Lucara Diamond Corp. reported a 25% decline in annual revenue in 2017 to US$ 220.8 million (2016: US$ 295.5 million) including the sale of one very large diamond in each year, the La Lesedi Rona and the Constellation diamond respectively, with the average price per carat realised during the year being US$ 847 per carat (2016: US$ 824 per ct). 

Excluding these specials however, the average sales price for 2017 at US$ 647 per carat was in line with the 2016 average sales price of US$ 649 per ct.

At the Karowe mine’s south lobe, high value diamonds continued to be produced during the year, with a total of 521 specials (>10.8 carats), accouting for 5.6% by weight of total recovered carats in 2017 (2016: 4.9%).

Other financial highlights of Lucara’s performance during the year included an EBITDA of US$ 113.5 million (2016: US$ 185.4 million); a year end cash position of US$ 61.1 million (2016: US$ 53.3 million) and operating costs of US$ 34.6 per tonne processed (2016: US$ 26.5 per tonne processed).

Lucara also reported that the Mega Diamond Recovery and Sub-middles XRT capital projects at the Karowe mine were completed on time and on budget. The circuits are performing well and to design specifications. It said with strong cost control, processing cost per tonne was US$ 34.6 per tonne processed compared to full year guidance of US$ 36 - US$ 40 per tonne.

The drilling program at the Karowe Mine to test the AK06 kimberlite at depths below 400 metres was completed during the year and a resource update is expected to be complete in Q2, 2018.  A pre-feasibility level study for the Karowe AK06 underground development is underway and is expected to be completed by the end of 2018.

William Lamb, President and Chief Executive Officer commented "The Company continued to receive strong prices for the sale of our diamonds this year demonstrating the quality of the south lobe diamonds at Karowe. Our capital projects for enhanced diamond recovery were completed on time and within budget and will ensure maximum value is recovered at the mine. These systems are operating well and above expectation. We are advancing our resource expansion work with the underground study at Karowe, with a pre-feasibility study to be completed during the second half of 2018."