*Giant stones keep rolling out of Karowe mine
*The Toronto listed miner reports $51.2m in revenue
Lucara Diamond Corp has recorded a strong third quarter, with the sale of 101 422 carats for a total revenue of $51.2-million for the period ending September 30th.
In August, the company recovered a 1 015 carats non-gem diamond and a 37.42 carats near-gem pink Type IIa diamond with this proving to be some of its milestones in the three months period.
A 16% increase in revenue and a 5% decrease in operating expenses saw a splendid performance from the miner with $38 million of revenue coming from HB sales, $11.2 million from tenders and $2 million from Clara sales platform.
Revenue from HB accounted for 74% of total revenue recognised in the third quarter of this year, up from 63% in the third quarter of 2024. The 1 015 carats diamond is the ninth diamond over 1 000 carats from the Karowe diamond mine and the third recovered this year. Further, the miner has shared that the bottom of the production shaft was reached in July, a key development towards the completion of the underground project (UGP) at Karowe.
As a result, the company drew $10-million from the $63-million funding support provided by Lucara’s largest shareholder, Nemesia, and issued an unsecured debenture in connection with the drawdown. The debenture matures on June 30, 2031.
The recovery of 224 special diamonds-defined as rough diamonds weighing more than 10.8 carats, equated to 9.1% by weight of the total carats recovered from direct ore feed in the third quarter of this year.
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During the quarter, Lucara recovered eight diamonds weighing more than 100 carats each, including two stones that exceeded 1000 carats.
A total of 97 651 carats were recovered in the third quarter with 95 302 carats coming from direct ore feed from the open pit and stockpiles, at a recovered grade of 12.8 carat per hundred tonnes while an additional 2 349 carats were recovered from processing historical recovery tailings.
Operational highlights from the Karowe mine included ore mined of 500 000 tonnes and 700 000 tonnes of ore processed.
However, with lower tonnes mined this year compared with 2024, this resulted in a reduction in certain operating costs which cushioned the company against the continued impact of inflationary pressures, particularly labour.
Lucara president and Chief Executive Officer William Lamb says operational performance at Karowe remained robust this quarter, supported by continued strong recoveries and steady progress on the UGP.
“Our ongoing recovery of large, high-value diamonds, including most recently the ninth stone exceeding 1000 carats, reinforces Karowe’s reputation as one of the world’s most consistent sources of exceptional-quality gems,” said Lamb adding that the Karowe UGP has advanced during the quarter, with shaft sinking and equipping proceeding according to and in some areas exceeding plan.
“Completion of shaft sinking at the production shaft marked a key milestone for the quarter, with lateral development activities ongoing to link the production and ventilation shafts. Our teams continue to deliver these results safely and efficiently, maintaining our impressive safety record. As development advances toward first underground ore, we remain focused on safe execution and cost discipline. The work undertaken now lays the foundation for the long-term performance and value of the Karowe resource,” added Lamb.
Meanwhile, the long-term outlook for natural diamond prices remains cautious as the market continues to navigate structural shifts.
The prices of lab-grown diamonds have continued to decrease through this year, with production outweighing demand.
Global natural diamond production is forecast to decrease, following significant production guidance cuts by the major diamond producers.
In the near term, premium-grade large natural diamonds are showing signs of potential stability, supported by limited global supply growth.
Nonetheless mid-range and lower-grade diamonds continue to face pricing pressure owing to high inventories, cautious consumer sentiment, and the rapid rise in the purchasing of lab-grown diamonds.
