LUCARA ANNOUNCES Q3 2025 RESULTS
Executive Summary
- Lucara reported Q3 2025 revenue of $51.2 M (up 15% YoY) and net income from continuing operations of $7.4 M, a material improvement over the prior year’s $0.2 M.
- The company sold 101,422 carats, including a 1,015‑carat non‑gem diamond and a 37.42‑carat pink Type IIa stone, marking its ninth >1,000‑carat recovery from Karowe.
- Operating margins rose to 57% (up 9 pts YoY) while operating cost per tonne fell to $25.65 (down 6%).
Key Details
- Production & Sales
- Carats sold: 101,422 (Q3 2024: 116,221).
- Revenue: $51.2 M (Q3 2024: $44.3 M).
- HB sales channel contributed $38.0 M (74% of revenue).
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Tender sales: $11.2 M; Clara platform: $2.0 M.
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Diamond Recoveries
- Total carats recovered: 97,651 carats (95,302 from ore feed, 2,349 from tailings).
- Grade processed: 12.8 cpht (vs. 13.4 cpht YoY).
- Specials (>10.8 ct) accounted for 9.1% of recovered weight.
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Eight stones >100 ct recovered; two >1,000 ct (including the 1,015‑carat stone).
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Mining Operations
- Ore mined: 0.5 Mt (Q3 2024: 0.8 Mt).
- Ore processed: 0.7 Mt (steady YoY).
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Bottom of production shaft reached July 2025 – key milestone for the Karowe Underground Project (UGP).
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Financial Highlights
- Operating margin: 57% (up from 48%).
- Operating cost/tonne processed: $25.65 (down from $27.34).
- Cash balance: $18.0 M.
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Working capital deficit: $157.8 M (due to classification of project facility as current liability).
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Financing Activity
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Drew $10.0 M under a $63.0 M unsecured debenture from major shareholder Nemesia; debenture matures 30‑Jun‑2031.
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Going Concern & Covenant Breaches
- The company missed several covenants (financial model, lateral development, cost‑to‑complete, clean‑down) leading to reclassification of the $220 M facilities as current liabilities.
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Lenders have not demanded repayment; management is negotiating waivers.
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2025 Outlook Adjustments
- Revised full‑year diamond revenue guidance: $150–$160 M (down from $195–$225 M).
- Revised diamond sales: 340–370 k carats (vs. 400–420 k).
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Underground Project capital cost revised to up to $95 M (previously up to $115 M).
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Safety
- UGP achieved a twelve‑month rolling TRIFR of 1.37; cumulative TRIFR to 30 Sep 2025 was 0.59.
Notable Quotes
“Operational performance at Karowe remained robust this quarter… The work undertaken now lays the foundation for the long‑term performance and value of the Karowe resource.” – William Lamb, President & CEO.