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Lucara Diamonds loses sparkle as Q3 net income slumps

By BFN News | 08:50 AM | Friday 09 November, 2018

Lucara Diamonds upgraded its 2018 guidance for tonnes of ore mined and carats recovered but lowered its outlook on revenues after reporting Friday a slump in net income on weaker sales in the third quarter of the year. 'Despite the increase in carats recovered, revenue is expected to be in the range of $180 - $190 million,' the company said. That was down from guidance of $170-to-$200m previously. The company increased its 2018 forecast for ore mined to 2.9-to-3.1m tonnes from 2.5-to- 2.8m tonnes previously and its forecast for diamonds recovered and sold, to 325,000-to- 350,000 carats from 270,000-to-290,000 carats previously. For the three months to September 30, revenues fell to $45.7m from $77.9m a year earlier, and net income fell to $5.4m from $32.9m a year earlier. The company blamed the slump in revenues on 'natural variability' in the number and quality of exceptional diamonds recovered during the quarter. 'Third quarter operational performance at Karowe exceeded expectations with respect to ore mined and carats produced, and reflects a seamless transition, three months ahead of schedule, to our new mining contractor, Trollope Mining Services. In parallel, we saw higher asset availability and record utilization rates for the process plant, positively impacting carat recoveries,' said Eira Thomas, President and CEO. Story provided by

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