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Lucara Diamond reports strong third quarter operational performance

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Global Mining Review,

Lucara Diamond Corp. has announced its results for the quarter ended 30 September 2022.

3Q22 Highlights:

  • Revenue for the three and nine months ended 30 September 2022 totalled US$49.9 million and US$170.5 million, respectively.
  • For the nine months ended 30 September 2022, a total of 245 764 carats were sold from Karowe at an average price of US$528 per carat, generating revenue of US$129.9 million before top-up payments of US$33.8 million.
  • A strong US Dollar helped to mitigate increases in input costs, resulting in an operating cash cost of US$29.33 per tonne of ore processed for the three months ended 30 September 2022.
  • A strong year-to-date operational performance supports the company’s 2022 revenue guidance of US$195 million and US$225 million. Operating cost per tonne on an annualised basis is expected to be at the low-end of 2022 Guidance (US$29.50 – 33.50).
  • Rough and polished diamond prices continued to exceed prices from 2021, despite growing global economic uncertainties.
  • On Clara, more than 40% of sales came from third-party goods transacted, reflecting a positive trend towards increased diversification of supply and less reliance on Karowe production. Revenue from sales transacted on Clara during the three months ended 30 September 2022 totalled US$8.3 million.
  • Production metrics remained in line with 2022 guidance, with 0.9 million t of ore and 0.5 million t of waste mined, and 0.7 million t of ore processed during the three months ended 30 September 2022.
  • The main sink phase for the production shaft commenced at the end of September; sinking of the ventilation shaft continued.
  • A total project investment of US$23.9 million into the Karowe UGP during the current quarter focused on the transition to main sink activities for both shafts, procurement of underground mobile equipment and construction of the upgraded transmission line and related substations.

Eira Thomas, President & CEO, comments:

“Lucara remains on track for another solid year, with sales from our large, high value diamonds continuing to achieve consistent, healthy polished prices under our committed supply agreement with HB, despite recent market softening. Clara also continued to make good progress during the quarter, adding third party supply from both producer trials and secondary market sources, to positive results. Importantly, third party supply now accounts for more than 40% of sales on Clara. It was also a busy and productive period for the underground project. Main sinking commenced on the production shaft and mitigations implemented during the third quarter in response to operational start-up challenges are beginning to take effect, with progress made to reduce cycle times for both production and ventilation shafts.”

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