Lucara Diamond Group (LUC) Q4 2024 earnings summary

Executive summary

• Achieved record annual production at Karowe Mine with 2.9 Mt ore processed and 399,215 carats sold, generating $203.9 million in revenue.

• Recovered two exceptional diamonds over 1,000 carats: 2,488 carat Motswedi and 1,094 carat Seriti.

• Sold Sethunya (549 carat) and Eva Star (1,080 carat) for $54.0 million, recognizing $44.0 million in revenue net of fees.

• Achieved over three years without a lost time injury at Karowe; strong safety performance.

• Sold non-core Clara digital sales platform for $3.0 million cash and return of 10 million shares.

Financial highlights

• 2024 revenue rose 18% year-over-year to $203.9 million; operating expenses increased 9%.

• Operating margin improved to 61% from 58% in 2023.

• Operating cost per tonne processed decreased 5.6% to $27.14.

• Net income from continuing operations was $43.6 million for 2024, up from a $5.0 million loss in 2023.

• Cash on hand at year-end was $22.8 million, with $27.1 million in working capital.

Outlook and guidance

• 2025 revenue guidance: $195–$225 million; diamond sales of 400,000–420,000 carats.

• Diamonds recovered expected at 360,000–400,000 carats; ore tonnes processed 2.6–2.9 million.

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

• Up to $115 million in underground project capital and $13 million in sustaining capital planned for 2025.

• Full-scale underground production targeted for H1 2028; mine life expected beyond 2040.