Lucara Sees 2014 Revenue of Up To $160M

The forecast is based on the assumption that the miner will hold two tenders of exceptional diamonds this year.

Lucara Diamond Corp. predicts revenue of $150 million-$160 million from the sale of 400,000-420,000 carats of diamonds this year from its Karowe mine in Botswana.
 
The miner will build a plant upgrade to improve the recovery of large diamonds at a cost of $45 million to $50 million.

President and CEO William Lamb said, “Lucara had a strong year in 2013, achieving its production and operating cost targets and exceeding forecast revenues following the recovery of a high proportion of large exceptional quality diamonds during the year.

"In 2014 it is expected that the scheduled plant upgrade, largely funded from the company’s 2013 year-end cash balance will be completed and brought online to deliver sustainable diamond recovery for production of 2.5 million tonnes per annum for the remainder of the mine life. This upgrade will also include processes to ensure the safe recovery of the value driving large and exceptional diamonds of Karowe.

The mine has been in production since May 2012 and has conducted mining and processing operations broadly in line with the feasibility study.

The mining firm sold 439,000 carats in 2013, and it had a year-end inventory of 67,000 carats of diamonds.