Lucara Diamond Corp, under the new leadership of CFO Glenn Kondo effective January 1, anticipates a diamond output ranging between 345,000 and 375,000 carats in 2024, extracted from 3.6 to 4.6 million tonnes of ore. These figures align with the mine’s past operational performance.
The company, operating the Karowe mine in Botswana, recently revised down its 2023 production guidance to a range of 395,000 to 405,000 carats, marking a slight adjustment from the initial estimate of 395,000 to 425,000 carats.
Lucara intends to stockpile a portion of the ore mined in 2024 before ceasing open-pit operations in mid-2025.
The stored material will undergo processing between 2025 and 2027, preceding the mine’s transition to underground operations.
During this transition, the underground development will augment the processing of lower-grade stockpile material, particularly from the South lobe’s upper benches, starting in 2027.
Anticipated operating cash costs for 2024 are estimated to range between $28.50 and $33.50 per tonne, with revenue projected to reach $220 million to $250 million.
The revenue forecast relies on 87% of the recovered carats originating from the higher-value M/PK(S) and EM/PK(S) units within the South Lobe, in line with the mine’s operational plan. The remaining carats will be sourced from the Centre Lobe.
Capital expenditure for the underground expansion, aiming to extend the mine’s life until at least 2040, is forecasted at $100 million in 2024.
This spending will primarily focus on shaft sinking and station development, along with ongoing surface works like constructing the bulk air cooler and installing the cage winder.
Additionally, a budget of $10 million in 2024 is earmarked for sustaining capital and project expenditures. This allocation will target key asset replacement and refurbishment, dewatering activities, and expanding the tailings storage facility, ensuring adherence to the Global Industry Standard on Tailings Management.
