PROJECT UPDATE: Lucara Records Revenue of $24.85 Million at First Large-stone Tender

Lucara Diamond (TSX:LUC), a new diamond producer whose two key assets are the Botswana-based Karowe mine and Mothae project in Lesotho, yesterday announced the results of its first large and exceptional diamond tender. The tender consisted of 15 single-stone lots, with all stones being sold for gross revenues of $24.85 million, or $30,468 per carat.

The highest-value stone was a 239-carat diamond that sold for $5.75 million. It was recovered by the company midway through March at the Karowe mine. William Lamb, president and CEO of Lucara, said at the time, “[t]o the best of my knowledge, the 239 carat stone is one of the largest diamonds ever to have been recovered from the highly prolific Orapa kimberlite field in over 40 years of production.”

Commenting on this week’s sale, Lamb said, “[t]o be in a position to hold a large stone tender within the first year of production is exceptional, especially when considering that all the diamonds sold, were recovered from a regular production cycle.” He also noted that while it is not possible to predict the recovery of large and exceptional diamonds, the fact that Lucara has found a “population” of large diamonds — as well as blue diamonds — at the Karowe mine indicates that the deposit is “remarkable.”

Lucara conducts two normal tenders each quarter, and after recovering further large diamonds over the last few weeks is “considering options” for another large-stone tender later this year. The company intends to sell about 400,000 carats per year from its Karowe mine, an April 30 press release states.

Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article. 

Editorial Disclosure: Lucara Diamond is a client of the Investing News Network. This article is not paid-for content.

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