Lucara Diamonds CEO observes still strong market

Near Karowe mines in Botswana. Photo: freekvanootegem

Lucara Diamonds first specialty sales of large and unusual rough diamonds for over a year resulted in the management's satisfaction. The result is well ahead of Thursday's sales of stones from the regular range.

This is what CEO Eira Thomas told The News Agency.

"All ten diamonds were sold at prices above $ 1 million. The price level is completely in line with the strong signals we have seen from the market so far this year. We still see a very good demand for high-quality stones," she says.

Lucara sold in a process that ended at 16 o'clock on Tuesday ten big and unusual diamonds in sizes from 40 to 472 carat. The very biggest, however, was light brown, a color that did not generate the same price tag as they completely finished the stones.

In total, revenues amounted to USD 32.5 million, equivalent to approximately SEK 290 million. The average price per carat was thus $ 22,356 for the entire collection. Excluding the brownstone, the nine clear diamonds gave an average price of $ 30,712 per carat.

At the company's latest specialty sales in May 2017, 15 rough diamonds were sold for an average of $ 31,000 per carat. Even then, a light colored diamond was included, though it was less than half the size of Tuesday's brownstone, why its effect on the average price was considerably smaller. At that time, a 374-carat high-quality stone was also sold for $ 17.5 million.

Largest revenue gave this time the big clear diamond weighing over 327 carats; $ 10.1 million, almost $ 90 million, or about $ 30,900 per carat.

On Thursday, sales of more than 85,000 carats are held out of the ordinary range in the regular quarterly sales. Even in this, however, there are individual stones of very high quality.

"It feels good. The market is still showing strength and other diamond producers have reported good earnings so we feel 'bullish'," says Eira Thomas.

In the future, the company will mix more and more large and unusual stones into the regular auctions during the quarter they are being extracted. The purpose is to smooth out the cash flow and attract additional potential buyers to the views.

"That does not mean there will be no more special sales, but we will reserve them for the biggest and most unusual items," said Lucarachefen.

In the coming weeks, more news is waiting from Lucara. A backup update will be ready for publication no later than next week, "said Eira Thomas.

As regards Lucara's trading platform, Lucara acquired the work as planned.

"We have been talking to a number of potential participants on both the buying and selling sides. Our message has been very well received and, as before, it is planning to commercialize Clara with diamonds from the Karowe mine in the third quarter," said Lucas CEO.
 

Source: Lucara