Lucara Cuts Revenue Guidance Amid Lack of Large Stones

Lucara Diamond Corp. has lowered its full-year revenue forecast after retrieving a lower proportion of large rough stones and experiencing a slowdown in demand. 

The miner believes 2024 revenue will reach between $160 million and $180 million, compared with its initial guidance of $220 million to $250 million, it said Wednesday. The company has maintained its estimate for both output and sales volume of 345,000 to 375,000 carats. Outlay for the company’s underground project during the year will come to approximately $80 million, down from the previous projection of $100 million, Lucara added. 

“Revisions to diamond-revenue guidance reflect lower production of HB [Antwerp]-qualifying specials combined with softening of the global rough-diamond market during 2024,” the company explained. The decrease in fees related to the underground project is due to the deferral of costs that will be spent in 2025, rather than during the current year. 

Lucara sells rough from its Karowe mine in Botswana in three ways: via quarterly tenders; on its Clara digital platform, which matches buyers with the exact stones they need; and through an offtake agreement with HB for rough over 10.8 carats.  

Revenue for the third quarter that ended September 30 dropped 21% to $44.3 million, as the miner sold a lower proportion of large stones into its contract agreement with HB. Sales from that channel, which comprise 63% of total revenue, decreased from $38.4 million a year ago to $27.8 million in the third quarter of 2024. Sales volume grew 4% to 116,221 carats, with profit falling to $200,000 from $11.7 million a year earlier. Meanwhile, output from the deposit rose 6% to 104,390 carats, comprising 96,597 from direct ore and an additional 7,793 carats recovered from the processing of tailings. 

During the quarter, Lucara recovered 244 special-sized stones, including 12 diamonds greater than 100 carats. Of those, three weighed more than 300 carats, including a 2,488-carat rough and a 1,094-carat diamond. 

Image: The Karowe mine open pit. (Lucara Diamond Corp.)

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