Lucara Reports Q2 Revenue Increase
August 13, 24(IDEX Online) - Lucara saw revenue increase by 7 per cent during Q2, despite challenging market conditions.
Almost three quarters of rough diamond sales, by value, were made through its on-off-on again partnership with HB Antwerp.
Vancouver-based Lucara reported total revenue of $41.3m in the three months to 30 June, up from $38.6m in Q2 last year. It sold from the sale of 76,387 carats, a 5 per cent increase year-on-year.
HB Antwerp, which sells all +10.8-cts stones from the Karowe mine, in Botswana, accounted for $29.5m of all Lucara sales, up from $25.8m last year.
Lucara suddenly canceled its 10-year sales agreement with HB last September, only to reinstate it again in February.
Quarterly tenders and the Clara online platform account for the remaining $11.8m of Lucara sales.
Lucara said in its Q2 Results that the long-term outlook for natural diamond prices remains positive. It said long-term price reductions from big mines were improving supply and demand dynamics.
The market for the smaller size stones remains soft, it said, impacted by a weak Asian market and lab growns, but demand for +10.8 carats remains robust.
William Lamb, Lucara's president and CEO, said: "Our Karowe mine's consistent delivery of large, high-quality diamonds provides a natural hedge against market volatility.
"These exceptional stones, coupled with our innovative sales strategies, allow us to navigate current market conditions effectively."
Pic courtesy Lucara shows Karowe mine, Botswana.