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Lucara Outlook Strong Amid ‘Healthy’ Market

November 25, 2021

RAPAPORT... Lucara Diamond Corp. expects solid diamond revenue in 2022 as demand continues to strengthen and the company mines a higher-value portion of its Karowe deposit in Botswana.

The miner has predicted sales of between $185 million and $215 million for the year, not including any large or exceptional diamonds, it said Wednesday. All of the rough it will offer in 2022 will come from the site’s M/PK(S) and EM/PK(S) units in the high-value south lobe section of Karowe, it explained.

“The business environment for diamonds and diamond jewelry 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,” said Lucara CEO Eira Thomas.

Lucara anticipates output of 300,000 carats to 340,000 carats, it noted, adding it planned to sell its production through multiple channels to maximize revenue. Higher-value stones over 10.8 carats will be sold through the company’s supply agreement with HB Antwerp, from which the miner receives revenue for the rough as well as a portion of the polished proceeds. Diamonds under 10.8 carats will be sold at tenders or through the miner’s Clara digital platform.

The miner expects full-year revenue for 2021 to be $195 million to $210 million, with total output between 340,000 carats and 370,000 carats.

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

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