Lucara Diamond Corp. has announced a solid second quarter for 2025, with both financial growth and historic recoveries adding shine to its performance. The company generated $43.7 million in revenue for the three months ending June 30, up from $41.3 million a year earlier, thanks in part to the sale of the 1,094-carat “Seriti” diamond to HB for an initial polished value of $12 million. The final figure will be determined after polished sales to end buyers are completed.
In July, Lucara made headlines with the recovery of a 2,036-carat near-gem diamond from the EM/PK(S)1 kimberlite at its Karowe Mine—marking the third largest rough diamond discovery in history and the second largest ever recovered in Botswana. The EM/PK(S) deposit, the primary target of the ongoing underground expansion project (UGP), has now yielded seven of the largest recorded natural diamonds globally.
Q2 operations produced 242 “Specials” (diamonds over 10.8 carats), making up 9.4% of the total carats recovered from direct ore feed, a notable rise from 6.9% in the same quarter last year. Fifteen stones weighed over 100 carats, with two surpassing 200 carats. Total recovery for the quarter stood at 85,024 carats, including 82,555 carats from direct ore feed at a grade of 12.5 cpht, and 2,469 carats from historical recovery tailings.
Financially, Lucara maintained a healthy 65% operating margin despite a slight dip from 67% in Q2 2024, impacted by rising costs. Operating expenses were up 12%, driven by inventory sold during the period, while costs per tonne processed edged up to $26.76. The company ended the quarter with $22.7 million in cash and has fully drawn its $190 million project finance facility and $30 million working capital facility for the Karowe underground project.
During the quarter, Lucara met its $61.7 million Cost Overrun Reserve Account target, later withdrawing $28 million with the backing of its largest shareholder, Nemesia S.à.r.l., which extended its $28 million liquidity support until project completion.
Despite a working capital deficit of $156.4 million—due to reclassification of the project facility as a current liability—Lucara’s balance sheet reflected a positive $33.7 million in working capital when excluding this item.