Welcome!

News Feed Item

Correction to Lucara Half Year Results

VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 08/13/14 -- (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
@DevOpsSummit at Cloud Expo taking place Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center, Santa Clara, CA, is co-located with the 21st International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is ...
SYS-CON Events announced today that Golden Gate University will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Since 1901, non-profit Golden Gate University (GGU) has been helping adults achieve their professional goals by providing high quality, practice-based undergraduate and graduate educational programs in law, taxation, business and related professions. Many of its courses are taug...
Historically, some banking activities such as trading have been relying heavily on analytics and cutting edge algorithmic tools. The coming of age of powerful data analytics solutions combined with the development of intelligent algorithms have created new opportunities for financial institutions. In his session at 20th Cloud Expo, Sebastien Meunier, Head of Digital for North America at Chappuis Halder & Co., discussed how these tools can be leveraged to develop a lasting competitive advantage ...
DevOps at Cloud Expo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to w...
An increasing number of companies are creating products that combine data with analytical capabilities. Running interactive queries on Big Data requires complex architectures to store and query data effectively, typically involving data streams, an choosing efficient file format/database and multiple independent systems that are tied together through custom-engineered pipelines. In his session at @BigDataExpo at @ThingsExpo, Tomer Levi, a senior software engineer at Intel’s Advanced Analytics ...
SYS-CON Events announced today that DXWorldExpo has been named “Global Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Digital Transformation is the key issue driving the global enterprise IT business. Digital Transformation is most prominent among Global 2000 enterprises and government institutions.
21st International Cloud Expo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Me...
When shopping for a new data processing platform for IoT solutions, many development teams want to be able to test-drive options before making a choice. Yet when evaluating an IoT solution, it’s simply not feasible to do so at scale with physical devices. Building a sensor simulator is the next best choice; however, generating a realistic simulation at very high TPS with ease of configurability is a formidable challenge. When dealing with multiple application or transport protocols, you would be...
In his session at 20th Cloud Expo, Scott Davis, CTO of Embotics, discussed how automation can provide the dynamic management required to cost-effectively deliver microservices and container solutions at scale. He also discussed how flexible automation is the key to effectively bridging and seamlessly coordinating both IT and developer needs for component orchestration across disparate clouds – an increasingly important requirement at today’s multi-cloud enterprise.
Docker containers have brought great opportunities to shorten the deployment process through continuous integration and the delivery of applications and microservices. This applies equally to enterprise data centers as well as the cloud. In his session at 20th Cloud Expo, Jari Kolehmainen, founder and CTO of Kontena, discussed solutions and benefits of a deeply integrated deployment pipeline using technologies such as container management platforms, Docker containers, and the drone.io Cl tool. H...
Any startup has to have a clear go –to-market strategy from the beginning. Similarly, any data science project has to have a go to production strategy from its first days, so it could go beyond proof-of-concept. Machine learning and artificial intelligence in production would result in hundreds of training pipelines and machine learning models that are continuously revised by teams of data scientists and seamlessly connected with web applications for tenants and users.
Given the popularity of the containers, further investment in the telco/cable industry is needed to transition existing VM-based solutions to containerized cloud native deployments. The networking architecture of the solution isolates the network traffic into different network planes (e.g., management, control, and media). This naturally makes support for multiple interfaces in container orchestration engines an indispensable requirement.
In his session at 20th Cloud Expo, Chris Carter, CEO of Approyo, discussed the basic set up and solution for an SAP solution in the cloud and what it means to the viability of your company. Chris Carter is CEO of Approyo. He works with business around the globe, to assist them in their journey to the usage of Big Data in the forms of Hadoop (Cloudera and Hortonwork's) and SAP HANA. At Approyo, we support firms who are looking for knowledge to grow through current business process, where even 1%...
WebRTC is great technology to build your own communication tools. It will be even more exciting experience it with advanced devices, such as a 360 Camera, 360 microphone, and a depth sensor camera. In his session at @ThingsExpo, Masashi Ganeko, a manager at INFOCOM Corporation, will introduce two experimental projects from his team and what they learned from them. "Shotoku Tamago" uses the robot audition software HARK to track speakers in 360 video of a remote party. "Virtual Teleport" uses a...
yperConvergence came to market with the objective of being simple, flexible and to help drive down operating expenses. It reduced the footprint by bundling the compute/storage/network into one box. This brought a new set of challenges as the HyperConverged vendors are very focused on their own proprietary building blocks. If you want to scale in a certain way, let’s say you identified a need for more storage and want to add a device that is not sold by the HyperConverged vendor, forget about it....