Lucara's Revenue Normalizes after 2024 Bonanza

(IDEX Online) - Lucara's FY2025 revenue fell by almost 22%, reflecting a normalization after the sale of two exceptionally high-value stones the previous year.

In FY2024, the Canada-based miner sold the 549-ct Sethunya and the 1,080-ct Eva Star, both Type IIa diamonds, for a total of $54m, according to its Year End 2025 Results, published on 3 March.

There were some high-value sales in FY2025, notably the 1,094-ct Seriti, but not at the same level. The Seriti sold to HB Trading for an initial polished value of $12m plus $7.9m in top-up revenue.

Revenue for FY2025 from Lucara's Karowe mine, in Botswana, was $159.7m, compared to $203.9m (2024); $177.4m (2023) and $212.9m (2022).

Karowe, one of the world's leading sources of large, high‑quality Type IIa diamonds, is currently transitioning from open-pit to underground mining in a project.

The company faces liquidity strain and going concern risks tied to completing the costly Karowe underground project on time and budget.

Lucara says it drew $28m from the Cost Overrun Reserve Account in exchange for its largest shareholder, Luxembourg-registered Nemesia agreeing to amend the terms of its limited shareholder standby undertaking.

It recovered 772 specials (+10.8 carats) compared to 807 in FY2024. Significant recoveries in 2025 included a 1,476 carat non-gem diamond, a 2,036 carat near-gem diamond, a 1,015 carat non-gem diamond and a 37.42 carat pink Type IIa diamond.

William Lamb, president and CEO said: "Our 2025 performance reflects both the resilience of our operations and the unique value proposition of Karowe."

He said the company had achieved strong operating margins of 52% (2024: 61%) and met all key metrics set out in its 2025 Revised Guidance.

The long-term outlook for natural diamond prices remains cautious amid ongoing structural changes in the market," he said.

"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."

Pic shows the Seriti, the world's sixth largest rough diamond, which was recovered in September 2024.