Canada-headquartered Lucara Diamond Corp achieved adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) of $22.2-million for the quarter ended March 31, compared with the Ebitda of $8.1-million reported for the quarter ended March 31, 2020.
It earned net income of $3.4-million for the quarter under review, compared with a net loss of $3.2-million in the prior comparable quarter.
"Lucara has bounced back in the first quarter of the year, demonstrating its resiliency at a time of continued uncertainty in respect of the ongoing Covid-19 pandemic.
"Our solid performance in the first quarter reflects a stronger business environment, Lucara's continued focus on operational discipline and our innovative approach to sales," CEO Eira Thomas comments.
Lucara's revenue increased by 56% year-on-year to $53.1-million from the sale of 91 760 ct at $579/ct.
The value of the rough diamonds transacted through the Clara Web-based platform was $6-million over six sales, double the $3-million transacted on the platform in the first quarter of 2020.
Strong price increases have been observed in each of the sales conducted since the beginning of the year, Lucara points out.
Turning to production, the Karowe mine, in Botswana, produced 80 014 ct of diamonds in the first quarter, a decrease on the 91 536 ct produced in the first quarter of 2020.
Lucara on May 6 announced that it had secured $220-million to proceed with an underground expansion at the Karowe mine.
The company has also been granted an extension of the Karowe mining licence to 2046.
"Our outlook for the diamond market remains strong, and with close to 20 years of future mining now ahead of us at Karowe, Lucara is highly levered to an improving diamond price environment, particularly in respect of large, high-value gem diamonds, the hallmark of Karowe's production profile," says Thomas.