Lucara revises FY 2022 revenue, sales, production guidance upwards

Lucara Diamond which owns the Karowe mine in Botswana has revised its guidance on diamond revenue for the full year 2022 from $185 million to $215 million.
Company chief executive Eira Thomas said the revenue forecast assumes that 100% of the carats recovered will come from the higher value M/PK (S) and EM/PK(S) units within the South Lobe following the mine plan.
Lucara also revised guidance on diamonds recovered and sales from 300 000 carats to 340 000 carats respectively.
“The company will continue to use three different sales channels to maximize revenue and generate consistent cash flow to support the company’s operations and its investment in the underground expansion project,” she said.
“Higher value stones greater than +10.8 carats in size will continue to enter the manufacturing pipeline at HB, giving the company exposure to polished prices and regular cash flow from the highest value portion of the Karowe production.”
Meanwhile, Thomas said the business environment for diamonds and diamond jewellery is the healthiest they have seen several years buoyed by an improvement in global supply and demand fundamentals.
She said the estimations do not include contributions of revenue from large exceptional diamonds that have historically formed a regular part of Karowe’s production profile.

Mathew Nyaungwa, Editor in Chief of the African Bureau in Saurimo, Angola, Rough&Polished