Lucara Diamond Corp. released its Q1 2021 figures, demonstrating a strong performance in the first three months of the year. The total revenue, including diamonds sold through regular tenders, the Clara platform and the HB Antwerp agreement, equaled $53.1 million or $579 per carat sold from the sale of 91,760 carats, marking a 56% increase compared to the first quarter of 2020.
At the Karowe Mine, 80,014 carats rough diamond were recovered, including 188 Specials (+10,8 carats) which equaled 6,8% weight percentage of total recovered carats. Two diamonds weighing over 200 carats and two top white gem quality diamonds of 341 carats and 378 carats were recovered during the first quarter of 2021.
At the beginning of the year, Lucara announced the renewal and extension of the company’s mining license for another 25 years, marking an important milestone for the underground expansion of the Karowe mine. In March, a mandate for a senior secured project financing package of up to $220 million to fund the underground expansion at Karowe was executed with a syndicate of five international financial institutions mandating +US$200m senior debt facilities, extending the mine’s lifespan until at least 2040.
Eira Thomas, President & CEO commented: “Lucara has bounced back in the first quarter of the year, demonstrating its resiliency at a time of continued uncertainty in respect of the ongoing COVID-19 pandemic. Our solid performance in the first quarter reflects a stronger business environment, Lucara's continued focus on operational discipline and our innovative approach to sales. (…) Our outlook for the diamond market remains strong, and with close to 20 years of future mining now ahead of us at Karowe, Lucara is highly levered to an improving diamond price environment, particularly in respect of large, high-value gem diamonds, the hallmark of Karowe’s production profile.”
In April, Lucara and HB Antwerp, the diamond trading and manufacturing company based in Antwerp, agreed to extend the exclusive deal on all of Lucara's +10.8ct diamonds, which account for approximately 70% of Lucara's total revenue, for 2 years.