According to the Lucara Diamond Corp that reports its results for the quarter ended March 31, 2023 and presented those takeaways for 1Q 2023 are, 1: production guidance maintained & 2: All key operational metrics were on plan, with 0.5 million tonnes of ore and 0.8 million tonnes of waste mined, 0.7 million tonnes of ore processed, and 89,640 carats recovered.
The Q1 2023 operating cash cost of $26.65 per tonne of ore processed was well below the expected annual operating cash cost range of $32.50 to $35.50 per tonne of ore processed. Revenue for the quarter ended March 31, 2023 totaled $42.8 million, including $5.3 million through Clara.
Cash flow generated from operating activities was $20.4 million. $30.5 million invested in the Karowe underground expansion project (UGP) in Q1 2023 focused on: Main shaft sinking activities in both the ventilation shaft, currently at 213 metres below collar, and the production shaft, currently at 187 metres below collar.
The successful completion of the first grout programs in each shaft during the first quarter of 2023. Completion and energization of the 11kV transmission line from the new Karowe substation to the UGP. Stage two of the bulk power supply upgrade to connect all mine power requirements to the new Karowe Substation and 132kV power line.
Eira Thomas, President & CEO commented: “As anticipated, Q1 delivered lower revenues than in the comparative period, owing to the change in ore mix processed and diamond pricing weakness resulting from continued geopolitical and economic uncertainty.
Lucara’s outlook for the year remains unchanged as the largest influence on our revenue in Q1, ore mix, returns to higher contributions of south lobe ore in subsequent quarters. Sinking continued in both the production and ventilation shafts with material improvement to planned sinking rates achieved for the production shaft and mitigations underway in the ventilation shaft to achieve the same.
Water management remains a key focus area. An update to the schedule and budget for the underground project has been initiated in response to slower than planned ramp up to expected sinking rates, and, to account for time incurred and anticipated for future grouting programs. We remain on-track to complete the results of this analysis before the end of Q2, 2023.”
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