Lucara Diamond Corp. expects robust diamond revenue in 2023 as it sells a larger percentage of high-value rough through an offtake agreement with HB Antwerp, which affords it a portion of the polished profits.

The miner has predicted it will sell between $200 million and $230 million worth of rough from its Karowe deposit in Botswana for the year, it said Monday. Some 52% of the stones it will offer in 2023 will come from the site’s M/PK(S) and EM/PK(S) units in the high-value south lobe, it explained. The remainder will be from the center lobe, which has higher-grade ore but a lower percentage of diamonds over 10.8 carats than the south lobe.

Lucara anticipates output of 395,000 to 425,000 carats, with sales volume set to reach between 385,000 and 415,000 carats, it noted. The miner plans to sell its production through multiple channels to maximize revenue. Higher-value stones over 10.8 carats will be sold through the company’s supply agreement with HB Antwerp, from which the miner receives revenue for the rough as well as a portion of the polished proceeds. Diamonds under 10.8 carats will be sold at tenders or through the miner’s Clara digital platform.

The outlook compares with a revenue forecast of $195 million to $225 million for 2022. Output and sales volume for this year are likely to be between 300,000 and 340,000 carats, the company said earlier this month.

The company expects to spend up to $105 million next year on the underground expansion at Karowe, it said. It will mine and process material from the open pit through 2026, after which it will transition to underground, it added.

Image: The Karowe mine. (Lucara Diamond Corp.)