Canadian mining company Lucara Diamonds reported a net loss of $ 3.2 due to continued pressure on the diamond industry and lower sales revenue. Financial losses occurred despite the fact that work at the company’s fully owned Karowe mine in Botswana did not stop, and production was carried out in accordance with the plan, said the Diamond Loupe.
In the first quarter of 2019 Lucara received a net income of $ 7.4 million. Cash flow in the first three months of this year decreased to $ 2.4 million against $ 10.6 million for the same period in 2019.
Given the volatile market conditions, the company has to assess whether and how much cash flows will be spent on the planned underground expansion of Karowe. It is expected that this will extend the life of the mine until 2040 and is estimated at $514 million.
Alex Shishlo, Editor of the Rough&Polished European Bureau
