TIDM0QUI
RNS Number : 8320D
Lucara Diamond Corp
24 February 2020
PRESS RELEASE
LUCARA ANNOUNCES 2019 ANNUAL RESULTS
VANCOUVER, February 23, 2020 /CNW/ - (LUC - TSX, LUC - BSE, LUC
- Nasdaq Stockholm)
Lucara Diamond Corp. ("Lucara" or the "Company") today reports
its results for the year ended December 31, 2019.
HIGHLIGHTS FOR THE YEARED DECEMBER 31, 2019
-- Total revenues of $192.5 million (2018: $176.2 million) or
$468 per carat (2018: $502 per carat) during fiscal year 2019
(guidance: $170 million to $180 million).
-- Strong operational performance at Karowe, including record
production through the plant in 2019:
o Total tonnes mined of 9.8 million (guidance: 9.5 million to
10.9 million)
o Ore and waste mined were 3.3 million tonnes and 6.5 million
tonnes respectively
o Ore processed totaled 2.8 million tonnes (guidance: 2.5
million to 2.8 million tonnes)
o 433,060 total carats recovered, including 29,990 carats
recovered from previously milled material (guidance: 400,000 to
425,000 carats)
-- 2019 was another strong year for the recovery of Specials
(single diamonds in excess of 10.8 carats) from direct milling ore
with 786 stones totaling 24,424 carats recovered, including 31
diamonds in excess of 100 carats, of which 2 stones were in excess
of 300 carats including the historic 1,758ct SewelĂ´ diamond.
Specials were also recovered in treatment of historic, pre-XRT
recovery tailings, including a 375 carat stone in Q3 2019. No
further treatment of historic recovery tailings is expected.
-- Operating cash costs for the year ended December 31, 2019
were $31.88 per tonne processed (2018: $39.92 per tonne processed)
compared to the full year forecast cash cost of $32-$37 per tonne
processed (*Non-IFRS measure). Operating cash cost per tonne
processed was positively impacted by a combination of higher tonnes
processed and lower overall tonnes mined as planned in 2019
following the completion of a waste stripping campaign in 2018.
Cost optimization initiatives and favorable foreign exchange
contributed to the lower operating cash cost per tonne compared to
guidance. Operating cash costs for 2020 are expected to continue to
trend between $32-$36 per tonne processed.
-- Clara completed its first year of operations with a total of
15 sales, 27 customers and volume transacted of $8.4 million.
Development activities were completed under budget at $0.4 million
in 2019. Clara is poised to achieve significant growth in 2020 with
the addition of further customers and third-party production.
-- Adjusted EBITDA for the year ended December 31, 2019 was
$73.1 million as compared to adjusted EBITDA for the same period in
2018 of $60.5 million, an increase of 21% (*Non-IFRS measure).
-- Net income for the year ended December 31, 2019 was $12.7
million ($0.03 per share) as compared to net income of $1.7 million
($0.03 per share) in 2018.
-- As at December 31, 2019, the Company had cash and cash
equivalents of $11.2 million and no debt. In 2019, the Company
invested $29.0 million in the business, primarily towards the
completion of an underground feasibility study, and, improvements
to plant and equipment to maximize carat recoveries. The Company's
$50 million credit facility was available for use as at December
31, 2019.
-- During the first three quarters of 2019, the Company paid a
CA$0.025 quarterly dividend, returning $22.4 million (CA$0.075 per
share) to shareholders in 2019 (2018: $30.3 million or CA$0.10 per
share). Since inception in June 2014, the Company has paid
dividends of $271 million (CA$349 million).
Eira Thomas, President & CEO commented: "Our strong
operating results for 2019 reflect Lucara's continued focus on
safe, reliable operations which has delivered increased
productivity at lower costs and provides a solid foundation to
support our next stage of growth - an underground expansion at
Karowe which has the potential extend our mine life to 2040, add
net cash flow of $1.22 billion and gross revenues of $5.25 billion.
Our second business, Clara, continues to deliver solid results and
is on track to steadily grow third party supply to the platform
over the course of the coming year. In 2019 Lucara also continued
to explore ways and means to maximize the value it receives for its
diamonds. Our ground-breaking agreement with Louis Vuitton in
January 2020 is another example of how we are delivering on this
commitment. Through this agreement, we will demonstrate that
greater collaboration within the supply chain can unlock value and
increase transparency from mine to consumer."
CHANGE IN DIVID POLICY
In November 2019, the Company announced the results of a
positive feasibility study for development of an underground mine
at its 100% owned Karowe Diamond Mine. Concurrently with the
announcement of the feasibility study, Lucara's Board of Directors
determined that it would be in the best interest of the Company and
its shareholders to suspend the quarterly dividend payment of
C$0.025 per share, effective as of Q4 2019. The feasibility study
demonstrated the potential to extend the mine life at Karowe to
2040 while generating significant economic benefits for the
Company, its shareholders, employees, the communities surrounding
the mine and the country of Botswana. In anticipation of a decision
to proceed with construction of an underground mine at Karowe
during 2020, the Board of Directors decided to re-direct the
Company's available cash to the early works of the underground
including detailed engineering, procurement initiatives and project
financing. These activities will be funded from operating cash-flow
in 2020, under a Board approved budget of up to $53 million.
KAROWE DIAMOND SALES
Diamonds are heterogeneous by nature, with thousands of
different price points depending on weight, colour, shape, and
quality. Diamond production from Karowe is characterised by a
coarse diamond size frequency distribution and is positively
impacted by the regular recovery of diamonds in excess of 10.8
carats in size, referred to as "Specials." Karowe production is
further distinguished by the consistent recovery of high value, gem
quality Specials.
Specials are reported by total stone count and as a percentage
of the total production. In 2019, a total of 786 stones were
recovered representing 6.1 weight percent of total carats recovered
from direct milling ore, consistent with the resource model for
Karowe. Overall processing in 2019 had contributions from the
North, Centre and both the EM/PK(S) and M/PK(S), distinct units
within the South lobe. The proportion of carats from the lower
value and less coarse North and Centre lobes was approximately 20%,
the highest contribution since 2016.
In 2019, a total of 30 individual diamonds were sold for a value
of > $1 million including 11 diamonds > $2 million of which 2
diamonds sold for > $5 million each. Sales of individual stones
at prices between $2 million and $5 million were consistent with
previous years. Achieved prices in 2019 for high value single
diamonds were impacted by significant price erosion in high colour
(D) 10 carat and 20 carat polished.
Certain stones from the Karowe production and other aggregated
diamonds were offered for sale through the Clara platform during
2019. As 2020 progresses, a greater proportion of certain sales
parcels from Karowe will move to the Clara platform, rather than
being sold through the quarterly tender process.
FINANCIAL HIGHLIGHTS
Three months ended Year ended
December 31 December 31
In millions of U.S. dollars, 2019 2018 2019 2018
except carats or otherwise
noted
-------------------------------- --------- ---------- -------- --------
Revenues $ 56.0 $ 40.6 $ 192.5 $ 176.2
Net income (loss) for the
period 8.7 (6.2) 12.7 11.7
Earnings (loss) per share
(basic and diluted) 0.02 (0.02) 0.03 0.03
Operating cash flow per share* 0.05 0.02 0.15 0.14
Cash on hand 11.2 24.4 11.2 24.4
Average price per carat sold
($/carat)* 568 367 468 502
Operating expenses per carat
sold ($/carat)* 209 233 189 216
Operating margin per carat
sold ($/carat)* 359 134 279 286
Carats sold 98,547 110,553 411,732 350,798
-------------------------------- --------- ---------- -------- --------
(*) Operating cash flow per share, average price per carat sold,
operating expenses per carat sold and operating margin per carat
sold are Non-IFRS measures.
The Company achieved revenues of $56.0 million or $568 per carat
for its sales in the fourth quarter, yielding a strong operating
margin of 63% during the period. During the fourth quarter of 2019,
stabilization in rough pricing was observed across all size
classes. The general improvement in pricing as compared to earlier
in the year, combined with a higher value blend of ore to the
process plant resulted in revenue for the quarter and for the year
ending December 31, 2019 being achieved above expectations. The
increase in average price per carat sold, along with a 10% decrease
in operating expenses per carat sold, resulted in an operating
margin of 63% in Q4 2019; this represents a significant improvement
from the 36% operating margin achieved in Q4 2018.
Operating expenses decreased approximately 20% from $25.8
million in Q4 2018 to $20.6 million in Q4 2019, mostly due to a
decrease in the average cost per tonne mined. Operating expenses in
Q4 2018 included additional one-time costs following the transition
between mining contractors during the third quarter of 2018.
Adjusted EBITDA increased from $4.7 million in Q4 2018 to $22.8
million in Q4 2019. The significant quarter-to-quarter increase
resulted from the combination of a $13.9 million increase in net
revenue and a $5.2 million decrease in operating expenses
(*Non-IFRS measure).
Adjusted EBITDA (*Non-IFRS measure), earnings per share and the
Company's ending cash position were as expected and reflect the
overall performance of the Company's sales tenders.
QUARTERLY RESULTS OF OPERATIONS - KAROWE MINE, BOTSWANA
UNIT Q4-19 Q3-19 Q2-19 Q1-19 Q4-18
Sales
Revenues generated
from sales tenders
conducted in the
quarter US$M 56.0 45.3 42.5 48.7 40.6
Carats sold for
revenues recognized
during the period Carats 98,547 116,200 101,931 95,057 110,553
Average price per
carat for proceeds
received during
the period US$ 568 390 417 512 367
Production
Tonnes mined (ore) Tonnes 694,591 823,875 773,861 1,011,048 563,279
Tonnes mined (waste) Tonnes 740,593 1,489,668 1,826,972 2,485,548 2,743,586
Tonnes processed Tonnes 647,502 680,665 713,037 763,313 602,376
cpht
Average grade processed (*) 13.3(1) 13.9(2) 14.2(3) 15.9(4) 13.6(5)
Carats recovered Carats 86,422(1) 104,990(2) 109,312(3) 132,336(4) 81,850(5)
Costs
Operating costs
per carats sold
(see Non-IFRS measures) US$ 209 201 174 169 233
Capital expenditures US$M 13.0 0.7 1.4 2.4 6.5
-------------------------- -------- ---------- ----------- ----------- ----------- ----------
(*) carats per hundred tonnes (1) Carats recovered during the period
included 273 carats recovered from re-processing historic recovery
tailings from previous milling and are excluded from the average
grade processed. (2) Carats recovered during the period included
10,646 carats recovered from re-processing historic recovery tailings
from previous milling and are excluded from the average grade processed.
(3) Carats recovered during the period included 8,172 carats recovered
from re-processing historic recovery tailings from previous milling
and are excluded from the average grade processed. (4) Carats recovered
during the period included 10,899 carats recovered from re-processing
historic recovery tailings from previous milling and are excluded
from the average grade processed. (5) Carats recovered during the
period included 1,505 carats recovered from re-processing historic
recovery tailings from previous milling and are excluded from the
average grade processed.
FOURTH QUARTER OVERVIEW - KAROWE MINE
Safety : Karowe had one lost time injury during the three months
ended December 31, 2019, resulting in a twelve-month rolling Lost
Time Injuries Frequency Rate ("LTIFR") of 0.78.
Production : Ore and waste mined during the fourth quarter of
2019 totaled 0.7 million tonnes and 0.7 million tonnes
respectively. Tonnage processed was on target at 0.6 million
tonnes, with a total of 86,422 carats recovered. Ore processed was
predominantly from the South Lobe. During Q4, a total of 177
Specials (single diamonds larger than 10.8 carats) were recovered
including seven diamonds greater than 100 carats in weight and two
diamonds greater than 200 carats. Recovered Specials equated to
6.1% weight percentage of total recovered carats during the year,
the third year to achieve greater than 6% weight percentage of
total recovered carats, in line with expectations.
A record 2.8 million tonnes of ore were processed during 2019,
at the top end of 2019 guidance of 2.5 to 2.8 million tonnes. A
total of 3.3 million tonnes of ore was mined for the year,
surpassing the original guidance of 2.5 - 2.8 million tonnes and
meeting revised guidance of 3.0 - 3.4 million tonnes. Following the
transition to a new mining contractor in mid-2018, productivity
improved considerably and continued through 2019. Beginning in the
fourth quarter of 2018, Trollope Mining Services Pty ("Trollope")
was responsible for all waste and ore mining.
Karowe's operating cash cost : Karowe's full year 2019 operating
cash cost (*Non-IFRS measure) was $31.88 per tonne processed (2018:
$39.92 per tonne processed) compared to the full year forecast of
$32-37 per tonne processed. The decrease in cost per tonne
processed compared to the prior year comparable periods reflects a
7% increase in total tonnes processed, a favourable exchange rate
and cost optimization of the operations offsetting an increase in
the cost per tonne mined following the transition to a new mining
contractor in mid-2018.
Labour relations : In April 2019, the Botswana Mine Workers
Union and Lucara Botswana entered into a Memorandum of Agreement
which governs the working relationship between the two parties. In
May 2019, the parties successfully negotiated and signed a Salaries
and Conditions of Service Agreement which covers the terms and
conditions of employment, including wages, to March 31, 2021. In
Botswana, a majority of currently operating mines are
unionized.
KAROWE UNDERGROUND UPDATE
In 2018, the Company embarked on a technical program to support
a feasibility level study for a potential underground operation at
the Karowe Diamond Mine. This program included the completion of an
updated mineral resource, geotechnical drilling of the country rock
and AK06 kimberlite, hydrogeological drilling and modelling, and
mining trade off studies to address risks and issues identified
during the PEA. A total of $21.0 million was spent in 2018 in
support of this work, which resulted in significant de-risking of
the key technical components associated with the potential
underground development.
During 2019, $13.4 million ($14.8 million - 2019 budget) was
spent on the completion of a geotechnical drilling program,
geotechnical and geological logging, downhole geophysical survey,
hyperspectral analysis of core, geotechnical modeling,
hydrogeological drilling and studies, mine planning, engineering,
and activities related to dewatering associated with underground
preparations.
On November 4, 2019, the Company announced the results of a
Feasibility Study ("FS") for an underground mine at Karowe. A copy
of the Company's news release and the related technical report
prepared pursuant to the requirements of NI 43-101 - Standards of
Disclosure for Mineral Projects ("NI 43-101") were filed on Sedar (
www.sedar.com ) and are available on the Company's website at:
www.lucaradiamond.com .
Key findings of the FS include:
-- The FS outlines the potential to double the mine life from
the original mine design of 2010 and add net cash flow of $1.22
billion and gross revenue of $5.25 billion.
-- Updated resource confirms increasing value with depth.
Indicated resource from the base of the current open pit to the 250
metres above sea level elevation is 35 million tonnes at a grade of
15 cpht for a contained diamond resource of 5.1 million carats.
-- Long hole shrinkage underground bulk mining method was
selected, providing early access to higher value ore and allows for
a short pay-back period of 2.8 years and operating costs of $28.43
per tonne processed.
-- On the basis of a construction start in mid-2020, ore from
underground mining will seamlessly integrate into current
operations providing mill feed starting in 2023 with a ramp up to
2.7Mtpa to the processing plant by 2026, and the opportunity to
increase throughput after 2029. Current production rates will be
maintained through the underground ramp up period.
-- The underground is designed to access the South Lobe
kimberlite resource below the current planned bottom of the open
pit (which is expected to be at approximately 700 meters above sea
level ("masl")), to a depth of 310 masl. Access to the South Lobe
underground will be via two vertical shafts (production and
ventilation) of approximately 765 and 715 meters deep
respectively.
-- Identified key risk areas of hydrogeology, geotechnical
constraints of the kimberlite and host rocks have been addressed
through an intensive set of work programs, data collection,
analysis, and modelling.
Next steps: Following completion of the FS during the 4th
quarter of 2019, the focus of work shifted to project execution,
including detailed engineering and design work. In the first half
of 2020, the Company will continue to focus on detailed engineering
and design work and early procurement initiatives under a
Board-approved capital program of up to $53 million, to be funded
from operating cash flow. The Company will also be reviewing
financing options, with a specific focus on the availability of
debt to finance the capital costs for the underground development
which exceed the Company's cash flow from operations. An update to
the market will be provided as progress is made.
CLARA
Following an inaugural diamond sale in December 2018 on the
Clara platform, Lucara's 100% owned digital sales platform, the
focus in 2019 was to increase the frequency of diamond sales and
the number of customers regularly purchasing through the platform.
As of December 31, 2019, the customer base had increased to 27
participants, with total sales volumes of $8.4 million from 15
sales on the platform, predominately from the sale of Karowe goods.
Further growth is expected through 2020 as more supply is made
available through the platform, balanced with demand from the
customer base. Third-party supply will complement the diamonds from
Karowe which are sold through the platform and will support
increased transaction volumes through 2020. Between December 2018
and February 2020, Clara's customer base grew to 32 and total sales
volumes of approximately $11.0 million had been transacted from 19
sales on the platform.
2020 OUTLOOK
This section of the press release provides management's
production and cost estimates for 2020. These are "forward-looking
statements" and subject to the cautionary note regarding the risks
associated with forward-looking statements. No changes have been
made to our 2020 outlook previously provided.
Karowe Diamond Mine Full Year - 2020
In millions of U.S. dollars unless otherwise noted
------------------------------------------------------ -----------------
Diamond revenue (millions) $180 to $210
Diamond sales (thousands of carats) 350 to 390
Diamonds recovered (thousands of carats) 370 to 410
Ore tonnes mined (millions) 3.5 to 3.9
Waste tonnes mined (millions) 3.6 to 4.2
Ore tonnes processed (millions) 2.5 to 2.8
Total operating cash costs(1) including waste $32.00 to $36.00
mined(2) (per tonne processed)
Botswana general & administrative expenses including $3.00 to $4.00
marketing costs (per tonne processed)
Tax rate 22%
Average exchange rate - USD/Pula 10.5
------------------------------------------------------ -----------------
(1) Operating cash costs are a non-IFRS measure.
(2) Includes ore and waste mined cash costs of $4.40 to $4.90
(per tonne mined) and processing cash costs of $11.50 to $12.50
(per tonne processed).
In 2020, the Company forecasts revenues between $180 million and
$210 million, as the proportion of carats recovered from the higher
grade M/PK(S) and EM/PK(S) units increases. Diamond price
assumptions are considered to be consistent with 2019. The Company
expects to recover 350,000 to 390,000 carats from the processing of
2.5 to 2.8 million tonnes of ore. Diamonds sold are expected to be
between 350,000 carats and 390,000 carats.
Following the completion of a significant waste stripping
campaign between 2017 and early 2019, total tonnes mined in 2020
are expected to be between 7.1 million and 8.1 million tonnes, of
which the Company expects to mine between 3.5 million to 3.9
million tonnes of ore and between 3.6 and 4.2 million tonnes of
waste. The average strip ratio is expected to be approximately 1.0
in 2020.
The 2020 estimated cash cost per tonne of ore processed is
expected to be between $32.00 and $36.00. The cost per tonne mined
is expected to be between $4.40 and $4.90 and the estimated
processing cost per tonne processed is expected to be between
$11.50 and $12.50, a reflection of optimization work and strong
operating performance in the plant.
A budget of up to $53 million has been approved for early works
related to a proposed underground mine at Karowe. An investment
decision, subject to receipt of all required authorizations and the
arrangement of financing, is expected in H2 2020. Following the
positive results of a feasibility study announced on November 4,
2019 and based on the Company's ability to fund these initial
capital expenditures from operating cash flow, a program of early
works, including detailed engineering and design work has been
approved to mitigate key risks related to schedule.
Lucara Botswana's progressive tax rate computation allows for
the immediate deduction of operating costs, including capital
expenditures, in the year in which they are incurred. Based on 2020
revenue guidance of $180 million to $210 million the expected tax
rate is 22% for 2020 but could decrease depending on the amount and
timing of capital expenditures during the year.
Sustaining capital and project expenditures are expected to be
up to $25.0 million in 2020, including expenditures associated with
slimes dam wall raising (a multi-year project), upgrades to the XRT
recovery circuit and a provision for the implementation of body
scanning technology (to enhance security) which had originally been
planned for 2019, subject to receipt of regulatory approval.
CONFERENCE CALL
The Company will host a conference call and webcast to discuss
the results on Monday, February 24, 2020, at 6:00 a.m. Pacific,
9:00 a.m. Eastern, 2:00 p.m. UK, 3:00 p.m. CET.
CONFERENCE CALL:
Please call in 10 minutes before the conference call starts and
stay on the line (an operator will be available to assist you).
Conference ID:
29977628/ Lucara Diamond
Dial-In Numbers:
Toll-Free Participant Dial-In North
America (+1) 888 390 0605
All International Participant Dial-In (+1) 778 383 7417
Webcast:
To view the live webcast presentation, please log on using this
direct link:
https://event.on24.com/wcc/r/2189968/E31B8773C3D82E2976CB79C1ED68E0D1
The presentation slideshow will also be available in PDF format
for download from the Lucara website www.lucaradiamond.com shortly
before the conference call.
Conference Replay:
A replay of the telephone conference will be available two hours
after the completion of the call until March 2,
2020. The pass code for the replay is: 977628 #
Replay number (Toll Free North America) (+1) 888 390 0541
Replay number (International) (+1) 416 764 8677
On behalf of the Board,
Eira Thomas
President and Chief Executive Officer
Follow Lucara Diamond on Facebook, Twitter, Instagram, and
LinkedIn
For further information, please contact:
North America Christine Warner, Investor Relations & Communications
+1 604 689-7842 | info@lucaradiamond.com
Sweden Robert Eriksson, Investor Relations & Public
Relations
+46 701 112615 | reriksson@rive6.ch
UK Public Relations Emily Moss / Jos Simson, Tavistock
+447788554035 | lucara@tavistock.co.uk
ABOUT LUCARA
Lucara is a leading independent producer of large exceptional
quality Type IIa diamonds from its 100% owned Karowe Mine in
Botswana and owns a 100% interest in Clara Diamond Solutions, a
secure, digital sales platform positioned to modernize the existing
diamond supply chain and ensure diamond provenance from mine to
finger. The Company has an experienced board and management team
with extensive diamond development and operations expertise. The
Company operates transparently and in accordance with international
best practices in the areas of sustainability, health and safety,
environment and community relations.
ABOUT CLARA
Clara Diamond Solutions Limited Partnership (Clara), wholly
owned by Lucara Diamond Corp, is a secure, digital sales platform
that uses proprietary analytics together with cloud and blockchain
technologies to modernize the existing diamond supply chain,
driving efficiencies, unlocking value and ensuring diamond
provenance from mine to finger.
The information in this release is accurate at the time of
distribution but may be superseded or qualified by subsequent news
releases.
The information is information that Lucara is obliged to make
public pursuant to the EU Market Abuse Regulation and the Swedish
Securities Markets Act. This information was submitted for
publication, through the agency of the contact person set out
above, on February 23, 2020, at 8:00 pm Pacific Time.
NON-IFRS MEASURES
This news release refers to certain financial measures, such as
operating cash flow per share, adjusted EBITDA, average price per
carat sold, operating cost per carat sold, operating margin per
carat sold and operating cost per tonne of ore processed which are
not measures recognized under IFRS and do not have a standardized
meaning prescribed by IFRS. These measures may differ from those
made by other corporations and accordingly may not be comparable to
such measures as reported by other corporations. These measures
have been derived from the Company's financial statements, and
applied on a consistent basis, because the Company believes they
are of assistance in the understanding of the results of operations
and financial position. Please refer to the Company's MD&A for
the fourth quarter, 2019 for an explanation of non-IFRS measures
used.
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 be 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 accurate and such
forward-looking information included herein should not be unduly
relied upon.
In particular, this release may contain forward looking
information pertaining to the following: estimates of the Company's
cash flows from operations and what impact that cash-flow could
have to the Company's ability to achieve its five-year plan; the
use of capital for early works related to a possible underground
mine development and that those early works could mitigate key
schedule risks; the timing for an investment decision and the
conditions to development of an underground mine, which may include
but which are not limited to: the receipt of all required
authorizations and the arrangement of financing; the schedule of
development of the underground, the production profile at Karowe
and anticipated changes in diamond pricing, including trends in
supplies and demands and the potential for stability in the diamond
market and diamond pricing; the likelihood and impact of completing
an underground expansion at Karowe to the mine-life and total
revenue generated; changes to foreign currency exchange rates; the
timing and ability of management to further commercialize the Clara
digital sales platform, the impact of adding third-party production
to the platform and the timing for that activity to occur,
management's expectations regarding the frequency of sales, the
number of participants at each sale and the impact those items
could have on the growth and success of the platform and other
forward looking information.
There can be no assurance that such forward looking 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 "Risks and Uncertainties"' in
the Company's most recent Annual Information Form 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), and 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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
FR GBGDDIUDDGGS
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