TSX-listed Lucara Diamond Corporation has posted a net loss of $3.2-million, or $0.01 a share, for the quarter ended March 31.

This compares with a net income of $7.4-million and earnings a share of $0.02 apiece reported for the quarter ended March 31, 2019.

Lucara explains that a decrease in total revenue had a significant impact on the quarter’s results.

“The first tender for the year represents the smallest planned sale for the year and reflects a reduction in realised prices in the larger size classes, compared with those achieved in the prior corresponding quarter.”

Cash flow from operations in the quarter under review totalled $2.4-million, compared with $10.6-million in the first quarter of last year, largely owing to a weaker pricing environment and a decrease in revenue between the periods.

Production for the quarter under review was, however, in line with guidance, with 91 536 ct recovered from 900 000 t of ore mined.

The company achieved a recovered grade of 14.3 carats per hundred tonnes, while 190 special diamonds were recovered.

Eight diamonds greater than 100 ct in weight were recovered during the quarter. These include an unbroken 549 ct white diamond of exceptional purity, which was not put up for sale in the reporting quarter.

The company sold 86 178 ct at an average price of $396/ct, amounting to revenues of $34-million.

Meanwhile, Lucara president and CEO Eira Thomas says employees, contractors, partner communities and governments have all come together and taken swift action in support of Lucara’s Covid-19 crisis management strategy, which is designed to keep staff safe and the Karowe mine, in Botswana, operating.

“Declared an essential service by the Botswana government on April 2, our Karowe mine continues to operate safely and at full production. Demand for our product, however, continues to be weak and Lucara is necessarily focused on cost management and capital discipline through this period of uncertainty.

“To this end, Lucara's capital spending programme for 2020 is now being re-scoped to focus on critical path elements, largely in support of our ongoing, underground expansion programme,” Thomas notes.

She adds that Lucara entered the Covid-19 crisis with a strong balance sheet and no debt. 

As a further positive development, Lucara's $50-million credit facility with the Bank of Nova Scotia was recently renewed for another year, providing the company with additional flexibility and liquidity to continue to effectively manage its business throughout this year. 

“Though our near-term outlook on diamond prices remains uncertain, global rough diamond production curtailments combined with early indications of polished diamond demand recovery in Asia provide some optimism that demand will improve in the latter half of the year."