*Lucara banks $779 million for Karowe expansion
Diamond miner Lucara Diamond Corporation has reported a transformational first quarter of the year, after raising money through both stock and bond sales to fund its big underground expansion project.
The company which operates the Karowe diamond mine in Letlhakane has seen its finances grow much stronger and setting it up for long-term success.
Lucara has reported revenue of $21.8-million for the three months ended March 31, from a higher proportion of stockpile processing during the period owing to unseasonal weather having impacted open pit operations.
During the same period in 2025, Lucara made revenues of $30.3 million; however declines in sales from HB, tenders and Clara platforms meant income for the miner dipped.
Last year HB sales accounted for 64 percent of revenue as compared to this year’s 62 percent following a decrease from $19.3 million to $13.6 million.
Tenders made a gross income of $7.2 million falling from $9.3 million while Clara platform only made $ 1 million in sales-a decrease from $1.7 million raked in Q1 2025.
According to Lucara, stockpile material is inherently variable in grade and quality, which affected realised recoveries in the quarter.
Open pit mining resumed on March 26 and is expected to conclude later in the year.
The company’s operating cost per tonne processed for the period was $24.74, reflecting disciplined cost management despite inflationary pressures and transitional mining activities.
Despite lower revenue and higher costs in the first quarter, Lucara maintains its full-year outlook. Revenue guidance remains unchanged at between $100-million and $130-million for the full year, supported by the planned return to open pit mining, with all other guidance parameters also reaffirmed.
Lucara president and CEO William Lamb described the first quarter as a pivotal milestone for Lucara.
“The successful execution of the company’s financing strategy for the Karowe UGP has strengthened the balance sheet, providing the financial flexibility to advance one of the world’s most exceptional diamond assets. Operationally Karowe continues to demonstrate its resilience and unique value proposition. The recovery of a 36.92 carat blue diamond, alongside multiple large diamonds recovered from run-of-mine (RoM) stockpile material, underscores the consistent delivery of high-quality, premium diamonds that differentiates Lucara globally,” said Lamb.
Lucara’s UGP advancement, which was announced on January 30, has confirmed a total cost at completion of $779.2-million, including contingency. As at March 31, the company explains that $472.4 million had been incurred, with a further $117.7 million having been committed but not yet incurred.
From the first half of this year to the first half of 2028, Lucara says processing will continue using a combination of open pit ore and RoM stockpiled materials.
The company notes that the project has been materially derisked following completion of shaft-sinking activities in 2025, including the 776 m production shaft and 729 m ventilation shaft.
Total UGP capital expenditures for the first quarter were $19-million, which primarily related to shaft equipping, lateral development and surface infrastructure.
“While broader diamond market conditions remain mixed, Lucara’s focus on large, high-value diamonds positions the company well to benefit from improving fundamentals in this segment. With steady progress on the underground project and continued operational execution, we are well positioned to unlock long-term value for our shareholders,” added Lamb.
Lucara expects to process between 2.6 million and 2.9 million tonnes of ore primarily from RoM stockpiled materials in the full year. The RoM stockpiled material and life-of-mine stockpiles will provide mill feed until the second half of 2027 when UGP development ore is scheduled to start replacing stockpiles with high-grade ore from the UGP. Full scale underground production is planned for the first half of 2028.
