Lucara Diamond revenue guidance at lower end following mixed Q3

Lucara Diamond revenue guidance at lower end following mixed Q3

Diamond exploration and mining company Lucara Diamond Corp (TSE: LUC) posted a mixed set of results during Q3, and subsequently revised its revenue outlook towards the lower end of its full-year guidance.

During Q3, the Company accrued $45.3 million of revenue, down marginally from $45.7 million year-on-year. Further, Lucara Diamond Corp’s year-to-date EBITDA was also down to $50.2 million, from $55.7 million on-year.

However, the Group sold 14% more carats during the quarter, from 101,600 to 116,200 carats. Also, the Company’s revenues for the first three quarters stood at $136.5 million, up from $135.6 million, due to three tenders and sales through its Clara platform. Its cash flow during the third quarter also stood at $13.8 million, jumping from $3.7 million a year earlier.

The Company paid a quarterly dividend of CA$0.025 per share. It said that it had made a change in its revenue guidance, down to between $170 to $180 million.

Elsewhere in mining, MC Mining (LON: MCM) was granted a coal mining right in South Africa, KEFI Minerals PLC (LON: KEFI) said it was still waiting for a go-ahead at the Tulu Kapi Gold project and Panther Metals Plc (NEX: PALM) secured a lucrative exploration licence.

Lucara Diamonds comments

Eira Thomas, President and CEO stated,

“Lucara continues to deliver solid results and strong margins on the back of strong operational performance at Karowe in Q3.  With operating margins at Karowe approaching 60%, and no long-term debt, Lucara is well positioned to continue to weather the difficult diamond pricing environment that has prevailed since the beginning of the year. Moreover, this continued strong performance combined with the encouraging results reported in our recently completed feasibility study (see news release “Lucara Announces Positive Feasibility Study For Karowe Underground”), provides a compelling rationale for investing in an underground expansion at Karowe, potentially adding 13+ years of mine life and generating an after-tax NPV (@5%) of US$718 million and in excess of US$5.0 billion in gross revenue.  Our latest special stone recoveries, which include a 9.7 carat blue diamond, a 4.1 carat pink diamond, a top white 123 carat diamond and most recently, a top white 106 carat diamond continue to bode well for our final sale of the year, and we remain on track to meet or exceed our guidance in every respect.  We continue to see positive progress with Clara, reaching $6 million of total value transacted on the platform since sales began in December 2018.”

Investor notes

The Company’s shares stand at 1.06 CAD per share 04/11/19 15:59. Their market cap is 420.67 million CAD, their dividend yield is inviting at 9.43%.