Welcome!

News Feed Item

Correction to Lucara Half Year Results

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,

William Lamb

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.

HIGHLIGHTS

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."

FINANCIAL HIGHLIGHTS


                                    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.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
The IoT has the potential to create a renaissance of manufacturing in the US and elsewhere. In his session at 18th Cloud Expo, Florent Solt, CTO and chief architect of Netvibes, will discuss how the expected exponential increase in the amount of data that will be processed, transported, stored, and accessed means there will be a huge demand for smart technologies to deliver it. Florent Solt is the CTO and chief architect of Netvibes. Prior to joining Netvibes in 2007, he co-founded Rift Technol...
If there is anything we have learned by now, is that every business paves their own unique path for releasing software- every pipeline, implementation and practices are a bit different, and DevOps comes in all shapes and sizes. Software delivery practices are often comprised of set of several complementing (or even competing) methodologies – such as leveraging Agile, DevOps and even a mix of ITIL, to create the combination that’s most suitable for your organization and that maximize your busines...
Struggling to keep up with increasing application demand? Learn how Platform as a Service (PaaS) can streamline application development processes and make resource management easy.
New Relic, Inc. has announced a set of new features across the New Relic Software Analytics Cloud that offer IT operations teams increased visibility, and the ability to diagnose and resolve performance problems quickly. The new features further IT operations teams’ ability to leverage data and analytics, as well as drive collaboration and a common, shared understanding between teams. Software teams are under pressure to resolve performance issues quickly and improve availability, as the comple...
The proper isolation of resources is essential for multi-tenant environments. The traditional approach to isolate resources is, however, rather heavyweight. In his session at 18th Cloud Expo, Igor Drobiazko, co-founder of elastic.io, will draw upon their own experience with operating a Docker container-based infrastructure on a large scale and present a lightweight solution for resource isolation using microservices. He will also discuss the implementation of microservices in data and applicat...
See storage differently! Storage performance problems have only gotten worse and harder to solve as applications have become largely virtualized and moved to a cloud-based infrastructure. Storage performance in a virtualized environment is not just about IOPS, it is about how well that potential performance is guaranteed to individual VMs for these apps as the number of VMs keep going up real time. In his session at 18th Cloud Expo, Dhiraj Sehgal, in product and marketing at Tintri, will discu...
Join IBM June 8 at 18th Cloud Expo at the Javits Center in New York City, NY, and learn how to innovate like a startup and scale for the enterprise. You need to deliver quality applications faster and cheaper, attract and retain customers with an engaging experience across devices, and seamlessly integrate your enterprise systems. And you can't take 12 months to do it.
Machine Learning helps make complex systems more efficient. By applying advanced Machine Learning techniques such as Cognitive Fingerprinting, wind project operators can utilize these tools to learn from collected data, detect regular patterns, and optimize their own operations. In his session at 18th Cloud Expo, Stuart Gillen, Director of Business Development at SparkCognition, will discuss how research has demonstrated the value of Machine Learning in delivering next generation analytics to im...
This is not a small hotel event. It is also not a big vendor party where politicians and entertainers are more important than real content. This is Cloud Expo, the world's longest-running conference and exhibition focused on Cloud Computing and all that it entails. If you want serious presentations and valuable insight about Cloud Computing for three straight days, then register now for Cloud Expo.
As you respond to increasing requests for new analytics, you need fast and flexible technology in your arsenal so that you can deploy the right workload to the right platform for the need at hand. Do you need self-service and fast time to value? Do you have data and application control and privacy needs, along with strict SLAs to meet? IBM dashDB™ is data warehouse technology powered by in-memory computing and in-database analytics that are designed for fast results, scalability and more.
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
So, you bought into the current machine learning craze and went on to collect millions/billions of records from this promising new data source. Now, what do you do with them? Too often, the abundance of data quickly turns into an abundance of problems. How do you extract that "magic essence" from your data without falling into the common pitfalls? In her session at @ThingsExpo, Natalia Ponomareva, Software Engineer at Google, will provide tips on how to be successful in large scale machine lear...
Up until last year, enterprises that were looking into cloud services usually undertook a long-term pilot with one of the large cloud providers, running test and dev workloads in the cloud. With cloud’s transition to mainstream adoption in 2015, and with enterprises migrating more and more workloads into the cloud and in between public and private environments, the single-provider approach must be revisited. In his session at 18th Cloud Expo, Yoav Mor, multi-cloud solution evangelist at Cloudy...
IoT device adoption is growing at staggering rates, and with it comes opportunity for developers to meet consumer demand for an ever more connected world. Wireless communication is the key part of the encompassing components of any IoT device. Wireless connectivity enhances the device utility at the expense of ease of use and deployment challenges. Since connectivity is fundamental for IoT device development, engineers must understand how to overcome the hurdles inherent in incorporating multipl...