Lucara Diamond Group (LUC) Q4 2025 earnings summary

Executive summary

• Sold 353,302 carats in 2025, generating $159.7 million in revenue, down from $203.9 million in 2024, reflecting lower sales volumes and the absence of large one-time diamond sales seen in the prior year.

• Achieved key milestones in the Karowe Underground Project (UGP), with both production and ventilation shafts reaching final depth and over 2,000 days without a lost-time injury.

• Recovered 772 Specials (diamonds >10.8 carats), including three stones over 1,000 carats and a rare 37.42 carat pink diamond, underscoring the resource's quality.

• All operational and financial metrics set out in 2025 Revised Guidance were met.

Financial highlights

• Operating margin was 52% in 2025, down from 61% in 2024, reflecting a 22% revenue decrease partially offset by a 3% reduction in operating expenses.

• Operating cost per tonne processed was $27.15, a 3% decrease from 2024.

• Cash balance at year-end was $31.9 million, with working capital of $33.6 million.

• Net income from continuing operations was $26.1 million for 2025, down from $43.6 million in 2024.

• Q4 2025 revenue was $34.5 million, with 101,842 carats sold.

Outlook and guidance

• 2026 revenue guidance is $100–$130 million, with 340,000–360,000 carats expected to be sold and recovered.

• Operating cash costs per tonne processed are forecast at $27.50–$31.00.

• UGP capital expenditure for 2026 is expected to be up to $110 million, with sustaining capital up to $11.5 million.

• Ore processing will rely on stockpiled material until UGP development ore is available in 2027; full-scale underground production is planned for H1 2028.