Lucara sold diamonds at $579 per carat in Q1

Earns 56% higher in 1Q YoY 

Jewellery Market Bureau: Lucara Diamond reports its results for the first quarter of 2021 ending March 31, 2021, with strong financial and operational performance. Revenue of $53.1 million or $579 per carat sold in Q1 2021, 56% higher than Q1 2020. This includes diamonds sold through a combination of regular tenders, Clara, and through HB Antwerp (HB) under the supply agreement announced in July 2020. 

Specials recovered (+10.8 carats) equated to 6.8% weight percentage of total recovered carats. In January 2021, the Company announced the recoveries of two, top white gem quality diamonds, A: 341 carats and B: 378 carats. In April 2021, Lucara announced the 24-month extension of its novel supply agreement with HB, in respect of all diamonds produced in excess of 10.8 carats in size, from the Karowe mine, to be sold as polished.

In May 2021, Lucara received credit approved commitments from a syndicate of five international lenders for a senior secured project financing debt package of up to $220 million to fund an underground expansion at the Karowe Mine in Botswana.

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. 

We also made significant progress towards the completion of a supplemental debt financing package with credit approved commitments received from five international lenders, in support of our plans for underground expansion. 

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." 

188 Specials (+10.8 carats) were recovered from direct milling during the first quarter, representing 6.8% weight percentage of total direct milling recovered carats, in line with resource expectations. 2 diamonds were recovered greater than 300 carats in weight and 2 diamonds were recovered greater than 200 carats in weight.

The Company recorded net income of $3.4 million during Q1 2021, as compared to a net loss of $3.2 million for Q1 2020. 

Lucara Diamond’s outlook says the diamond market began 2021 in a healthier position than it has at any stage over the past five years, resulting in increasing price performance in virtually all sizes and quality of diamonds in Q1 2021. During Q1 2021, the diamond market remained buoyant following a strong holiday sales period, particularly in China and the United States. 

Careful rough diamond supply management by the producers has also helped to re-balance polished diamond inventories and stabilize the market overall. Covid-19 remains a key concern, however, even as vaccination programs are being rolled out in many countries around the world. India, a major manufacturing centre for diamonds, is of particular concern heading into the second quarter as infection rates have increased dramatically, resulting in new lock-down measures.