Botswana-focused Lucara Diamond Corp has reported a 28% year-on-year increase in first-quarter revenue, reflecting continued buoyancy in diamond prices and the sale of several higher value rough diamonds.

The TSX-listed miner posted revenue of C$68.2-million from the sale of 80 295 ct from the Karowe mine. This included top-up payments of $11.7-million, as well as $1-million from the sale of third-party goods on the Clara platform.

In comparison, the company achieved revenues of $53.1-million from sales of 91 760 t in the first quarter of 2021.

Lucara reported an average price of $690/ct for Karowe diamonds sold during the quarter –  $210/ct more than in the same quarter last year.

President and CEO Eira Thomas said that the company began the year on a positive trajectory. The price strength observed in 2021 continued into the first quarter of 2022, with increases across most sizes, qualities and colours of diamonds.

“Despite current geopolitical challenges, Lucara remains optimistic about diamond prices as natural rough diamond supply constraints continue to manifest globally,” she said.

The group noted that the diamond price impact of sanctions on Russian diamond supply, which accounts for a significant portion of global reserves, could not be predicted yet.

Lucara expects to generate diamond revenue of between $195-million and $225-million this year, excluding the sale of exceptional stones. Its sales target is between 300 000 ct to 340 000 ct.

Meanwhile, at the $534-million Karowe expansion project, preparation for main shaft sinking is well underway and anticipated to begin in the current quarter, Thomas stated.

Lucara expects to spend up to $110-million at the underground expansion project in 2022, with the focus on main shaft sinking activities, the commissioning of the bulk power supply line and substations, as well as detailed engineering for the underground development.

Mine ramp-up is expected in the first quarter of 2026 with full production from the underground expected in the second half of that year.