Lucara Auction Fetches $6.5 Million, Expects Market Improvement

(IDEX Online News) – Lucara Diamond Corp. auctioned 32 lots of rough diamonds, sold for $6.5 million last Monday. The auction was conduct via an IDEX Online auction platform.

Bidding for high-color, high-quality diamonds was particularly soft and three lots of these goods where withdrawn from the sale. 

Lucara offered 36,353 carats of Karowe diamonds in 35 lots, ranging from small color goods to a number of specials.

This is Lucara's second auction of rough diamonds from Karowe. The next sale will take place during the first half of September. In addition to Gaborone, viewing of the diamonds is offered in Antwerp too.

Since it started mining less than four months ago, Lucara's diamond revenues topped $12 million.

To date, Karowe produced more than 87,000 carats. Because of the depressed rough diamond market, Lucara is withholding diamonds that it believes can be sold at better prices.

“In these challenging market conditions, Lucara is fortunate to be in a strong financial position, having not drawn down from its $25 million revolving credit facility. This gives us the option to retain goods which we feel have not achieved an acceptable market price," said William Lamb, President and CEO.

"Like many other diamond companies, we anticipate an improvement in the diamond market in the latter part of the year. The viewing of the diamonds in Antwerp will allow Lucara to take advantage of this expected strengthening of rough diamond pricing.”