Industry News by Nemesis

Lucara Reports Strong Q3 as 76,000 Carats Average $1,081/ct

November 11, 2015

Lucara Diamond has annouced strong quarterly cash flow and significant operating margins in Q3 with revenues of $90.9 million for the quarter at an operating margin of 88%, and revenues of $158.6 million for the nine months to September 2015. Of particular note is that during the third quarter, they recovered a total of 160 special stones (+10.8 carats) from their Karowe Mine in Botswana at an average size of 33.49 carats, an increase of 34% compared to the full year 2014. The largest stone recovered during the quarter was 336 carats, which is expected to be sold along with twelve other stones in the second Exceptional Stone Tender of 2015. Furthermore, Lucara achieved an astounding average of $1,081 per carat for 76,156 carats sold.

 

William Lamb, President and CEO, notes that the diamond industry continues to see softer prices, specifically in the small and medium size classes, that a significant volume of rough diamonds have not been sold at many of the large producers’ auctions, and foresees a prolonged weakness in smaller lower quality goods due to the current high levels of inventories held. Yet the statement claims that over the past twelve months, while Lucara has seen similar reductions in “same quality” goods, it has been able to maintain a relatively consistent average diamond price due to the changes in its production profile with a greater number of high value stones being recovered from the South lobe and being sold in the regular tenders.

 

Click here for Lucara’s report.

 

Source: The Diamond Loupe

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