Lucara Diamond Group (LUC) Q3 2025 earnings summary

Executive summary

• Q3 2025 saw 101,422 carats sold, generating $51.2 million in revenue, with strong operational performance at the Karowe Mine and continued progress on the Underground Project (UGP).

• Recovery of significant stones included a 1,015 carat non-gem and a 37.42 carat near-gem pink diamond, marking the ninth diamond over 1,000 carats from Karowe.

• The bottom of the production shaft for the UGP was reached in July 2025, a major milestone for the project.

Financial highlights

• Revenue for Q3 2025 was $51.2 million, up from $44.3 million in Q3 2024, driven by higher volumes sold through HB Trading BV.

• Net income from continuing operations was $7.4 million, compared to $0.2 million in Q3 2024.

• Operating margins improved to 57%, up from 48% in Q3 2024, due to a 16% increase in revenue and a 5% decrease in operating expenses.

• Operating cost per tonne processed decreased 6% year-over-year to $25.65.

• Cash balance at quarter-end was $18.0 million, with $190.0 million fully drawn from the project finance facility and $30.0 million from the working capital facility.

Outlook and guidance

• 2025 revenue guidance was revised to $150–$160 million, down from $195–$225 million, reflecting lower expected volumes of higher-quality diamonds.

• Diamond sales guidance for 2025 is 340,000–370,000 carats, with 330,000–360,000 carats expected to be recovered.

• UGP capital costs for 2025 are expected to be up to $95 million, revised downward from $115 million.

• Full-scale underground production is planned for H1 2028.