Lucara Diamond Corp has reported a significant year-on-year surge in revenue for the first three months of 2016 driven by strong demand for the high quality stones and production assortments from its Karowe mine in Botswana.

Announcing its Q1 results, the company said its revenues rose to US$ 50.6 million or US$ 649 per carat as compared to US$ 29.6 million or US$ 278 per carat in Q1 2015. After the completion of the quarter, Lucara held its first exceptional stone tender for the year, achieving revenue of US$ 51.3 million, taking year to date revenue to over US$ 100 million.

The Company said that its year to date costs at US$ 25 per tonne ore processed continue to be well controlled and below forecast.

For Q1, EBITDA stood at US$ 30.7 million (Q1 2015: US$ 11.9 million) and EBITDA margin was 61%. The Company’s net cash position was a healthy US$ 144.3 million at the end of the quarter (Q1 2015: US$ 87.5 million, FY 2015: US$ 134.8 million).

Consequently, first quarter 2016 earnings per share were US$ 0.05 per share (Q1 2015: US$ 0.02 per share).

At the Karowe project, mining of ore and waste stripping to open the pit at depth was largely in line with forecast. Lucara said that it recovered 165 special stones (+10.8 carats) during the period including 8 stones over 100 carats (Q1 2015: 6 stones).

Reporting on exploration activities at other locations where it has exploration licences in Botswana, Lucara said that excavation and shipping of approximately 5,500 tonnes of the BK02 sample was completed. Results are expected during the first half of 2016. Exploration and bulk sampling from other kimberlites at these locations was also planned for this period.

As already reported, the process of sale of the Lesedi La Rona diamond, the 1,109 carat stone discovered in November has commenced and will culminate in an auction during the month of June.

The Company completed the transfer of its shares of Mothae Diamonds Pty Ltd and the site bulk sample plant to the Government of Lesotho. In consideration, the Company was released from any rehabilitation liability for the Mothae Project, which had been accrued in the accounts for approximately $2 million.

William Lamb, President and Chief Executive Officer, commented, "With management's focus on cost control we continue to achieve high operating margins and returns. Lucara's exploration program continues to advance and with the deep drilling of the Karowe resource due to commence in the second quarter we are excited by the prospects for the remainder of 2016 and the potential organic growth opportunities.”