TIDM0QUI
RNS Number : 4027X
Lucara Diamond Corp
19 December 2019
December 18, 2019
PRESS RELEASE
LUCARA'S DECEMBER DIAMOND TER EXCEEDS EXPECTATIONS
VANCOUVER, December 18, 2019/CNW/ - (LUC - TSX, LUC - BSE, LUC -
Nasdaq Stockholm)
Lucara Diamond Corp. ("Lucara" or the "Company") is pleased to
report that its final diamond tender of 2019, held on December
12(th) , generated sales proceeds of US$52.9 million, 16% higher
than expected, and achieved an average price of US$548 per carat.
Market pricing improvements were noted in all size classes. The
December tender puts Lucara's 2019 revenue at $192.5 million
exceeding the 2019 revenue guidance of $170 - $180 million.
2019 SALES HIGHLIGHTS
-- Total proceeds of US$192.5 million (including Clara)
-- Average price of US$468 per carat
-- 30 diamonds sold for > $1 million each
Clara has also continued to make excellent progress in 2019,
completing 16 sales and growing its customer base well beyond
expectations from 4 to 27 clients. Further, demand in recent sales
has now outstripped available supply and the platform is ready to
receive a larger quantity of third-party goods to support its next
phase of growth. Trials with at least two other providers are
anticipated beginning in early 2020. Clara is achieving strong
prices for Karowe diamonds and generating attractive margins for
its customers, confirming that significant value can be unlocked by
selling rough diamonds in a more efficient way, using technology
and based on specific demand for individual polished products.
The positive results of the Karowe Underground Feasibility Study
announced on November 4, 2019, have been summarized in a Technical
Report, prepared pursuant to the guidelines of National Instrument
43-101, and filed on SEDAR (www.sedar.com) December 17, 2019. The
report is also available on Lucara's website (PDF). A budget of up
to US$53 million has been approved for early works related to the
proposed underground mine at Karowe. An investment decision,
subject to receipt of all required authorizations and the
arrangement of financing, is expected in H2 2020. The approved
budget is based on the Company's ability to fund these initial
capital expenditures from operating cash flow in 2020. The early
works program will include detailed engineering, procurement, earth
works and pre-sinking of production and ventilation shafts to
mitigate key risks related to the schedule.
Eira Thomas, CEO commented: "Though it is too early to call a
trend, prices achieved in our final sale of the year reflect a
stronger, more stabilized market environment and continued strong
demand for Karowe diamonds. As a result, we have exceeded our
revenue guidance for 2019. Lucara's continued focus on operational
excellence underpins this strong performance, delivering strong
margins despite the weaker pricing environment. The Company remains
well positioned and highly levered towards further strengthening in
diamond prices over the next 12-24 months as supply constraints
from large, maturing, mines begin to manifest. This bodes well, not
only for our current open pit operations but also supports our
plans for underground expansion to extend Karowe's mine-life to at
least 2040, with the potential to generate an additional US$4
billion in revenue." She further added, "Our strong performance at
the mine, combined with the delivery of a robust underground
feasibility study is supplemented by encouraging early results from
Clara. 2019 marked the first of a two year ramp up period for our
secure digital sales platform and we are pleased to report that our
customer base has grown beyond expectations. We remain on track to
deliver strong cashflows consistent with our five-year plan."
Eira Thomas
President and Chief Executive Officer
Follow Lucara Diamond on Facebook, Twitter, Instagram, and
LinkedIn
For further information, please contact:
North America Christine Warner, Investor Relations & Communications
+1 604 689-7842 | info@lucaradiamond.com
Sweden Robert Eriksson, Investor Relations & Public
Relations
+46 701 112615 | reriksson@rive6.ch
UK Public Relations Emily Moss / Jos Simpson, Tavistock
+447788554035 | lucara@tavistock.co.uk
ABOUT LUCARA
Lucara is a leading independent producer of large exceptional
quality Type IIa diamonds from its 100% owned Karowe Mine in
Botswana. The Company has an experienced board and management team
with extensive diamond development and operations expertise. The
Company operates transparently and in accordance with international
best practices in the areas of sustainability, health and safety,
environment and community relations.
ABOUT CLARA
Clara Diamond Solutions (Clara), wholly owned by Lucara Diamond
Corp., is a secure, digital sales platform that uses proprietary
analytics together with cloud and blockchain technologies to
modernize the existing diamond supply chain, driving efficiencies,
unlocking value and
ensuring diamond provenance from mine to finger.
The information in this release is accurate at the time of
distribution but may be superseded or qualified by subsequent news
releases.
The information in this release is subject to the disclosure
requirements of the Company under the EU Market Abuse Regulation.
This information was publicly communicated on December 18, 2019, at
2:00 pm Pacific Time.
CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS
Certain of the statements made and contained herein and
elsewhere constitute forward-looking statements as defined in
applicable securities laws. Generally, these forward-looking
statements can be identified by the use of forward-looking
terminology such as "expects", "anticipates", "believes",
"intends", "estimates", "potential", "possible" and similar
expressions, or statements that events, conditions or results
"will", "may", "could" or "should" occur or be achieved.
Forward-looking statements are based on the opinions and
estimates of management as of the date such statements are made,
and they are subject to a number of known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of the Company to be materially
different from any future results, performance or achievement
expressed or implied by such forward-looking statements. The
Company believes that expectations reflected in this
forward-looking information are reasonable but no assurance can be
given that these expectations will prove to be accurate and such
forward-looking information included herein should not be unduly
relied upon.
In particular, this release may contain forward looking
information pertaining to the following: estimates of the Company's
cash flows from operations and what impact that cash-flow could
have to the Company's ability to achieve its five-year plan; the
use of capital for early works related to a possible underground
mine development and that those early works could mitigate key
schedule risks; the timing for an investment decision and the
conditions to development of an underground mine, which may include
but which are not limited to: the receipt of all required
authorizations and the arrangement of financing; the schedule of
development of the underground, the production profile at Karowe
and anticipated changes in diamond pricing, including trends in
supplies and demands and the potential for stability in the diamond
market and diamond pricing; the likelihood and impact of completing
an underground expansion at Karowe to the mine-life and total
revenue generated; changes to foreign currency exchange rates; the
timing and ability of management to further commercialize the Clara
digital sales platform, the impact of adding third-party production
to the platform and the timing for that activity to occur,
management's expectations regarding the frequency of sales, the
number of participants at each sale and the impact those items
could have on the growth and success of the platform and other
forward looking information.
There can be no assurance that such forward looking statements
will prove to be accurate, as the Company's results and future
events could differ materially from those anticipated in this
forward-looking information as a result of those factors discussed
in or referred to under the heading "Risks and Uncertainties"' in
the Company's most recent Annual Information Form available at
http://www.sedar.com, as well as changes in general business and
economic conditions, changes in interest and foreign currency
rates, the supply and demand for, deliveries of and the level and
volatility of prices of rough diamonds, costs of power and diesel,
acts of foreign governments and the outcome of legal proceedings,
inaccurate geological and recoverability assumptions (including
with respect to the size, grade, and recoverability of mineral
reserves and resources), and unanticipated operational difficulties
(including failure of plant, equipment or processes to operate in
accordance with specifications or expectations, cost escalations,
unavailability of materials and equipment, government action or
delays in the receipt of government approvals, industrial
disturbances or other job actions, adverse weather conditions, and
unanticipated events relating to health safety and environmental
matters).
Accordingly, readers are cautioned not to place undue reliance
on these forward-looking statements which speak only as of the date
the statements were made, and the Company does not assume any
obligations to update or revise them to reflect new events or
circumstances, except as required by law.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
MSCFFMEFAFUSESE
(END) Dow Jones Newswires
December 19, 2019 02:00 ET (07:00 GMT)
Grafico Azioni Lucara Diamond (LSE:0QUI)
Storico
Da Feb 2024 a Mar 2024
Grafico Azioni Lucara Diamond (LSE:0QUI)
Storico
Da Mar 2023 a Mar 2024