Lucara Predicts Rise in Revenue for 2020

RAPAPORT… Lucara Diamond Corp. is expecting sales to rise in 2020 amid
an increase in production from the higher-grade portion of its Karowe mine in
Botswana.


Sales will reach $180 million to $210
million next year, compared with $170 million to $180 million for 2019, it predicted last week. Lucara believes it will recover a higher proportion of rough
diamonds —
including special-size stones over 10.8 carats — from the high-quality
MP/KS and EM/PK(S) area of Karowe’s south lobe.


However, the company has lowered its output and sales-volume
figures for 2020, expecting to produce 370,000 carats to 410,000 carats, versus
the 400,000 carats to 425,000 carats forecast for 2019. The miner will sell between 350,000 carats and 390,000 carats during the year, as opposed
to the 400,000 carats to 425,000 carats it predicted for 2019, it said.


Additionally, following positive results from a feasibility
study the company conducted at Karowe in November, Lucara has approved a budget
of up to $53 million to expand the site to underground mining. The move is
expected to add around 7.8 million carats, and increase the mine’s lifespan
until 2040. The final decision is subject to Lucara receiving all required
authorizations, with a final decision expected in the second fiscal half of
2020, the miner added.


“Lucara will continue to focus in 2020 on optimizing base
business, growing [its digital sales platform] Clara by adding third-party
production to the platform, and preparing for an underground expansion at
Karowe,” Lucara CEO Eira Thomas noted. “Anticipated cash flow from operations
in 2020 should allow us to pursue early works which are critical to the underground
development schedule.”


Image: The Karowe mine. (Lucara Diamond Corp.)