KEY POINTS
- Lucara’s 9M 2024 revenue was down to $125.1 million, due to inflationary pressures amid the sale of high-value diamonds.
- The quarter was marked by the recovery of two remarkable stones—one weighing 2,488 carats and another 1,094 carats.
- Lucara achieved a milestone in safety and operational excellence with its Karowe Mine operating over three years without a lost time injury.
Lucara Diamond Corp., a leader in the diamond industry known for its exceptional diamond recoveries, reported total revenue of $125.1 million for the first nine months of 2024.
While impressive, this figure fell short of the prior period’s $136.1 million, as revenue softness and inflationary pressures—particularly in labor costs—offset a strong 48% operating margin.
Lucara achieves strong Q3 growth despite 9-Month revenue decline
Despite facing inflationary pressures, Lucara Diamond Corp. demonstrated resilience with notable diamond recoveries and continued operational progress at Botswana’s Karowe Mine. The company maintained a strong operating margin of 48 percent in its third quarter period, benefiting from a robust U.S. dollar that helped offset inflationary cost increases.
Operating costs were also reduced by 5 percent compared to the previous year, further supporting the mine’s productivity. Karowe Mine’s operational excellence remains a priority, with over three years of lost-time injury-free operations underscoring Lucara’s commitment to safety and efficiency.
During this period, the company recovered two extraordinary diamonds—a historic 2,488-carat stone and a 1,094-carat diamond—cementing Karowe’s prominent role in the high-value diamond sector. These exceptional finds contributed to Q3 revenue of $44.3 million, derived from the sale of 116,221 carats, reflecting strong performance amid a challenging market.
CEO’s remarks
Lucara’s President and CEO, William Lamb, hailed the company’s transformative year, citing the two record-breaking diamond recoveries as evidence of the Karowe Mine’s exceptional quality and Lucara’s mining expertise. Lamb reaffirmed Lucara’s commitment to executing its underground project, which aims to extend mine life and maintain Lucara’s position in the high-value diamond segment.
Lucara remains focused on its Karowe underground expansion and the diamond sector’s premium segment. These recent discoveries reinforce Lucara’s potential to deliver long-term value to shareholders. The global diamond market remains resilient for larger stones, while demand for smaller stones is tempered by competition from laboratory-grown diamonds.
As part of its sales strategy, Lucara continues to leverage its agreement with HB Antwerp, quarterly tenders, and the Clara digital marketplace.
