Lucara Diamond Reports Second Quarter Results
(firmenpresse) - VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 08/10/12 -- Lucara Diamond Corp. (TSX: LUC)(BOTSWANA: LUC)(NASDAQ OMX First North: LUC) ("Lucara" or the "Company") today reports its second quarter 2012 results.
William Lamb, President and Chief Executive Officer, commented, "The first half saw Lucara transition from development stage to a producing diamond mining company. We are pleased with the pace of development at Karowe as well as the quality of diamonds being produced. Diamonds recovered during this year were sold in two sales earning proceeds in excess of $12 million. While the diamond markets are challenging for all producers, we are focussed on sustainable levels of production, cost control and diamond quality. We continue to believe that the medium to long term fundamentals of the diamond sector remain strong with demand outpacing supply, resulting in future price improvement."
Exploration Expenditure
The exploration expenditures for the past two years relate primarily to the on-going trial mining program, which commenced in May 2010 at Mothae, offset in part by the value of diamonds recovered and sold, based on management's best estimate at the time of recovery. The difference between the carrying value and the subsequent proceeds from the sale of diamonds is treated as a gain or loss as it is a change in market conditions during the period. The Company has completed two diamond sales to date in March and December 2011.
Net Loss
Net loss for the three months ended June 30, 2012 was $7.6 million reflecting increased administration expenses and foreign exchange losses during the period.
Liquidity and Cash Resources
As at June 30, 2012, the Company had cash and cash equivalents of $7.7 million and a working capital deficit of $(19.8) million, as compared to cash and cash equivalents of $48.6 million and a working capital surplus of $29.0 million at December 31, 2011.
Cash used in operating activities for the six months ended June 30, 2012 was $18.4 million, and consists mainly of the net loss of $11.8 million adjusted for the impact of non-cash items and changes in non-cash working capital items which include cash used for the recovery of rough diamond inventories of $8.3 million.
Net cash from financing activities for the six months ended June 30, 2012 was $2.1 million which resulted from the exercise of stock options.
Net cash used in investing activities for the six months ended June 30, 2012 was $24.1 million for expenditures primarily related to the development of the Karowe Mine.
In April the Company signed a definitive agreement with the Bank of Nova Scotia for a $25 million revolving term credit facility with a maturity date of March 26, 2014, which may be extended if both parties agree. As of the date of this MD&A, the Company has not drawn from this facility.
The facility contains financial and non-financial covenants customary for a facility of this size and nature. The applicable interest rate of any loan under the facility will be determined by the Company's leverage ratio at any given time. The Company will provide security on the two year facility by way of a charge over the Company's Karowe assets and a guarantee by the Company's subsidiaries, which hold the Karowe assets.
The Company intends to use the facility to meet periodic working capital requirements.
FUTURE PLANS AND OUTLOOK
Karowe
Due to the water consumption and water supply constraints while the mine extracts and treats weathered ore, the Company expects to achieve approximately 85% of design capacity through the remainder of 2012.
The Company held its second sale of diamonds on July 16. There are four further sales planned in 2012. The sales in September and October will include viewings in Antwerp as well as Gaborone.
Mothae Diamonds
The Company intends to continue with its trial mining program and project evaluation through to the end of the third quarter of 2012.
Resource modeling based on the recently completed drill program is ongoing and expected to be completed in the third quarter of 2012. Detailed ore dressing studies are underway and are also expected to be completed in the fourth quarter.
The results of the resource modeling and ore dressing studies will be integrated into the ongoing preliminary economic assessment of the Mothae project which is expected to be completed in the fourth quarter of 2012.
The Company expects ongoing diamond recoveries during the trial mining phase. A sale of Mothae diamonds is scheduled for September 2012.
About Lucara
Lucara is a well positioned emerging new diamond producer. The Company has an experienced board and management team with years of diamond development expertise. The Company's two key assets are the Karowe diamond mine in Botswana and the Mothae diamond mine in Lesotho. The 100% owned Karowe Mine is in the construction stage with mine commissioning scheduled to commence in the first quarter of 2012. The 75% owned Mothae mine is currently in the trial mining stage. Both Mothae and Karowe are large scale assets with tonnage and throughput upside; diamond values from both could significantly increase with the continued recovery of Type IIA and large stones.
On Behalf of the Board,
William Lamb, President and CEO
Lucara's Certified Advisor on NASDAQ OMX First North is Pareto Ohman AB.
Contacts:
Lucara Diamond Corp.
Sophia Shane
Corporate Development
+1 (604) 689-7842
+1 (604) 689-4250 (FAX)
Lucara Diamond Corp.
Robert Eriksson
Investor Relations, Sweden
+46 701-112615
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Datum: 10.08.2012 - 20:46 Uhr
Sprache: Deutsch
News-ID 173732
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Town:
VANCOUVER, BRITISH COLUMBIA
Kategorie:
Mining & Metals
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