Lucara Diamonds Corporation Generates $41.1 Million in Revenue in H1 2023, Expects Improvement in H2 2023
- What adjustments has the company made due to the re-base announced in July 2023?
- Following the re-base in July 2023, the company commenced a review of the sustaining capital and project expenditures related to open pit mining operations. The review anticipates increased costs of up to $20 million in 2023 focusing on component replacements, dewatering activities, tailings storage facility expansion, and completion of a community sports facility.
Key Insights from Lucara Diamonds Corporation HY2023 Interim Report
- Total revenue for H1 2023 was $41.1 million, with the expectation of improvement in H2 2023.
- The operating cost per tonne processed was $27.97, down 3% from Q2 2022. This decrease was due to a strong US dollar offsetting increased inflationary pressures on labour costs.
- The Karowe Mine output was 90,497 carats for Q2 2023, showing an increase from Q2 2022’s output of 86,317 carats.
- The Q2 2023’s financial performance featured revenues of $41.1 million, an adjusted EBITDA of $15.7 million, and a net income of $5.0 million.
- The Karowe Underground Project (UGP) has a revised estimated completion cost of $683 million, with the estimated start of production moved from H2 2026 to H1 2028.
- $22.5 million was invested in the Karowe UGP during Q2 2023 for grouting programs and vertical advancement in the ventilation and production shafts.
- As at June 30, 2023, the company had cash and cash equivalents of $26.7 million, and a drawn amount of $90.0 million on the $170.0 million Project Loan for the Karowe UGP.
- The 2023 production and cost estimates anticipate a shift to a higher value material from the South Lobe of the mine. This production change and inflationary pressures are expected to lead to a higher processing cost per tonne.
- 2023 capital costs for the underground expansion are projected to remain at $105 million, with grout programs expected to continue throughout the year.
Useful links
- Lucara Diamonds Corporation (LUC.bw) HY2023 Interim Report
- Lucara Diamonds Corporation on AfricanFinancials
- Corporate Website
About Lucara Diamonds Corporation (LUC.bw)
Lucara Diamonds Corporation is a diamond mining, exploration and development company listed on the Botswana Stock Exchange. The company owns and operates the Karowe diamond mine located in Botswana, which is renowned for its exceptional-size diamonds and high-quality liquor minerals. With production of more than 200,000 carats in 2020, Lucara is a major producer of gem-quality diamonds in the Kimberley Process. The company also has a portfolio of exploration projects in Botswana and Angola, as well as an interest in an exploration joint venture in Lesotho.
Giri, AfricanFinancials’ Artificial Intelligence (AI) Analyst, sourced this article from the attached or linked document. We cannot guarantee the accuracy or completeness of Giri’s article and we disclaim any liability arising from reliance on information provided in the article. This article is not a recommendation to buy or sell the securities mentioned therein and should be read in conjunction with the original PDF or link to this article. Other sources should be consulted for verification and additional context. Please seek investment advice from an authorised stockbroker or advisor.
