Lucara Diamond Corp. has reported its first quarter 2013 results which showed it increased its EBITDA for the period to $29.0 million as compared to a loss of $6.2 million in the second quarter of 2012. The company attributed this change to cash operating earnings of $33.3 million earned from Karowe and decreased exploration and other mining costs at Mothae.
During the period, the company completed its first large and exceptional stone tender along with two regular tenders from Karowe mine, which achieved gross proceeds of $49.3 million. Full year to date proceeds are $81.8 million. The average value of run-of-mine diamonds recovered and sold during the quarter was $485 per carat.
The Mothae project, however, remained on temporary care and maintenance during the quarter and the company is currently reviewing a number of development options for the mine.
“Lucara had an exceptional first six months of the year with sales proceeds in excess of $80 million and over 230 thousand carats sold,” Lucara’s President and CEO, William Lamb said.
“Following the first large and exceptional stone sale, the Karowe mine has continued to produce a high proportion of large stones and a second exceptional stone sale will be held in September featuring 16 diamonds, including a pink stone and five stones which are over 100 carats each. The proceeds from this sale are expected to further strengthen the Company’s overall cash position,” added.
Lucara said cash on hand as at June 30, 2013 was $28.5 million. The company’s $25 million Scotiabank credit facility is currently undrawn. It said the principal balance of a $50 million debenture was reduced to $33.3 million ($50.0 million at December 31, 2012) with the quarterly $8.3 million payments being made as scheduled at the end of the first and second quarter 2013.
During the quarter, Lucara appointed Paul Day as Chief Operating Officer of the company based in Gaborone effective April 15, 2013. Day is a mining engineer with over 22 years of operational experience in the sub-Saharan mining industry. During this time he has been responsible for managing large scale open pit and underground mines as well as being involved in greenfield mine start ups and project development.
On the safety front, Lucara said there was one Lost Time Injury and no reportable environmental incidents at Karowe during the quarter. Karowe’s Lost Time Injuries Frequency Rate was 0.67 for the quarter and is 0.36 for the year. LTIFR is defined as the total number of work hours lost per 200,000 work hours.
