Lucara Diamond Corp. says it expects to sell its first parcel of diamonds from AK6 in Botswana in the second quarter of 2012.
In its 2011 third quarter results, the Vancouver-based company also reported ongoing diamond discoveries and periodic sales of diamonds from the Mothae Project in Lesotho.
Other highlights include:
• Trading commenced on the Botswana Stock Exchange and Toronto Stock Exchange in July and August, respectively;
• Construction at AK6 is 84 per cent complete at the end of the third quarter, up from 55 per cent at the end of Q2;
• Diamond sorting, sales and marketing offices, and senior diamond sorting personnel are in place;
• Samples from Mothae have yielded two stones larger than 20 carats, 10 stones between 10 and 20 carats, 19 between five and 10 carats, and 95 between two and five carats. The biggest stones recovered were 29.94, 22.86, and 19.21 carats;
• A primary crushing unit is onsite at Mothae and a larger-capacity secondary crusher is scheduled to be installed this quarter;
• Net losses for the quarter ending Sept. 30 was $5.5 million; and
• Cash and cash equivalents stood at $70.7 million, while working capital totalled $64.3 million.
The company says existing funds at the end of the third quarter, as well as expected proceeds from diamond sales may be insufficient to finance the $120 to $130 million US cost of full development and construction of the AK6. The shortfall will also not cover working capital requirements before the first diamond sale at AK6, ongoing test mining programs at Mothae, and general corporate expenses.
“Certain of these expenditures are discretionary and will be dependent on the company having an additional $15 to $20 million available in early 2012,” Lucara said. “There is no assurance that such financing will be available to the company at the time and in the amount required or, if available, that it can be obtained on terms satisfactory to the company.
