Sunday, August 12, 2012
Lucara Diamond Extends 2Q Loss to $8M
Lucara Diamond Corp extended its losses in the second quarter of 2012 and lowered its sales outlook for the rest of the year. The junior mining company reported a loss of $7.6 million for the period, compared to a loss of $5.9 million a year earlier.
Lucara generated gross revenue of $12.1 million from two sales of production from its Karowe mine in Botswana. Approximately 66,181 carats of diamonds were sold over the two auctions at an average price of $182 per carat. However, management explained that it withheld goods in both auctions, mainly in the high color, high quality categories, due to the recent softening of the diamond market.
The company stated that it expects to sell 230,000 carats of diamonds in 2012, lowering its previous guidance of 300,000 carats, due to insufficient water supply to the plant at Karowe, which was commissioned in April. Lucara is planning four additional sales of Karowe production during 2012. The company has also scheduled a September sale of diamonds from its Mothae diamond project in Lesotho, where trial mining is underway.
For the first six months of 2012, Lucara posted a net loss of $11.8 million, compared to a net loss of $7.8 million in the same period a year earlier.