Recently, Lucara Diamond reports the results for the quarter ended March 31, 2024. In the row William Lamb, President & CEO commented, our Karowe diamond mine delivered another solid operational quarter, continuing its track record of sustainable diamond production from this world-class asset.
The Company’s high-value diamond production forecast remains robust, underpinned by our focus on operating practices aligned with leading environmental, social and governance standards. Work on the underground expansion project at Karowe also progressed well during the quarter. This key growth initiative remains on track with the rebase schedule and budget, positioning us to access the higher-value ore from the underground portion of the ore body, early in 2028.
While the diamond market remained relatively stable in Q1, we observed some cautious sentiment due to the broader macroeconomic climate of high inflation and interest rates impacting consumer demand in certain regions. However, the fundamental supply and demand dynamics continue to favour natural diamonds over the long-term as new mine supply remains constrained.
Lucara is well-positioned with our exceptional diamond production profile and our innovative process facilities and sales mechanisms to navigate this environment. We will continue executing our growth strategy while maintaining financial discipline to create sustained value for all our stakeholders.
Operating margins of 51% were achieved (Q1 2023: 57%). A strong operating margin continues to be achieved through cost reduction initiatives assisted by a strong U.S. dollar. Net loss was $7.9 million (Q1 2023: net income of $1.0 million), resulting in a loss per share of $0.02 (Q1 2023: earnings of $0.00).
The significant change to a net loss is due to the loss on extinguishment of debt of $10.5 million incurred in Q1 2024 in conjunction with recognizing the amendments to the debt package.
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