Lucara Diamond Reports Q1 Results, Announces Dividend

Lucara Diamond Corp. (TSX:LUC) announced its results for the first quarter of 2015, noting that its revenues came to $29.6 million with an operating margin of 61 percent.

The company plans to pay a semi-annual dividend of C$0.02.

Other highlights include:

• Exceptional Diamonds: The Company recovered its largest gem quality diamond at 342 carats. The diamond will be offered for sale at the Company’s first exceptional stone tender in 2015.
• Cash flows and operating margins: The Company achieved revenue of $29.6 million or $277 per carat yielding a 61% operating margin of $169 per carat during the period. The Company’s EBITDA at the end of March 2015 was $11.9 million.
• Net cash position: The Company’s quarter-end cash balance was $87.5 million compared to a cash balance of $56.8 million at March 31, 2014 and $100.8 million of cash at the end of 2014. The Company’s Scotiabank $50 million credit facility remains undrawn.
• Adjusted Earnings per share: Adjusted earnings per share is $0.02 per share for the three month period ended March 31, 2015 (2014: earnings per share $0.02).

William Lamb, president and CEO of Lucara, commented:

We are very pleased with the level of progress of the plant optimization project and the current stage of commissioning. We are excited about the new XRT technology, which has shown exceptional recovery in our testing to date. The recovery of a 342 carat diamond continues to show the quality of the resource and the mine’s revenue generating capability. With the final integration of the XRT machines into the process plant we look forward to being able to sustainably access the south lobe and continue with our record of exceptional diamond recoveries.

Click here to read the full Lucara Diamond Corp. (TSX:LUC) press release.