Lucara Posts Q3 Income of $51M, and $133M for Q1-Q3

(IDEX Online News) – Lucara Diamond Corp reports income of $50.9 million ($625 per carat) for the third quarter, of which $10.9 million was received in October for its late September tender.  

Full year to date sales of 328,000 carats have achieved proceeds of $132.7 million, or $404 per carat, which exceeds previous full year 2013 revenue guidance, Lucara reported.

With average operating expenses of $110 per carat, the cash operating margin achieved for the third quarter was $515 per carat, the firm said.

Sales during the quarter included one tender of over 80,000 carats and the company’s second exceptional stone tender during the quarter.

The company has achieved a year to date cash operating margin of $308 per carat based on operating expenses of $96 per carat.

Lucara’s two exceptional tenders have contributed $49.3 million ($26,745 per carat) of revenue, and “based on the continued recovery of exceptional stones” it is planning a third exceptional stone sale in late November. The sale is planned to include 14 stones with four diamonds in excess of 100 carats.

Lucara President and CEO William Lamb, commented "Proceeds in excess of $132 million highlight an exceptional nine month performance for Lucara. We have sold over 328,000 carats at an average price exceeding $400 per carat compared to an average operating cost of $96 per carat.

“A differentiator for Lucara has been the occurrence of large and exceptional stones, with two sales this year generating proceeds of $49.3 million. We are pleased to announce the continuation of our exceptional diamond recoveries with a third sale of these stones expected to be held in the fourth quarter.”