Lucara Diamond posted revenue of $46.3 million or $671 per carat from the sale of 68,961 carats in the second quarter of 2021 with price recovery observed in most size and quality classes.
Included in revenue for the six months ended June 30, 2021, is a variable consideration of $5.1 million which relates to "top-up" payments expected from polished diamond sales over the initial planned value paid to Lucara under the initial HB sales agreements for rough diamonds delivered in 2020.
All +10.8 carat diamonds mined from Karowe were delivered to HB from the second quarter of 2020.
Under the amended supply agreement with HB, +10.8 carat production from the Karowe Mine is being sold at prices based on the estimated polished outcome of each diamond, determined through the state of the art scanning and planning technology, with an adjusted amount payable on actual achieved polished sales compared to the initial estimated polished price, less a fee and the cost of manufacturing.
Sales through Clara rose 38% from the first quarter of 2021, with transaction values of $8.3 million over six sales.
Strong price increases continued through Q2 2021 and the number of buyers on the platform increased to 84 as of June 30, 2021.
Lucara’s adjusted EBITDA was $22.2 million as compared to adjusted EBITDA of negative $10.0 million for the same period in 2020.
"We end the second quarter with a stronger, more positive outlook on the diamond market, our business, and our plans for growth,” said company chief executive Eira Thomas.
“With a fully financed underground project now confirmed, we are excited to be ramping up on our expansion plans at Karowe in the second half of the year.”
She said Karowe delivered another record quarter in respect of diamonds +10.8 carats in size, including 21 diamonds +100 carats, three diamonds +300 carats and the company’s third diamond over 1,000 carats.
“This remarkable resource continues to improve the deeper we mine, consistent with the resource model and underpins our rationale for the Karowe underground expansion, extending mine-life out to at least 2040," said Thomas.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
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