Lucara Increases First Quarter Net Profit on Strong Diamond Market Fundamentals


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(Kitco News) – Lucara Diamond (TSX: LUC) today announced that in the first quarter of 2022, the company recovered 83,917 carats (Q1 2021: 80,014 carats), reaching a recovered grade of 12.6 carats per hundred tonnes (Q1 2021: 11.9 cpht).

The company said revenue in the first quarter of 2022 rose 28% to $68.2 million from $53.1 million in the first quarter of 2021, driven by strong fundamentals in the rough and polished diamond market.

The company’s adjusted EBITDA was $36.0 million in the first quarter of 2022, an increase of 62% compared to $22.2 million for the same period in 2021, mainly attributable to higher revenues.

Importantly, Lucara noted that its net income for the quarter increased to $19.0 million ($0.04 basic earnings per share) from $3.4 million ($0.01 basic earnings per share) in the first quarter of 2021.

“A strong rebound in demand for diamond jewelry, combined with growing global supply constraints for natural rough diamonds, contributed to a healthy recovery in diamond prices in 2021. This price strength continued into the first quarter. 2022, where increases were seen in most diamond sizes, grades and colors,” the company said in a statement.

The company added that the impact of the diamond price sanctions on Russia’s diamond supply, which accounts for a significant portion of the world’s reserves, cannot be predicted at this time.

Lucara is a leading independent producer of large, exceptional quality Type IIa diamonds from its 100% owned Karowe Diamond Mine in Botswana. The Karowe mine has been in production since 2012 and is the center of the company’s mining and development activities.

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