Wednesday, October 20, 2021

Karowe Mine registers increased revenue

Lucara, a diamond producing company, announced that its flagship asset in Botswana being Karowe mine has turned up a record turnover since the start of production in 2012. 

The accumulated sales exceeding P1 billion was recorded at the close of the fourth regular Tender of 2016, according to the company. “Total revenue for the year end, inclusive of the Constellation Diamond sale, is estimated to be $295 million at an average of $823 per carat. Revenue excluding the sale of the Constellation Diamond is estimated at $232 million at an average of $649 per carat,” says Lucara. The Karowe Mine, to date, is said to have yielded 1.8 million carats generating revenue of $1.02 billion at an average price of $566 per carat. 

The constellation, a 813 carat diamond, gained fame following its unearthing in the Karowe mine for fetching US$63 million in sale beating the five year record of the 507 carat white stone that was discovered at Cullinan mine in South Africa which was sold at  US$35.3 million. The white stone had prior to constellation recorded the highest price for a jewel and was sold to a Hong Kong based private retailer, Chow Tai Fook Jewellery. Lucara sold the constellation to a Dubai based company Nemesis International DMC. The deal was such that 10 percent interest in the net profit received from the sale of the resultant polished diamonds of The Constellation was to be kept by Lucara while the 90 percent was to be kept by Nemesis International DMCC. 

William Lamb, President and CEO of Lucara is quoted as saying, Achieving sales of $1 billion is a significant milestone for the Company and is a recognition of our strong client base and the quality of diamonds recovered from the Karowe mine. Such a milestone could only have been achieved with the dedication of our employees, who have demonstrated a great commitment to working safely on site as exemplified by the Karowe mine surpassing 5,000,000 Lost Time Injury Free hours. We are pleased that our final sale of the year has shown strong demand for our larger higher quality diamonds and also a sustainable demand for the smaller size diamonds.” 

Had Lucara also sold Lesedi La Rona, a gem it discovered in November 2015 which comes second to the world’s largest diamond turned up by Cullinan over a century ago the sales figure would have rocketed. Lesedi La Rona was expected to fetch upwards of $70 million.

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