Lucara Diamond Group (LUC) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue rose to $43.7M from $41.3M year-over-year, driven by the sale of a 1,094 carat diamond; final value pending polished sales.

• Recovered a 2,036 carat diamond, the third largest ever, and 242 Specials, with 15 stones over 100 carats.

• Karowe Mine operations remained stable, with 0.7Mt ore mined and processed, and 85,024 carats recovered.

• UGP development advanced, achieving over 2,000 days lost-time injury free and significant shaft sinking milestones.

Financial highlights

• Operating margin was 65%, down from 67% in Q2 2024, due to a 12% increase in operating expenses.

• Operating cost per tonne processed increased 2% to $26.76.

• Net income from continuing operations was $12.5M, EPS $0.03, both flat year-over-year.

• Cash balance at quarter-end was $22.7M; $190M fully drawn from project finance, $30M from working capital facility.

• Working capital deficit of $156.4M due to project facility classification as current liability.

Outlook and guidance

• 2025 revenue guidance revised to $150–$160M, down from $195–$225M, reflecting lower high-value ore processed.

• Diamond sales expected at 340–370k carats, with 330–360k carats recovered.

• Total operating costs forecast at $28.50–$31.00 per tonne processed.

• UGP capital costs revised down to up to $95M for 2025, with sustaining capital up to $13M.

• Full-scale underground production targeted for H1 2028.