Lucara DIAMOND: AUCTION RESULTS GOOD FOR COMPANIES AND SECTOR-RBC

STOCKHOLM (Reuters) The strong performance from mining company Lucara Diamonds on Thursday completed the sale of large and rare diamonds is good news not only for the company but for the entire diamond sector.

It writes RBC Capital Markets in a day's fresh comment.

Lucara sold on Thursday 20 diamonds totaling 1.191 carats for a total of $ 50.5 million, a result that exceeded both analysts that the company's own high expectations.

"We had $ 20 million in our model, with a potential upside of 35 million," wrote RBC continues:

"(The result) is good for the shares, indicating an extraordinary dividend of approximately 15 cents per share this year."

Although sales revenue for the first quarter, which was published while Thursday's results were higher than RBC expected.

The bank is now raising its estimates for the next three years, then the auction is considered to confirm the presence of valuable diamonds in the southern part of Karowegruvan in Botswana.

In its updated model, the Bank plans to Lucara generates revenues of $ 205 million this year, compared with its current forecast of $150-160 million.

"Lucaras sale is positive for the shareholders and for the diamond market, when it comes to focus on the presence of large stones.

Stable prices for rough diamonds this year and a healthy growth in the jewelery industry, we believe that the diamond industry will be enhanced as a result of Lucaras success, "writes RBC.