Sales and Profits Rise after some Big-Stone Discoveries for Lucara

By John Jeffay / February 24, 2020 / www.idexonline.com / Article Link

 

(IDEX Online) - Lucara reports a higher-than-forecast eight per cent hike in sales, boosted by some big-stone discoveries at its Karowe mine, in Botswana.

Total revenues were $192.5 million (2018: $176.2 million) it said today in its annual results for 2019.

Volume of sales was up 17 per cent to 411,732 carats, more than making up for a seven per cent decline in the average price of $468 per carat.  Profits climbed nine per cent to $12.7 million.

It was another strong year for specials (single diamonds over 10.8 carats) from direct milling ore, with 31 in excess of 100 carats, and two over 300 carats, including the historic 1,758ct Sewel?? ? diamond which it sold last month.

Karowe had a record year for production with a total of 9.8 million tonnes mined and 433,060 total carats recovered, including 29,990 carats recovered from previously milled material.

Sales on Clara, Lucara's newly-launched blockchain platform were $8.4 million, mostly sales from the Karowe mine.

Eira Thomas, president and CEO said expansion plans could keep Karowe in production for another 20 years.

"Our strong operating results for 2019 reflect Lucara's continued focus on safe, reliable operations which has delivered increased productivity at lower costs and provides a solid foundation to support our next stage of growth," he said.

"An underground expansion at Karowe which has the potential extend our mine life to 2040, add net cash flow of $1.22 billion and gross revenues of $5.25 billion."

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