Lucara expects up to P2.3 Billion in 2022 diamond sales

Lucara Diamond Corporation expects up to Two point three Billion Pula (P2.3 Billion) in diamond sales next year.

According to the news release issued by the company, between One hundred and eighty-five Million United States Dollars (US$185 Million), and Two hundred and fifteen Million United States Dollars (US$215 Million) is expected from Karowe Mine in 2022. In terms of Pulas, this translates to roughly between Two Billion Pula (P2 Billion), and Two point three Billion Pula (P2.3 Billion).

These sales are expected to be made from the anticipated production of between three hundred thousand, and three hundred and forty thousand carats (300 000 and 340 000 carats).

“The business environment for diamonds and diamond jewellery is the healthiest we’ve seen in several years, spurred on by an improvement in global supply and demand fundamentals, a trend which is expected to continue. In 2022, our tenth year of operations at Karowe, Lucara anticipates producing up to 340,000 carats which will be sold through its innovative, multi-sales channel approach generating revenues between $185 and $215 Million. This does not include any estimated contributions of revenue from large, exceptional diamonds that have historically formed a regular part of Karowe’s production profile. The completion of a supplemental debt financing package in 2021 to support our underground expansion project was a significant de-risking milestone for the company and the project, which was $64 Million spent by Q3 2021 and 20% complete. The underground expansion at Karowe provides access to the richest portion of the orebody and will extend minelife to at least 2040. The project remains on schedule and budget, with a forecasted spend of up to $110 Million in 2022.” said Eira Thomas, President and CEO of Lucara.

In 2022, capital costs for the underground expansion are expected to be up to One hundred and ten United States Dollars (US$110 Million)- approximately One point two Billion Pula (P1.2 Billion), and will focus on the commencement of shaft sinking activities, the commissioning of power and detailed engineering for the underground development. Sustaining capital and project expenditures are expected to be up to seventeen Million United States Dollars (US$17 Million)- roughly One hundred and eighty-seven Million Pula (P187 Million) with a focus on completion of a community sports facility, dewatering activities and an expansion of the tailings storage facility.

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