Lucara Diamond Corp. reported full year revenues of $224 million for the year and cash of $134.5 million. All figures are in U.S. dollars except for the dividend.
HIGHLIGHTS:
• The recovery of the Lesedi La Rona in November 2015, the first diamond over 1,000 carats to be recovered in more than 100 years and the largest ever from a Botswana operation.
• The Company is very pleased to be provided with the opportunity to soon showcase the historic Lesedi La Rona to the President of Botswana and his cabinet.
Financial:
• EBITDA for the period year was $134 million (2014: $173.4 million), with an EBITDA margin of 60%. Return on equity was 30%.
• Net cash position $134.5 million (2014: $100.8 million).
• Year to date costs at $29 per tonne ore processed were well controlled and were below forecast.
• Plant optimization, bulk sample plant project and sustaining capital costs were all within forecast.
• Full year earnings per share were $0.21 per share (2014: $0.13 per share).
• 2015 year end diamond inventory includes over 60,000 carats. The Company's first exceptional stone tender is closing on April 13, 2016, which excludes the three large stones recovered and announced in November 2015.
Operational: Karowe Mine
• Recovery of the Lesedi La Rona (1,109 carats) and the 813 carat stone. The largest and second largest gem quality diamonds ever to be recovered in Botswana.
• The recovery of these stones demonstrates the capabilities of a newly implemented large diamond XRT recovery circuit, a key deliverable of the plant optimization project.
• Mining of ore was in line with forecast and waste stripping to open the pit at depth was ahead of schedule.
• Exceptional recovery of large stones with a total of 47 stones greater than 100 carats (2014: 31 stones) including 20 stones greater than 200 carats (2014: 4 stones) of which seven stones were greater than 300 carats.
Exploration:
• Sampling progressed well with kimberlite processed from BK02. The BK02 diamond results will be released once processing of the sample is complete, which is expected to be during the first half of 2016.
• Bulk sampling activities at AK12 will commence in the first quarter of 2016 and will be followed by trenching at AK11 during Q2 2016.
William Lamb, President and Chief Executive Officer, commented, "2015 was a year of strong operational delivery with the timely completion of our plant optimization project and large diamond recovery, culminating in the recovery of the second and sixth largest gem quality diamonds ever to be unearthed. Our continued focus on cost control and our disciplined deployment of capital has resulted in the Company achieving a 30% return on equity and with our strong cash generation has enabled the introduction of a progressive dividend for our shareholders going forward.
"In 2016 we are focused on completing the installation of our Mega Diamond Recovery circuit as well as organic growth at Karowe through our deep drilling and exploration programs in Botswana.
"The diamond market experienced some weakening in 2015 and we retain a cautious outlook on diamond prices for 2016. We believe the long term fundamentals for the diamond market remain strong and with the outstanding quality of our Karowe production, which will be increasingly from the high value south lobe, Lucara is in an excellent position for continued financial growth and we remain committed to achieving strong returns for our shareholders."
