Large-Stone Sales Send Lucara Revenue Surging 

Lucara Diamond Corp.’s revenue rebounded in 2024 amid the sale of two massive rough stones from its Karowe mine in Botswana, which together went for $54 million. 

Revenue for the year rose 18% to $203.9 million as sales volume increased 5% to 399,215 carats, the company said Friday. A larger proportion of high-value goods in comparison with the previous year drove the spike. Those stones included the 549-carat Sethunya diamond and the 1,080-carat Eva Star. Profit for the full year came to $39.9 million, compared with a net loss of $20.2 million in 2023. Production for the period slipped 8% to 361,673 carats. 

During the year, Lucara unearthed two diamonds greater than 1,000 carats, including the 2,488-carat Motswedi and the 1,094-carat Seriti. Additionally, the miner recovered 807 special-size stones above 10.8 carats, up from the 602 it found in 2023. 

In the fourth quarter, revenue more than doubled to $78.8 million from $36.3 million in the October-to-December period a year earlier, while sales volume grew 1% to 112,615 carats. Production for the three months fell 7% to 91,046 carats. 

The miner expects revenue of $195 million to $225 million in 2025, from the sale of between 400,000 to 420,000 carats. Production will be between 360,000 and 400,000 carats. 

“The long-term outlook for natural-diamond prices remains cautiously optimistic despite current challenges,” the company said. “While the influx of Angolan rough diamonds and the subdued demand for polished diamonds, especially from China, have led to price corrections, particularly in smaller sizes, the industry sentiment suggests that the market may have reached its bottom during the fourth quarter. A gradual recovery is expected to be driven by increasing demand for larger diamonds due to reduced production, and the overall long-term demand for natural diamonds.” 

After the close of the year, Lucara recovered a 1,476-carat rough, which is not gem-quality, it added. 

Image: Diamond sorting at the Karowe mine. (Lucara Diamond Corp.)