Lucara boosts net income in first quarter on strong diamond market fundamentals
(Kitco News) - Lucara Diamond (TSX: LUC) today reported that in Q1 2022, the company recovered 83,917 carats (Q1 2021: 80,014 carats), achieving a recovered grade of 12.6 carats per hundred tonnes (Q1 2021: 11.9 cpht).
The company said that its revenue in Q1 2022 increased by 28% to $68.2 million from $53.1 million in Q1 2021 on strong rough and polished diamond market fundamentals.
The company's adjusted EBITDA was $36.0 million in Q1 2022, an increase of 62% from $22.2 million for the same period in 2021, attributed primarily to higher revenues.
Importantly, Lucara noted that its net income for the quarter increased to $19.0 million ($0.04 basic earnings per share) from $3.4 million ($0.01 basic earnings per share) in Q1 2021.
"A strong rebound in diamond jewelry demand, combined with growing global natural rough diamond supply constraints, contributed to a healthy recovery in diamond prices in 2021. This price strength continued into the first quarter of 2022 where increases were observed across most sizes, qualities and colors of diamonds," the company said in a statement.
The company added that diamond price impact of sanctions on Russian diamond supply, which accounts for a significant portion of global reserves, cannot be predicted at this time.
Lucara is a leading independent producer of large exceptional quality Type IIa diamonds from its 100% owned Karowe diamond mine in Botswana. The Karowe mine has been in production since 2012 and is the focus of the company's operations and development activities.
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