|By Marketwired .||
|August 13, 2014 08:23 PM EDT||
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 08/14/14 -- (TSX:LUC)(BOTSWANA:LUC)(NASDAQ OMX:LUC) Lucara Diamond Corp. ("Lucara" or the "Company") reports a correction to the first paragraph of the 2014 second quarter news release issued earlier today. The first paragraph stated: "...reported proceeds of $128.6 million for the quarter and an increase in forecast 2014 revenues to between $240-$250 million." It should have stated: "...reported proceeds of $128.6 million for the first half of the year and an increase in forecast 2014 revenues to between $240-$250 million." For clarity, the entire amended release is appended below. No further amendments were made to the balance of the release.
On behalf of the Board,
President and CEO
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Aug. 13, 2014) - (TSX:LUC)(BOTSWANA:LUC)(NASDAQ OMX:LUC) Lucara Diamond Corp. ("Lucara" or the "Company") today reported proceeds of $128.6 million for the first half of the year and an increase in forecast 2014 revenues to between $240-$250 million.
Safety: Karowe had one lost time injury during the quarter, resulting in a Lost Time Injury Frequency Rate ("LTIFR") of 0.15 for the 12 months to June 30.
Cash flows and operating margins: The Company achieved second quarter tender proceeds of $95.0 million ($849 per carat) from sales of 111,902 carats of diamond. This includes proceeds of $24.7 million, which were received after the quarter. Total proceeds for the first half of the year were $128.6 million ($586 per carat) from the sale of 219,370 carats of diamond. Total Company proceeds for the half year of $586 per carat at an operating cost of $124 per carat resulted in a 79% operating margin of $462 per carat.
Following the second quarter the Company concluded its second exceptional stone tender in July for proceeds of $40.1 million, which results in full year to date proceeds of $168.6 million at a sales price of $764 per carat.
Net cash position: The Company's quarter-end cash balance was $82.1 million compared to a net debt position of $29.6 million in the previous year and $49.4 million of cash at the end of 2013. The June cash balance of $82.1 million excludes $24.8 million of cash received after the quarter end.
Karowe operating performance: Karowe's operating performance exceeded plan during the period in terms of ore and waste mined and carats recovered. The Company recovered a record number of 252 special stones (+10.8 carats) during the period with an average size of 27.84 carats.
Adjusted Earnings per share: Adjusted earnings per share is $0.10 per share for the three month period ended June 30, 2014 and $0.13 per share for year to date.
Dividends paid: The Company paid its inaugural semi-annual dividend of 2 cents per share on June 19. The Company is forecast to pay its year-end and special dividend in December. The special dividend will be determined based on revenues generated from the exceptional stone tenders during the year, the Company's financial position and its expected cash requirements in future periods.
Outlook: The Company has increased its revenue forecast by approximately 60% for the year to between $240-$250 million based on year to date sales, current diamond inventory and its forecast production. The Company has maintained its overall cost outlook for the mine of between $31-$33 per tonne ore processed.
William Lamb, President and Chief Executive Officer commented "Lucara had a strong first half of the year and this has continued into the third quarter with our second exceptional stone tender in July, resulting in total year to date proceeds of $169 million, achieving $764 per carat. Following these results and our current diamond inventory we have increased our full year revenue guidance to $240-$250 million while maintaining our original carat production and operating cost guidance due to strong operational delivery at Karowe. To the end of June, the mine sold 54 diamonds larger than 50 carats, including 11 diamonds larger than 100 carats and 30 diamonds selling for more than $1 million. The sustainable recovery of special diamonds has enabled the addition of the third exceptional stones tender which will be held in the fourth quarter."
Three months ended Six months ended June 30 June 30 In millions of U.S. dollars unless otherwise noted 2014 2013 2014 2013 ---------------------------------------------------------------------------- Revenues ((i)) $ 71.0 $ 47.2 $ 103.8 $ 79.7 Average price per carat sold ($/ct) 836 527 540 345 Operating expenses per carat sold ($/ct) 132 102 124 92 Operating margin per carat sold ($/ct) 704 425 416 253 Net income for the period 15.6 22.7 20.7 28.8 Earnings per share (basic and diluted) 0.04 0.06 0.05 0.08 Adjusted earnings per share(1) 0.10 0.06 0.13 0.08 Cash on hand 82.1 28.5 82.1 28.5 ---------------------------------------------------------------------------- ((i))Revenue is presented based on cash receipts received during the period and excludes tender proceeds received after each quarter end. See below. (1) Non-IFRS measure
RESULTS OF OPERATIONS
Karowe Mine, Botswana
---------------------------------------------------------------------------- UNIT YTD-14 Q2-14 Q1-14 Sales Revenues US$m 103.8 71.0 32.8 Proceeds generated from sales tenders conducted in the quarter are comprised of: US$m 128.6 95.0 33.6 Sales proceeds received during the quarter US$m 103.8 71.0 32.8 Q2 2014 tender proceeds received post Q2 2014 US$m 24.8 24.8 - Q1 2014 tender proceeds received post Q1 2014 US$m - (0.8) 0.8 Q3 2013 tender proceeds received post Q3 2013 US$m - - - Q2 2013 tender proceeds received post Q2 2013 US$m - - - Carats sold for proceeds generated during the period Carats 219,370 111,900 107,470 Carats sold for revenues recognized during the period Carats 192,369 84,915 107,454 Average price per carat for proceeds generated during the period US$ 586 849 312 Production Tonnes mined (ore) Tonnes 1,566,770 677,882 888,888 Tonnes mined (waste) Tonnes 5,168,966 3,166,644 2,002,322 Tonnes milled Tonnes 1,345,542 664,812 680,730 Average grade processed cpht ((i)) 15.6 14.9 16.3 Carats recovered Carats 210,179 99,142 111,037 Costs Operating costs per carats sold(1) US$ 124 132 118 Operating costs per tonne processed US$/tonne 17.7 16.8 18.6 Capital expenditures US$m 11.5 9.7 1.9 ---------------------------------------------------------------------------- --------------------------------------------------------------------------- Q4-13 Q3-13 Q2-13 Sales Revenues 58.7 42.1 47.2 Proceeds generated from sales tenders conducted in the quarter are comprised of: 47.8 50.9 49.3 Sales proceeds received during the quarter 58.7 42.1 47.2 Q2 2014 tender proceeds received post Q2 2014 - - - Q1 2014 tender proceeds received post Q1 2014 - - - Q3 2013 tender proceeds received post Q3 2013 (10.9) 10.9 - Q2 2013 tender proceeds received post Q2 2013 - (2.1) 2.1 Carats sold for proceeds generated during the period 110,635 80,918 102,452 Carats sold for revenues recognized during the period 127,804 76,582 89,619 Average price per carat for proceeds generated during the period 433 625 481 Production Tonnes mined (ore) 918,765 898,501 1,157,747 Tonnes mined (waste) 1,694,134 1,430,105 1,259,479 Tonnes milled 613,064 647,304 560,910 Average grade processed 18.9 17.6 15.6 Carats recovered 116,061 113,882 87,580 Costs Operating costs per carats sold(1) 109 110 102 Operating costs per tonne processed 22.7 13.0 16.3 Capital expenditures 1.5 2.4 1.7 --------------------------------------------------------------------------- ((i))carats per hundred tonnes (1) Non-IFRS measure
The Karowe mine performed well during the second quarter of 2014. Tonnes of ore mined exceeded plan during the period. Waste mined for the push back to open up access to the south lobe accelerated during the period, recovering the first quarter deficit and is back on track for the year to date planned volumes.
The process plant performed well during the quarter with mill throughput and carats produced in excess of plan. Carats produced were lower than the prior period due to mining a lower grade area in accordance with the mine plan. A total of 252 special stones (+10.8 carats) were recovered during the quarter at an average size of 27.84 carats. This represents a record quarter both in frequency and average size of specials recovered.
REVIEW OF PROJECTS
Mothae Diamond Project, Lesotho
The Mothae project is located in northeast Lesotho and is a large low grade kimberlite containing a population of large, high value Type IIa diamonds.
The Company is currently reviewing a number of development options for Mothae.
Karowe, Plant Optimization Project
The Plant Optimization progressed well during the period. The Company has spent approximately $8 million and committed a further $27 million of expenditure to date. At the end of the second quarter, project progress was on schedule and within plan. The impact of industrial action within the steel industry in South Africa, who was on strike between July 1 and July 28, is still being assessed. The project is now forecast to be complete during Q2 2015 and is not expected to impact on 2015 production.
Karowe Mine, Botswana
Revenue is forecast between $240-$250 million based on the sale of between 400,000 to 420,000 carats.
Karowe is still forecast to process between 2.2 - 2.4 million tonnes.
Forecast for ore mined remains at between 3.0 - 3.5 million tonnes and waste mined between 10.0 -11.0 million tonnes.
Karowe's operating cash costs (Non-IRFS measures) are expected to remain between $31 - $33 per tonne ore treated.
The Company is forecasting that the plant optimization project will cost up to $55 million, an increase from the $45-$50 million in previous guidance. The additional cost includes the purchase of an additional XRT diamond sorting machine which will be installed early, in the capacity of a large diamond recovery unit. Once the optimization project has been completed, this unit will be used as an audit machine as well as for future development work. The XRT machine may also be used for future new development work. The Company has also included costs to mitigate the impact of industrial action in the steel industry in South Africa, which commenced on July 1 and ended July 28. The Company is forecasting a Q2 2015 completion date for the plant optimization project and this timeline is not expected to affect 2015 production. Sustaining capital expenditures remains at $3.5 million.
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 MD&A may contain forward looking information pertaining to the following: the estimates of the Company's mineral reserve and resources; estimates of the Company's production and sales volumes for the Karowe Mine; estimated costs to construct 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 disclosed in the Company's 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 Factors' in the Company's Annual Information Form dated March 20, 2014 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 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), 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.
604 689 7842
With SaaS use rampant across organizations, how can IT departments track company data and maintain security? More and more departments are commissioning their own solutions and bypassing IT. A cloud environment is amorphous and powerful, allowing you to set up solutions for all of your user needs: document sharing and collaboration, mobile access, e-mail, even industry-specific applications. In his session at 16th Cloud Expo, Shawn Mills, President and a founder of Green House Data, discussed h...
Jul. 31, 2015 04:30 PM EDT Reads: 423
The Software Defined Data Center (SDDC), which enables organizations to seamlessly run in a hybrid cloud model (public + private cloud), is here to stay. IDC estimates that the software-defined networking market will be valued at $3.7 billion by 2016. Security is a key component and benefit of the SDDC, and offers an opportunity to build security 'from the ground up' and weave it into the environment from day one. In his session at 16th Cloud Expo, Reuven Harrison, CTO and Co-Founder of Tufin,...
Jul. 31, 2015 03:00 PM EDT Reads: 493
SYS-CON Events announced today that MobiDev, a software development company, will exhibit at the 17th International Cloud Expo®, which will take place November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software development company with representative offices in Atlanta (US), Sheffield (UK) and Würzburg (Germany); and development centers in Ukraine. Since 2009 it has grown from a small group of passionate engineers and business managers to a full-scale mobi...
Jul. 31, 2015 02:30 PM EDT Reads: 274
There are many considerations when moving applications from on-premise to cloud. It is critical to understand the benefits and also challenges of this migration. A successful migration will result in lower Total Cost of Ownership, yet offer the same or higher level of robustness. In his session at 15th Cloud Expo, Michael Meiner, an Engineering Director at Oracle, Corporation, analyzed a range of cloud offerings (IaaS, PaaS, SaaS) and discussed the benefits/challenges of migrating to each offe...
Jul. 31, 2015 02:30 PM EDT
Chuck Piluso presented a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. Prior to Secure Infrastructure and Services, Mr. Piluso founded North American Telecommunication Corporation, a facilities-based Competitive Local Exchange Carrier licensed by the Public Service Commission in 10 states, serving as the company's chairman and president from 1997 to 2000. Between 1990 and 1997, Mr. Piluso served as chairman & founder of International Te...
Jul. 31, 2015 02:00 PM EDT Reads: 365
Mobile, social, Big Data, and cloud have fundamentally changed the way we live. “Anytime, anywhere” access to data and information is no longer a luxury; it’s a requirement, in both our personal and professional lives. For IT organizations, this means pressure has never been greater to deliver meaningful services to the business and customers.
Jul. 31, 2015 01:45 PM EDT
In a recent research, analyst firm IDC found that the average cost of a critical application failure is $500,000 to $1 million per hour and the average total cost of unplanned application downtime is $1.25 billion to $2.5 billion per year for Fortune 1000 companies. In addition to the findings on the cost of the downtime, the research also highlighted best practices for development, testing, application support, infrastructure, and operations teams.
Jul. 31, 2015 11:45 AM EDT Reads: 119
In their session at 17th Cloud Expo, Hal Schwartz, CEO of Secure Infrastructure & Services (SIAS), and Chuck Paolillo, CTO of Secure Infrastructure & Services (SIAS), provide a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. In his role as CEO of Secure Infrastructure & Services (SIAS), Hal Schwartz provides leadership and direction for the company.
Jul. 31, 2015 11:45 AM EDT Reads: 130
Puppet Labs has announced the next major update to its flagship product: Puppet Enterprise 2015.2. This release includes new features providing DevOps teams with clarity, simplicity and additional management capabilities, including an all-new user interface, an interactive graph for visualizing infrastructure code, a new unified agent and broader infrastructure support.
Jul. 31, 2015 10:00 AM EDT Reads: 146
For IoT to grow as quickly as analyst firms’ project, a lot is going to fall on developers to quickly bring applications to market. But the lack of a standard development platform threatens to slow growth and make application development more time consuming and costly, much like we’ve seen in the mobile space. In his session at @ThingsExpo, Mike Weiner, Product Manager of the Omega DevCloud with KORE Telematics Inc., discussed the evolving requirements for developers as IoT matures and conducte...
Jul. 31, 2015 08:45 AM EDT Reads: 302
Container technology is sending shock waves through the world of cloud computing. Heralded as the 'next big thing,' containers provide software owners a consistent way to package their software and dependencies while infrastructure operators benefit from a standard way to deploy and run them. Containers present new challenges for tracking usage due to their dynamic nature. They can also be deployed to bare metal, virtual machines and various cloud platforms. How do software owners track the usag...
Jul. 31, 2015 08:00 AM EDT Reads: 160
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at @ThingsExpo, James Kirkland, Red Hat's Chief Arch...
Jul. 30, 2015 07:30 PM EDT Reads: 1,401
Providing the needed data for application development and testing is a huge headache for most organizations. The problems are often the same across companies - speed, quality, cost, and control. Provisioning data can take days or weeks, every time a refresh is required. Using dummy data leads to quality problems. Creating physical copies of large data sets and sending them to distributed teams of developers eats up expensive storage and bandwidth resources. And, all of these copies proliferating...
Jul. 30, 2015 06:30 PM EDT Reads: 893
Malicious agents are moving faster than the speed of business. Even more worrisome, most companies are relying on legacy approaches to security that are no longer capable of meeting current threats. In the modern cloud, threat diversity is rapidly expanding, necessitating more sophisticated security protocols than those used in the past or in desktop environments. Yet companies are falling for cloud security myths that were truths at one time but have evolved out of existence.
Jul. 30, 2015 06:00 PM EDT Reads: 1,806
Digital Transformation is the ultimate goal of cloud computing and related initiatives. The phrase is certainly not a precise one, and as subject to hand-waving and distortion as any high-falutin' terminology in the world of information technology. Yet it is an excellent choice of words to describe what enterprise IT—and by extension, organizations in general—should be working to achieve. Digital Transformation means: handling all the data types being found and created in the organizat...
Jul. 30, 2015 05:00 PM EDT Reads: 1,091