08:42 AM EST, 11/30/2017 (MT Newswires) -- Lucara Diamond (LUC.TO) said on Thursday it expects to meet its 2107 production targets from its Botswana mine and forecast rising revenue next year as it released its 2018 production targets.

The company said it expects revenue next year to be between US$170 million and US$200 million, up from a targeted range of about US$170 million this year. Diamond production is pegged at between 270,000 and 290,000 carats and operating costs per tonne of ore processed, expected at around US$38 per tonne for 2017, will rise to about $40 in 2018 as it opens a new production area at the Karowe mine.

Lucara said it is carrying out a pre-feasibility study for an underground mine at the Karowe site, which it expect to release in the second quarter of 2018. As well, it kept its annual dividend, paid out quarterly, at $0.10 for the upcoming year.

William Lamb, President and CEO, in a statement said: "The company is forecasting to mine robust volumes from the high value south lobe and continuing waste mining to complete the push back at the Karowe mine to fully access south lobe ore. In 2018, we continue to advance our internal growth projects including the pre-feasibility study for an underground mine at Karowe as well as our exploration portfolio. Following the successful completion of the MDR and sub-middles projects as well as the expected completion of the cut 2 waste push back in early 2019, operating and capital costs are forecast to be significantly reduced going forward contributing to free cash flow in future periods."

Its Toronto Stock Exchange shares, which have fallen 23% over the past 12 months, closed Wednesday at $2.52.

Price: 2.52, Change: 0, Percent Change: 0