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Lack of Large Diamonds Dents Lucara Sales

Feb 21, 2018 3:15 AM   By Rapaport News
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RAPAPORT... Lucara Diamond Corp’s revenue and profit fell in 2017, as sales of exceptional diamonds and overall production at its Karowe mine slumped during the year.

Revenue for 2017 dropped 25% to $220.8 million, with the volume of goods sold down 27% to 260,526 carats, the company reported Tuesday. The average selling price rose 3% to $847 per carat, which was boosted by the sale of the Lesedi la Rona, a 1,109-carat diamond recovered at Karowe, which sold to Graff Diamonds for $53 million. In 2016, revenue was buoyed by the sale of the 813-carat Constellation diamond for $63.1 million.

However, overall sales of exceptional stones — excluding the Lesedi la Rona and the Constellation — fell 39%, according to Rapaport calculations, as the company reported an average price of $31,005 per carat from the sale of 1,766 carats of such specials.

Production amounted to 249,767 carats, which was lower than expected, after the company experienced problems with its mining contractor. That forced processing to shift to lower-grade stockpiles, while the miner transitioned to a new contractor in the fourth quarter.

Lucara expects lower production and revenue again in 2018, projecting that Karowe will unearth between 270,000 and 290,000 carats, and that revenue will slide to within the range of $170 million to $200 million.

Profit in 2017 fell 8% to $65.1 million.
Tags: Constellation, diamonds, Graff Diamonds, Karowe, Lesedi La Rona, lucara, Lucara Diamond Corp, Rapaport News
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