Lucara Announces Year End 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
March 3, 2026
NEWS RELEASE
LUCARA ANNOUNCES YEAR END 2025 RESULTS
VANCOUVER, B.C., March 3, 2026 /CNW/ (LUC – TSX, LUC – BSE, LUC – Nasdaq FNGM)
Lucara Diamond Corp. (“Lucara” or the “Company”) today reports its results for the quarter ended December 31, 2025.
All amounts are in U.S. dollars unless otherwise noted. References to “C$” are to Canadian dollars.
FISCAL 2025 HIGHLIGHTS
A total of 353,302 carats were sold (2024: 399,215 carats), generating $159.7 million in revenue (2024: $203.9
million). Revenue for the year includes the sale of the Seriti, a 1,094 carat diamond sold to HB Trading BV (“HB”)
for an initial polished value of $12.0 million. A further $7.9 million in top-up revenue was earned during 2025
following the sale of polished outcomes from the Seriti. Revenue for the comparative year includes the sale of
the Sethunya, a 549 carat Type IIA white gem quality diamond and the Eva Star, a 1,080 carat Type IIA diamond.
The Company sold the Sethunya and Eva Star for a combined sum of $54.0 million and in Q4 2024 recognized
$44.0 million in revenue net of fees, excluding royalties.
The production and ventilation shafts both reached final depth in 2025 marking a key milestone toward
completion of the Karowe Underground Project (“UGP”). Significant process was made in lateral development
connecting the two shafts across multiple levels. The UGP achieved over 2,000 days without a lost-time injury.
On December 1, 2025, the Company awarded a lateral development contract to Group R Mining and Exploration
Botswana (Pty) Ltd. for the execution of all underground lateral development from the production and
ventilation shafts to the ore body, including construction of the extraction level, underground crushing chamber,
fine ore bins, and pump stations with associated infrastructures required to advance to the kimberlite.
The recovery of 772 Specials 1 (2024: 807 Specials) equated to 7.1% (2024: 7.6%) by weight of the total carats
recovered from direct ore feed in 2025. During 2025, the Company recovered 31 stones over 100 carats,
including three stones that exceeded 1,000 carats. Significant recoveries in 2025 included a 1,476 carat non-
gem diamond, a 2,036 carat near-gem diamond, a 1,015 2 carat non-gem diamond and a 37.42 carat pink Type
IIa diamond.
A total of 89,596 carats were recovered in Q4 2025; 86,110 carats were from direct open pit ore feed and
stockpiles, at a recovered grade of 12.2 carats per hundred tonnes (“cpht”), and an additional 3,486 carats were
recovered from processing historical recovery tailings.
All key operational and financial metrics set out in the Company’s 2025 Revised Guidance were achieved.
A total of 1.9 million tonnes (“Mt”) (2024: 3.0 Mt) of ore was mined with 2.8 Mt of ore processed (2024: 2.9
Mt).
1 Specials are defined as stones above 10.8 carats.
2 The carats reflect the final cleaned weight of the rough stone. The stone was previously reported at 1,019.85 carats.
2
Financial highlights for 2025 included:
o Operating margins of 52% were achieved compared to 61% in 2024. The 9% decrease reflects a 22%
decrease in revenue partially offset by a 3% decrease in operating expenses.
o Operating cost per tonne processed was $27.15 per tonne, a decrease of 3% compared to the 2024
operating cost of $27.89 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 December 31, 2025:
o Cash balance of $31.9 million.
o $190.0 million has been fully drawn from the project finance facility (“Project Facility”) for 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 (current assets less current liabilities) of $33.6 million.
The Company drew $28.0 million from the Cost Overrun Reserve Account (“CORA”) in exchange for its largest
shareholder, Nemesia S.à.r.l. (“Nemesia”), agreeing to amend the terms of its limited shareholder standby
undertaking through to UGP completion.
The Company drew $28.0 million from the $63.0 million funding support provided by Nemesia and issued an
unsecured debenture (the “Debenture”) in connection with the drawdown. The Debenture matures on June 30,
2031.
SUBSEQUENT TO FISCAL 2025 HIGHLIGHTS
On January 29, 2026, the Company closed a non-brokered private placement for total gross proceeds of C$165.0
million (the “January 2026 equity financing”). The Company issued an aggregate of 1,031,250,000 common
shares at a price of C$0.16 per common share.
On January 30, 2026, the Company filed an updated Feasibility Study (the “Updated Feasibility Study”) prepared
in accordance with National Instrument 43-101 – Standards of disclosure for Mineral Properties which provided
an update on the progress and estimate for the total costs of the UGP. The revised forecasted costs at
completion are $779.2 million, an increase of 14% from the prior estimate in July 2023, of which $469.4 million
has been incurred as at December 31, 2025.
On March 3, 2026, the Company and the Lenders (as defined below) entered into a waiver agreement (the
“Subsequent Waiver Agreement”). The Subsequent Waiver Agreement approved a reduction of the required
CORA balance from $33.7 million to $21.2 million.
William Lamb, President & CEO commented: “Our 2025 performance reflects both the resilience of our operations and
the unique value proposition of Karowe. We continued to achieve strong operating margins of 52% and met all key
metrics set out in our 2025 Revised Guidance.
Operationally, 2025 was a milestone year for the Karowe Underground Project. Both the production and ventilation
shafts reached final depth, lateral development advanced across multiple levels, and the project surpassed 2,000 days
without a lost-time injury, an achievement that speaks to the strength of our safety culture. The award of the lateral
development contract to Group R Mining and Exploration Botswana marks the transition to the next critical phase,
advancing infrastructure toward the ore body and positioning us for long-term underground production.
Karowe’s ability to consistently recover large, high-value diamonds remains unmatched. In 2025, Specials accounted for
7.1% by weight of total recovered carats from direct ore feed, with 31 stones over 100 carats recovered, including three
3
exceeding 1,000 carats and a rare 37.42 carat pink Type IIa diamond. These recoveries underscore the exceptional
quality of the resource as we transition from open pit to underground mining.
We strengthened our capital structure with the successful C$165 million equity financing completed in January 2026
The filing of our Updated Feasibility Study confirms a clear path to completion of the UGP, with $469.4 million already
invested and a disciplined plan to deliver the project. Together, these achievements reinforce our confidence in
Karowe’s long-term potential and our commitment to creating sustainable value for our shareholders and stakeholders
alike.”
GOING CONCERN
As of the date of this news release, the Company’s Facilities to fund the UGP are fully drawn. The Company did not
comply with the covenants under the Facilities requiring a technically signed off financial model by June 30, 2025
(“Financial Model Covenant”), the execution of a lateral development contract by July 31, 2025 (“Lateral Development
Contract Covenant”), the requirement to provide a cost to complete certificate by August 31, 2025 (“Cost to Complete
Covenant”), and the requirement to fully pay down the WCF for five successive business days at least once every 12
months (the “Clean Down” and collectively, the “Covenants”). On December 30, 2025, the Company and the lenders, a
syndicate of six mandated lead arrangers (the “Lenders”) entered into an agreement to waive all Covenant breaches
and events of default (the “Waiver Agreement”). The Waiver Agreement provided extensions to the following
covenants: the Financial Model Covenant and the Lateral Development Contract Covenant to February 28, 2026, the
Cost to Complete Covenant to March 31, 2026, and the Clean Down to June 30, 2026. As of the date of this news release,
the Company is in full compliance with its Facilities, including the Financial Model Covenant and the Lateral
Development Contract Covenant, with no outstanding Covenant breaches.
On March 3, 2026, the Company and the Lenders entered into a waiver agreement (the “Subsequent Wavier
Agreement”). The Subsequent Waiver Agreement extends the Financial Model Covenant and Cost to Complete
Covenant to July 15, 2026.
Management has assessed the Company’s ability to continue as a going concern for at least twelve months from
December 31, 2025. Based on this assessment, the Company estimates that its working capital as at December 31, 2025,
cash flow from operations, the January 2026 equity financing, and other committed sources of liquidity will not be
sufficient to meet the revised forecasted costs at completion for the UGP of $779.2 million of which $469.4 million of
costs have been incurred. Given that committed sources of liquidity are not sufficient to meet the revised forecast and
remaining cost to complete, the Company is not expected to comply with the Cost to Complete Covenant by July 15,
2026, unless additional financing is obtained or the Lenders grant a waiver or extension for the Cost to Complete
Covenant. The Company is continuing to evaluate additional financing options to support completion of the UGP. While
the Company has previously been successful in raising financing, future fundraising efforts may not succeed or may fall
short of the required amounts. These conditions cast significant doubt on the Company’s ability to continue as a going
concern.
The Annual 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’s Annual 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.
4
DIAMOND MARKET
The long-term outlook for natural diamond prices remains cautious amid ongoing structural changes in the market. Lab-
grown diamond prices have continued to decline through 2025 with production outweighing demand. Global natural
diamond production 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 price stability with De Beers
recently announcing a positive price increase in rough diamonds above 5 carats in size, supported by limited global
supply growth and a paucity of rough diamonds in these and larger sizes. However, mid-range and lower-grade stones
remain under pricing pressure due to high inventories, cautious consumer sentiment, and the 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) 3 unit. The UGP is expected to extend the mine life to 2038.
On January 30, 2026, the Company announced an update to the UGP schedule and budget ( link to news release ).
Production from the UGP is anticipated in H1 2028 with a revised total cost at completion of $779.2 million (including
contingency). As at December 31, 2025, capital expenditures of $469.4 million had been incurred. Committed, not yet
incurred, UGP costs are $82.3 million as at December 31, 2025. The Updated Feasibility Study incorporates construction
progress, revisions to exchange rates, inclusion of Legacy stone 4 values, and costs incurred to date, and updates to
hydrogeological and geomechanical models, mine design, method and scheduling. From H1 2026 to H1 2028, the
Company will process a combination of ore from open pit operations and stockpiled materials.
The UGP has progressed well, highlighted by reaching the bottom of the 776 metres (“m”) production shaft and the 729
m ventilation shaft in 2025. The UGP has achieved 2,159 lost-time injury free days. During Q4 2025, the UGP achieved
a twelve-month rolling Total Recordable Injury Frequency Rate (“TRIFR”) of 0.67. The UGP to date TRIFR up to December
31, 2025 was 0.56.
A total of $75.8 million 5 was spent on the UGP in 2025 with $20.3 million 5 in Q4 2025. Expenditures were primarily
directed toward advancing shaft sinking, developing the 245-level 6, 285-level, 310-level and 335-level to connect the
shafts and initiating lateral development.
In Q4 2025, the Company executed a lateral development contract covering all underground lateral development from
the production and ventilation shafts to the ore body. The scope includes construction of the extraction level,
underground crushing chamber, fine ore bins, pump stations with associated vertical dams, drilling horizons, workshop
facilities, and all connecting infrastructure required to advance towards the kimberlite.
Ventilation shaft Q4 2025 developments:
Continued with 285-level station works, cat-walk and installation of a 110kw ventilation fan.
Commissioned the 285-level temporary pump station.
Developed 59.95 m on the 310-level and 24.5 m top cut on the 582-level.
Completed sinking to shaft bottom.
3 EM/PK(S): Eastern Magmatic/Pyroclastic Kimberlite (South).
4 Legacy stone refers to rough stones sold for a value greater than $5.0 million.
5 Excludes qualifying borrowing cost capitalized.
6 Each level is equivalent to a metre above sea level.
5
Production shaft Q4 2025 developments:
Continued with pre-assembly and modifications of shaft station steel for construction at the 285-level and 310-
level.
Installation of shaft bottom spillage and deflection wall.
Continued with equipping the production shaft to the 310-level and 285-level loading pocket.
Related infrastructure Q4 2025 developments:
Completed the Banksman cabin and continued with procurement of main surface ventilation fans.
Advanced mining engineering, focusing on underground infrastructure and finalizing drilling level plans.
Activities planned for the UGP in Q1 2026 include the following:
Finalize production shaft equipping and headframe modifications.
Advance lateral development towards the ore extraction and undercut levels on the 285-level and 310-level.
Equip shaft from 310-level station to surface, removal of stage and ropes and commence head frame change
over.
Continue with operational readiness including advancing staffing plans and efforts to prepare for operation
and maintenance of permanent infrastructure and establish operating procedures.
FINANCIAL HIGHLIGHTS – Q4 2025
Three months ended
December 31,
Year ended
December 31,
In millions of U.S. dollars, except carats sold 2025 2024 2025 2024
Revenues $ 34.5 $ 78.8 $ 159.7 $ 203.9
Operating expenses (25.9) (24.4) (77.2) (79.6)
Net income from continuing operations 6.4 38.5 26.1 43.6
Net loss from discontinued operations - (1.5) - (3.7)
Earnings per share from continuing operations (basic) 0.01 0.09 0.06 0.10
Earnings per share from continuing operations (diluted) 0.01 0.08 0.06 0.09
Cash 31.9 22.8
CORA 33.7 49.1
Amounts drawn on WCF 30.0 25.0
Amounts drawn on Project Facility $ 190.0 $ 180.0
Carats sold 101,842 112,615 353,302 399,215
QUARTERLY SALES RESULTS
Three months
ended December 31,
Year ended
December 31,
In millions of U.S. dollars 2025 2024 2025 2024
Sales Channel
HB $ 19.9 $ 62.1 $ 111.2 $ 142.8
Tender 11.1 13.2 39.4 50.0
Clara 3.5 3.5 9.1 11.1
Total Revenue $ 34.5 $ 78.8 $ 159.7 $ 203.9
6
Diamond Sales
Diamonds from Karowe are sold through three sales channels: through a diamond sales agreement with HB, through
quarterly tenders, and on the Clara Diamond Solutions (“Clara”) sales platform.
For the three months ended December 31, 2025, the Company reported revenue of $19.9 million from HB, compared
to $62.1 million for the same period in 2024. Revenue from HB accounted for 58% of total revenue recognized in Q4
2025, down from 79% in Q4 2024. Excluding the Sethunya and Eva Star, revenue from HB for Q4 2024 would have
totaled $18.1 million. On a comparable basis, excluding Legacy stone sales in Q4 2024, revenue increased by 10% driven
by a higher volume of carats sold to HB.
Revenue from HB includes “top-up” and “top-down” payments, which are made to or from the Company when the final
polished diamond sales price differs from the estimated initial polished value. Revenue from HB fluctuates with the sale
of Specials and Legacy Stones. As of December 31, 2025, the Company had $9.5 million in current trade receivables from
HB (December 31, 2024: $18.4 million).
For the three months ended December 31, 2025, tender sales totaled $11.1 million, compared to $13.2 million in Q4
2024, while Clara sales totaled $3.5 million consistent with Q4 2024. Compared to Q4 2024, a higher number of carats
were sold through the Clara platform while fewer were sold via tender. Average prices per carat declined for both
channels, falling 7% for tender and 11% for Clara.
QUARTERLY RESULTS FROM OPERATIONS – KAROWE MINE
Q4-25 Q3-25 Q2-25 Q1-25 Q4-24
Sales
Revenues $M 34.5 51.2 43.7 30.3 78.8
Carats sold Carats 101,842 101,422 77,167 72,871 112,615
Production
Tonnes mined (ore) Tonnes 312,148 517,155 721,111 390,539 646,288
Tonnes mined (waste) Tonnes - 5,682 55,221 35,288 119,919
Tonnes processed Tonnes 705,513 744,753 661,352 676,626 716,936
Average grade processed(1) cpht (*) 12.2 12.8 12.5 13.4 12.7
Carats recovered(1) Carats 86,110 95,302 82,555 90,500 91,046
Costs
Operating cost per tonne of ore processed $ 32.88 25.65 26.76 23.41 31.52
Capital Expenditures
Sustaining $M 4.8 3.0 2.0 0.5 5.5
UGP(2) $M 20.3 22.7 13.6 19.2 17.8
(*) 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.
7
2026 OUTLOOK
This section of the news release provides management's production and cost estimates for 2026. These are forward-
looking statements and subject to the cautionary note regarding the risks associated with such statements.
Karowe Diamond Mine 2026
In millions of U.S. dollars unless otherwise noted Full Year
Diamond revenue (millions) $100 to $130
Diamond sales (thousands of carats) 340 to 360
Diamonds recovered (thousands of carats) 340 to 360
Ore tonnes mined (millions) Up to 0.6
Waste tonnes mined (millions) Up to 0.2
Ore tonnes processed (millions) 2.6 to 2.9
Total operating cash costs(1) (per tonne processed) $27.50 to $31.00
UGP capital expenditure Up to $110 million
Sustaining capital expenditure Up to $11.5 million
Average exchange rate – Botswana Pula per United States Dollar 14.0
(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 2026. In 2026, the Company expects to process 2.6 to 3.0 million tonnes
of ore including waste, primarily from stockpiled materials. The assumptions for carats recovered and sold as well as
tonnes of ore 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 offsetting stockpiles with high-grade ore from the UGP. Full scale underground
production is planned for H1 2028.
In 2026, capital costs for the UGP are expected to be up to $110 million. Expenditures in 2026 will focus predominantly
on shaft equipping, and advancing lateral development. Surface works will focus on the removal of stage and ropes, and
headgear change over.
Sustaining capital is expected to be up to $11.5 million with a focus on the replacement and refurbishment of key asset
components and tailings advancement.
APPOINTMENT OF NEW AUDITOR
Lucara also announces that it has changed its auditors from PricewaterhouseCoopers LLP (“Former Auditor”) to Ernst &
Young LLP (“Successor Auditor”) effective March 3, 2026 and subsequent to the filing of the Annual Financial Statements
and related disclosures (“Effective Date”).
The Former Auditor’s Botswana member firm (“PwC Botswana”) is subject to mandatory audit firm rotation
requirements of the Botswana Accountancy Oversight Authority as it relates to the Company’s Botswana subsidiary.
PwC Botswana will be completing its maximum permitted tenure as the auditor of the Company's Botswana subsidiary
following the completion of their audit for the year ended December 31, 2025, at which point a new auditor for the
Botswana subsidiary will be appointed. To promote efficiency and consistency by aligning the auditors of the Company
and its Botswana subsidiary, the Company requested that the Former Auditor resign as of the Effective Date. The Board
of Directors of the Company appointed the Successor Auditor, as of the Effective Date, to fill the vacancy and to hold
office until the Company’s next annual general meeting.
There were no reservations in the Former Auditor’s audit reports for any financial period during which the Former
Auditor was the Company’s auditor. There are no “reportable events” (as the term is defined in National Instrument 51-
102 – Continuous Disclosure Obligations) between the Company and the Former Auditor.
8
In accordance with National Instrument 51-102, the Notice of Change of Auditor, together with the required letters
from the Former Auditor and the Successor Auditor, have been reviewed by the Company’s Audit Committee and Board
and will be filed on SEDAR+ accordingly.
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 activities. Karowe is transitioning from open pit to underground mining with the
development of the UGP. The UGP is designed to access the highest value portion of the Karowe orebody. Underground
development ore from the UGP is scheduled to begin offsetting stockpiles in 2027, with full-scale underground
production planned for the first half of 2028.
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. 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 in 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 March 3, 2026, at 6:30 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”,