Workers at the Karowe mine.

(IDEX Online News) – Lucara Diamond Corp. has provided a revised operating performance outlook for 2013 in light of its “exceptional start” to the year.

 

President and CEO William Lamb said: “Lucara has had an exceptional start to 2013 with the recovery of large and exceptional diamonds resulting in the company’s first large stone tender achieving gross revenues of $24.8 million and the sale of its second blue stone for $1.6 million.

 

“Lucara continues its solid operating performance and has revised its operating cost and production guidance. The additional cash flows from the large stone tender will result in the strengthening of the company’s balance sheet as it expects to reduce its debt by meeting all of its debenture repayment obligations of $33.3 million by the end of the year”.

 

Among the key operational highlights are that the Karowe Mine is projected to process 2.5 million tonnes and Lucara is forecasting diamond sales of 420,000 carats in 2013, an increase of 5 percent from previous guidance.

 

The miner is forecasting revenues of around $118 million.

 

It said that five sales are planned for the remainder of this year, excluding the potential for a second large stone tender with viewings in both Gaborone and Antwerp.

 

Karowe’s operating cash costs are expected to be around $23 per tonne treated, in line with previous guidance.

 

Capital expenditure for 2013 is expected to be approximately $5 million, an increase from previous guidance of $3 million, which is to fund advanced work on the company’s tailings dam and securing the company’s water resources with the installation of additional boreholes.