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Diamond industry back on track post-pandemic as Lucara posts strong Q2 results after rare 1,000ct diamond find


Diamond mining company Lucara has reported its optimistic outlook on the industry’s post-pandemic recovery in the wake of a strong Q2 financial performance.

Its net income for Q2 2021 was $6 million (£4.3 million) (up from a net loss of $13.9 million [£10 million] in Q2 2020).

As of 30 June 2021, the company had cash and cash equivalents of $13.7 million, an increase of $8.8 million (£6.4 million)from 31 December 2020, and net debt of $36.6 million (£26.4 million).

Elsewhere, Lucara closed two previously announced financings, generating gross proceeds of C$41.4 million (£24 million) from the sale of 55,157,733 common shares at a price of C$0.75 (£0.43) per share.

Net proceeds from these financings will be used for working capital to support the development and ongoing operation of the Karowe Mine, including the underground expansion.

The company also saw a record production of the recovery of specials, +10.8 carats, in the second quarter, and reported the recovery of the third +1,000ct diamond recovered from the Karowe Mine since 2015, at 1,174.76ct.

Eira Thomas, president and CEO, commented: “We end the second quarter with a stronger, more positive outlook on the diamond market, our business, and our plans for growth.

“With a fully financed underground project now confirmed, we are excited to be ramping up on our expansion plans at Karowe in the second half of the year.

“Sales through Clara also continued strong in Q2, demonstrating a great need for this transformational technology as modernisation of the diamond supply chain continues.

“In respect of mining, Karowe delivered another record quarter in respect of diamonds more than 10.8 carats in size, including 21 diamonds more than 100 carats, 3 diamonds over 300 carats and our third diamond over 1,000 carats.

“This remarkable resource continues to improve the deeper we mine, consistent with the resource model and underpins our rationale for the Karowe underground expansion, extending mine-life out to at least 2040.”


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