- A 2,488ct gem and another weighing 1,094ct the highlights
- Lucara sold 116,221ct of diamonds for $44.3m in Q3 2024
- Has “strong” cash and cash equivalents of $26.3m as at 30 Sept
- Shaft-sinking at Karowe marks progress in underground expansion
TLOTLO KEBINAKGABO
Marked by extraordinary diamond recoveries and significant progress in the Karowe Underground Project (UGP), Lucara Diamond Corporation’s third quarter of 2024 has been “transformative.”
The company’s results highlight its dominance in the high-value diamond sector, with achievements that underscore its technical expertise and operational excellence.
Lucara reported recovery of two exceptional diamonds larger than 1,000 carats from its Karowe Mine – a staggering 2,488-carat gem and another weighing 1,094 carats.
Global leader
Hailed as milestones, these discoveries, reflect the mine’s position as a global leader in unearthing rare and high-value stones.
President and CEO of Lucara, William Lamb, emphasised the significance of these findings in the results of the period under review.
“The recovery of an unprecedented 2,488-carat diamond, followed by the discovery of a remarkable 1,094-carat stone, not only demonstrates the exceptional quality of our Karowe asset but also validates our technical expertise and innovative mining approaches,” he stated.
“Specials” beyond expectations
In Q3 2024, Lucara sold 116,221 carats of diamonds, generating $44.3 million in revenue. However, this revenue represents a decrease compared to the same period in 2023, driven by a lower volume of high-value stones sold.
Despite this, the recovery of large diamonds boosted operational performance, with the percentage of “Specials” (diamonds greater than 10.8 carats) exceeding expectations.
The company also announced the sale of its interest in Clara Diamond Solutions, a subsidiary focused on diamond sales optimisation, for $3 million.
Streamlining
This move was accompanied by the return of 10 million Lucara common shares, streamlining its operations and bolstering shareholder confidence.
Operationally, the Karowe Mine processed 0.7 million tonnes of ore during the quarter, producing 140,390 carats, with 96,597 carats derived from direct ore feed.
This included 44,390 carats recovered from processing historic recovery tailings. Costs per tonne processed decreased by 5% year-over-year, from $28.84 to $27.34, aided by efficiencies and a favourable US dollar exchange rate.
Financially, Lucara maintained a strong position, with cash and cash equivalents totalling $26.3 million as at 30 September 2024.
$24.1m for UGP
The company also invested $24.1 million in the UGP, signalling its commitment to extending the life of the Karowe Mine and sustaining its status as an industry leader.
Significant strides were made in shaft sinking, with lateral development reaching 169 metres and shaft development extending to a depth of 582 metres.
Lamb attributed the company’s success to its dedication to innovation and operational discipline.
“These historic recoveries reflect the culmination of our unwavering commitment to operational excellence and our industry-leading safety standards,” he said.
A bright and glittering future
“Progress in shaft sinking activities underscores our ability to deliver consistent results.”
Looking ahead, Lucara remains optimistic about its strategic position in the diamond market, driven by continued investment in the UGP and a robust long-term outlook for high-value diamonds.
The company’s advancements, Lamb noted, “reinforce our confidence in Karowe’s potential and our ability to deliver long-term value to our shareholders”.
As Lucara pushes forward with its expansion plans, the recovery of these monumental diamonds has solidified its standing in the global diamond industry, promising a bright and glittering future.