Lucara Diamond Corp.
08.08.2025 - 23:09:44LUCARA ANNOUNCES Q2 2025 RESULTS
2025
2024
2025
2024
Revenues
$ 43.7
$ 41.3
$ 74.0
$ 80.8
Operating expenses
(15.4)
(13.7)
(29.4)
(32.0)
Net income from continuing operations
12.5
11.9
12.4
5.0
Net loss from discontinued operations
-
(0.6)
-
(1.5)
Earnings per share from continuing operations (basic and diluted)
0.03
0.03
0.03
0.01
Cash
22.7
21.9
CORA
33.7
37.5
Amounts drawn on WCF
30.0
25.0
Amounts drawn on Project Facility
$ 190.0
$ 165.0
Carats sold
77,167
76,387
150,038
169,948
QUARTERLY SALES RESULTS
Three months ended June 30,
Six months ended June 30,
In millions of U.S. dollars
2025
2024
2025
2024
Sales Channel
HB
$ 34.0
$ 29.5
$ 53.2
$ 52.8
Tender
1.9
2.6
3.7
5.8
Clara
7.8
9.2
17.1
22.2
Total Revenue
$ 43.7
$ 41.3
$ 74.0
$ 80.8
Diamond Sales
For the three months ended June 30, 2025, the Company recognized revenue of $34.0 million from HB, compared to $29.5 million for the same period in 2024. Revenue from HB accounted for 78% of total revenue recognized in Q2 2025, up from 72% in Q2 2024. This revenue includes "top-up" and "top-down" payments, which are made to the Company when the final polished diamond sales price differs from the estimated initial polished value. HB revenue increased in Q2 2025 due to a higher volume of carats sold. As of June 30, 2025, the Company had $17.5 million in current trade receivables from HB.
For the three months ended June 30, 2025, tender sales totaled $7.8 million, compared to $9.2 million in Q2 2024, while Clara sales totaled $1.9 million, down from $2.6 million in Q2 2024. Overall, a lower volume of carats were sold through both the Clara platform and tender compared to Q2 2024 and both sales channels had lower average dollar-per-carat sales values compared to 2024.
QUARTERLY RESULTS FROM OPERATIONS – KAROWE MINE
Q2-25
Q1-25
Q4-24
Q3-24
Q2-24
Sales
Revenues
$M
43.7
30.3
78.8
44.3
41.3
Carats sold
Carats
77,167
72,871
112,615
116,221
76,387
Production
Tonnes mined (ore)
Tonnes
721,111
390,539
646,288
845,594
699,846
Tonnes mined (waste)
Tonnes
55,221
35,288
119,919
192,308
245,006
Tonnes processed
Tonnes
661,352
676,626
716,936
720,524
714,301
Average grade processed(1)
cpht (*)
12.5
13.4
12.7
13.4
12.9
Carats recovered(1)
Carats
82,555
90,500
91,046
96,597
92,419
Costs
Operating cost per tonne of ore processed
$
26.76
23.41
31.52
27.34
26.32
Capital Expenditures
Sustaining capital expenditures
$M
2.0
0.5
5.5
2.0
3.45
Underground project(3)
$M
13.6
19.2
17.8
17.7
11.2
(*) Carats per hundred tonnes
(1) Average grade processed and carats recovered are from direct processing and excludes carats recovered from re-processing historical recovery tailings.
(2) Excludes qualifying borrowing cost capitalized.
2025 OUTLOOK
This section of the news release provides management's production and cost estimates for 2025. These are "forward-looking statements" and subject to the cautionary note regarding the risks associated with such statements.
In Q1 2025, diamond revenue, diamond sales, and diamonds recovered from the 2025 guidance news release dated December 3, 2024. During Q2 2025, the Company mined and will continue to mine for the remainder of the year a higher proportion of M/PK(S)3 ore and less higher-grade EM/PK(S) ore than initially planned due to a difference in the location of the contact between the two kimberlites when compared to the geologic model used to set the initial 2025 guidance. This results in lower EM/PK(S) milled tonnes which have historically produced higher volumes of larger, higher quality diamonds and decreases expected revenue for the remaining life of the open pit. The revised 2025 revenue guidance excludes the sale of the 2,488 carat Motswedi.
Karowe Diamond Mine
Revised 2025
2025
In millions of U.S. dollars unless otherwise noted
Full Year
Full Year
Revised Diamond revenue (millions)
$150 to $160
$195 to $225
Revised Diamond sales (thousands of carats)
340 to 370
400 to 420
Revised Diamonds recovered (thousands of carats)
330 to 360
360 to 400
Ore tonnes mined (millions)
1.6 to 2.0
1.6 to 2.0
Waste tonnes mined (millions)
Up to 0.2
Up to 0.2
Ore tonnes processed (millions)
2.6 to 2.9
2.6 to 2.9
Total operating costs(1) including waste mined (per tonne processed)
$28.50 to $31.00
$28.50 to $31.00
Revised Underground Project
Up to $95 million
Up to $115 million
Sustaining capital
Up to $13 million
Up to $13 million
Average exchange rate – Botswana Pula per United States Dollar
13.0
13.0
(1) Operating cash costs are a non-IFRS measure. See "Non-IFRS Measures".
The table above reflects the natural variability in the resource, including both recovered grade and diamond quality, which may influence the revenue guidance for 2025.
In 2025, the Company expects to mine between 1.8 and 2.2 million ore tonnes including waste. Mined ore will be processed in combination with stockpiled material in 2025. The assumptions for carats recovered and sold as well as the number of ore tonnes processed are consistent with achieved plant performance in recent years. Stockpiled material (North, Centre, South Lobe) from working stockpiles and life-of-mine stockpiles should provide mill feed until 2027 when UGP development ore is scheduled to start offsetting stockpiles with high-grade ore from the UGP. Full scale underground production is planned for H1 2028.
In 2025, capital costs for the UGP are expected to be up to $95 million, revised downward during the second quarter from the previous guidance of up to $115 million. The deferral of capital expenditures reflects strategic cash flow management and does not impact the ongoing operations or planned development activities of the UGP. Expenditures in 2025 will focus predominantly on shaft sinking activities to final depth, equipping of the production shaft and station development. Surface works will focus on permanent winders being installed and cold commissioned. Tendering of the underground lateral development contract along with underground equipment purchases are also expected to be completed in 2025.
Sustaining capital is expected to be up to $13 million with a focus on the replacement and refurbishment of key asset components, in addition to expansion of the tailings storage facility and pit steepening activities which could extend the mine's ability to extract South Lobe material from the pit in 2025.
On behalf of the Board,
William Lamb
President and Chief Executive Officer
Follow Lucara Diamond on Facebook, Instagram and LinkedIn
___________________
3 M/PK(S): Magmatic/Pyroclastic Kimberlite (South)
ABOUT LUCARA
Lucara is a leading independent producer of large exceptional quality Type IIa diamonds from its 100% owned Karowe Diamond Mine in Botswana. The Karowe Mine has been in production since 2012 and is the focus of the Company's operations and development activities. Lucara has an experienced board and management team with extensive diamond development and operations expertise. Lucara and its subsidiaries operate transparently and in accordance with international best practices in the areas of sustainability, health and safety, environment, and community relations. Lucara is certified by the Responsible Jewellery Council, complies with the Kimberley Process, and has adopted the IFC Performance Standards and the World Bank Group's Environmental, Health and Safety Guidelines for Mining (2007). The development of the UGP adheres to the Equator Principles. Lucara is committed to upholding high standards while striving to deliver long-term economic benefits to Botswana and the communities in which the Company operates.
The information in this release is subject to the disclosure requirements of Lucara pursuant to the EU Market Abuse Regulation. The Company's certified adviser on the Nasdaq First North Growth Market is Bergs Securities AB, ca@bergssecurities.se, +46 739 49 62 50. This information was submitted for publication, through the agency of the contact person set out above, on August 8, 2025, at 2:00 p.m. Pacific Time.
CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS
Certain statements made in this news release contain "forward-looking information" and "forward-looking statements" as defined in applicable securities laws. Generally, any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance and often (but not always) using forward-looking terminology such as "expects", "is expected", "anticipates", "believes", "plans", "projects", "estimates", "budgets", "scheduled", "forecasts", "assumes", "intends", "strategy", "goals", "objectives", "potential", "possible" or variations thereof or stating that certain actions, events, conditions or results "may", "could", "would", "should", "might" or "will" be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking statements.
Forward-looking information and forward-looking statements may include, but are not limited to, information or statements with respect to the Company's ability to continue as a going concern, the Company's ability to continue operations, realize assets, and settle its liabilities as they become due, the project schedule and capital costs for the UGP, diamond sales, projection and outlook disclosure under "2025 Outlook", the Company's ability to meet its obligations under the Rebase Amendments with its Lenders, the impact of supply and demand of rough or polished diamonds, estimated capital costs, future forecasts of revenue and variable consideration in determining revenue, the impact of the HB and Clara sales arrangements on the Company's projected revenue and sales channels and HB's ability to meet its payment obligations to the Company, the outcome of tax assessments and the likelihood of recoverability of tax payments made, estimation of mineral resources including the determination of the boundary between South Lobe M/PK(S) and EM/PK(S) domains due to the significant grade difference between these two domains, cost and timing of the development of deposits and estimated future production, interest rates, including expectations regarding the impact of market interest rates on future cash flows and the fair value of derivative financial instruments, currency exchange rates, rates of inflation, credit risk, price risk, requirements for and availability of additional capital, capital expenditures, operating costs, production and cost estimates, tax rates, timing of drill programs, government regulation of operations, environmental risks and the Company's ability to comply with all environmental regulations, reclamation expenses, title matters including disputes or claims, limitations on insurance coverage, and the potential impacts of economic and geopolitical risks, including potential impacts from the ongoing world conflicts, and the resulting indirect economic impacts that strict economic sanctions may have. While these factors and assumptions are considered reasonable by the Company as at the date of this news release in light of management's experience and perception of current conditions and expected developments, these statements are inherently subject to significant business, economic and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking information and undue reliance should not be placed on such information. Such factors include, but are not limited to: the timing, scope and cost of additional grouting events at the UGP, the Company's ability to comply with the terms of the Facilities which are required to construct the UGP, the impact of the Non-Financial Covenant Breaches, and any associated consequences, on the Company's business, whether the Lenders will demand payment of the Facilities because of the Non-Financial Covenant Breaches, that expected cash flow from operations, combined with external financing will be sufficient to complete construction of the UGP, that the estimated timelines to achieve mine ramp up and full production from the UGP can be achieved, that sufficient stockpiled ore of sufficient grade and value will be available to generate revenue prior to the achievement of commercial production of the Karowe underground mine, the economic potential of a mineralized area, the size and tonnage of a mineralized area, anticipated sample grades or bulk sample diamond content, expectations that the UGP and the pit steepening project will extend mine life, forecasts of additional revenues, future production activity, that depletion and amortization expense on assets will be affected by both the volume of carats recovered in any given period and the reserves that are expected to be recovered, the future price and demand for, and supply of, diamonds, expectations regarding the scheduling of activities for the UGP.
Forward-looking information and statements are based on the opinions and estimates of management as of the date such statements are made, and they are subject to several known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievement expressed or implied by such forward-looking statements due to a variety of risks, uncertainties, and other factors, including, without limitation, those referred to in this news release. The foregoing is not exhaustive of the factors that may affect any of our forward-looking statements. The Company believes that expectations reflected in this forward-looking information are reasonable, but no assurance can be given that these expectations will prove to be correct. Certain risks which could impact the Company are discussed under the heading "Risks and Uncertainties" in the Company's most recent MD&A and in the Company's most recent Annual Information Form available at SEDAR+ at www.sedarplus.ca.
Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Accordingly, readers and investors should not place undue reliance on forward-looking statements. Forward-looking information and statements contained in this news release are made as of the date of this news release and accordingly are subject to change after such date. Except as required by law, the Company disclaims any obligation to revise any forward-looking information and statements to reflect events or circumstances after the date of such information and statements. All forward-looking information and statements contained or incorporated by reference in this news release are qualified by the foregoing cautionary statements.
For further information, please contact: Vancouver: Hannah Reynish, Investor Relations & Communications, +1 604 674 0272, info@lucaradiamond.com; Sweden: Robert Eriksson, Investor Relations & Public Relations, +46 701 112615, reriksson@rive6.ch
View original content:https://www.prnewswire.co.uk/news-releases/lucara-announces-q2-2025-results-302525605.html
