Lucara Announces Q3 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
November 13, 2025
NEWS RELEASE
LUCARA ANNOUNCES Q3 2025 RESULTS
VANCOUVER, B.C., November 13, 2025 /CNW/ (LUC – TSX, LUC – BSE, LUC – Nasdaq FNGM)
Lucara Diamond Corp. (“Lucara” or the “Company”) today reports its results for the quarter ended September 30, 2025.
All amounts are in U.S. dollars unless otherwise noted.
Q3 2025 HIGHLIGHTS
• A total of 101,422 carats were sold, generating $51.2 million in revenue.
• In August 2025, the Company recovered a 1,0151 carat non-gem diamond and a 37.42 carat near-gem pink Type
IIa diamond. This is the ninth diamond over 1,000 carats from Karowe and the third recovered in 2025.
• The bottom of the production shaft was reached in July 2025, a key development towards the completion of
the UGP.
• The Company drew $10.0 million from the $63.0 million funding support provided by Lucara’s largest
shareholder, Nemesia S.à.r.l. (“Nemesia”) and issued an unsecured debenture (the “Debenture”) in connection
with the drawdown. The Debenture matures on June 30, 2031.
• The recovery of 224 Specials (defined as rough diamonds larger than 10.8 carats) (Q3 2024: 244 Specials)
equated to 9.1% (Q3 2024: 11.28%) by weight of the total carats recovered from direct ore feed in Q3 2025.
During Q3 2025, the Company recovered eight stones over 100 carats, including two stones that exceeded 1,000
carats.
• A total of 97,651 carats were recovered in Q3 2025; 95,302 carats were from direct ore feed from the open pit
and stockpiles, at a recovered grade of 12.8 carats per hundred tonnes (“cpht”), and an additional 2,349 carats
were recovered from processing historical recovery tailings.
• Operational highlights from the Karowe Mine included:
o Ore mined of 0.5 million tonnes (“Mt”) (Q3 2024: 0.8 Mt).
o 0.7 Mt of ore processed (Q3 2024: 0.7 Mt).
• Financial highlights for Q3 2025 included:
o Operating margins of 57% were achieved, a 9% increase from operating margins of 48% in Q3 2024.
The increase in operating margins was driven by a 16% increase in revenue and a 5% decrease in
operating expenses.
o Operating cost per tonne processed was $25.65 per tonne, a 6% decrease compared to the Q3 2024
operating cost of $27.34 per tonne. Lower tonnes were mined in 2025 compared to 2024 resulting in
a reduction in certain operating costs. The continued impact of inflationary pressures, particularly
1 The carats reflect the final cleaned weight of the rough stone. The stone was previously reported at 1,019.85 carats.
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labour, has been well managed by the operation. Operating cost per tonne processed is a non -IFRS
measure.
• Cash position and liquidity as at September 30, 2025:
o Cash balance of $18.0 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 $157.8 million due to the
classification of the Project Facility as a current liability. Refer to the discussion under the heading
Going Concern for further details.
William Lamb, President & CEO commented: “Operational performance at Karowe remained robust this quarter,
supported by continued strong recoveries and steady progress on the Underground Project. Our ongoing recovery of
large, high -value diamonds, including most recently the ninth stone exceeding 1,000 carats, reinforces Karowe’s
reputation as one of the world’s most consistent sources of exceptional quality gems.
The Karowe Underground Project advanced during the quarter, with shaft sinking and equipping proceeding according
to and in some areas exceeding plans. Completion of shaft sinking at the production shaft marked a key milestone for
the quarter, with lateral development activities ongoing to link the production and ventilation shafts. Our teams
continue to deliver these results safely and efficiently, maintaining our impressive safety record.
As development advances toward first underground ore, we remain focused on safe execution and cost discipline. The
work undertaken now lays the foundation for the long-term performance and value of the Karowe resource.”
GOING CONCERN
As of the date of this news release, the Company is completing a review of the mining method for the UGP and updating
the geomechanical studies, long-hole drilling schedule, project cost and schedule. Due to the timing of this review, the
Company did not satisfy the requirement under the Facilities to deliver an approved financial model for the UGP by June
30, 2025 (“Financial Model Covenant”), the requirement to execute a lateral development contract by July 31, 2025
(“Lateral Development Covenant”), and the requirement to provide a cost to complete certificate by August 31, 2025
(“Cost to Complete Covenant”). Additionally, the Company is required to fully pay down the WCF for five successive
business days at least once every 12 months (the “Clean Down Cove nant” and together with the Financial Model
Covenant, the Lateral Development Covenant, and the Cost to Complete Covenant, collectively the “Covenants”). The
Company did not comply with the Clean Down Covenant deadline of October 21, 2025. As a result of not complying with
these Covenants, in accordance with IFRS Accounting Standards, the entire amount outstanding under the Facilities has
been classified as a current liability. As of the date of this news release, the lenders, a syndicate of six mandated lead
arrangers (the “Lenders”), have not demanded early repayment of the Facilities. Management is actively engaged with
the Lenders to remedy the defaults. If the Company obtains waivers for the Covenant breaches from the Lenders, the
Project Facility would be reclassified as a non -current liability in future periods. The Company’s UGP review has not
impacted ongoing operations or the continued development of the UGP which continues to progress as planned.
Management has assessed the Company’s ability to continue as a going concern for a period of at least twelve months
from September 30, 2025. Based on this assessment, which considered the Covenant breaches and impact of revisions
to revenue guidance for 2025 during Q1 2025, the Company estimates that its working capital position as at September
30, 2025, together with its cash flow from operations, and other committed sources of liquidity wi ll not be sufficient to
meet its obligations, commitments, and plan ned expenditures. These conditions may raise significant 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
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become due. The Company’s Interim Financial Statements do not include adjustments that may be necessary if the
Company is unable to continue normal operations; such adjustments could be material and affect asset recoverability,
liability classification, expenses, and comprehensive income (loss).
The Company continues to develop plans to raise additional financing required to complete the UGP. While the
Company has previously been successful in raising financing, there is no assurance that future financing will be
successful or sufficient to meet the Company’s requirements
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 through 2025 with production outweighing demand. Global
natural diamond product ion is forecasted to decrease, following significant production guidance cuts by the major
diamond producers.
In the near term, premium -grade large natural diamonds are showing signs of potential stability, supported by limited
global supply growth. However, mid -range and lower -grade stones continue to face pricing pressure due to high
inventories, cautious consumer sentiment, and the rapid rise in the purchasing of lab -grown diamonds.
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) 2 unit.
The Company is currently reviewing the mining method for the UGP, along with the project’s cost estimates and
schedule. The UGP has progressed well, highlighted by reaching the bottom of the production shaft in late July 2025
and achieving 2,067 lost -time injury free days. The ore extracti on review has focused on further understanding the
orebody geomechanics and modeling potential caving scenarios which affect ore extraction levels and extraction point
designs to be included in an updated technical report . The Company has initiated detaile d engineering of the lateral
development portion of the UGP and is finalizing an updated life -of-mine plan based on the results of the simulation
work.
The review of the mining method does not impact the ongoing development of the UGP. The Company continues to
advance according to plan toward the lateral development phase of the project. UGP development work continues with
equipping the production shaft, commissioning of the shaft conv eyances, progressing underground infrastructure
development near the shafts and advancing the lateral development towards the kimberlite.
During Q3 2025, the UGP achieved a twelve -month rolling Total Recordable Injury Frequency Rate (TRIFR) of 1.37. The
UGP to date TRIFR up to September 30, 2025 was 0.59.
A total of $22.7 million was spent on the UGP in Q3 2025, primarily on advancing production shaft sinking, developing
the 310 -level3 to interconnect shafts, and 285 -level station development, which included significant concrete work,
pump installations, and other station civil works. Expenditures also related to completing key electrical and power
installations at the 355-level and 470-level, as well as ongoing lateral development and surface infrastructure activities.
Ventilation shaft Q3 2025 developments:
• Completed 184.5 metres of lateral development at the 310-level.
2 EM/PK(S): Eastern Magmatic/Pyroclastic Kimberlite (South)
3 Each level is equivalent to a metre above sea level.
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• Advancing the 310-level lateral development toward holing into the production shaft.
Production shaft Q3 2025 developments:
• Shaft sinking completed.
• Commenced stage modifications and equipping stage assembly.
• Completed 7.8 metres of lateral development.
Related infrastructure Q3 2025 developments:
• Continued adjudication and review of underground lateral development tender documents.
• Completed the Man and Material (“M&M”) winder installations, including rack and cable installations in the M&M
winder building.
• Completed fencing of evaporator pond and pipeline installation.
• Advanced mining engineering, focusing on underground infrastructure and finalizing drilling level plans.
Activities planned for the UGP in Q4 2025 include the following:
Ventilation shaft:
• Complete the 310 -level station development and 310 -level lateral development connecting to the production
shaft.
• Complete blasting of ore pass to the 285-level.
• Complete 310-level to 285-level tip construction.
• Installation and commissioning of substation.
• Complete sinking to 285-level and hole with production shaft.
• Continue 310-level and 285-level lateral development.
Production shaft:
• Complete stage modification for shaft equipping.
• Continue with shaft equipping and complete loading pocket structure steel installation.
• Installation of shaft bottom spillage and deflection wall.
• Complete station steel construction at the 285-level and 310-level.
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FINANCIAL HIGHLIGHTS – Q3 2025
Three months ended
September 30,
Nine months ended
September 30,
In millions of U.S. dollars, except carats sold 2025 2024 2025 2024
Revenues $ 51.2 $ 44.3 $ 125.2 $ 125.1
Operating expenses (22.0) (23.1) (51.3) (55.1)
Net income from continuing operations 7.4 0.2 19.8 5.1
Net loss from discontinued operations - (0.7) - (2.2)
Earnings per share from continuing operations (basic and diluted) 0.02 0.00 0.04 0.01
Cash 18.0 23.6
Cost Overrun Reserve Account 33.7 43.7
Amounts drawn on WCF 30.0 25.0
Amounts drawn on Project Facility $ 190.0 $ 180.0
Carats sold 101,422 116,221 251,460 286,970
QUARTERLY SALES RESULTS
Three months ended
September 30,
Nine months ended
September 30,
In millions of U.S. dollars 2025 2024 2025 2024
Sales Channel
HB $ 38.0 $ 27.8 $ 91.3 $ 80.6
Tender 11.2 14.6 28.3 36.8
Clara 2.0 1.9 5.6 7.7
Total Revenue $ 51.2 $ 44.3 $ 125.2 $ 125.1
Diamond Sales
Diamonds from Karowe are sold through three sales channels: through a diamond sales agreement with HB Trading BV
(“HB”), through quarterly tenders, and on the Clara sales platform.
For the three months ended September 30, 2025, the Company recognized revenue of $38.0 million from HB, compared
to $27.8 million for the same period in 2024. Revenue from HB accounted for 74% of total revenue recognized in Q3
2025, up from 63% in Q3 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 Q3 2025 due to a higher volume of carats sold. As of September 30, 2025, the Company had $29.4 million
in current trade receivables from HB.
For the three months ended September 30, 2025, tender sales totaled $11.2 million, compared to $14.6 million in Q3
2024, while Clara sales totaled $2.0 million consistent with $1.9 million in Q3 2024. Overall, a lower volume of carats
was sold through both the Clara platform and tender compared to Q3 2024. Tender sales had lower average dollar-per-
carat sales values compared to 2024 while Clara’s average dollar-per-carat increased compared to Q3 2024.
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QUARTERLY RESULTS FROM OPERATIONS – KAROWE MINE
Q3-25 Q2-25 Q1-25 Q4-24 Q3-24
Sales
Revenues $M 51.2 43.7 30.3 78.8 44.3
Carats sold Carats 101,422 77,167 72,871 112,615 116,221
Production
Tonnes mined (ore) Tonnes 517,155 721,111 390,539 646,288 845,594
Tonnes mined (waste) Tonnes 5,682 55,221 35,288 119,919 192,308
Tonnes processed Tonnes 744,753 661,352 676,626 716,936 720,524
Average grade processed(1) cpht (*) 12.8 12.5 13.4 12.7 13.4
Carats recovered(1) Carats 95,302 82,555 90,500 91,046 96,597
Costs
Operating cost per tonne of ore processed $ 25.65 26.76 23.41 31.52 27.34
Capital Expenditures
Sustaining capital expenditures $M 3.0 2.0 0.5 5.5 2.0
Underground project(2) $M 22.7 13.6 19.2 17.8 17.7
(*) 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, the Company revised its guidance for diamond revenue, diamond sales, and diamonds recovered from the
2025 guidance news release dated December 3, 2024. No changes have been made to the 2025 guidance in Q3 2025.
During Q3 2025, the Company mined and will continue to mine for the remainder of the year a higher proportion of
M/PK(S)4 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 Original 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 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
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 will provide mill feed until 2027 when
UGP development ore is scheduled to start offse tting 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 open pit into early 2026.
4 M/PK(S): Magmatic/Pyroclastic Kimberlite (South)
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On behalf of the Board,
William Lamb
President and Chief Executive Officer
Follow Lucara Diamond on Facebook, Instagram and LinkedIn
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 acti vities. Lucara has an experienced board and management team with extensive
diamond development and operations expertise. Lucara and its subsidiaries operate 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 November 13, 2025, at 3:30 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”, “intends”, “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 any 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
diamonds, estimated capital costs, future forecasts of revenue and variable consideration in determining revenue, the