DIAMONDS & GEMS | BOTSWANA Karowe’s exceptional diamonds, exceptional revenue AND exceptional growth strategy TSX-listed diamond miner Lucara Diamonds has without doubt one of the most operationally attractive kimberlite projects in Africa. Situated in Botswana, the Karowe mine and process plant continuously and consistently recovers large, high quality diamonds – providing the company with sufficient cash to execute the next phase of its strategy – delivering a second diamond mine or at least additional feedstock from alternative sources, CEO William Lamb tells Laura Cornish. IN SHORT Karowe is every diamond miner’s perfect asset. The mine continues to recover large diamond after large diamond, providing cash for new growth and opportunities. S ince production start-up in May 2012, Lucara’s 100% owned Karowe project has produced multitudes of large diamonds, including numerous +100 carats and a few exceeding 200 carats as well. Many of these are also extremely high in value and continue to attract significant private fund interest. And even though Lamb openly admits that no diamond company can ever be entirely sure when the next big stone will be recovered, it is happening so regularly at Karowe that Lucara has revised its 2014 annual revenue guidance from the US$150 – 160 million range (as indicated in January) to between $240 and $250 million. “Considering our original forecast at the start of 2013 was $90 million, Karowe is far exceeding expectation in terms of its deliveries,” says Lamb. The company is already sitting on $168 million in revenues to the end of July, which will increase substantially towards the end of the year following its next exceptional stone tender (closed in October) which includes a 204 carat stone and six other +100 carat stones. (In 2013 Lucara closed the year producing $180 million in revenue from diamonds sold). 203.92 carat recovered in August 2014 Karowe process plant at night 18 MINING REVIEW AFRICA ISSUE 11 2014