Lucara announces operating guidance for 2024

Nov 30, 2023

Lucara Diamond Corp provides operating guidance for 2024 and outlook 2024! This section provides management’s production and cost estimates for 2024. These are forward-looking statements, and subject to the cautionary note regarding the risks associated with forward-looking statements.

In 2024, the Company’s revenue forecast assumes that 87% of the carats recovered will come from the higher value units within the South Lobe and the remaining carats recovered will come from the Centre Lobe in accordance with the mine plan, generating revenue between $220 and $250 million.

South Lobe material, while lower grade than the Centre and North Lobes, has a higher weight percentage of stones greater than 10.8 carats in size (Specials). The Company plans to use its sales channels to maximize revenue and generate consistent cash flow to support the Company’s operations and its investment in the underground expansion project.

The Company expects to seek opportunities to sell its higher value Specials through agreements whereby the rough stones are manufactured, giving the Company exposure to polished prices and regular cash flow from the highest value portion of the Karowe production. Quarterly tenders and regular sales through Clara, primarily for stones smaller than 10.8 carats in size will continue.

Lucara announced a reduction in expected annual revenue guidance for fiscal 2023 due to changes to the sales mechanism for rough diamonds larger than 10.8 carats in size following termination of the Company’s diamond sales agreement with HB in September 2023.

The Company expects to monetize the +10.8 carat stones currently held in inventory in 2024. The revenue forecast for 2024 does not include amounts related to the inventory.

In 2024, the Company expects to mine between 3.6 and 4.6 million tonnes, of which ore tonnes mined represent approximately three quarters of total tonnes mined. The assumptions for carats recovered and sold as well as the number of ore tonnes processed are consistent with achieved plant performance in recent years.

A portion of the tonnes mined in 2024 will be stockpiled, prior to the end of open pit mining in mid-2025.


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