Karowe Mine forecasts P3billion of revenue
Karowe Mine’s production and cost estimates for 2023 has indicated the mine anticipates diamond revenue of between $ 200 million to $ 230 million, approximately three billion pula.
The mine’s parent company Lucara, giving its operations guidance for 2023 said revenue forecast assumes that 52 percent of the carats recovered will come from the higher value and units within the South Lobe, while the remaining 48 percent of the carats recovered will come from the Centre Lobe in accordance with the mine plan.
In addition, the company said the recently announced extension of the HB Antwerp agreement will continue to use three different sales channels to maximize revenue and generate consistent cash flow to support operations and investment in the underground expansion project.
According to President and Chief
Executive Officer of Lucara, Eira Thomas the company’s higher value stones greater than + 10.8 carats in size will continue to enter the manufacturing pipeline at HB, giving the company exposure to polished prices and regular cash flow from the highest value portion of the Karowe production. “Quarterly tenders and regular sales through Clara, primarily for stones less than 10.8 carats in size will continue, consistent with the practise from previous years,” said Thomas. Clara is Lucara’s 100 percent owned proprietary, secure and a webbased digital sales platform.
Furthermore, the company expects to mine between 4.1 and 5.1 million tonnes, of which ore tonnes mined represent approximately half of total tonnes mined. “The assumptions for carats recovered and sold as well as the number of tonnes processed are consistent with achieved performance in recent years,” said Thomas.
Meanwhile, the material from the open pit is planned to be processed during the years 2023 to 2026, as the mine transitions to underground. “Ore from the underground development is expected to supplement lower grade stockpile material during the transition to underground at the end of the open pit mine life.”
So far, capital costs for the underground expansion for Karowe Mine are expected to be up to $ 105 million as focus is predominantly on shaft sinking activities, along with construction of the bulk air cooler, tendering the underground development contract and underground equipment purchases.
“Sustaining capital and project expenditures related to the open pit mining operations are expected to be up to $ 20 million with a focus on replacement and refurbishment of key asset components in addition to dewatering activities, an expansion of the tailings storage facility in accordance with Global Industry Standard on Tailings Management and completion of a community sports facility.”