HomeCentral AfricaGood news for Lucapa with full year EBITA increase of 45%

Good news for Lucapa with full year EBITA increase of 45%

Lucapa Diamond Company reports a significant upgrade to its CY,2021 full year attributable guidance, which sees its full year EBITDA increase ~ 45% to A$26–28 million following solid operational performances from both the Lulo and Mothae mines, notwithstanding expansion ramp up and weather challenges at Mothae.

Managing Director, Stephen Wetherall commented:

“Lucapa and our partners set ambitious 2021 operational and financial targets for both mining operations as the diamond industry began to emerge from the pandemic.

“With nine months now behind us, we are extremely pleased to provide revised full-year guidance that sees an uplift of approximately 45% in our EBITDA guidance to A$26 – 28 million”.

“The forecast record financial performance at Lulo this year, is expected to accelerate returns to Lulo shareholders and the capital loan repayments to Lucapa, which in turn we expect to utilise in reducing the corporate debt levels”.

Highlights

  • Full Year CY2021 attributable cash operating margin (EBITDA) increased by ~45% to A$26 – 28 million (previously A$17-21 million)
  • Attributable diamond production of 35,000 – 37,200 carats
  • Attributable revenue of A$66 – 71 million
  • Weighted average price of US$1,242 – 1,312/ carat, with prices back to higher levels last seen in 2012
  • Attributable total cash operating cost of US$828 – 844/ carat
  • Forecast exploration/ development capex of A$8 – 10 million, with a focus on the Merlin and Lulo JV projects
  • Attributable growth capex of A$6 – 9 million, which includes the in-field screening plant for the Lulo mine to reduce haulage costs and the recently completed 45% plant expansion at Mothae

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