Lucara Releases Full Year Results

On Tuesday (February 20), Lucara Diamond Corp. (TSX:LUC) announced that their full year revenues were in the amount of $220.8 million or $847 per carat.

Highlights are as follows:

Financial:

• Revenue was $220.8 million or $847 per carat (2016: $295.5 million or $824 per carat)
• EBITDA was $113.5 million (2016: $185.4 million)
• Year end cash position was $61.1 million (2016: $53.3 million)
• Operating costs were $34.6 per tonne processed (2016: $26.5 per tonne processed)
• Basic earnings per share for the year was $0.17 (2016: $0.19 basic earnings per share)

Operational: Karowe Mine:

• The south lobe continued to produce high value diamonds during the year with a total of 521 specials (>10.8 carats), 5.6% weight percentage of total recovered carats in 2017 (2016: 4.9%)
• Excluding the sale of the Lesedi La Rona (“LLR”) the average sales price for 2017 was $647 per carat, in line with the 2016 average sales price of $649 excluding the sale of the 813 carat Constellation diamond
• The MDR and Sub-middles XRT capital projects were completed on time and on budget. The circuits are performing well and to design specifications
• Operational performance at the mine resulted in strong cost control. Processing cost per tonne was $34.6 per tonne processed compared to full year guidance of $36-$40 per tonne

Exploration and Resource Upgrade:

• The Company’s drilling program at the Karowe Mine to test the AK06 kimberlite at depths below 400m metres was completed during the year. An updated resource update is expected to be complete in Q2, 2018
• A pre-feasibility level study for the Karowe AK06 underground development is underway, following the announcement of a positive economic outcome from a PEA in November 2017, and is expected to be completed by the end of 2018

William Lamb, president and CEO, commented:

The Company continued to receive strong prices for the sale of our diamonds this year demonstrating the quality of the south lobe diamonds at Karowe. Our capital projects for enhanced diamond recovery were completed on time and within budget and will ensure maximum value is recovered at the mine. These systems are operating well and above expectation. We are advancing our resource expansion work with the underground study at Karowe, with a pre-feasibility study to be completed during the second half of 2018.

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