TORONTO (miningweekly.com) – Southern African diamond miner Lucara Diamond Corp on Friday reported better-than-expected earnings as its flagship Karowe mine, in diamond-rich Botswana, delivered more exceptional carats than thought possible.
Lucara reported revenues of $50.9-million, or an average of $625/ct during the quarter ended September 30, of which $10.9-million was received in October for its late September tender.
At average operating expenses of $110/ct, the cash operating margin for the quarter was $515/ct. Sales during the quarter included one tender of over 80 000 ct and the company's second exceptional stone tender.
For the third quarter, Toronto- and Gaborone-listed Lucara reported net earnings of $15-million, or $0.04 a share, compared with a loss of $3.4-million, or $0.01 a share, a year earlier.
Full-year-to-date sales totalled 328 000 ct for revenues of $132.7-million, or $404/ct, which exceeded the company’s previous full-year guidance. The company had achieved a year-to-date cash-operating margin of $308/ct, based on operating expenses of $96/ct.
President and CEO William Lamb said the company’s significant revenues and strong cash operating margins had resulted in Lucara making a double payment on its $50-million debenture during the period and it had subsequently fully repaid the debenture by making the final two debenture payments during the fourth quarter.
“The resource continues to outperform management expectations with the continued recovery of significant stones, including 243 special stones greater than 10.8 ct during the reporting period.
“These stones include two diamonds larger than 200 ct and a further three diamonds larger than 100 ct,” he said in a statement after market closed on Friday.
Based on information and recoveries to date, Lucara has commissioned an update to the Karowe resource, which is located within the Orapa/Letlhakane kimberlite district, which it expects to publish during the first quarter of 2014.