LUCARA ANNOUNCES Q2 2026 RESULTS

Lucara Diamond Corp. (LUC) reported second-quarter 2026 revenue of $41.0 million, a 6% decline year-over-year, while net income rose to $15.6 million from $12.5 million in the prior year period, resulting in earnings per share of $0.01. For the first half of the year, the company posted revenue of $62.8 million and net income of $1.0 million, with the period’s performance heavily impacted by a loss in the first quarter.

Operational metrics showed a cost per tonne processed of $23.76, an 11% decrease, while carats sold fell to 58,553 compared to 77,167 in the same period last year. In July 2026, Lucara recovered a 1,303-carat Type IIa diamond, marking the company’s tenth stone exceeding 1,000 carats.

Progress on the Karowe Underground Project (UGP) includes licensed shaft winders and lateral development reaching 1,655 meters. Group R Mining is scheduled to commence underground mining in August 2026. The company maintained its full-year 2026 guidance, projecting revenue between $100 million and $130 million, carat production of 340,000 to 360,000, operating cash costs of $27.50 to $31.00 per tonne, and UGP capital expenditures of up to $110 million.

The balance sheet reflects $243.6 million in cash against $342.8 million in bonds payable, with no drawn senior debt, resulting in net debt of $99.2 million. Open-pit mining is set to conclude in the fourth quarter of 2026, after which mill feed will be sourced entirely from run-of-mine stockpiles until UGP ore arrives in the second half of 2027.

Lucara Diamond Corp. (LUC) reported a shift from a first-quarter net loss of $14.6 million to a second-quarter net income of $15.6 million. This positive swing coincided with a decline in the stock’s price to C$0.16, down from C$0.22 at the time of the first-quarter release. The company also reported a diamond recovery of 1,303 carats and secured a license for the UGP winder.

The company reaffirmed its full-year guidance, which ranges from $100 million to $130 million. Achieving the top end of this range would require an unusually strong second half of the year from lower-quality stockpiles, while the bottom end is considered more plausible.

The release indicates strong cash positions and no drawn bank debt, removing near-term bankruptcy risk and confirming operational continuity. However, the company remains in a capital-intensive transition to underground mining, with a 12.5% coupon bond weighing on future free cash flow.

Lucara Diamond Corp. is a Canadian diamond mining company that holds a 100% interest in the Karowe Mine in Botswana, a site recognized as one of the world’s most prolific producers of large, high-value Type IIA diamonds. The mine has produced 10 diamonds larger than 1,000 carats, including the 2,488-carat Motswedi, the 1,109-carat Lesedi La Rona, and a 1,303-carat stone discovered in July 2026.

The operation is currently transitioning from open-pit mining, which is scheduled to end in the fourth quarter of 2026, to an underground expansion (UGP). This expansion targets the EM/PK(S) unit, the geological source of the mine’s exceptional stones. The UGP is slated to begin production in the first half of 2028, extending the mine’s life to 2038.

Revenue at Karowe is heavily concentrated, with up to 60–70% derived from “Specials” defined as diamonds larger than 10.8 carats. HB Trading, the company’s sales partner, accounted for approximately 83% of second-quarter revenue.