Lucara Reprots Strong Demand and Pricing for Its First Quarter Diamond Sale

Lucara Diamond (TSX:LUC) has reported strong first quarter revenues for 2016 in the amount of $50.6 million, or $649 per carat and cash of $144.3 million.
As quoted in the press release:

HIGHLIGHTS
Financial:

• Revenue for the period was $50.6 million or $649 per carat (Q1 2015: $29.6 million or $278 per carat).
• EBITDA for the period was $30.7 million (Q1 2015: $11.9 million), with an EBITDA margin of 61%.
• Net cash position of $144.3 million (Q1 2015: $87.5 million, FY 2015: $134.8 million).
• Year to date costs at $25 per tonne ore processed continue to be well controlled and below forecast.
• First quarter 2016 earnings per share were $0.05 per share (Q1 2015: $0.02 per share).
• Following the end of Q1, the first exceptional stone tender achieved $51.3 million, resulting in year to date revenue exceeding $100 million.
• The Company completed the transfer of its shares of Mothae Diamonds Pty Ltd and the site bulk sample plant to the Government of Lesotho. In consideration, the Company was released from any rehabilitation liability for the Mothae Project, which had been accrued in the accounts for approximately $2 million.

Operational: Karowe Mine

• Mining of ore and waste stripping to open the pit at depth was largely in line with forecast.
• Diamond recovery remained strong with a total of 165 special stones (+10.8 carats) recovered during the period including 8 stones over 100 carats (Q1 2015: 6 stones).

Exploration:

• Sampling progressed well with kimberlite processed from BK02. Excavation and shipping of the BK02 sample was completed (approximately 5,500 tonnes). Results for BK02 are expected to be available during the first half of 2016.
• Bulk sampling activities at AK12 has commenced and will be followed by trenching at AK11 during Q2.
• Deep drilling of the Karowe AK6 resource is planned to commence in the second quarter.

CEO and President William Lamb said:

Lucara’s high quality stones and production assortment has resulted in strong customer demand for our product generating revenues of over $100 million this year. With management’s focus on cost control we continue to achieve high operating margins and returns. Lucara’s exploration program continues to advance and with the deep drilling of the Karowe resource due to commence in the second quarter we are excited by the prospects for the remainder of 2016 and the potential organic growth opportunities.

Click here for the full press release.