Lucara Diamond Corp Reports Revenues and Profit For Q2 and H1

(IDEX Online News) – Diamond miner Lucara Diamond Corp reported revenues of $47.2 million for the second quarter, and $79.7 million for the half-year period.

Net income for the second quarter totaled $22.7 million compared with a loss of $7.6 million a year earlier. For the first six months of this year, net income was $28.8 million from a loss of $11.8 million a year earlier.

The company completed its first large and exceptional stone tender, along with two regular tenders, achieving gross proceeds of $49.3 million during the second quarter. Full-year proceeds to date are $81.8 million.

The diamond sales completed during the second quarter included: a tender of large and exceptional stones held in May consisting of 15 single stone lots. All stones were sold for gross proceeds of $24.6 million ($30,184 per carat with a combined weight of 815 carats).

The company’s two regular tenders during the second quarter totaled 101,637 carats, achieving winning bids of $24.7 million or $243 per carat.

The average value of run-of-mine diamonds recovered and sold during the quarter was $485 per carat.

During the period the company continued to recover a number of significant gem quality diamonds from its run of mine production.  The Company is planning its second exceptional stone tender in September 2013, which will feature 16 single diamond lots, including five diamonds larger than 100 carats and one small pink diamond.

Meanwhile, the Mothae project in Lesotho remained on temporary care and maintenance during the quarter and the company is currently reviewing a number of development options for Mothae.

Cash on hand as at June 30 was $28.5 million. 

William Lamb, President and CEO commented "Lucara had an exceptional first six months of the year with sales proceeds in excess of $80 million and over 230,000 carats sold. Following the first large and exceptional stone sale, the Karowe mine has continued to produce a high proportion of large stones and a second exceptional stone sale will be held in September featuring 16 diamonds, including a pink stone and five stones which are over 100 carats each. The proceeds from this sale are expected to further strengthen the Company’s overall cash position.”