Lucara Predicts Rise in Revenue for 2020

RAPAPORT... Lucara Diamond Corp. is expecting sales to rise in 2020 amidan increase in production from the higher-grade portion of its Karowe mine inBotswana. Sales will reach $180 million to $210million next year, compared with $170 million to $180 million for 2019, it predicted last week. Lucara believes it will recover a higher proportion of roughdiamonds -including special-size stones over 10.8 carats - from the high-qualityMP/KS and EM/PK(S) area of Karowe's south lobe. However, the company has lowered its output and sales-volumefigures for 2020, expecting to produce 370,000 carats to 410,000 carats, versusthe 400,000 carats to 425,000 carats forecast for 2019. The miner will sell between 350,000 carats and 390,000 carats during the year, as opposedto the 400,000 carats to 425,000 carats it predicted for 2019, it said. Additionally, following positive results from a feasibilitystudy the company conducted at Karowe in November, Lucara has approved a budgetof up to $53 million to expand the site to underground mining. The move isexpected to add around 7.8 million carats, and increase the mine's lifespanuntil 2040. The final decision is subject to Lucara receiving all requiredauthorizations, with a final decision expected in the second fiscal half of2020, the miner added. "Lucara will continue to focus in 2020 on optimizing basebusiness, growing [its digital sales platform] Clara by adding third-partyproduction to the platform, and preparing for an underground expansion atKarowe," Lucara CEO Eira Thomas noted. "Anticipated cash flow from operationsin 2020 should allow us to pursue early works which are critical to the undergrounddevelopment schedule." Image: The Karowe mine. (Lucara Diamond Corp.)