Lucara Posts $51.2m Revenue as Karowe Underground Project Reaches Key Milestones

Lucara Diamond has reported a solid performance for the third quarter, underscored by strong revenue generation and significant progress on the Karowe underground expansion project. The company recorded 51.2 million dollars in revenue during the period, supported by consistent production of high value stones and stable operating efficiencies. At the same time, construction on the Karowe Underground Project reached an important technical milestone with the completion of sinking to the bottom of the production shaft, marking a critical step toward transitioning the mine to long term underground operations.

Sales volumes remained robust, with 101,422 carats sold across various channels. Lucara recovered several notable stones during the quarter, including a 1,015 carat non gem diamond and a 37.42 carat near gem pink Type IIa stone. The mine also produced its ninth diamond over 1,000 carats and the third such large stone recovered this year, reaffirming Karowe’s reputation for consistent output of exceptional quality diamonds. In total, the mine yielded 224 special diamonds weighing more than 10.8 carats, accounting for 9.1 percent of all recovered carats, a proportion that demonstrates the orebody’s high value characteristics.

Operational performance strengthened further as operating margins increased to 57 percent. This improvement was supported by a combination of higher revenues and lower operating costs, illustrating the effectiveness of Lucara’s cost discipline and operational optimization strategies. Diamond sales were diversified across multiple platforms, generating 38 million dollars through the HB agreement, 11.2 million dollars via tenders, and 2 million dollars through the Clara digital sales platform. The company also reported strong safety outcomes, achieving a Total Recordable Injury Frequency Rate of 1.37 over a twelve month period, which reflects the sustained emphasis on risk management and workforce protection.

On the development front, the Karowe Underground Project advanced meaningfully. A total of 22.7 million dollars was invested in the third quarter, primarily directed toward shaft sinking, station development, and the installation of underground infrastructure. Reaching the bottom of the production shaft now allows for the start of lateral development, which is essential for establishing the underground mining levels that will support long term ore extraction. According to the project schedule, first underground ore is expected in 2027, with full scale underground production anticipated in early 2028.

Despite ongoing caution in the global diamond market, demand for premium large stones remains relatively stable due to constrained supply in this segment. Lucara’s progress on the underground transition positions the company to capitalize on future market recovery by securing long term access to the highest value portions of the Karowe orebody. These developments are likely to reinforce Karowe’s standing as one of the most reliable global sources of high value diamonds and could contribute positively to Botswana’s diamond driven economy, which remains a major pillar of the country’s export earnings and mining sector resilience.

Mini Glossary

• Type IIa diamond: A rare, high purity diamond with very low nitrogen content.
• Orebody: A naturally occurring concentration of minerals that can be mined profitably.
• Shaft sinking: The process of excavating a vertical tunnel to access underground ore.
• Lateral development: Horizontal tunneling that connects mining levels and infrastructure.
• TRIFR: Total Recordable Injury Frequency Rate, a safety metric measuring workplace injuries.