LUCARA Diamond Corporation forecast diamond revenue of between $185m and $215m for its 2022 financial year excluding high value diamonds that its Karowe diamond mine in Botswana is known for producing.
This would be on the back of expected production and sales of between 300,000 to 340,000 carats for the year. Projected revenue for this year – still with a quarter to report – was put at $180m to $220m.
Karowe has yielded some of the world’s most spectacular diamonds. Since 2014, 19 diamonds in excess of 300 carats have been recovered, including two larger than 1,000 carats: 1,758-carat ‘Sewelô’ in 2019, and 1,109-carat ‘Lesedi La Rona’, recovered in 2015.
“The business environment for diamonds and diamond jewellery is the healthiest we’ve seen in several years, spurred on by an improvement in global supply and demand fundamentals, a trend which is expected to continue,” said Eira Thomas, CEO of Lucara Diamond in an update.
The total operating cash cost per ton of diamond ore processed will be $29.50 to $33.50 for next year, the company said.
Lucara expects the tax rate to be 0% in the 2022 as it spends about $110m of the $534m underground extension of Karowe during the 12 month period. Botswana’s tax laws allow for operating costs and capital expenditure to be deducted the year they are incurred. Lucara spent about $64m on the expansion up to the end of the third quarter. The expansion will keep the 10-year old Karowe operating until 2040 with the open pit mine planned for mining to 2026.