November 24, 2017

Botswana diamond miner defying odds through rare stone sales

Lucara Diamonds, which is a subsidiary of the London-domiciled Lundin Group of Companies, is defying market trends in the diamond sector by focusing on large good quality stones which generate premium prices.

So far, the large stone count from Lucara’s Karowe mine in Botswana’s Orapa/Letlhakane district – its only current producing asset – is generating very high revenues, according to Biz News.

The newswire reports that, in an interview, Lucara President and CEO, William Lamb, last week in London, admitted that the performance of Karowe’s AK6 kimberlite pipe had exceeded expectations. Lamb said he had not expected the high levels of premium quality stones it had subsequently found.

Noteworthy, revenue from 1% of stones which fall into the exceptional category – either by size or colour – have been far higher and have been accounting for around 50% of the company’s revenues.

Lucara is one of the only diamond mining companies outside De Beers which pays dividends to its shareholders. The company is quoted on the TSX, Nasdaq Stockholm and the Botswana Stock Exchange under the symbol LUC.

Notably, revenues from 1% of stones which fall into the exceptional category – either by size or colour – have been far higher and have been accounting for around 50% of the company’s revenues.

Related posts

Leave a Reply

Your email address will not be published. Required fields are marked *

Time limit is exhausted. Please reload the CAPTCHA.