Lucara Diamond recorded revenue of $41.1 million in the first quarter of 2024 compared to $42.8 million, a year earlier, which is reflective of a combination of the timing of production and quantity of large goods recovered and delivered to HB Antwerp.
The company, which wholly owns Karowe Mine in Botswana, sold 93,560 carats of rough diamonds during the quarter for $36.2 million before top-up payments of $4.9 million, compared to 83,374 carats sold in the same period last year for $34.7 million before top-up payments of $6.6 million.
Adjusted earnings before interest, depreciation and amortisation (EBITDA) were $12.7 million in the quarter compared to $15.3 million in the first quarter of 2023, with the decrease attributable to changes in revenue and operating expenses.
The diamond miner said it recorded a net loss of $7.9 million from the previous net income of $1 million, resulting in a loss per share of $0.02.
The significant change to a net loss was due to the loss on extinguishment of debt of $10.5 million incurred during the quarter in conjunction with recognising the amendments to the debt package.
Meanwhile, Lucara produced 89,145 carats, including 7,534 carats from the processing of historic recovery tailings during the period under review, compared to the previous year’s 89,640 carats.
It recorded a recovered grade of 11.7 carats per hundred tonnes (cpht) of direct milled ore from last year’s 12.8 cpht.
"Our Karowe diamond mine delivered another solid operational quarter, continuing its track record of sustainable diamond production from this world-class asset,” said Lucara chief executive William Lamb.
“The company's high-value diamond production forecast remains robust, underpinned by our focus on operating practices aligned with leading environmental, social, and governance standards.”
He also said work on the underground expansion project at Karowe progressed well during the quarter.
This key growth initiative, said Lamb, remains on track with the rebase schedule and budget, positioning the company to access the higher-value ore from the underground portion of the ore body early in 2028.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
