 13%!

Lucara Diamond reports its results for the quarter ended June 30, 2022. According to the report, revenue for the three months and six months ended June 30, 2022 totalled $52.3 million and $120.5 million, respectively. Strong rough and polished diamond market fundamentals continue, despite growing global economic uncertainties.

Revenue from sales transacted on Clara during the three months ended June 30, 2022 totalled $9.4 million, a 13% increase from the $8.3 million in revenue earned in the comparative quarter. A third-party producer commenced a series of trial sales on Clara in Q2 of 2022, which are continuing into Q3 of 2022.

Production metrics remained in line with 2022 guidance, with 1.1 million tonnes of ore and 0.4 million tonnes of waste mined, and 0.7 million tonnes of ore processed during the three months ended June 30, 2022. A strong U.S. Dollar helped to mitigate increases in input costs, resulting in an operating cash cost of $28.78 per tonne of ore processed.

A total project investment of $29.1 million into the Karowe UGP during the current quarter focused on the transition to main sink activities and construction of the upgraded transmission line and related substations.

Eira Thomas, President & CEO commented: "In Q2, Lucara celebrated 10 years of continuous operations at its 100% owned Karowe Diamond Mine and delivered production on plan in combination with healthy diamond sales, reflecting stable polished diamond demand and a continued positive outlook for diamond prices longer term. 

Third party volumes on Clara also continued to grow during the quarter, with Karowe goods reliably supplemented in each completed sale. Momentum on the underground expansion continues to ramp up as we began the transition towards the main shaft sinking phase; Lucara maintains access to ample liquidity to support of its growth plans."

Diamond sales in Q2 2022 continued through HB under the sales agreement for those gem and near-gem diamonds greater than 10.8 carats which are to be manufactured and sold as polished. Other diamonds continued to be sold through a combination of the Clara platform and regular tenders.

The Company recognized total revenues of $52.3 million in Q2 2022. This included $50.0 million from the sale of 66,167 carats from Karowe, top-up payments of $13.1 million as well as $2.3 million from the sale of third-party goods on the Clara platform.

In the comparative quarter, the Company achieved revenues of $46.3 million which included $45.9 million from the sale of 68,806 Karats from Karowe, top-up payments of $7.9 million as well as $0.4 million in revenue from third party goods sold through the Clara platform.

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