10 Aug 2016

It has been a lucrative half season for Lucara Diamonds.
 The company has declared a payout of CA$172 million (P1.4 billion) or CA$0.465 cents per share as special dividend following impressive results.  
The latest financial report from the company famous for discovering the world’s second largest diamond, Lesedi La Rona, shows that revenues from January to June reached US$191.4 million (P2.008 billion), or US$1,233 per carat.
This excludes the US$8.3 million (P87 million) received post end of Q2 for Lucara’s June tender.
The results for this year show an improvement in the diamond market,  as compared to  last year,  the company registered US$67.8 million (P711 million) or US$340 per carat.
Lucara notes that revenue for this year is higher than last year during the same period due to the sale of the 813 carat Constellation diamond which sold for $63.1 million (P661 million) and an exceptional stone tender which was held during the second quarter compared to the third quarter in 2015.
The company notes that its first 2016 exceptional stone tender achieved US$51.3 million in proceeds or US$33,632 per carat.
“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.
Our commitment to reward our shareholders based on our results, while maintaining a robust balance sheet for future growth resulted in the company announcing an exceptional special cash dividend of CA$172 million in addition to our regular dividend this year,” William Lamb, President and Chief Executive Officer commented.
Lucara Diamonds operates Karowe mine and the company states that operating costs have been decreased for the year from between US$33.50 and $36.50 per tonne of ore processed to US$29 to $31.
It said safety at the mine has been excellent with zero Loss Time Injuries (LTI) and all other safety, health and environment indices within target.
Ore and waste tonnage mined was ahead of forecast for both for second quarter and year to date.
Lucara states that the process plant has performed well during the second quarter and year to date with tonnes processed ahead of forecast and carats recovered in line with expectation.
It is said for the first six months of 2016, Karowe mine has recovered 340 special stones (above 10.8 carats) including 12 stones over 100 carats.
Meanwhile the company notes in March this year, they completed the transfer of its shares of Mothae Diamonds in Lesotho to the government. The government of Lesotho has released the company from all liabilities to the rehabilitation of the Mothae Diamond Project.
On the future, Lucara forecast revenue between US$200 million and US$220 million for the year ending December 31, 2016, excluding the sale of the Constellation, which sold for US$63.1 million.ENDS