Lucara Q1 sales 80,295 carats of diamonds!

An average price per carat grew to $690 from $480 YoY 

Lucara Diamond Corporation reports its results for the quarter ended March 31, Q1 2022 said, Lucara revenue in Q1 2022 increased by 28% to $68.2 million from $53.1 million in Q1 2021 a reflection of strong rough and polished diamond market fundamentals into the first quarter. 

The combination of a strong diamond market, combined with the sale of several higher value rough diamonds in Q1 2022 generated an average price per carat (excluding top-up payments) of $690 for Karowe diamonds sold during the quarter (Q1 2021: $480 per carat). 

A total of 186 Specials (single diamonds in excess of 10.8 carats) were recovered, representing 6.9% weight percent Specials (Q1 2021: 6.8%). Sales volumes transacted on Clara during Q1 2022 totalled $7.0 million, a 17% increase from the $6.0 million in sales volume transacted in Q1 2021. A third-party producer will commence a series of trial sales beginning in Q2 of 2022.

Eira Thomas, President & CEO commented: "Lucara begins the year on a positive trajectory, having fully financed and significantly de-risked our growth plans for the underground expansion in 2021 and delivered another strong quarter of operating and financial results in Q1, reflecting solid performance at the mine combined with continued buoyancy in diamond prices.  

Preparation for main shaft sinking is well underway and anticipated to begin in Q2. 

Our multi-channel approach to sales through tenders, Clara and HB continues to mature, creating alignment along the value chain, delivering efficiencies and higher margins.  

Despite current geo-political challenges, Lucara remains optimistic about diamond prices as natural rough diamond supply constraints continue to manifest globally." Consistent with the Company's approach through 2021, diamond sales continued to be held through a combination of regular tenders, and the Clara platform, for diamonds less than 10.8 carats, and through HB under the sales agreement for those gem and near-gem diamonds greater than 10.8 carats which are to be manufactured and sold as polished.  

All other diamonds are sold in quarterly tenders. The Company recognized revenue of $68.2 million in the first quarter of 2022 from the sale of 80,295 carats from Karowe. This amount included top-up payments of $11.7 million as well as $1.0 million from the sale of third-party goods on the Clara platform.  

In comparison, the Company achieved revenues of $53.1 million from sales of 91,760 carats in the first quarter of 2021 which included top-up payments of $9.1 million as well as $0.1 million in revenue from third-party goods sold through the Clara platform.