LUCARA ANNOUNCES Q3 2026 RESULTS

Lucara Diamond Corp. reported third-quarter 2026 revenue of $61.1 million, an 11.6% increase from the $51.2 million recorded in the same period of 2025. This growth was driven by sales of 113,227 carats, up from 101,422 carats in the prior year. The quarter’s revenue included the sale of a 1,303-carat Type IIa diamond. Adjusted operating earnings rose 12.3% to $32.8 million, compared to $29.2 million in the previous year. Net income decreased 10.8% to $6.6 million, down from $7.4 million.

Operational efficiency improved, with operating costs per tonne processed falling 12.6% to $22.41 from $25.65. This figure remained below the company’s revised full-year guidance range. Consequently, Lucara raised its full-year 2026 revenue guidance to $140–$160 million from the previous range of $100–$130 million, representing a 30.4% increase at the midpoint. Conversely, operating cost guidance was reduced to $24.00–$26.00 per tonne from $27.50–$31.00, a 14.5% reduction at the midpoint.

Mining and processing volumes also saw upward revisions. Ore mined guidance increased to up to 0.9 million tonnes from up to 0.6 million tonnes, while ore processed guidance rose to 2.8–3.0 million tonnes from 2.6–2.9 million tonnes. Capital expenditure guidance for the Karowe Underground Project (UGP) remained unchanged at up to $110 million, with sustaining capital expenditure held at up to $11.5 million.

The Karowe Underground Project has transitioned from shaft construction to lateral development. During the third quarter, Group R advanced 466 metres, bringing total project-to-date lateral development to 2,121 metres. As of September 30, 2026, remaining costs to complete the project were estimated at $245.2 million, within the unchanged total estimated cost at completion of $779.2 million.

On the balance sheet, Lucara held $232.6 million in cash, which included $66.2 million in the Debt Service Retention Account and a $10.0 million customer security deposit. The company’s $350.0 million senior secured bonds were admitted to trading on Euronext ABM in September 2026.

In corporate developments, Lucara gave notice to terminate the Clara agreement, with those sales moving to the regular tender process in the first quarter of 2027. Additionally, Naseem Banu Lahri will conclude her tenure as Managing Director of Lucara Botswana effective November 30, 2026.

Lucara Diamond Corp. (LUC) revised its full-year 2026 guidance following its earnings release, raising the revenue midpoint by 30.4% to $150 million from $115 million. Simultaneously, the company lowered its cost midpoint by 14.5% to $25.00 per tonne from $29.25.

Third-quarter results exceeded expectations, with revenue rising 19.3% and operating cost per tonne falling 12.6% compared to Q3 2025. The upward revision in revenue guidance is attributed specifically to Legacy Stones, including the Motswedi mine and 1,303 carat Type IIa diamonds, rather than a broad increase in volume or price.

Despite the revenue beat, underlying production metrics weakened. Carats recovered declined 0.9%, while grade fell 11.7% to 11.3 carats per hundred tonnes (cpht). Specials recovered dropped 27.2% to 163 stones. Net income decreased 10.8%, even as adjusted operating earnings increased.

The stock had closed at $0.16 on the August 7, 2026, Q2 2026 release date and fell to $0.11 on November 13, 2026, a decline of 31.3%. While the Q3 release presented better revenue and cost guidance than the market’s negative setup, the quality of the beat was driven largely by one-off factors. The primary positives remain the guidance revision, cost discipline, and the Unauthenticated Gemstone Project (UGP) remaining on budget and schedule, though the results do not demonstrate sustainable operating leverage.

Lucara Diamond Corp. (LUC) is a producing diamond miner listed on the TSX, BSE and Nasdaq First North Growth Market. Its sole asset is the 100%-owned Karowe Diamond Mine in Botswana.

Karowe is an open-pit mine transitioning to underground mining via the UGP. It is known for large, high-value Type IIa diamonds and is the only diamond mine to have recovered ten diamonds in excess of 1,000 carats.

The UGP is designed to access the highest-value portion of the Karowe orebody, primarily EM/PK(S). It is expected to extend mine life to 2038, with development ore in 2027 and full-scale underground production in H1 2028.

The release does not disclose any other producing assets, royalty assets or material exploration properties. The investment case is therefore highly concentrated on Karowe and the UGP.