Lucara Revenue Falls 6% to $41 Million as Karowe Underground Project Advances Toward 2028 Production
Botswana-focused diamond producer Lucara Diamond Corp. reported a 6% year-on-year decline in second-quarter revenue to $41 million, mainly due to lower carat sales and a weaker average price for diamonds weighing less than 10.8 carats.
The company recovered 90,082 carats during the quarter, including 176 special diamonds weighing more than 10.8 carats.
The period also included the sale of the 2,488-carat Motswedi diamond, while the comparable quarter in 2025 benefited from the sale of the 1,094-carat Seriti diamond.
Despite the lower revenue, Lucara maintained its full-year revenue guidance of $100 million to $130 million.
Operating costs also improved, falling 11% to $23.76 per tonne processed, below the company’s full-year guidance range.
At the Karowe diamond mine, open-pit mining remains on track to conclude in the fourth quarter.
The operation will then rely on stockpiled ore while development of the Karowe Underground Project (UGP) continues.
The UGP is designed to access the higher-value sections of the Karowe orebody and is expected to extend the mine’s life to 2038.
Full-scale underground production is targeted for the first half of 2028, with total project costs estimated at approximately $779.2 million.
Progress on the project includes the completion of the production and ventilation shafts, while Botswana’s Department of Mines has licensed key production-shaft winders.
About 410 metres of lateral development was completed during the quarter, bringing total project-to-date development to 1,655 metres.
However, the project has experienced some delays. Construction of the headframe steel took longer than planned because of late deliveries and on-site rework, delaying the start of underground lateral development by about six weeks.
Lucara said mitigation measures have been implemented and that the overall project schedule and budget remain intact.
The company also recovered a 1,303-carat Type IIa diamond in July, marking its tenth diamond larger than 1,000 carats since operations began at Karowe.
Lucara said the continued recovery of exceptional diamonds demonstrates the quality of the Karowe resource, while progress on the UGP is expected to support the mine’s next phase of production and long-term value creation.
