Lucara Diamond provides some much-needed sparkle

Second quarter results from Toronto-listed Lucara Diamonds have at last delivered some good news for the diamond sector after the gloom and doom of depressed sales and prices which have resulted in production cutbacks by De Beers and sales postponements by Petra Diamonds.Lucara – which owns the Karowe mine in north-eastern Botswana – has reported adjusted EBITDA (earnings before interest, tax, depreciation and amortisation) of $18.8m (second quarter 2023 – $16,5m).Operating margins were 67% (59%) while Lucara reduced its operating cost per ton processed by 6% and invested a further $11.2m into the Karowe underground project.Main advantage held by Lucara over most of its peers is that it produces a lot of large, high quality stones for which pricing continues to be “robust” according to the company.During the quarter Lucara recovered 92,419 carats of diamonds including 206 “specials” which are defined as rough diamonds larger than 10.8 carats. These included three large stones of 491 carats; 225.6 carats and 109 carats respectively.The good results are especially welcome given Lucara’s recent financial problems which led to the resignation of former CEO Eira Thomas in August last year as the company battled to finance the delayed underground expansion at Karowe.The new CEO – William Lamb – announced in January that the company’s debt package had been restructured and the $683m underground expansion would be completed.Lamb commented, “Lucara’s performance this quarter reaffirms our position as a leader in the diamond industry. Lucara’s unique production profile sets us apart.  These exceptional stones, coupled with our innovative sales strategies, allow us to navigate current market conditions effectively”Lamb added the anticipated start of underground production at Karowe is during the first half of 2028 and the underground project would extend the life of the mine to 2040.The post Lucara provides some much-needed sparkle for the depressed diamond sector appeared first on Miningmx.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com