Lucara Diamond Group (LUC) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue rose to $43.7 million from $41.3 million in Q2 2024, driven by the sale of a 1,094 carat diamond and higher HB sales volume.

• Recovery of a 2,036 carat diamond in July 2025 marks the third largest rough diamond ever found and highlights ongoing operational success at the Karowe Mine.

• 85,024 carats were recovered in Q2 2025, with 15 stones over 100 carats and 242 Specials, reflecting strong asset quality.

Financial highlights

• Operating margin was 65%, down from 67% in Q2 2024, due to a 12% increase in operating expenses.

• Operating cost per tonne processed increased 2% year-over-year to $26.76.

• Net income from continuing operations was $12.5 million, up from $11.9 million in Q2 2024.

• Cash balance at June 30, 2025 was $22.7 million, with a working capital deficit of $156.4 million due to project facility classification.

• $190 million fully drawn from the project finance facility and $30 million from the working capital facility.

Outlook and guidance

• Revised 2025 revenue guidance is $150–$160 million, reflecting lower EM/PK(S) ore processed and excluding the sale of the 2,488 carat Motswedi.

• 2025 diamond sales expected at 340,000–370,000 carats, with recovered carats at 330,000–360,000.

• UGP capital cost guidance for 2025 reduced to up to $95 million, with sustaining capital up to $13 million.

• Full-scale underground production targeted for H1 2028.