Proactiveinvestors USA & Canada Lucara Diamond Corp https://www.proactiveinvestors.com Proactiveinvestors USA & Canada Lucara Diamond Corp RSS feed en Mon, 27 May 2019 04:23:01 -0400 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[News - Lucara’s new Clara platform could revolutionise the way diamond miners take their product to market ]]> https://www.proactiveinvestors.com/companies/news/194735/lucaras-new-clara-platform-could-revolutionise-the-way-diamond-miners-take-their-product-to-market-194735.html It’s called Clara, and it’s a technological tool that could open up the diamond industry to new efficiencies and greater profits. Still at a relatively early stage, Clara has just been acquired by Lucara Diamond Corp (TSE:LUC), the established mid-tier producer chaired by Lukas Lundin and now headed up by Eira Thomas, two names to conjure with in terms of success and innovation in the resources industry.

Lucara itself already has something of a track record of innovation in the manner in which it goes about diamond mining, having pioneered the use of XRT and autogenous milling at its Karowe mine in Botswana.

WATCH: Lucara's blockchain platform Clara will modernise rough diamond market, says its new chief executive

This mine has underpinned Lucara for some years now, yielding several exceptional stones and likely to produce between 270,000 and 290,000 carats in total this year.

But it’s in the quest for expansion that Lucara has turned to the Clara platform. The company remains on the lookout for high quality diamond projects, but in the meantime, reckons that there is a place for Clara as a disrupter and a driver of efficiencies as far as sales to cutters and polishers go.

“Fundamentally the diamond industry hasn’t changed its approach since the start of the digital age,” says Eira Thomas.

“With Clara we have the opportunity to use technology to change the value proposition. And this isn’t just about driving efficiencies for the producers. It’s also about the manufacturers.”

The proposition itself is simple enough. The Clara platform aims to match up a willing buyer to a willing seller for each individual stone. If that sounds obvious enough, consider that in diamonds, sales are hardly ever transacted in this manner, with the notable exception of the very large stones.

Instead what normally happens is that parcels of stones are put out to tender, and buyers have to accept a certain amount of goods that don’t meet their specific requirements in order to secure the stones that do.

With Clara, that way of operating will be done away with, at least as far as stones in the one-to-15 carat range are concerned.

This range, says Thomas, represents a big part of the value chain, although it may not necessarily be a correspondingly large part of the carats produced by the industry overall. There are still the smaller stones, and of course the very large stones of the type Karowe throws up now and again.

But it’s in the middle of the range where the stones are of a good enough quality to be matched with the specific requirements of a buyer that Clara finds its niche.

READ: Lucara turns to blockchain with Clara acquisition

How does it work? That would be telling. But what Thomas will say is that it uses a combination of “proprietary analytics, cloud and blockchain technologies.”

She should know, because as well as settling in to her new role as chief executive of Lucara, she doubles up as one of the founders of Clara. And close followers of the diamond industry will know that her pedigree as a pioneer and investor stretches a long way further back than that, in particular as chief executive of Stornoway Diamonds and as vice-president of Aber.

She knows this industry, and how to meet its needs, and accordingly she has a clear enough idea of how to make Clara work.

“Lucara is going to commercialise it using Karowe diamonds, and then we’ll be inviting other producers onto the platform and targeting manufacturers and integrated jewellers.”

But will it catch on? Because of the old fashioned way the industry is currently set up, there is a good chance that it will.

“All diamonds are unique,” says Thomas.

“All have individual price points. But how do you price them? The prevailing wisdom is to sell them in batches. But the challenge for the manufacturers is that the stones in the batches won’t all be fitting their requirements. So they then have to go into the secondary market to sell unwanted goods on.” And of course, there is value loss in each transaction.

With Clara, the whole process will be turned on its head.

“Manufacturers will upload their polished orders,” explains Thomas. “Producers will upload the individual parameters. Clara will then match the optimal rough to the polished output. This allows manufacturers to buy in real time and means that they are no longer tied to a sales cycle.”

The model from the Lucara standpoint is that to the extent that there’s a spread between the bid and the offer, Clara will take its cut out of that.

Longer term outlook for Lucara

An in-built assurance of diamond provenance will provide an extra level of security, and blockchain technology will be used to enable delivery, with physical delivery to use distribution channels that already exist in the industry.

It all looks like a no-brainer from the Lucara perspective. To get Clara up and running will require a minimum amount of capital, and not much maintenance. Compared to the 1,200 or so people employed by Karowe, it’s not labour intensive at all.

So, with Clara set up to provide interest and growth in the near-term, what does the longer term outlook hold for Lucara.

Well, the open pit mine life at Karowe is set to run out at least to 2026, with plans in place to move underground for an additional ten years when the time comes. So the revenue streams that investors have been enjoying for a good while now are all set to continue.

Thomas says that shareholders, including Lukas Lundin, are very tied to the dividend, so that’s likely to stay in place too.

Outgoing chief executive William Lamb was very alive to this dynamic as he ran Lucara successfully through some of the toughest times the industry has seen in recent years.

“Our focus was always on margin,” he says. “The margin is what allows us to pay dividends and put capital into projects. The focus is on margin, not on carats.”

It was this single-minded approach that’s allowed Lucara to be debt-free since 2013.

“We’ve paid back more in dividends than the total capital invested in the mine to date,” agrees Thomas, who as one of the founders of Lucara has been on the board since the outset.

“Karowe is a cash generating machine. 35% of the current market capitalisation has been given back to shareholders.”

It’s this dynamic value creation that provides the room for Lucara to manoeuvre and to innovate with new ideas like Clara. But it’s also the willingness to innovate that underpins the ongoing value creation.

For now, Lucara has created a virtuous circle in the diamond mining business, and under the new leadership of Thomas, that looks all set to continue.

 

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Wed, 11 Apr 2018 11:31:00 -0400 https://www.proactiveinvestors.com/companies/news/194735/lucaras-new-clara-platform-could-revolutionise-the-way-diamond-miners-take-their-product-to-market-194735.html
<![CDATA[Media files - Lucara's blockchain platform Clara will modernise rough diamond market, says its new chief executive ]]> https://www.proactiveinvestors.com/companies/stocktube/8929/lucara-s-blockchain-platform-clara-will-modernise-rough-diamond-market-says-its-new-chief-executive-8929.html Thu, 22 Mar 2018 15:28:00 -0400 https://www.proactiveinvestors.com/companies/stocktube/8929/lucara-s-blockchain-platform-clara-will-modernise-rough-diamond-market-says-its-new-chief-executive-8929.html <![CDATA[News - Lucara turns to blockchain with Clara acquisition ]]> https://www.proactiveinvestors.com/companies/news/192193/lucara-turns-to-blockchain-with-clara-acquisition-192193.html Lucara Diamonds Corp (TSE:LUC) has turned to blockchain technology as a potential solution to improve transparency in the diamond market.

It has struck a deal to buy blockchain start-up Clara Diamond Solutions Corp in return for US$29mln of Lucara shares.

Clara is described as “a commercially scalable, digital platform” which allows rough diamond production to be matched with specific polished manufacturing demand, while the blockchain elements of the system will ensure “provenance tracking” across the entire supply chain.

“Lucara intends to commercialise the Clara platform in the coming months using a selection of the diamond production from the company’s Karowe diamond mine,” the company said in a statement.

Separately, Lucara announced that Eira Thomas would be appointed as its new chief executive.

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Mon, 26 Feb 2018 09:02:00 -0500 https://www.proactiveinvestors.com/companies/news/192193/lucara-turns-to-blockchain-with-clara-acquisition-192193.html
<![CDATA[News - Lucara to pay shareholders C$172mln special dividend ]]> https://www.proactiveinvestors.com/companies/news/128435/lucara-to-pay-shareholders-c172mln-special-dividend-128435.html Buoyed by strong financial results thanks to production from its diamond mine in Botswana, Canadian-based Lucara Diamonds Corp (TSE:LUC) will pay out C$172mln via a special dividend of C$0.45 per share. The company’s Board of Directors has approved the dividend payment, which substantially adds to Lucara’s progressive 2016 quarterly dividend of C$0.015 per share.

A total dividend of $0.465 per share will be paid out to shareholders who have a record of the company’s common shares at the close of business on September 2. Those shareholders will get paid on September 15.

“Lucara is rewarding its shareholders with a significant special dividend which is unprecedented in the industry,” said William Lamb, President and chief executive officer (CEO) of Lucara. The CEO explained the dividend was happening after the company generated strong financial returns. He called their Karowe mine in Botswana a “premier diamond deposit” that is producing high-quality stones, spurring a healthy cash balance for the company.

“Following this dividend payment, we will continue to maintain a strong balance sheet and continue to seek value accretive opportunities, which includes advancing our exploration and drilling program to increase the company’s resources,” Lamb added.

The Karowe mine is Lucara’s main producing asset, but the company is seeking out additional opportunities. Lucara is also exploring other sites and holds two previous stone prospecting licenses nearby the Karowe mine. Earlier this year, Lucara made history with the highest price ever obtained for the sale of a rough diamond, for a spectacular-sized precious stone recovered from the Karowe mine.

Botswana is a major participant in global diamond production, second only to Russia in its output. The region is generally considered to be a mining-friendly environment, thanks to relatively low levels of corruption and other related risk-factors. 

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Wed, 20 Jul 2016 18:26:00 -0400 https://www.proactiveinvestors.com/companies/news/128435/lucara-to-pay-shareholders-c172mln-special-dividend-128435.html
<![CDATA[Media files - You haven't heard the last of the Lesedi la Rona, says Lucara chief ]]> https://www.proactiveinvestors.com/companies/stocktube/5234/you-haven-t-heard-the-last-of-the-lesedi-la-rona-says-lucara-chief-5234.html Tue, 05 Jul 2016 12:05:00 -0400 https://www.proactiveinvestors.com/companies/stocktube/5234/you-haven-t-heard-the-last-of-the-lesedi-la-rona-says-lucara-chief-5234.html <![CDATA[News - Lucara Diamond auction may not have sparkled, but it created options, says CEO ]]> https://www.proactiveinvestors.com/companies/news/127845/lucara-diamond-auction-may-not-have-sparkled-but-it-created-options-says-ceo-127845.html It was the diamond auction that failed to sparkle. The 1,109-carat, uncut Lesedi la Rona may not have reached its reserve price at Sotheby's in London on Wednesday, even after bids for the tennis ball-sized stone topped US$61mln, but in one respect at least, the event was a soaraway success.

As part of the warm-up to the main event, Lucara Diamonds Corp (TSE:LUC), owner of the monster rock, put up for sale three smaller examples from its mine in Botswana to raise money for a local charity.

Chief executive William Lamb, who was seated at the front of the packed room, hoped the trio of lesser gems would bring in perhaps US$45,000-$50,000 for the Lady Khama Charitable Trust, set up by Ruth Khama, the wife of Botswana's very first first president.

Instead, the process raised a total of US$250,000 as Lucara matched the auction proceeds and Sotheby's chipped in its commission.

However Botswana would have profited far more had Lesedi la Rona (translation from the Tswana language 'our light') surpassed its reserve.

For more than 55% of top-line revenue for the stone would have funnelled back into the country in taxes and royalty payments.

In fact, the industry is the driving force behind Africa's sixth most affluent economy.

Lucara's Lamb was reasonably chipper in the aftermath of the auction when he came in to see us here at Proactive.

The process, he said, was about finding a buyer outside the trade who might keep the second largest diamond ever discovered intact. (The biggest was the Cullinan diamond, which weighed in at over 3,000 carats).

The Sotheby's auction was also about stimulating new sources of demand for the output from one of the world's most prolific producer of high-quality larger stones - the Karowe mine.

Indeed there has been plenty of interest in the aftermath of the Sotheby's event. However, Lamb and his team haven't decided what will happen next.

The Lesedi la Rona may go on display in a museum for a while, the Lucara chief executive said. The company is in no hurry to sell.

In fact it has already offloaded some absolute whoppers, including the 813 carat Constellation diamond, which sold for US$63mln to a Middle East buyer.

According to its latest financial presentation, Vancouver-based Lucara expects to generate revenues of US$200-$220mln this year with an operating margin of around 60%.

The presentation reveals Lucara is sitting on over US$140mln and that allows it to pay a decent, progressive dividend.

CEO Lamb said: "People think because the auction didn't end up the way the market had expected that suddenly we must sell it. I have no reason to sell it.

"If you look at the fundamentals of the company prior to the sale of the Constellation for US$63.1mln, we already had US$135mln cash.

"That's growing even though we are paying out a dividend. The balance sheet of the company allows us a lot of flexibility and means we don't have to sell it [the Lesedi diamond]."

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Tue, 05 Jul 2016 07:54:00 -0400 https://www.proactiveinvestors.com/companies/news/127845/lucara-diamond-auction-may-not-have-sparkled-but-it-created-options-says-ceo-127845.html
<![CDATA[News - Lucara's Lesedi la Rona diamond fails to sell at auction ]]> https://www.proactiveinvestors.com/companies/news/127698/lucara-s-lesedi-la-rona-diamond-fails-to-sell-at-auction-127698.html Lucara Diamond Corp (TSE:LUC) failed to sell the 1,109-carat Lesedi la Rona diamond at an auction at Sotheby’s on Wednesday night.

The stone, the largest uncut diamond in the world and the second largest ever recovered, failed to meet the minimum reserve price at the London auction house and will therefore be retained by the company.

With the highest bid at £45mln (US$61mln), it came in well under the expected sale price of £52mln (US$70mln).

The auction was the first time a rough diamond of its size had gone on sale to the public.

Sotheby’s said that “every aspect of this auction is unprecedented” and the discovery of the stone was “the find of a lifetime”.

It was recovered in Botswana last November and its name, Lesedi la Rona, means “Our Light” in the native Tswana language.

Lucara found three large sized diamonds within the space of 72 hours and experts have attributed the recent trove of gems to a change in the sorting and extraction processes.

Last month, Lucara sold another huge stone called The Constellation, found in the same mine. At 813 carats, it fetched an auction price of US$63mln, around US$77,000 per carat, the new record for the sale of a rough gem.

The mine's 804 employees and contractors received a bonus for the find.

But the sale of the Lesedi la Rona coincided with Brexit uncertainty following last week’s vote to leave the European Union.

An art auction held at Phillips Monday night saw a third of items go unsold and of those that did sell many failed to meet sale estimates.

After the diamond failed to sell, the Toronto-listed company saw its share price drop 14%.

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Thu, 30 Jun 2016 09:46:00 -0400 https://www.proactiveinvestors.com/companies/news/127698/lucara-s-lesedi-la-rona-diamond-fails-to-sell-at-auction-127698.html
<![CDATA[News - Lesedi La Rona expected to make $70mln at Sotheby's ]]> https://www.proactiveinvestors.com/companies/news/127636/lesedi-la-rona-expected-to-make-70mln-at-sotheby-s-127636.html Lesedi La Rona, currently the world’s largest uncut diamond and the second largest ever found, is set to be auctioned off at Sotheby’s in London Wednesday evening (BST).

The stone was too large to fit into conventional scanners used to evaluate its potential worth, but is valued at 1,109 carats and is expected to sell for at least US$70mln.

Lesedi La Rona means “Our Light” in the native Tswana language and was the winning entry from a nationwide competition to name the stone.

It was recovered in Botswana last November by Canadian mining group Lucara (TSE:LUC).

The group’s shares have more than doubled since the discovery of Lesedi La Rona.

In size it is surpassed only by the famous Cullinan Diamond, discovered in 1905 in South Africa. The Cullinan is valued at 3,106 carats and forms part of the British Crown Jewels.

Last month, Lucara sold another huge stone called The Constellation, found in the same mine. At 813 carats, it fetched an auction price of US$63mln, around US$77,000 per carat, the new record for the sale of a rough gem.

The sale of Lesedi La Rona however, comes when the pound has lost more than ten per cent of its value following Britain’s vote to leave the European Union last week.

The weak pound has already hit an art auction held at Phillips Monday night, where a third of items went unsold. Of those that did sell, many did not hit the lower end of their estimates.

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Wed, 29 Jun 2016 09:44:00 -0400 https://www.proactiveinvestors.com/companies/news/127636/lesedi-la-rona-expected-to-make-70mln-at-sotheby-s-127636.html
<![CDATA[News - Lucara's diamond smashes record with $63mln sale ]]> https://www.proactiveinvestors.com/companies/news/125684/lucara-s-diamond-smashes-record-with-63mln-sale-125684.html Lucara Diamond Corp (TSE:LUC) made history after its 813 carat diamond made US$63mln (£44mln), the highest price ever for the sale of a rough diamond.

The gem, named “The Constellation” was recovered last November from Lucara’s Karowe mine in Botswana.

As part of the sale, Lucara has partnered with Nemesis International DMCC, retaining a 10% interest in the net profit received from the sale of the resultant polished diamonds.

"We are very pleased with the result from the sale of this magnificent 813 carat diamond as well as the opportunity to further participate in profits earned when the polished product is sold,” said chief executive of Lucara William Lamb.

“It is an exceptional price for an exceptional stone,” said Kieron Hodgson, analyst at Panmure Gordon.

"But the uplift on polished stones is rarely disclosed, so we may never find out how much they earn from it, but the 10% uplift is now standard for producers of exceptional stones,” he explained.

The sale of "The Constellation" comes ahead of the sale of another monster stone found at the company's Karowe mine.

“We look forward to the next stage of Lucara's development with the sale of the spectacular Lesedi La Rona,” said Lamb.

At 1,111 carats the tennis ball sized Lesedi La Rona is the second largest diamond ever discovered.

“It looks like it will be a record breaker, but the sheer size of the diamond means the buyer will be taking a huge risk,” added Hodgson.

“No one has tried to cut and manufacture a stone of this size since the Cullinan over a century ago.”

The Cullinan diamond was discovered in South Africa in 1905. It was cut into nine large gem-quality stones and a number of smaller fragments by Asscher Brothers of Amsterdam in the presence of the Queen of Norway and other noble guests.

The sale of the Lesedi La Rona is expected to smash existing records when auctioned at Sotheby’s in London next month.

--UPDATE ANALYST COMMENT--

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Mon, 09 May 2016 08:14:00 -0400 https://www.proactiveinvestors.com/companies/news/125684/lucara-s-diamond-smashes-record-with-63mln-sale-125684.html
<![CDATA[News - Lucara's monster diamond could make £50mln at Sotheby's ]]> https://www.proactiveinvestors.com/companies/news/125593/lucara-s-monster-diamond-could-make-50mln-at-sotheby-s-125593.html Lucara Diamond Corp (TSE:LUC) shares were at an all-time high after it was revealed the tennis ball-sized Lesedi la Rona could fetch more than £50mln when it goes under the hammer at Sotherby’s next month.

The 1,109 carat diamond, which is around 3bn years old, was unearthed by Lucara at its Karowe mine in Botswana last November.

Chairman of Sotheby's jewellery division David Bennett said the discovery was "the find of a lifetime" and its auction would be unprecedented.

If it reaches its guide price, the stone will smash the world record as the most expensive diamond sold at auction.

A diamond named Blue Moon sold at Sotherby’s last year for £32mln and is the current title holder.

A Hong Kong billionaire bought the blue gem as a gift for his seven year old daughter.

The diamond’s name, Lesedi la Rona - which means “our light” in Setswana, the native language of Botswana - was chosen from 11,000 entries as part of a nationwide competition.

It is the second largest diamond to have been discovered, dwarfed only by the one that sits alongside the crown jewels. The 3,106-carat Cullinan diamond, unearthed in South Africa in 1905, now forms part of the Royal Sceptre.

The auction is set for 29 June and Lesedi la Rona will be on display in London later this month.

The Karowe mine in Botswana is fast becoming the world's leading source of top quality gems.

Shares in Lucara rose 9% to CAN$3.50, the highest it’s ever been.

--UPDATE SHARE PRICE--

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Thu, 05 May 2016 11:10:00 -0400 https://www.proactiveinvestors.com/companies/news/125593/lucara-s-monster-diamond-could-make-50mln-at-sotheby-s-125593.html
<![CDATA[News - Lucara finds second-biggest diamond in history ]]> https://www.proactiveinvestors.com/companies/news/119428/lucara-finds-second-biggest-diamond-in-history-119428.html Shares in Canadian miner Lucara Diamond (TSE:LUC) surged over 27% in Toronto as it emerged the firm has discovered the second biggest diamond in history.

The 1,111 carat gem was unearthed from its Karowe mine in Botswana and is the largest stone found in more than a century.

The stone measures 65mm x 56mm x 40mm in size (see picture) and was recovered by specialist large diamond recovery XRT machines, the company said.

The largest diamond ever recovered, the 3,106ct Cullinan stone, was found in 1905 in South Africa.

John Meyer at SP Angel said the find “vindicates” the company’s strategy to recover high value and large stones using XRT technology.”

Lucara bought the Karowe mine in 2010, and also owns a 75% stake in the Mothae project, which is in the trial mining stage.

The firm also found two other white diamonds at the site, an 813 carat stone and a 374 carat stone, though weights are liable to change once cleaned, the company pointed out.

Numis Securities said: “We can’t overstate the significance of this find as diamonds of this size and quality are exceptionally rare.”

Focus will now be on how this stone will be marketed, but value is difficult to determine until the diamonds has been cut.

It is unlikely to be marketed in this financial year but could form a significant part of revenues for next year, SP Angel’s Meyer said.

Lucara recently sold a 336ct stone for US$8.18mln, around $24,324 per carat and an 84ct for US$$4.13mln, or around US$49,467 per carat.

Taking a mean value on that basis could translate to a value somewhere in the region of US$40mln, but it could achieve “significantly more” as it is likely to hold historical relevance, Numis said.

Shares added 27.33% to C$2.05.

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Thu, 19 Nov 2015 12:32:00 -0500 https://www.proactiveinvestors.com/companies/news/119428/lucara-finds-second-biggest-diamond-in-history-119428.html
<![CDATA[News - Lucara Diamonds' second tender reassures Dundee ]]> https://www.proactiveinvestors.com/companies/news/119192/lucara-diamonds-second-tender-reassures-dundee-119192.html Lucara Diamond's (TSE:LUC) second exceptional stone sale of the year reassured broker Dundee that the Botswana-focused group's annual revenue guidance of between $200mln and $220mln is achievable, it said, repeating a 'buy' on the shares.

The stone tender included 13 single stones totalling 1,440 carats, which achieved revenues of US$29.7 million or $20,625 per carat. The first tender of the year achieved US$68.7mln.

The results were within the historical range, but at the low end of past exceptional stone tenders, analyst Mathew O'Keefe said.

Included in that was an 8.03 carat pink diamond, which sold for $911,911 or$113,563 a carat, which was well above the top end of the historic US$20,000/ct to US$60,000/ct range for past exceptional tenders, the analyst added.

O'Keefe noted that Lucara had booked $188.3mln in revenue in the year to date.

The broker also noted that Lucara recently recovered a 348 carat and a 255 carat stone using its new XRT unit, which should continue to reassure investors in that large stones continue to be recovered come from its Karowe mine.

It has a price target of C$2.25 a share, which is a fair distance from the current price of C$1.34.

"We continue to see Lucara as a top name in the diamond space given its strong cash flow profile and healthy balance sheet," said the broker.

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Fri, 13 Nov 2015 13:47:00 -0500 https://www.proactiveinvestors.com/companies/news/119192/lucara-diamonds-second-tender-reassures-dundee-119192.html
<![CDATA[News - Lucara's move to divest Mothae asset unsurprising, says Dundee Capital ]]> https://www.proactiveinvestors.com/companies/news/104832/lucaras-move-to-divest-mothae-asset-unsurprising-says-dundee-capital-59001.html Lucara Diamond (TSE:LUC) had its “buy” rating and C$2.33 target price reiterated at Dundee Capital after the diamond mining company focused on Africa announced its intention to divest its Mothae asset in Lesotho.

The Vancouver, British Columbia-based company yesterday said the Mothae development does not meet its investment criteria for return on capital or free cash flow generation. 

That “diligent decision” was expected, Dundee’s analyst Matthew O’keefe said in a research note to investors today. “We carried no value for Mothae as no work was being done and previous work indicated marginal economics.” 

A non-cash write-down for impairment of Mothae's book value of $21 million is expected with the fourth quarter’s financial results. 

The company has initiated the divestiture process for its 75 percent owned Mothae asset.

Mothae was previously on care and maintenance as economics appeared marginal and we had expected development on its own was not likely, Dundee said. Although a 700,000 tonne bulk sample showed a coarse size frequency distribution, the economic potential of +60ct stones was not satisfactory. 

Dundee said that diamond values averaged $1,062/ct, however grades averaging just 2.7cpht made Mothae marginal based on Dundee’s estimates. 

Meanwhile, Lucara continues to pursue its two prospecting licenses within the Orapa Kimberlite Field which are known to be diamondiferous.

“We believe Lucara's focus on its Botswana production and exploration assets while assessing other value accretive opportunities should help maximize shareholder value.”O’keffe said.

Dundee also said that Lucara began work at BK-2 this quarter and focus remains on collecting a 5,000 tonne mini-bulk sample for each of the three licenses. 

Lucara plans to spend $7 million to $8 million on exploration in 2015.

Shares of Lucara were down 1.4 percent at C$2.05 at 1:46 p.m. in Toronto. The stock is up 18 percent this year.

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Tue, 23 Dec 2014 14:12:00 -0500 https://www.proactiveinvestors.com/companies/news/104832/lucaras-move-to-divest-mothae-asset-unsurprising-says-dundee-capital-59001.html
<![CDATA[News - Lucara reaches all-time high after recovering 13 heavyweight diamonds ]]> https://www.proactiveinvestors.com/companies/news/101434/lucara-reaches-all-time-high-after-recovering-13-heavyweight-diamonds-54254.html Lucara Diamond Corp. (TSE:LUC), a diamond miner focused on southern Africa, rose to a record high after saying it has recovered 13 diamonds larger than 100 carats since the start of the second quarter.

The shares hit an-all-time high of C$2.02 before paring gains to C$1.97, up 5.1 percent, at 1:40 p.m. in Toronto.

Two diamonds exceeded 200 carats while eight were gem quality diamonds, the Vancouver-based company said in a statement. The five largest gem-quality diamonds included a 259 carat diamond, a 239 carat diamond, two stones of 153 carats each and a 133 carat stone.

Since the beginning of the second quarter, the company's Karowe mine in Botswana has produced 239 diamonds larger than 10.8 carats, including 27 diamonds weighing between 50 and 100 carats.

"The ongoing recovery of such stones is encouraging for a potential third exceptional stone tender during the fourth quarter of 2014," Chief Executive Officer William Lamb said in the statement.

The company is set to hold its second exceptional stone tender on July 18, with viewings in both Antwerp and Gaborone.

Lucara is in the process of selecting stones for the tender and will post information along with a brochure on its website in the near future.

The stock, which has 1 "strong buy" and 2 "hold" recommendations from analysts, has almost tripled over the past year, giving the company a market value of C$740 million.

 

 

 

 

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Wed, 21 May 2014 14:43:00 -0400 https://www.proactiveinvestors.com/companies/news/101434/lucara-reaches-all-time-high-after-recovering-13-heavyweight-diamonds-54254.html
<![CDATA[News - Lucara gains as mineral resource at Karowe sees significant value increase ]]> https://www.proactiveinvestors.com/companies/news/99166/lucara-gains-as-mineral-resource-at-karowe-sees-significant-value-increase-50904.html Lucara Diamond Corp. (TSE:LUC), a diamond mining company owning interests in Africa, advanced to the highest in more than three weeks after announcing a significant increase in the value of the mineral resource in its Karowe mine in Botswana.

Lucara spiked to as high as C$1.60, the highest intraday price since Nov. 25, before trading at C$1.56, up 10 percent, at 1:12 p.m. in Toronto. 

The Vancouver-based company said in a statement yesterday that it had factored a “significant population of large and exceptional diamonds” into the mineral resource estimate for its Karowe mine, which started production in April last year. 

The diamonds, recovered over the past year, have resulted in a more than $1-billion increase in the in-situ value of the indicated mineral resource, the company said.

The highlights of the mineral resource update, valid at the cut-off date of Oct. 21, are a recoverable Indicated mineral resource estimate at a 1.25mm bottom cut-off size of 46.2 million tonnes at an average grade of 16 carats per hundred tonne (cpht) with an average modeled diamond value of US$394 per carat, and a recoverable Inferred mineral resource of approximately 21 million tonnes at an average grade of 14 cpht with an average modeled diamond value of US$412 per carat, according to the statement.

"The updated mineral resource for the Karowe mine reflects important changes based on the large amount of new information generated since the start of production at Karowe," Chief Operating Officer William Lamb said in the statement.

In 2013, Lucara sold more than 438,000 carats of diamonds for gross proceeds in excess of $180 million. Included in these were 23 diamonds which sold for over US $1 million, including 9 diamonds which sold for more than US $3 million each. 

The updated resource estimate is further supported with the ongoing recovery of special diamonds, with more than 70 stones larger than 10.8 carats being recovered to date in December, Lucara said. Since the start of mining in the centre and south lobes in March, more than 600 diamonds larger than 10.8 carats have been recovered.

Lucara shares have more than doubled this year, giving the company a market value of C$588 million.

 

 

 

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Fri, 20 Dec 2013 13:41:00 -0500 https://www.proactiveinvestors.com/companies/news/99166/lucara-gains-as-mineral-resource-at-karowe-sees-significant-value-increase-50904.html
<![CDATA[News - Shares in Lucara Diamonds spike as 257 carat stone recovered ]]> https://www.proactiveinvestors.com/companies/news/97573/shares-in-lucara-diamonds-spike-as-257-carat-stone-recovered-48403.html Shares in Lucara Diamond Corp. (TSE:LUC) were up 3 per cent in early trading Wednesday on news that the Vancouver-based miner had recovered a 257 carat diamond from its Karowe Mine in Botswana.

In the year to date alone, the company, which has concentrated its efforts at the site over the past 6 months on the Centre and South lobes of the AK6 kimberlite, has reported the recovery of 47 diamonds of sizes greater than 50 carats, including 14 that exceeded 100 carats. The diamond exploration and development company plans to sell the 257 carat stone on tender in the remaining quarter of 2013.

In addition to the excavation of the large diamond, Lucara also closed its sixth rough diamond tender for the year, where all lots were sold with very strong results, which are to be reported in the company’s third quarter results due for release in early November.

"The Karowe mine continues to outperform with the consistent recovery of large, high value diamonds,” said president and CEO William Lamb in a company statement released with the announcement.

“The recovery of this magnificent 257 carat diamond, along with the recovery of a significant parcel of larger stones over the past 6 months, strengthens our understanding of the resource at Karowe," he said, adding that revenues generated from the sale of these diamonds will be used to reduce debt and strengthen Lucara's balance sheet.

"With the challenges currently facing the rough diamond market, the demand for the high quality goods produced by Karowe has remained consistently high.”

Lucara's share price had reached $1.03 as of 9.45am EST in Toronto, up from previous close of $1.00.

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Wed, 25 Sep 2013 10:15:00 -0400 https://www.proactiveinvestors.com/companies/news/97573/shares-in-lucara-diamonds-spike-as-257-carat-stone-recovered-48403.html
<![CDATA[News - African Diamonds shareholders vote for takeover by Lucara ]]> https://www.proactiveinvestors.com/companies/news/75067/african-diamonds-shareholders-vote-for-takeover-by-lucara-10348.html The sale of African Diamonds (LON:AFD) to Lucara Diamonds (TSX-V:LUC) moved a step closer today, after AFD shareholders voted in favour of the deal.

Last month the company recommended the £51 million takeover bid from its joint venture partner. AFD and Lucara are currently developing the AK6 diamond mine in Botswana.

Lucara will take full ownership of AK6, and African Diamonds’ other exploration assets will be spun-out into a new and separate entity - Botswana Exploration.

African Diamonds shareholders will receive 0.8 Lucara shares and 1 Botswana Exploration shares for each share held.

"I am pleased that the shareholders have resoundingly voted in support of the sale of African Diamonds to Lucara,” chairman John Teeling said.

“The transaction should complete in early January 2011 when shareholders will receive both their Lucara and Botswana Diamonds shares.”  

“We hope to list Botswana Diamonds on AIM during January 2011".

Back in October the AFD boss said the logic of the deal is compelling.

“Marrying AFD and Lucara will create a C$240 million emerging diamond producer controlling two new kimberlite diamond mines,” Teeling said in October.

“AFD shareholders win in three ways, they will hold an indirect stake in AK6 ... they get 26.57% of the Lucara interest in the high diamond value Mothae mine ... and they will get 100% of Botswana Exploration.”

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Fri, 26 Nov 2010 13:39:00 -0500 https://www.proactiveinvestors.com/companies/news/75067/african-diamonds-shareholders-vote-for-takeover-by-lucara-10348.html
<![CDATA[News - African Diamonds says Lucara JV project AK6 progressing on track ]]> https://www.proactiveinvestors.com/companies/news/74615/african-diamonds-says-lucara-jv-project-ak6-progressing-on-track-9714.html African Diamonds (LON:AFD) told investors in a project update this afternoon that the AK6 project in Botswana is progressing on track with long lead items ordered and senior staff engaged.

African Diamonds and Lucara Diamonds Corp (TSX-V:LUC) are currently joint venture partners in the AK6 diamond development project, after Lucara bought De Beers' stake in the project earlier this year. African Diamonds owns 40% of AK6, as well as a portfolio of exploration projects in Botswana.

The company recently recommended a £51 million takeover bid from its joint venture partner and today chairman John Teeling said he is confident that shareholders will vote in favour of the takeover at a meeting later this month.

"I am delighted at the progress being made on the development of AK6,” Teeling said. 

“The target of Q4 2011 commissioning is in sight with a ramp up of production during 2012.”

“The demand for quality diamonds remains strong while the supply is at best flat ... When AK6 comes on stream it will be one of a limited number of kimberlite diamond mines in production.”

Initial development activities began earlier this year after the completion of the AK6 feasibility study in June.

The partner contractor, Dowding Reynard and Associates (DRA), has so far focused on the ‘critical schedule’ activities to meet the Q1 2012 target date to start production. To meet this deadline the mine commissioning will start in Q4 2011.  

Last month African Diamonds recommended the Lucara bid that values the company at C$82 million, approximately £51 million.

Lucara will take full ownership of AK6, and African Diamonds’ other exploration assets will be spun-out into a new and separate entity - Botswana Exploration.

African Diamonds shareholders will receive 0.8 Lucara shares and 1 Botswana Exploration shares for each share held.

The logic of this deal is compelling,” Teeling said in October.

Marrying AFD and Lucara will create a C$240 million emerging diamond producer controlling two new kimberlite diamond mines,” Teeling said.  

“AFD shareholders win in three ways, they will hold an indirect stake in AK6 ... they get 26.57% of the Lucara interest in the high diamond value Mothae mine ... and they will get 100% of Botswana Exploration.”

On completion Botswana Exploration will join AIM and the Botswana Stock Exchange.

African Diamond shareholder will vote on the proposal on 24 November 2010.

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Tue, 02 Nov 2010 15:51:00 -0400 https://www.proactiveinvestors.com/companies/news/74615/african-diamonds-says-lucara-jv-project-ak6-progressing-on-track-9714.html
<![CDATA[News - Lucara Diamonds set to acquire African Diamonds, consolidating AK6 diamond project ]]> https://www.proactiveinvestors.com/companies/news/74100/lucara-diamonds-set-to-acquire-african-diamonds-consolidating-ak6-diamond-project-8882.html African Diamonds (LON:AFD) has recommended a takeover offer from Lucara Diamonds Corp (TSX-V:LUC) which values the company at C$82 million, approximately £51 million.

The deal effectively sees Lucara buying AFD’s stake in the AK6 diamond deposit. In return AFD shareholders will receive a 26.57% stake in the Canadian company.

"The logic of this deal is compelling,” AFD chairman John Teeling said. 
Lucara is a well-funded Diamond mining company, and an associate of the Lundin Group (TSX:LUN). The company’s primary asset is a 75% stake in the Mothae Diamond Mine in Lesotho.

AFD and Lucara are currently joint venture partners in the AK6 diamond development project, after Lucara bought De Beers' stake in the project earlier this year. AFD owns 40% of AK6, as well as a portfolio of exploration projects in Botswana.

The exploration assets will be spun-out into a new AIM-listed company, which will be called Botswana Exploration.

Under the terms of the deal AFD shareholders will receive 0.8 Lucara shares and 1 Botswana Exploration shares for each share held.

“Marrying AFD and Lucara will create a C$240 million emerging diamond producer controlling two new kimberlite diamond mines”, Teeling said.

“AFD shareholders win in three ways, they will hold an indirect stake in AK6 ... they get 26.57% of the Lucara interest in the high diamond value Mothae mine ... and they will get 100% of Botswana Exploration.”

On completion Botswana Exploration will join AIM and the Botswana Stock Exchange.

AFD values the Botswana Exploration assets at 7p per share.

With the backing of Lundin, Lucara will push ahead with the development of both the AK6 and Mothae diamond mines.

“The new company, with strong financial backing, will be perfectly poised to exploit an expected gap in diamond supply.”

“The track record of the Lundin Group, the backers of Lucara, in building shareholder value is outstanding.”

“The objective of the Lundin Group is to use Lucara to build a mid tier diamond producer.  The board of AFD endorse and support this strategy.”

AFD shareholders will vote on the proposal at a meeting on 31 October, 75% of the voting rights are required to approve the deal.

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Mon, 04 Oct 2010 13:04:00 -0400 https://www.proactiveinvestors.com/companies/news/74100/lucara-diamonds-set-to-acquire-african-diamonds-consolidating-ak6-diamond-project-8882.html
<![CDATA[News - African Diamonds says Botswana govt approves sales of De Beers’ 70 pct stake in AK6 discovery to Lucara ]]> https://www.proactiveinvestors.com/companies/news/71731/african-diamonds-says-botswana-govt-approves-sales-of-de-beers-70-pct-stake-in-ak6-discovery-to-lucara-3306.html African Diamonds PLC (AIM: AFD) said the government of Botswana has approved the sale of De Beers' 70.27% stake in the AK6 diamond discovery in Orapa, Botswana, to Lucara Diamond Corp (TSX-V: LUC), an associate of the Lundin Group, a US$10 billion group of 12 oil and mining companies, including African gold producer Red Back Mining (TSX: RBI) and base metals miner Lundin Mining Corp (TSX: LUN).

The deal was brokered by African Diamonds and announced in November.

Construction of the mine is expected to begin in mid 2010, with start up in late 2011 at 400,000 carats a year, rising to an expected 1 million carats in 2013/2014. Updating the feasibility study will continue during the holiday period. A valuation of the AK6 diamonds recovered during exploration will be undertaken during the third week of January 2010.

African Diamonds currently holds 28.381 percent of AK6, and under the De Beers/Lucara agreement has an option to acquire an additional 10.268 percent for US$7 million. If African Diamonds exercises the call option, Lucara will retain a 60 percent stake, with African Diamonds holding 38.65 percent and Wati Ventures 1.35 percent.

African Diamonds can take its stake in AK6 to 40 percent by exercising an option to acquire the Wati Ventures’s stake for US$0.7 million.

Under the agreement, the company will have the right to market its percentage of the diamonds, a valuable right likely to be central to any fundraising by African Diamonds.

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Fri, 18 Dec 2009 10:40:00 -0500 https://www.proactiveinvestors.com/companies/news/71731/african-diamonds-says-botswana-govt-approves-sales-of-de-beers-70-pct-stake-in-ak6-discovery-to-lucara-3306.html
<![CDATA[News - Lucara Diamond Corp to acquire Motapa Diamonds in all share deal ]]> https://www.proactiveinvestors.com/companies/news/70015/lucara-diamond-corp-to-acquire-motapa-diamonds-in-all-share-deal-1103.html
Lucara Diamond Corp is offering 0.9055 shares for every Motapa Diamonds share, representing a 104% premium to Motapa Diamond’s trailing 20 day volume weighted average price. Motapa Diamonds shareholders will hold 35% of the enlarged company.

Lucara Diamond Corp said that the two boards of directors “overwhelmingly” approved the deal.

William Lamb, General Manager of Lucara, commented, "This business combination is an excellent opportunity to create added value for both companies and establish a focused, strategic platform for further expansion in Africa. This is an opportune time to consolidate Mothae and create a larger, more robust company while strategically assessing future growth opportunities."

The combined company will have interests in Namibia, Gabon, Botswana and the Democratic Republic of Congo. The merged entity will also have 100% ownership of the Mothae diamond development project in Lesotho – an 8.8 hectare pipe located only 6.5 kilometres from the Lestang diamond mine.
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Tue, 17 Mar 2009 14:16:00 -0400 https://www.proactiveinvestors.com/companies/news/70015/lucara-diamond-corp-to-acquire-motapa-diamonds-in-all-share-deal-1103.html