Lucara Diamond Corp. has provided operating performance and capital expenditure guidance for 2015 saying it expects revenue of $230 to $240 million from the sale of 400,000 to 420,000 carats of diamonds in the coming year.
The company said operating cash costs for Botswana based Karowe mine will be between $33-$36 per tonne treated while mining is forecast at 2.5-2.8 million tonnes of kimberlite.
It revealed waste mining is scheduled to be approximately 12.0-12.5 million tonnes and it is forecasting to process between 2.3-2.5 million tonnes through the plant. Lucara also stated that the building and commissioning of Karowe’s plant optimisation project is forecast to be complete during the second quarter of 2015 for a total cost of $55 million of which $40 million is forecast to be spent in 2014.
On the other hand, it also expects to spend $7.0-$8.0 million on exploration work, to be conducted on its two prospecting licenses awarded in 2014, but Sustaining capital expenditure is forecast between $7.5-$8.5 million including a one time expenditure to purchase mill relining equipment for an expenditure of $5 million of which $3 million is to be spent in 2015.
President and Chief Executive Officer of Lucara, William Lamb said had a successful year in 2014, generating strong cash flows through the achievement of its production targets at lower than forecast operating costs and from significant revenues generated from the sale of its large and exceptional diamonds during the year.
“Following the completion of the plant optimization project, Karowe will focus extensively on processing material from the South Lobe. It will be an exciting second half of 2015 based on the South Lobe diamonds, which have historically achieved stronger diamond valuations at our tenders and have contained a high population of specials (+10.8 carats),” Lamb noted.
“The Company is forecasting to build on its strong cash balance to position itself for growth opportunities at Karowe while continuing to return income to our shareholders in 2015 in line with our current dividend policy”.
