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Lucara's 3Q Revenue Soars
Nov 10, 2013 5:28 AM
By Deena Taylor
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RAPAPORT... Lucara Diamond Corporation reported that its revenue more than tripled to $42.1 million in the third quarter that ended on September 30, 2013. The company held two sales during the period, achieving an average price of $625 per carat. Lucara posted a profit of $15 million compared with a loss of $3.4 million in the previous year.
At the end of the quarter, Lucara had $33.6 million of cash on hand compared with $11.1 million one year ago. The company's cash position was further strengthened following the receipt of $10.9 million of proceeds from its late September tender. Lucara's outstanding debt of $16.6 million was subsequently repaid after the quarter, fully repaying the company's $50 million debenture.
Lucara held its second exceptional diamond tender during the period, which achieved $24.7 million, or $24,025 per carat. Another tender generated $26.2 million, or $326 per carat. Lucara noted that proceeds of $10.9 million from the sale of 17,642 carats of diamonds had not yet been collected and will be recognized as revenue in the fourth quarter of 2013. In addition, proceeds of $2.1 million from the June sale of 12,833 carats were collected in July and recognized as revenues in the third quarter.
Production at the company's Karowe mine in Botswana rose 24 percent to 113,881 carats, while the company sold 81,357 carats from the mine. William Lamb, Lucara's CEO, noted that Karowe continued to outperform management's expectations with the recovery of 243 diamonds larger than 10.8 carats during the quarter. The large diamonds recovered included two diamonds over 200 carats and three diamonds larger than 100 carats. The company will release a revised resource update on the mine in the first quarter of 2014.
For the first nine months of the year, Lucara sold 328,000 carats for $132.7 million, or $404 per carat, exceeding the company's previous 2013 revenue guidance. Lucara reported a profit of $43.9 million compared with a loss of $15.2 million one year ago.
The company will hold a third exceptional stone sale in late November including 14 diamonds, four of which are larger than 100 carats.
Lucara also owns the Mothae diamond project in Lesotho and is currently in the process of reviewing a number of development options for the mine.
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Tags:
Deena Taylor, diamond, diamonds, exceptional diamonds, Karowe, lucara, Mothae, William Lamb
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