Lucara Diamond Corp has reaffirmed its full-year revenue guidance, despite a sharp decline in first-quarter earnings attributed to the processing of lower-grade ore at its flagship Karowe Mine in Botswana.
The company stated that annual revenue remains projected between $100 million and $130 million. Operations were temporarily hampered by severe weather conditions and rising water levels in the open-pit mine, forcing a strategic reliance on lower-grade stockpiles to sustain production.
Financial Downturn and Operational Hurdles
For the first quarter ending March 31, revenue plummeted 28% to $21.8 million, compared to a much stronger performance in the same period last year. This decline was primarily driven by a lower proportion of large stones sold under the company’s supply agreement with HB Antwerp.
Despite the drop in ore quality, sales volume rose by 9% to 79,744 carats. Conversely, mine production saw a 20% contraction, falling to 72,061 carats.
Strategic Partnerships and Bottom Line
Sales through the HB agreement accounted for 62% of total revenue, a slight dip from 64% a year earlier. However, revenue from this specific channel saw a significant 30% decrease, totaling $13.6 million.
On the bottom line, Lucara reported a net loss of $14.6 million for the quarter, a stark contrast to the marginal loss of $100,000 recorded in Q1 of the previous year.
Rare Finds Amid Challenges
Despite the operational headwinds, the mine continued to yield high-value recoveries. During the quarter, Lucara extracted:
100 "Specials" (diamonds larger than 10.8 carats).
5 stones exceeding 100 carats each.
A rare 36.92-carat Type IIb blue diamond, highlighting the continued potential of the Karowe asset.
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