TSX-listed Lucara Diamond Corp. has reported results for the quarter ended September 30, 2024 and its shaft sinking progress.
Q3 2024 HIGHLIGHTS
- Recoveries of two exceptional diamonds larger than 1,000 carats, including the epic 2,488-carat diamond and the 1,094-carat diamond.
- A total of 116,221 carats of diamonds were sold, generating revenue of $44.3 million in Q3, 2024.
- Karowe registered no lost time injuries during the three months ended September 30, 2024. As of September 30, 2024, the mine had operated over three years without a lost time injury.
- Significant progress was made in shaft sinking and lateral development connecting the production and ventilation shafts, with the critical path ventilation shaft being ahead of the July 2023 rebase schedule. At the end of Q3, the production shaft had reached a depth of 686 metres and the ventilation shaft a depth of 582 metres below surface (mbs).
- A total of 104,390 carats were recovered in Q3, 2024, including 96,597 carats from direct ore feed from the pit and stockpiles, at a recovered grade of 13.4 carats per hundred tonnes (cpht) and an additional 7,793 carats recovered from processing of historic recovery tailings.
- A total of 244 Specials (defined as rough diamonds larger than 10.8 carats) were recovered during the quarter, with 12 diamonds greater than 100 carats, including three stones greater than 300 carats. The recovery of 244 Specials equated to 11.28% by weight of the total recovered carats from ore processed in Q3, 2024. This weight percentage of Specials exceeded the Company’s expectation and was heavily influenced by the recovery of the 2,488 carat and 1,094-carat stones.
- Operational highlights from the Karowe Mine included:
o Ore and waste mined of 0.8 million tonnes (Q3, 2023: 0.9 mt) and 0.2 mt (Q3, 2023: 1.0 mt), respectively.
- Financial highlights for Q3, 2024 included:
o Operating margins of 48% were achieved (Q3, 2023: 63%). Lower operating margins resulted from the decrease in revenue realized for the quarter.
o Operating cost per tonne processed was $27.34, a decrease of 5% compared to Q3, 2023 cost per tonne processed of $28.84. The continued impact of inflationary pressures, particularly labour, has been well managed by the operation. A strong U.S. dollar continues to offset a small increase in costs over the comparable period.
- During Q3, 2024, the Company invested $24.1 million into the Karowe Underground Project (UGP), excluding capitalized cash borrowing costs:
o During Q3, 2024, the ventilation shaft completed 169 metres of lateral development and 28 metres of sinking advance.
o Production shaft activities included sinking a total of 130 metres, and completion of 3 water probe hole covers.
William Lamb CEO commented:
“The third quarter of 2024, again, proved to be transformative for Lucara, marked by two extraordinary discoveries that underscore our preeminent position in the exceptional stone segment of the diamond industry. The recovery of an unprecedented 2,488-carat diamond, followed by the discovery of a remarkable 1,094-carat stone, not only demonstrates the exceptional quality of our Karowe asset but also validates our technical expertise and innovative mining approaches. These historic recoveries reflect the culmination of our unwavering commitment to operational excellence and our industry-leading safety standards. Our open pit operations continue to deliver consistent results, while the underground expansion project has achieved significant milestones, particularly in shaft sinking activities during the quarter. This progress is testament to our team's technical proficiency and dedication to executing complex mining projects.
Looking ahead, Lucara's strategic positioning in the diamond sector remains robust. The ongoing development of the Karowe underground project represents a pivotal investment in our future, designed to extend mine life and maintain our exceptional stone production profile. As we progress through this transformative period, we remain focused on executing our strategic objectives while maintaining our position as an industry leader in the recovery and marketing of exceptional diamonds. The recent discoveries reinforce our confidence in Karowe's potential and our ability to deliver long-term value to our shareholders.”
