Lucara Diamond (TSX: LUC) saw its sales and earnings climb in the second quarter of the year, supported mainly by its recently revived supply deal with Belgium’s HB Antwerp, which buys and polishes rough stones from the Karowe mine in Botswana.
The operation, which is Lucara’s flagship asset, generated $41.3 million in revenue, a 7% increase from the same period last year. Net profit more than doubled to $11.4 million from $5 million a year earlier.
Lucara’s deal with HB, which buys all stones over 10.8 carats found at Karowe, contributed to the overall increase in sales, the company said. The revenue from this agreement rose 15% year-on-year to $29.5 million.
Unlike most of its closest competitors, Lucara produces a significant amount of large, high-quality diamonds, for which the pricing has remained stable, compared to smaller, lower-quality diamonds, the Canadian miner said.
“These exceptional stones, coupled with Lucara’s innovative sales strategies, allow us to navigate current market conditions effectively,” chief executive William Lamb said in the statement.
From March to June, the company recovered 206 special diamonds, defined as rough diamonds weighing more than 10.8 carats, which represented 6.9% by weight of the total recovered carats from the processed ore.
Significant diamond recoveries during the period included a 491-carat Type IIa diamond, a 225.6-carat Type IIa diamond, and a 109-carat Type IIa diamond.
Work on the underground expansion project at the iconic mine also progressed well during the quarter, Lucara said, with production from the new mine section expected in early 2028.
The company noted the project would extend the life of the Karowe mine to 2040.
