Lucara's Karowe Mine Exceeds $1.0 Billion in Sales
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Dec 8, 2016) - Lucara Diamond Corp. ("Lucara" or the "Company") (TSX:LUC)(BOTSWANA:LUC)(NASDAQ OMX Stockholm:LUC) is pleased to announce that following the close of the fourth Regular Tender of 2016, the Company exceeded $1.0 billion in accumulated sales since the start of production in June 2012.
Quarterly Revenue Highlights
The Q4 2016 revenue, inclusive of the second Exceptional Stone Tender held in November, is $66.1 million at an average of $743 per carat.
Year End Revenue Highlights
Total revenue for the year end, inclusive of the Constellation Diamond sale, is estimated to be $295 million at an average of $823 per carat. Revenue excluding the sale of the Constellation Diamond is estimated at $232 million at an average of $649 per carat.
The Company sold 14 exceptional stone at over $2 million per stone (including 4 stone at over $10 million per stone). Additionally, the Company sold 20 exceptional stones between $1 - $2 million per stone.
The Karowe Mine, to date, has yielded 1.8 million carats generating revenue of $1.02 billion at an average price of $566 per carat.
Safety Highlights
Lucara is also pleased to announce that during the month of November its Karowe mine surpassed the 5,000,000 Lost Time Injury Free hour mark.
William Lamb, President and Chief Executive Officer commented "Achieving sales of $1 billion is a significant milestone for the Company and is a recognition of our strong client base and the quality of diamonds recovered from the Karowe mine. Such a milestone could only have been achieved with the dedication of our employees, who have demonstrated a great commitment to working safely on site as exemplified by the Karowe mine surpassing 5,000,000 Lost Time Injury Free hours. We are pleased that our final sale of the year has shown strong demand for our larger higher quality diamonds and also a sustainable demand for the smaller size diamonds. We look forward to continued success in 2017 with the advancement of our exploration and deep drilling programs and the completion of our capital programs to enhance diamond recovery from the high value south lobe."
On behalf of the Board,
William Lamb, President and CEO
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About Lucara
Lucara is a well positioned diamond producer. The Company has an experienced board and management team with extensive diamond development and operations expertise. The Company's main producing asset is the 100% owned Karowe Mine in Botswana. The Company also conducts exploration activities and holds two precious stone prospecting licenses close to its Karowe mine.
The information in this release is accurate at the time of distribution but may be superseded or qualified by subsequent news releases.
The information in this release is subject to the disclosure requirements of Lucara Diamond Corp. under the EU Market Abuse Regulation and the Securities Markets Act. This information was submitted for public release by the above person(s) on December 8, 2016 at 2:45 p.m. Pacific Time.
CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS
Certain of the statements made and contained herein and elsewhere constitute forward-looking statements as defined in applicable securities laws. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "expects", "anticipates", "believes", "intends", "estimates", "potential", "possible" and similar expressions, or statements that events, conditions or results "will", "may", "could" or "should" occur or achieved.
Forward looking statements are based on the opinions and estimates of management as of the date such statements are made, and they are subject to a number of known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievement expressed or implied by such forward-looking statements. The Company believes that expectations reflected in this forward-looking information are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking information included herein should not be unduly relied upon. In particular, this release may contain forward looking information pertaining to the following: the estimates of the Company's mineral reserves and resources; estimates of the Company's production and sales volumes for the Karowe Mine; estimated costs for capital expenditures related to the Karowe Mine, start-up, exploration and development plans and objectives, production costs, exploration and development expenditures and reclamation costs; expectation of diamond price and changes to foreign currency exchange rate; expectations regarding the need to raise capital; possible impacts of disputes or litigation and other risks and uncertainties describe under "Risks and Uncertainties" as disclosed in the Company's most recent Annual Information Form.
There can be no assurance that such statements will prove to be accurate, as the Company's results and future events could differ materially from those anticipated in this forward-looking information as a result of those factors discussed in or referred to under the heading "Risk and Uncertainties" in the Company's most recent Annual Information Form available at http://www.sedar.com, as well as changes in general business and economic conditions, changes in interest and foreign currency rates, the supply and demand for, deliveries of and the level and volatility of prices of rough diamonds, costs and availability of power and diesel, acts of foreign governments and the outcome of legal proceedings, inaccurate geological and recoverability assumptions (including with respect to the size, grade and recoverability of mineral reserves and resources), and unanticipated operational difficulties (including failure of plant, equipment or processes to operate in accordance with specifications or expectations, cost escalations, unavailability of materials and equipment, government action or delays in the receipt of government approvals, industrial disturbances or other job actions, adverse weather conditions, and unanticipated events relating to health safety and environmental matters).
Accordingly, readers are cautioned not to place undue reliance on these forward-looking statements which speak only as of the date the statements were made, and the Company does not assume any obligations to update or revise them to reflect new events or circumstances, except as required by law.
Contact
Tanuja Skerlec
Investor & Public Relations
+1 (604) 689-7842
tanujas@lucaradiamond.com
Sweden:
Robert Eriksson
Investor Relations
+46 701-112615
reriksson@rive6.ch
UK:
Louise Mason
Citigate Dewe Rogerson
+44 (0)20 7282 2932
Louise.Mason@Citigatedr.co.uk
