Lucara Diamond realised revenues of $42.8 million from the sale of Karowe diamonds in Botswana in the first quarter of 2023, compared to $68.2 million, a year earlier.
The miner said the decline in revenues reflected a planned change in product mix in early 2023 combined with the continuation of weaker diamond prices when compared to the strong diamond pricing observed in the first quarter of 2022.
“As anticipated, the first quarter delivered lower revenues than in the comparative period, owing to the change in ore mix processed and diamond pricing weakness resulting from continued geopolitical and economic uncertainty,” said Lucara chief executive Eira Thomas.
She said the company's outlook for the year remains unchanged as the largest influence on their revenue in the first quarter, ore mix, returns to higher contributions of south lobe ore in subsequent quarters.
Despite the overall decrease in revenue, diamond market fundamentals continued to support healthy prices as the number of polished stones sold by HB improved from the fourth quarter of 2022.
“Natural variability in the quality profile of the +10.8ct production in any production period or fiscal quarter results in fluctuations in recorded revenue and associated top-ups,” said Lucara.
The company also reported adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $15.3 million in the first quarter compared to $36 million, a year earlier with the change directly attributed to a decrease in revenues.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
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