Lucara Diamond netted $68.2 million in revenue in Q1 2022, up 28% from $53.1 million in Q1 2021, the miner said in a press release last week adding that this reflected strong rough and polished diamond market fundamentals.
The combination of a strong diamond market, combined with the sale of several higher value rough diamonds in Q1 2022 generated an average price per carat (excluding top-up payments) of $690 for Karowe diamonds sold during the quarter (Q1 2021: $480 per carat).
Among other performance highlights the company mentioned the recovery of a total of 186 Specials (single diamonds in excess of 10.8 carats) representing 6.9% weight percent Specials (Q1 2021: 6.8%).
It also said that sales volumes transacted on Clara during Q1 2022 totalled $7.0 million, a 17% increase from the $6.0 million in sales volume transacted in Q1 2021 and that a third-party producer will commence a series of trial sales beginning in Q2 of 2022.
Lucara Diamond made a total project investment of $31.1 million into the Karowe underground project during Q1 2022 focused on shaft pre-sinking activities and construction of a new 29km 132kV transmission line.
Eira Thomas, President & CEO commented: "Lucara begins the year on a positive trajectory, having fully financed and significantly de-risked our growth plans for the underground expansion in 2021 and delivered another strong quarter of operating and financial results in Q1, reflecting solid performance at the mine combined with continued buoyancy in diamond prices. Preparation for main shaft sinking is well underway and anticipated to begin in Q2. Our multi-channel approach to sales through tenders, Clara and HB continues to mature, creating alignment along the value chain, delivering efficiencies and higher margins. Despite current geo-political challenges, Lucara remains optimistic about diamond prices as natural rough diamond supply constraints continue to manifest globally."
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