Lucara Diamond, which owns and operates the Karowe mine in Botswana, is expecting its revenues to recover to between $220 million and $250 million this year, after a tough market in 2023.
It raked in revenues of $177.4 million in 2023 compared with the $212.9 million a year earlier, which resulted in a decrease in adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) to $54.4 million from $86.7 million in 2022.
Lucara said it recorded a net loss of $20.2 million last year compared with net income of $40.4 million in 2022 due to lower revenue, an impairment of intangible assets and a significant noncash deferred tax expense.
"Changes in global economic conditions, consumer demand, geopolitical events and industry-specific dynamics resulted in a challenging market in 2023, with reduced demand and downward pressure on both polished and rough diamond pricing, especially in the smaller size classes," it said.
Meanwhile, Lucara produced 395,134 carats of diamonds compared with the 335,769 carats a year earlier.
It also recovered 602 "special" diamonds, which include a 692 carats Type IIа diamond and a 1,080 carats Type IIа gem-quality diamond, last August.
Lucara expects to recover and sell between 345,000 carats and 375,000 carats of diamonds this year.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
