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Botswana|Diamonds|Environment|Mining|PROJECT|Underground
Botswana|Diamonds|Environment|Mining|PROJECT|Underground
botswana|diamonds|environment|mining|project|underground

Strong price recovery continuing into 2021, says Lucara

Processing at dusk at the Karowe diamond mine, in Botswana.

Processing at dusk at the Karowe diamond mine, in Botswana.

23rd February 2021

By: Mariaan Webb

Creamer Media Senior Deputy Editor Online

     

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Canada-headquartered Lucara Diamond Corp said on Monday that the strong price recovery of the fourth quarter has continued into 2021, and a stable, positive price environment was forecast for the year.

Following an incredibly challenging year in 2020, the diamond industry began 2021 with a healthier supply-demand balance than it had had at any stage in the past five years, the miner, which operates in Botswana, said.

Lucara posted fourth-quarter revenue of $42.4-million, up from $41.3-million in the third quarter, but down from $56-million on the prior-year quarter. The miner obtained an average price of $402/ct in the fourth quarter, compared with $365/ct in the third quarter. In the previous-year fourth quarter, the average price was $568/t.

For the full-year, Lucara posted revenue of $125.3-million, compared with $192.5-million, and achieved an average price of $335/ct, compared with $468/ct.

The miner reported a net loss of $26.3-million for the year.

“The measures that Lucara took early in the pandemic, including the decision not to sell rough diamonds in excess of +10.8 ct after the first quarter, helped protect and support prices for large, high value diamonds that account for more than 70% of our revenues.

“These efforts in conjunction with our transformational supply agreement with HB Antwerp executed in July, resulted in strong price recoveries by fourth quarter, a trend which has continued into 2021,” said CEO Eira Thomas.

Reporting on progress at the Karowe mine extension project, in Botswana, she said that Botswana had granted Lucara a mining licence extension for 25 years.

“This is a critical milestone for the underground project, paving the way for the completion of a supplementary debt financing in support of full project sanction, anticipated in the second half of 2021.”

The underground expansion programme has an estimated capital cost of $514-million and a five-year period of development.

Edited by Creamer Media Reporter

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