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RAPAPORT... Lucara Diamond Corporation reported revenue of $47.2 million for the second quarter of fiscal 2013 that ended on June 30. The company began selling rough diamonds in the third quarter of fiscal 2012. Lucara sold 89,619 carats at an average price of $527 per carat during its second quarter. Operating costs totaled $102 million and capital expenses came to $1.7 million. Profit totaled $22.7 million, or 6 cents per share, compared with a loss of $7.6 million, or 1 cent per share, one year ago. Lucara recorded cash and cash equivalents of $28.5 million on June 30, compared with $13.3 million six months earlier. Cash generated from operating activities, before working capital movements, registered an inflow of $44.3 million, which was partially offset by $8.3 million debenture payments at the end of March and June as well as repayment of the outstanding balance of its revolving credit facility of $4.5 million. William Lamb, the president of Lucara, said, "Lucara had an exceptional first six months of the year with sales proceeds in excess of $80 million and over 230,000 carats sold. Following the first large and exceptional stone sale, the Karowe mine has continued to produce a high proportion of large stones and a second exceptional stone sale will be held in September featuring 16 diamonds, including a pink stone and five stones which are over 100 carats each. The proceeds from this sale are expected to further strengthen the company's overall cash position." The mining company's Mothae project in Lesotho remained on temporary care and maintenance during the quarter and it is reviewing development options for the project. At the Karowe mine in Botswana, Lucara completed its first large and exceptional stone tender in May, consisting of 15 single-stone lots that sold for $24.6 million or $30,184 per carat. Two regular tenders during the second quarter totaled 101,637 carats of diamonds that achieved $24.7 million or $243 per carat. The average value of run-of-mine diamonds recovered and sold during the quarter was $485 per carat. Karowe's operating costs per carat sold was $102 during the quarter, up from $86 per carat sold in first quarter. The increase was in line with Lucara's budget and mine plan.
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