Lucara Diamond Corp. has suspended its 2020 Guidance and also said that it was unlikely to be able to hold its tenders due to the situation created by COVID-19, and given the uncertainty as to when prevailing travel restrictions will be lifted. The Company also announced that it has implemented a “crisis management strategy” to protect the health and well-being of its employees in Botswana and Canada.

“Lucara's 100% owned Karowe Diamond Mine, situated in north central Botswana remains fully operational, under new measures and guidelines implemented by the Government of Botswana (GRB) earlier this week,” the Company said. “These measures include increased travel restrictions, reduced staffing and increased social distancing pertaining to all aspects of its business.” In keeping with the overall strategy, those employees who are able to work remotely are doing so. 

“Lucara completed its first of four planned diamond tenders for the year on March 5, and achieved sales prices within 1% of forecast, however, diamond prices have since deteriorated in response to weaker demand as COVID-19 has continued to spread globally,” the Company reported. “Though Lucara's next quarterly tender is not scheduled to take place until mid-May 2020, the full impact of COVID-19 on Lucara's operations and production outlook for 2020 remains highly uncertain, and as a result, the Company has taken the decision to suspend its 2020 guidance until further notice.” 

The Company also divulged that Clara, its web based digital sales platform for rough diamonds, which sells diamonds under 10.8 carats in size remains operational.

Eira Thomas, Lucara's CEO stated: "Our main focus right now is on the safety and wellbeing of our workforce and the local communities in which we operate. The global diamond industry is experiencing the widespread impacts of COVID-19 throughout the value chain, manifested as fewer sales, weaker pricing and production curtailments at several mines. Though the Karowe diamond mine continues to operate according to plan, and the first quarter 2020 sale achieved results within expectations, the full impact of COVID-19 on our business remains uncertain.”   

She added: “In this challenging and volatile time, the quality of our assets combined with the strength of our balance sheet and the fact that Lucara is not carrying any long-term debt, helps to position the Company to effectively manage the business through this crisis. We would like to extend our sincere thanks to our employees, shareholders, stakeholders and communities of interest for their continued support, and, extend our best wishes for good health.”