Lucara Forecasts its 2022 Revenue to Exceed $185m

  • The company expects to mine between 4.6 and 5.6 million tonnes in 2022


Multi-listed mining company expects that it will generate revenue between $185 and $215 million in 2022, the company has said.

Lucara’s forecast assumes that 100 percent of the carats recovered will come from the higher value M/PK(S) and EM/PK(S) units within the South Lobe in accordance with the mine plan, therefore generating such revenue.

“The company will continue to use three different sales channels to maximise revenue and generate consistent cash flow to support the company’s operations and its investment in the underground expansion project,” it says in its operating guidance for 2022 released recently.

Known for producing top gems from its Karowe Diamond Mine in Botswana, the Canadian company says higher value stones greater than +10.8 carats in size will continue to enter the manufacturing pipeline at HB, giving it exposure to polished prices and regular cash flow from the highest value portion of the Karowe production.

“Quarterly tenders and regular sales through Clara, primarily for stones less than 10.8 carats in size, will continue consistent with the practice from previous years,” Lucara says.
Following the successful project financing for the Karowe underground expansion project in mid-2021, the open pit mine plan was revised to extend the life of the open pit into 2026. “Centre lobe material, combined with ore from the underground development, will replace lower grade stockpiles towards the end of the open pit mine life,” the mining company states.

“In 2022, the company expects to mine between 4.6 and 5.6 million tonnes, of which ore tonnes mined represent approximately two thirds of total tonnes mined. The assumptions for carats recovered and sold as well as the number of tonnes processed are consistent with achieved performance in recent years.”

In 2022, Lucara expects capital costs for the underground expansion to be up to $110 million and will focus on the commencement of shaft sinking activities, the commissioning of power and detailed engineering for the underground development.

“Sustaining capital and project expenditures are expected to be up to $17 million with a focus on completion of a community sports facility, dewatering activities and an expansion of the tailings storage facility,” says the company.

Says Lucara CEO and President, Eira Thomas, about the announcement: “The business environment for diamonds and diamond jewellery is the healthiest we’ve seen in several years, spurred on by an improvement in global supply and demand fundamentals, a trend which is expected to continue.”