Lucara Diamond announcing its results for the quarter ended September 30, 2018 (Q3 2018), reported a sales revenue of  US$ 45.7 million for period as compared to US$ 77.9 million earned in the same period of the previous year; thus registering a drop of over 41%. For 9M 2018, Lucara’s revenue stood at US$ 135.6 million as against US$ 183.6 million earned in the same 9M period of the previous year.

“This revenue includes proceeds of US$ 3.9 million received in July 2018 related to the Company's June tender,” Lucara clarified. “Third quarter sales from 2017 included the sale of the Lesedi La Rona ("LLR") for US$ 53 million (US$ 47,777 per carat), adjusting for the sale of the LLR, the Q3 2017 average sales price was US$ 389 per carat.”

Net income for Q3 2018 fell sharply to US$ 5.1 million (US$ 0.01 per share) from US$ 32.9 million (US$ 0.09 per share) in Q3 2017; a decrease of over 84%. Net Income for 9M 2018 stood at US$ 17.8 million  as compared to US$ 63.5 million for the same period of the previous year.

The average price per carat sold has also dipped: to US$ 450 per carat in Q3 2018 from US$ 1,161 per carat realised in the same period of the previous year. For 9M 2018, average price per carat sold amounted to US$ 564 as against US$ 960 realised in the same period of the previous year.

“Q3 2018 EBITDA of US$ 18.2 million (Q3 2017: US$ 49.8 million) reflects lower revenues attributable to a smaller volume and lower average price of exceptional stones sold, as compared to Q3 2017 which included the sale of the 1,109 carat LLR,” Lucara elaborated.

The Company said that overall performance --  with respect to  ore and waste mined, ore processed and carats recovered --  at its Karowe mine “was within forecast for the third quarter ended September 30, 2018”.

Lucara reported that 197 specials (single diamonds larger than 10.8 carats) were recovered during Q3 2018, representing 4.7% weight percentage of total recovered carats, in line with expectations; while 10 diamonds greater than 100 carats in weight were recovered.

“Commercialisation efforts at Clara are tracking according to budget and plan with inaugural sales expected to commence in November,” the Company added.

 As at September 30, 2018, the Company reported cash and cash equivalents of US$ 31.1 million; and an undrawn credit facility of US $ 50 million.

“2018 guidance has been increased for tonnes of ore mined and carats recovered; the remainder of the Company's guidance remains unchanged for 2018,” Lucara concluded.

Eira Thomas, President and CEO, commented: "Third quarter operational performance at Karowe exceeded expectations with respect to ore mined and carats produced, and reflects a seamless transition, three months ahead of schedule, to our new mining contractor, Trollope Mining Services.  In parallel, we saw higher asset availability and record utilisation rates for the process plant, positively impacting carat recoveries.” 

He added: “Growth initiatives, focused on Clara and the Karowe underground expansion opportunity, also continued to pick up momentum during the quarter.”

Thomas  noted that Clara is the world's first “secure, digital rough diamond sales platform to sell diamonds individually, based on a customer's specific demand, and is positioned to completely transform the diamond sales process, creating efficiencies and unlocking significant value for producers and manufacturers alike”.