RapNet


Rapaport News

 

Mining

 

Advanced search
Latest Articles
Videos
Features
News
Mining
Rough Markets
Polished Markets
Manufacturing
Retail

Lucara Tender Beats Expectations

Sale brings in $53 million as market stabilizes.
Dec 19, 2019 5:57 AM   By Rapaport News
Print Print Facebook Facebook Twitter Twitter Share Share


RAPAPORT... Lucara Diamond Corp. achieved higher sales than it expected at its final tender of the year as market stabilization drove an increase in rough prices.

The owner of the Karowe mine in Botswana brought in $52.9 million, 16% above its prediction, capping off a year of revenue growth, it said in a statement Wednesday.

“Though it is too early to call a trend, prices achieved in our final sale of the year reflect a stronger, more stabilized market environment and continued strong demand for Karowe diamonds,” said Lucara CEO Eira Thomas.

Last Thursday’s sale generated an average price of $548 per carat, with pricing improving in all size categories, the company added. As a result, full-year sales rose 9% to $192.5 million, beating Lucara’s revenue forecast of $170 million to $180 million. However, the average price of $468 per carat for 2019 was 7% lower than the $502 per carat the company reported for 2018.

Lucara benefited from strong demand for rough on its digital supply platform, Clara, with its customer base increasing during the year to 27 clients from four. The program, which carried out 16 sales throughout 2019, is ready to take on goods from third parties, and Lucara expects to begin trials with “at least two” other providers early next year.

“Demand in recent [Clara] sales has now outstripped available supply,” the company commented. The technology, which matches rough availability with polished demand, “is achieving strong prices for Karowe diamonds and generating attractive margins for its customers, confirming that significant value can be unlocked by selling rough diamonds in a more efficient way.”

The miner considers itself well positioned for an increase in diamond prices in the next year or two as rough supply begins to run out at ageing mines. This gives reason to be optimistic for operations at Karowe and for Lucara’s plans to expand into underground mining, which would extend the site’s lifespan through to 2040, Thomas noted.

Image: A 240-carat rough Lucara unearthed in January. (Lucara Diamond Corp.)
Tags: Botswana, Clara, Eira Thomas, Karowe, lucara, Lucara Diamond Corp., mining, Rapaport News, rough, rough demand, Rough Diamonds, rough market, rough prices
Similar Articles
Williamson processing plant mine PetraPetra Launches Probe into Violence Claims
Nov 12, 2020
Petra Diamonds is investigating allegations that security guards at its Williamson...
Alrosa Gives Cautious 2021 Production Outlook
De Beers to Stop Production at Botswana Mine
Comments: (0)  Add comment Add Comment
Arrange Comments Last to First



Call Us: 1-702-893-9400
Member License Agreement   RapNet Trading Rules & Code of Conduct    Privacy Policy  
  
twitter twitter
About Rapaport
Advertise with us