Lucara Diamond has lowered its full-year revenue forecast from between $200 million and $230 million to between $160 million and $190 million due to the timing of sales of diamonds larger than 10.8 carats.
It also plans to produce fewer diamonds than expected for the full year, lowering the forecast to between 395 000 ct and 405 000 ct from the initial 395 000 ct and 425 000 ct.
Lucara said the acceleration of mining in the open pit to acquire high-value ore from the south lobe prior to the mine plan's schedule will result in fewer tonnes being extracted.
It produced 98,311 ct of direct milled ore at the Karowe mine in Botswana during the quarter ended September 30.
The group's revenue for the quarter under review rose 14% to slightly under $57 million in comparison to the corresponding period of the previous year.
A rise in sales and increased administrative expenses led to $21.9 million adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA), up from $13.8 million in the preceding comparable period.
Meanwhile, company chief executive William Lamb was optimistic about natural diamond prices in the long term due to better supply and demand as many of the world's largest mines reach their end of life over the next decade.
The waning of economic expansion in China and the implementation of a voluntary import ban on rough diamonds into India have impeded the resurgence of rough diamond prices subsequent to a sluggish market during the initial half of the current year.
As a result of escalating geopolitical unpredictability and worldwide economic concerns, the third quarter of this year witnessed a difficult market, characterised by decreased demand and downward pricing pressure, particularly in the smaller size classes.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
