Lucara Announces Q2 2025 Results
Tel: +1 604 674 0272 Suite 2800, Four Bentall Centre lucaradiamond.com
[email protected] 1055 Dunsmuir Street, PO Box 49225
Vancouver, BC, V7X 1L2
August 8, 2025
NEWS RELEASE
LUCARA ANNOUNCES Q2 2025 RESULTS
VANCOUVER, B.C., August 8, 2025 /CNW/ (LUC – TSX, LUC – BSE, LUC – Nasdaq FNGM)
Lucara Diamond Corp. (“Lucara” or the “Company”) today reports its results for the quarter ended June 30, 2025. All
amounts are in U.S. dollars unless otherwise noted.
Q2 2025 HIGHLIGHTS
• In Q2 2025, the Company’s revenue increased to $43.7 million from $41.3 million in Q2 2024, primarily due to
the sale of a 1,094 carat diamond (the “Seriti”) sold to HB for an initial polished value of $12.0 million. The final
sale value of the Seriti will be determined once the polished outcomes are sold to end buyers.
• In July 2025, the Company recovered a 2,036 carat near -gem diamond. The stone was recovered from
processing EM/PK(S)1 kimberlite and is the third largest rough diamond ever unearthed and the second largest
rough diamond to be recovered in Botswana. The EM/PK(S) material which is the target of the UGP has now
produced seven of the world’s largest recorded natural diamond recoveries.
• The recovery of 242 Specials (defined as rough diamonds larger than 10.8 carats) (Q2 2024: 206 Specials)
equated to 9.4% (Q2 2024: 6.9%) by weight of the total carats recovered from direct ore feed in Q2 2025. During
Q2 2025, the Company recovered 15 stones over 100 carats, including two stones that exceeded 200 carats.
• A total of 85,024 carats were recovered in Q2 2025; 82,555 carats were from direct ore feed from the pit and
stockpiles, at a recovered grade of 12.5 carats per hundred tonnes (“cpht”), and an additional 2,469 carats were
recovered from processing of historical recovery tailings.
• During Q2 2025, the Company successfully funded the Cost Overrun Reserve Account (“CORA”) to the required
balance of $61.7 million. Following the funding of the CORA, the lenders approved the withdraw al of $28.0
million from the CORA in exchange for the Company’s largest shareholder, Nemesia S.à.r.l. (“Nemesia”),
agreeing to extend until project completion its $28.0 million shareholder standby undertaking in support of
liquidity shortfalls.
• Operational highlights from the Karowe Mine included:
o Ore mined of 0.7 million tonnes (“Mt”) (Q2 2024: 0.7 Mt).
o 0.7 Mt of ore processed (Q2 2024: 0.7 Mt).
• Financial highlights for Q2 2025 included:
o Operating margins of 65% were achieved, a 2% decrease from operating margins of 67% in Q2 2024.
The decrease in operating margins was driven by a 6% increase in revenue and a 12% increase in
operating expenses, which reflects the cost of inventory sold du ring the period.
1 EM/PK(S): Eastern Magmatic/Pyroclastic Kimberlite (South)
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o Operating cost per tonne processed was $26.76 per tonne, a 2% increase compared to the Q2 2024
operating cost of $26.32 per tonne. The continued impact of inflationary pressures, particularly labour,
has been well managed by the operation. Operating cost per tonne processed is a non -IFRS measure.
• Cash position and liquidity as at June 30, 2025:
o Cash balance of $22.7 million.
o $190.0 million has been fully drawn from the project finance facility (“Project Facility”) for the Karowe
underground project (the “UGP”), along with $30.0 million fully drawn from the working capital facility
(“WCF” and together with the Project Facility, the “Facilities”).
o Working capital deficit (current assets less current liabilities) of $156.4 million due to the
classification of the Project Facility as a current liability. Refer to discussion under the heading
Going Concern for further details.
o Excluding the Project Facility from current liabilities, positive working capital balance of $33.7
million.
William Lamb, President & CEO commented: "The Karowe Diamond Mine continues to validate its world-class status
with the recovery of a second diamond exceeding 2,000 carats. The continued and consistent recovery of Specials
reflects not only the quality of the Karowe asset but also reflects the strength of our operational team, amid a complex
and ever-changing global environment.
Progress on the Karowe underground project remains strong, with advancements in shaft sinking, station development,
and lateral development as planned. We are delighted to recognize over 2,000 days lost-time injury free on the UGP in
July, as well as the completion of the final sinking blast in the production shaft .
As we transition from open-pit to underground operations, we remain focused on disciplined execution and strategic
resource management, specifically as we will rely largely on lower-value stockpiled material prior to the UGP coming
online. As we navigate this critical transition, we maintain focus on our commitment to recovering maximum value. We
recognize that realizing the full potential of our underground resource will involve navigating both the operational and
financial complexities ahead."
GOING CONCERN
As of the date of this news release, the Company is completing a review of the UGP ore extraction methodology and is
currently updating its geomechanics studies, as well as updating its project cost and schedule. Due to the timing of this
review, the Company did not satisfy the requirement to deliver an approved financial model for the UGP to its lenders
by June 30, 2025 (“Financial Model Covenant”). The Company failed to cure its non-compliance with this Financial Model
Covenant within the 30-day cure period. As a result, as required under IFRS Accounting Standards, the entire amount
due under the Facilities is classified as a current liability. As of the date of this news release, the lenders have not
demanded early repayment of the Facilities. Management is actively working with the lenders to remedy the default. If
the Company receives a waiver for the covenant breaches from the lenders, the Project Facility would be classified as a
non-current liability in future periods. The Company’s UGP review has not impacted ongoing operations or the
development of the UGP which continues to progress as planned. The Company currently has access to up to $96.7
million of additional cash liquidity, being shareholder undertakings of $63.0 million and, subject to lender’s approval,
the remaining cash in the CORA of $33.7 million. These funds may be drawn for the UGP subject to certain conditions
in the Facilities.
Management has assessed the Company’s ability to continue as a going concern for at least twelve months from June
30, 2025. Based on this assessment, including the non-financial covenant breaches and impact of revisions to revenue
guidance for 2025, the Company estimates that its working capital as at June 30, 2025, cash flow from operations, and
other committed sources of liquidity will not be sufficient to meet its obligations, commitments, and planned
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expenditures. These conditions cast doubt on the Company’s ability to continue as a going concern. The Interim Financial
Statements have been prepared on a going concern basis which assumes the Company will continue operations, realize
assets, and settle its liabilities as they become due.
The Company continues to develop plans to raise additional financing required for UGP completion. While the Company
has previously been successful in raising financing, future fundraising efforts may not succeed or may fall short of the
required amounts.
DIAMOND MARKET
The long-term outlook for natural diamond prices remains cautious as the market continues to navigate structural shifts.
Prices of lab-grown diamonds have continued to decrease in 2025 with production outweighing demand. Global natural
diamond production i s forecasted to decrease, following significant production guidance cuts by the major diamond
producers.
In the near term, premium-grade natural diamonds are showing renewed strength, supported by limited global supply
growth and strong performance at international trade shows. However, mid-range and lower-grade stones continue to
face pricing pressure due to high inventories, cautious consumer sentiment, and the rapid rise of lab -grown diamonds.
Encouraging sign are emerging in the recovery of the Chinese diamond market, which, if remain consistent, will support
improved demand dynamics in the quarters ahead.
KAROWE UNDERGROUND PROJECT UPDATE
The UGP is designed to access the highest value portion of the Karowe orebody, with initial underground carat
production predominantly from the EM/PK(S) unit.
The Company is currently reviewing its UGP mining ore extraction methodology, project costs and schedule. The UGP
has progressed very well including reaching the bottom of the production shaft in late July 2025 and achieving 2,000
lost-time injury free days. The ore extraction review has focused on further understanding the orebody geomechanics
and modeling possible caving scenarios to safely recover ore from the UGP. This review has included producing a new
geomechanics numerical model along with performin g caving simulations, which affect ore extraction levels and
extraction point designs. The Company has initiated detail engineering of the lateral development portion of the UGP
and is currently completing a revised life of mine plan based on the results of the simulation work.
The mine extraction review does not impact the current UGP development. The Company continues to advance as
planned to the lateral development phase of the project. UGP development work continues with equipping the
production shaft, commissioning of the sh aft conveyances and progressing with its underground infrastructure
development near the shafts. Additional lateral development towards the kimberlite is also planned for H2 2025.
During Q2 2025, the UGP achieved a twelve -month rolling Total Recordable Injury Frequency Rate of 0.49. The UGP to
date Total Recordable Injury Frequency Rate up to June 30, 2025 was 0.55.
A total of $13.6 million was spent on the UGP in Q2 2025 primarily for activities related to the skip loading pocket at the
285-level2, station development on the 335 -level and 310 -level, additional lateral developments and surface
infrastructure.
Ventilation shaft Q2 2025 developments:
• Completed 335-level station development and sunk towards 310-level.
2 Each level is equivalent to a metre above sea level.
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• Completed the bulk excavation on the top of the Fine Ore Bins.
• Completed 66 metres of lateral development.
Production shaft Q2 2025 developments:
• Completed 285-level station development.
• Continued with the development of the 310-level ramp and 240-level ramp breakaways to the production shaft
bottom.
• Completed skip loading pocket excavation and 153 metres of lateral development.
Related infrastructure Q2 2025 developments:
• Continued adjudication and review of underground lateral development tender documents.
• Progressed construction of the Man and Material (“M&M”) winder.
• Completed construction of the M&M winder building and winder driver’s cabin.
• Continued with rack and cable installations in the M&M winder building.
• Completed construction and lining of the water management pond and commissioned the water blending
circuit.
• Advanced mining engineering, focusing on underground infrastructure and finalizing drilling level plans.
Activities planned for the UGP in Q3 2025 include the following:
Ventilation shaft:
• Continue with the 310-level station development.
• Lateral development to connect with the production shaft.
• Commence sinking to 285-level.
Production shaft:
• Complete 285-level station civils and 245-level station development.
• Continue with sink to shaft bottom at the 245-level and commence shaft equipping preparations.
• Strip headgear sinking arrangements.
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FINANCIAL HIGHLIGHTS – Q2 2025
Three months ended
June 30,
Six months ended
June 30,
In millions of U.S. dollars, except carats sold 2025 2024 2025 2024
Revenues $ 43.7 $ 41.3 $ 74.0 $ 80.8
Operating expenses (15.4) (13.7) (29.4) (32.0)
Net income from continuing operations 12.5 11.9 12.4 5.0
Net loss from discontinued operations - (0.6) - (1.5)
Earnings per share from continuing operations (basic and diluted) 0.03 0.03 0.03 0.01
Cash 22.7 21.9
CORA 33.7 37.5
Amounts drawn on WCF 30.0 25.0
Amounts drawn on Project Facility $ 190.0 $ 165.0
Carats sold 77,167 76,387 150,038 169,948
QUARTERLY SALES RESULTS
Three months ended June 30, Six months ended June 30,
In millions of U.S. dollars 2025 2024 2025 2024
Sales Channel
HB $ 34.0 $ 29.5 $ 53.2 $ 52.8
Tender 1.9 2.6 3.7 5.8
Clara 7.8 9.2 17.1 22.2
Total Revenue $ 43.7 $ 41.3 $ 74.0 $ 80.8
Diamond Sales
For the three months ended June 30, 2025, the Company recognized revenue of $34.0 million from HB, compared to
$29.5 million for the same period in 2024. Revenue from HB accounted for 78% of total revenue recognized in Q2 2025,
up from 72% in Q2 2024. This revenue includes “top -up” and “top-down” payments, which are made to the Company
when the final polished diamond sales price differs from the estimated initial polished value. HB revenue increased in
Q2 2025 due to a higher volume of carats sold. As of Ju ne 30, 2025, the Company had $17.5 million in current trade
receivables from HB.
For the three months ended June 30, 2025, tender sales totaled $7.8 million, compared to $9.2 million in Q2 2024, while
Clara sales totaled $1.9 million, down from $2.6 million in Q2 2024. Overall, a lower volume of carats were sold through
both the Clara platform and tender compared to Q2 2024 and both sales channels had lower average dollar -per-carat
sales values compared to 2024.
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QUARTERLY RESULTS FROM OPERATIONS – KAROWE MINE
Q2-25 Q1-25 Q4-24 Q3-24 Q2-24
Sales
Revenues $M 43.7 30.3 78.8 44.3 41.3
Carats sold Carats 77,167 72,871 112,615 116,221 76,387
Production
Tonnes mined (ore) Tonnes 721,111 390,539 646,288 845,594 699,846
Tonnes mined (waste) Tonnes 55,221 35,288 119,919 192,308 245,006
Tonnes processed Tonnes 661,352 676,626 716,936 720,524 714,301
Average grade processed(1) cpht (*) 12.5 13.4 12.7 13.4 12.9
Carats recovered(1) Carats 82,555 90,500 91,046 96,597 92,419
Costs
Operating cost per tonne of ore processed $ 26.76 23.41 31.52 27.34 26.32
Capital Expenditures
Sustaining capital expenditures $M 2.0 0.5 5.5 2.0 3.45
Underground project(3) $M 13.6 19.2 17.8 17.7 11.2
(*) Carats per hundred tonnes
(1) Average grade processed and carats recovered are from direct processing and excludes carats recovered from re -processing historical recovery tailings.
(2) Excludes qualifying borrowing cost capitalized.
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2025 OUTLOOK
This section of the news release provides management's production and cost estimates for 2025. These are “forward -
looking statements” and subject to the cautionary note regarding the risks associated with such statements.
In Q1 2025, diamond revenue, diamond sales , and diamonds recovered from the 2025 guidance news release dated
December 3, 2024. During Q2 2025, the Company mined and will continue to mine for the remainder of the year a
higher proportion of M/PK(S) 3 ore and less higher-grade EM/PK(S) ore than initially planned due to a difference in the
location of the contact between the two kimberlites when compared to the geologic model used to set the initial 2025
guidance. This results in lower EM/PK(S) milled tonnes which have historically produced higher volumes of larger, higher
quality diamonds and decreases expected revenue for the remaining life of the open pit. The revised 2025 revenue
guidance excludes the sale of the 2,488 carat Motswedi.
Karowe Diamond Mine Revised 2025 2025
In millions of U.S. dollars unless otherwise noted Full Year Full Year
Revised Diamond revenue (millions) $150 to $160 $195 to $225
Revised Diamond sales (thousands of carats) 340 to 370 400 to 420
Revised Diamonds recovered (thousands of carats) 330 to 360 360 to 400
Ore tonnes mined (millions) 1.6 to 2.0 1.6 to 2.0
Waste tonnes mined (millions) Up to 0.2 Up to 0.2
Ore tonnes processed (millions) 2.6 to 2.9 2.6 to 2.9
Total operating costs(1) including waste mined (per tonne processed) $28.50 to $31.00 $28.50 to $31.00
Revised Underground Project Up to $95 million Up to $115 million
Sustaining capital Up to $13 million Up to $13 million
Average exchange rate – Botswana Pula per United States Dollar 13.0 13.0
(1) Operating cash costs are a non-IFRS measure. See “Non-IFRS Measures”.
The table above reflects the natural variability in the resource, including both recovered grade and diamond quality,
which may influence the revenue guidance for 2025.
In 2025, the Company expects to mine between 1.8 and 2.2 million ore tonnes including waste. Mined ore will be
processed in combination with stockpiled material in 2025. The assumptions for carats recovered and sold as well as
the number of ore tonnes processed are consistent with achieved plant performance in recent years. Stockpiled material
(North, Centre, South Lobe) from working stockpiles and life-of-mine stockpiles should provide mill feed until 2027 when
UGP development ore is scheduled to start off setting stockpiles with high -grade ore from the UGP. Full scale
underground production is planned for H1 2028.
In 2025, capital costs for the UGP are expected to be up to $95 million, revised downward during the second quarter
from the previous guidance of up to $115 million. The deferral of capital expenditures reflects strategic cash flow
management and does not impact the ongoing operations or planned development activities of the UGP. Expenditures
in 2025 will focus predominantly on shaft sinking activities to final depth, equipping of the production shaft and station
development. Surface works will focus on permanent winders being installed and cold commissioned. Tendering of the
underground lateral development contract along with underground equipment purchases are also expected to be
completed in 2025.
Sustaining capital is expected to be up to $13 million with a focus on the replacement and refurbishment of key asset
components, in addition to expansion of the tailings storage facility and pit steepening activities which could extend the
mine's ability to extract South Lobe material from the pit in 2025.
3 M/PK(S): Magmatic/Pyroclastic Kimberlite (South)
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On behalf of the Board,
William Lamb
President and Chief Executive Officer
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For further information, please contact:
Vancouver Hannah Reynish, Investor Relations & Communications
+1 604 674 0272| [email protected]
Sweden Robert Eriksson, Investor Relations & Public Relations
+46 701 112615 | [email protected]
ABOUT LUCARA
Lucara is a leading independent producer of large exceptional quality Type IIa diamonds from its 100% owned Karowe
Diamond Mine in Botswana. The Karowe Mine has been in production since 2012 and is the focus of the Company’s
operations and development activities. Lucara has an experienced board and management team with extensive
diamond development and operations expertise. Lucara and its subsidiaries op erate transparently and in accordance
with international best practices in the areas of sustainability, health and safety, environment, and community relations.
Lucara is certified by the Responsible Jewellery Council, complies with the Kimberley Process, and has adopted the IFC
Performance Standards and the World Bank Group’s Environmental, Health and Safety Guidelines for Mining (2007).
The development of the UGP adheres to the Equator Principles. Lucara is committed to upholding high standards while
striving to deliver long-term economic benefits to Botswana and the communities in which the Company operates.
The information i n this release is subject to the disclosure requirements of Lucara pursuant to the EU Market Abuse
Regulation. The Company's certified adviser on the Nasdaq First North Growth Market is Bergs Securities AB,
[email protected], +46 739 49 62 50. This information was submitted for publication, through the agency of the
contact person set out above, on August 8, 2025, at 2:00 p.m. Pacific Time.
CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS
Certain statements made in this news release contain “forward-looking information” and “forward-looking statements”
as defined in applicable securities laws. Generally, any statements that express or involve discussions with respect to
predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance and often
(but not always) using forward-looking terminology such as “expects”, “is expected”, “anticipates”, “believes”, “plans”,
“projects”, “estimates”, “budgets”, “scheduled”, “forecasts”, “assumes”, “int ends”, “strategy”, “goals”, “objectives”,
“potential”, “possible” or variations thereof or stating that certain actions, events, conditions or results “may”, “could”,
“would”, “should”, “might” or “will” be taken, occur or be achieved, or the negative of a ny of these terms and similar
expressions) are not statements of historical fact and may be forward-looking statements.
Forward-looking information and forward -looking statements may include, but are not limited to, information or
statements with respect to the Company’s ability to continue as a going concern, the Company’s ability to continue
operations, realize assets, an d settle its liabilities as they become due, the project schedule and capital costs for the
UGP, diamond sales, projection and outlook disclosure under “2025 Outlook”, the Company’s ability to meet its
obligations under the Rebase Amendments with its Lende rs, the impact of supply and demand of rough or polished