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Lucara Reports Loss as Sales Slide

Nov 9, 2016 7:13 AM   By Rapaport News
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Lucara Diamond Corporation fell into the red in the third quarter as the miner held fewer diamond sales than a year ago.

The company, which extracts diamonds from the high-value Karowe mine in Botswana, slumped to a net loss of $3.8 million in the three months ending September 30 from a profit of $44.2 million a year ago.

Revenue plummeted 58 percent to $38.1 million because the company only organized one sale versus last year’s two – of which one was an exceptional stone tender, it explained. The average selling price dived 69 percent to $332 per carat. Production fell 19 percent to 81.4 million carats.

Lucara also said it suffered a foreign exchange loss in the quarter because the Botswanan pula has appreciated 7 percent against the dollar this year. Last year Lucara benefited from a weaker pula.

In the first nine months of the year, sales grew 45 percent to $229.4 million and profit crept up 1 percent to $59.5 million. The revenue figure includes the sale of the 813-carat ‘Constellation’ diamond, which it recovered at Karowe in November 2015 and sold for a world-record $63.1 million in May.
Tags: Botswana, Karowe, Karowe mine, lucara, Lucara Diamond Corporation, Rapaport News, Rough Diamonds
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