"Pivotal Year" for Lucara as Revenue Rises 84%
February 28, 22
(IDEX Online) - Lucara described 2021 as a "pivotal year" as demand and special recoveries helped to drive up revenue, earnings and prices.
The Canadian miner said revenue for the year to 31 December 2021 was up 84 per cent to $230m, average price per carat rose 80 per cent to $603 and adjusted EBITDA (earnings before interest, taxes, depreciation) rose more than five-fold to $102.5m.
Eira Thomas, president and CEO, said the company had continued to benefit from "one of the strongest diamond markets we have seen in the better part of a decade."
In addition, its Karowe mine, in Botswana, yielded a record number of specials, as well as the world's third largest rough diamond - a half dark, half pure and transparent 1,174.76- carat clivage stone (pictured).
A total of 841 single diamonds of 10.8-cts+ were recovered, the highest volume since operations began in 2012.
Forecast production for 2022 has been increased from 300,000 to 340,000 carats and predicted full-year revenue has been revised up from $195m to $225m.
Sales on Clara, its web-based digital sales platform, were $28.7m, up 168 per cent on the previous year and there is now a waiting list for new customers.
Ms Thomas said: "2021 was a pivotal year for Lucara, having de-risked our future growth strategy with the sanction of the fully financed, Karowe underground expansion project, conservatively estimated to add $4 billion to future revenues and extend mine life to at least 2040."
Open pit operations will cease and the underground project, costed at $534m, should be ready to process its first ore in 2026.