Manufacturers

Lucara Q2 revenues soar 517%

The group also swung to a net profit of $6m (£4.33m) for the three month period ended 30 June, up from Q2 FY20’s $13.9m (£10m) net losses

Diamond mining company Lucara Diamond Corp saw revenues soar 517% year-on-year to $46.3m (£33.4m) in Q2 FY21.

The Canadian group, which operates Botswana’s Karowe Mine, also swung to a net profit of $6m (£4.33m) for the three month period ended 30 June, up from Q2 FY20’s $13.9m (£10m) net losses.

Carats sold in the quarter held steady at nearly 70,000, resulting in a spike to average price per carat sold from $109 (£78.7m) last year to $671 (£484m) in FY21.

The period also saw Lucara secure a senior secured project financing debt package of $220m (£159m) and close two previously announced financing, generating proceeds of C$41.4m (£23.9m).

Eira Thomas, president and CEO at the company, said: “We end the second quarter with a stronger, more positive outlook on the diamond market, our business, and our plans for growth

“With a fully financed underground project now confirmed, we are excited to be ramping up on our expansion plans at Karowe in the second half of the year.”

She added: “In respect of mining, Karowe delivered another record quarter in respect of diamonds >10.8 carats in size, including 21 diamonds >100 carats, 3 diamonds > 300 carats and our 3rd diamond over 1,000 carats.  

“This remarkable resource continues to improve the deeper we mine, consistent with the resource model and underpins our rationale for the Karowe underground expansion, extending mine-life out to at least 2040.”

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