Karowe Diamond Mine at night Image credit: Lucara Diamond
Lucara Diamond says it accrued revenue of $82.9 million in the nine months ended September 30, 2020 from the sale of 268,101 carats or $309 per carat.
It said this represents a decrease from revenue of $136.5 million, a year earlier from 313,189 carats sold at an average price of $436 per carat.
The reduction in revenue results from a combination of a 15% decrease in the number of carats sold and a deliberate decision not to sell any diamonds +10.8 carats in favour of entering into a committed supply agreement for these diamonds for the remainder of the year.
Lucara recorded a net loss of $5.4 million in the third quarter of 2020 compared to a net loss of $4 million, the previous year.
The miner produced 88,909 carats in the third quarter of 2020 compared with 104,990 carats in the third quarter of 2019.
It said eight diamonds were recovered greater than 100 carats in weight, including three stones greater 200 carats in weight.
Lucara chief executive Eira Thomas said the company began recognising revenue from its new sales agreement with HB Antwerp in the third quarter.
“Though it is still in its infancy, Lucara is now receiving regular, predictable revenue for its +10.8 carat diamonds using a superior pricing mechanism based on estimated polished outcomes less a commission and the cost of polishing,” she said.
“For diamonds -10.8 carats in size, Clara continues to deliver strong results, growing its customer base to more than 70 clients during this period and completing its first sales of third party goods through the platform.”
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
