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Lucara's Clara gears up for first sale

Lucara Diamond Corp’s (TSX:LUC) 100%-owned Clara Diamond Solutions platform will launch its first sale next month.
Lucara's Clara gears up for first sale Lucara's Clara gears up for first sale Lucara's Clara gears up for first sale Lucara's Clara gears up for first sale Lucara's Clara gears up for first sale

Clara's first sale will include selected rough diamonds from the Karowe diamond mine and other third parties

Staff reporter

It said the digital sales platform would start operations in November, with a select group of jewellery houses and global diamond manufacturers placing their polished diamond orders on Clara and the platform running its first matching cycle.

The maiden sale will include a selection of diamonds from Lucara's Karowe mine in Botswana and other aggregated third-party rough diamonds of 1-15 carats in size.

The results of the first sale will then be used to help optimise the quantity and selection of rough diamonds offered in the short-term, as Clara moves towards continuous sales, with these complementing Lucara's existing tender.

Lucara said the platform had been designed to achieve a sustainable premium over existing sales channels, including tenders and long-term supply contracts for sellers, and deliver increased margins for buyers. It does this using the latest cloud and blockchain technologies.

Other benefits of Clara, the company said, include eliminating diamond sales by assortments and the need for re-trade and unwanted inventories; achieving best possible pricing for producers and higher margins; smoothing out revenue streams through continuous sales rather than fixed cycles; and tracking every rough diamond with a secure and immutable record of its origins and ownership.

CEO Eira Thomas said the commericalisation efforts of the platform had been on schedule and under budget, with Clara receiving strong interest from the diamond community.

"Clara is a scalable business solution for the entire diamond industry that is long overdue and necessary to modernise, streamline and increase consumer confidence in the marketplace," she said.

After the first sale, other producers and manufacturers will be invited to participate in the platform.

Trading of Lucara's shares hadn't opened in Canada yet Monday, although they fell 3.72% Friday to C$2.07 (US$1.58).