Lucara expect low revenue than initial guidance

Dec 04, 2023

Lucara Diamond Corporation reported its results for the quarter ended September 30, 2023. During Q3 2023, the Company invested $20.3 million into: the Karowe UGP!

In the presentation of Q3 2023, Lucara Diamond Corporation provides outlook and management’s production and cost estimates for 2023. These are forward-looking statements, and subject to the cautionary note regarding the risks associated with forward-looking statements.

Diamond revenue guidance does not include revenue related to the sale of exceptional stones (an individual rough diamond which sells for more than $10 million), or the Sethunya. Changes were made to the Company’s 2023 Guidance for revenue, diamond sales, ore and waste tonnes mined, and total operating cash costs per tonne processed which was released in December 2022 as indicated below.

Revisions to diamond revenue guidance reflect changes to the sales mechanism for the rough diamonds larger than 10.8 carats in size following the termination of the Company’s agreement with HB, combined with global rough diamond market impacts. Revenue is expected to be lower than initial guidance as the Company looks at the timing of sales of its goods greater than 10.8 carats in size.

Tonnes mined have been adjusted to reflect the acceleration of mining in the open pit which has been implemented to access high value ore from the south lobe earlier in the mine plan as well as to optimize costs. Following the expected completion of processing of the ex-pit material, in Q1 2026, the plant will transition to processing stockpiled material until the delivery of ore from the underground expansion project begins in Q1 2028.

In 2023, capital costs expectations for the underground expansion remain at $105 million. As a result of the rebase announced in July 2023, a review of sustaining capital and project expenditures related to the open pit mining operations commenced. Sustaining capital and project expenditures may be up to $16 million in 2023, previously up to $20 million.

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