Image credit: Lucara Diamond
The company, which mines diamonds at Karowe mine, in Botswana realised $125.3 million in revenue for the year ending December 31, 2020, compared with $192.5 million, a year earlier.
The company said its revenue was impacted by challenging market conditions, a longer ramp-up for production and polished sales in the latter half of 2020 under the HB supply agreement.
Lucara said revenue from certain polished diamonds from its highest value stones, which would have been recorded as revenue in 2020, is now expected to be realised in 2021.
During the year ended December 31, 2020, Lucara sold 373,748 carats at an average price of $335 carat.
Lucara chief executive Eira Thomas said the measures that the company took early in the pandemic, including the decision not to sell rough diamonds over +10.8 carats after the first quarter, helped protect and support prices for large, high-value diamonds that account for more than 70% of the company's revenues.
"These efforts in conjunction with our transformational supply agreement with HB Antwerp executed in July resulted in strong price recoveries by Q4, a trend which has continued into 2021," she said.
"The recent recovery of two, high value +300 carat stones continue to highlight the extraordinary nature of the Karowe resource and underpin the rationale for underground expansion, extending our mine life out to at least 2040."
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
