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Lucara Diamond Widens 2Q Loss to $8M

Lowers 2012 Sales Outlook

Aug 12, 2012 5:38 AM   By Avi Krawitz
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RAPAPORT... Lucara Diamond Corporation widened its loss in the second quarter of 2012 and lowered its ‎sales outlook for the rest of the year.  The junior mining company reported a loss of $7.6 ‎million for the period, compared with the loss of $5.9 million a year earlier. ‎

Lucara generated revenue of $12.1 million from two sales of rough production from its ‎Karowe mine in Botswana. Approximately 66,181 carats of diamonds were sold at the ‎two auctions with an average price of $182 per carat. However, management explained ‎that it did withhold goods from the auctions, mainly in the high-color, high-quality categories, ‎due to the recent softening of the diamond market. ‎

The company stated that it expects to sell 230,000 carats of diamonds in 2012, lowering ‎its previous guidance of 300,000 carats, due to insufficient water supply to the plant at ‎Karowe, which was commissioned in April.  Lucara is planning four additional sales of ‎Karowe production during 2012. The company has also scheduled a September sale ‎of diamonds from its Mothae diamond project in Lesotho, where trial mining is underway. ‎

For the first six months of 2012, Lucara posted a net loss of $11.8 million, compared ‎with a net loss of $7.8 million in the same period a year earlier.
Tags: Avi Krawitz, diamonds, Karowe, Lucara Diamond, Mothae, Rapaport
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