Lucara Diamond Group (LUC) Q2 2024 earnings summary

Executive summary

• Achieved zero lost time injuries at Karowe Mine for over three years as of June 30, 2024.

• Recovered notable diamonds: 491-carat, 225.6-carat, and 109-carat Type IIa stones.

• Sold 76,387 carats generating $41.3 million in Q2 2024 revenue.

• Advanced Karowe Underground Project (UGP) with shaft sinking ahead of schedule.

• Entered a ten-year New Diamond Sales Agreement with HB for large stones.

Financial highlights

• Q2 2024 revenue: $41.3M (up from $38.6M in Q2 2023); six-month revenue: $80.8M.

• Net income from continuing operations: $11.9M (Q2 2024) vs $6.1M (Q2 2023).

• Adjusted EBITDA: $18.8M (Q2 2024) vs $16.5M (Q2 2023).

• Operating margin: 67% (Q2 2024) vs 59% (Q2 2023).

• Operating cost per tonne processed: $26.32, down 6% year-over-year.

Outlook and guidance

• 2024 diamond revenue guidance: $220M–$250M; carats sold/recovered: 345k–375k.

• Total operating cash costs per tonne processed: $28.50–$33.50.

• Karowe UGP capital cost for 2024 expected up to $100M; sustaining capital up to $10M.

• Open pit mining to continue until mid-2025, with transition to underground in 2027–2028.