Lucara Reports H1 2016 Revenues of $190 Million

(IDEX Online News) – Lucara Diamond Corp has reported strong first half year earnings, with second quarter revenues of $140.8 million or $1,824 per carat resulting in first half revenues of $191.4 million.

The first half revenue compared favorably with the $67.8 million in revenue over the same period in 2015. Lucara’s results were boosted by the sale of the 813-carat “Constellation” diamond, which sold for $63.1 million ($77,649 per carat) in May. The company’s first 2016 exceptional stone tender saw 10 stones sold and achieved $53.1 million in proceeds or $33,632 per carat.

The company hoped that the sale of its 1,109-carat “Lesedi La Rona,” offered through a public Sotheby’s auction, would generate significant additional income, with pre-sale estimates suggesting that it would sell for $70 million. However, the stone failed to find a buyer at the minimum asking price.

Lucara completed processing of BK02 at its Karowe Mine in Botswana, during the second quarter. Further sampling is planned at BK02 during the third quarter along with trenching and drilling work at AK11.

"Lucara's consistent recovery and sale of high quality stones demonstrates the strong cash generation from the Karowe mine which translated to the company achieving a significant cash balance at the end of June,” said Lucara president and CEO William Lamb.

“We remain focused on advancing our growth opportunities while continuing our dividend policy for our shareholders to share in the continued value recreation of the company."