Lucara Reports 2013 Revenue of $180M From Diamond Sales
February 23, 14
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The company received $47.9 million, or $433 per carat, from sales of 110,635 carats of diamonds during the fourth quarter of last year, including one exceptional stone tender. This excludes revenue of $10.9 million, which was received during the quarter from Karowe’s late September tender.
"At year end the company was well positioned for 2014 with a significant diamond inventory of approximately 67,000 carats of diamonds, including a selection of exceptional stones totaling over 1,000 carats. The company expects to hold its first Exceptional Stone Tender of 2014, early in the second quarter.
The company reported that it is continuing to recover large and exceptional diamonds, resulting in an exceptional stone tender during the quarter achieving revenue of $22.9 million, or $20,280 per carat. During 2013 the company held three exceptional stone tenders achieving revenues of $72.1 million (2,971 carats at $24,290 per carat).
Lucara achieve strong cash operating earnings of $39.0 million during the quarter and $118.6 million for the year resulting in a year-end cash balance of $49.4 million. The firm expects to use the existing cash resources to finance Karowe’s plant upgrade capital expenditure during 2014.
The Karowe mine exceeded budget in terms of carats recovered and sold and surpassed its initial and updated revenue forecast of $90 million and $118 million respectively, largely due to the recovery and sale of large and exceptional diamonds.
William Lamb, President and CEO commented: "Our first full year of production has surpassed expectations on all fronts having achieved total revenues in excess of $180 million and met production and safety targets at significant cost savings. Lucara exceeded its initial revenue guidance of $90 million by approximately $20 million, not including sales received from its exceptional stone tenders, achieving robust margins and demonstrating that the Karowe diamonds have been well received in the marketplace. Additional revenues of approximately $72 million, generated from the sale of our large and exceptional stones has further, significantly strengthened our balance sheet.
"In 2014, Lucara will continue to focus on operational excellence, cost discipline, and the completion of its plant optimization project, which is designed to enhance the recoverability of large diamonds from Karowe. The Company is now debt free, with a solid balance sheet and is well positioned to achieve its operational objectives going forward. We believe that 2014 will be another exciting year for Lucara and its shareholders.”