Lucara Diamond Corp.

Lucara reported $41 million of diamond sales in Q1, with about 93,500–94,000 carats sold, roughly 10,000 carats higher than last year. Operating margin was 51%, and operating costs were $26 per ton processed. The company recovered 5.1 weight percent specials, or 160 specials, versus a normal South Lobe target of about 6.8%. Management said Q1 net loss increased by $9 million year over year, including $10.5 million of one-off transaction costs tied to the rebase loan agreement. For guidance, Lucara held revenue guidance at $220 million to $250 million, while saying underground development remains on budget and the project is advancing according to plan.

William Lamb emphasized that Karowe remains an unusually high-value asset, saying the mine has the ability to generate a diamond population unlike anything else and continues to deliver exceptional stones over time. He highlighted the variability of the resource, noting that Q1 was weaker on large-stone recovery but April showed a rebound, including the 225-carat type IIa white stone. His tone was confident on the underground build and broader asset quality, while also stressing Botswana’s social and economic benefits from the mine and the importance of stewardship.

Glenn Kondo said operations were strong, with ore mined and processed well within guidance and operating costs per ton at the low end of the range at $26 per ton processed. He noted 94,000 carats sold in the quarter, driven by higher minus-10.8-carat tender sales but offset by lower plus-10.8-carat deliveries to HP, which led to an additional project-loan draw in Q2; he stressed this was not due to a cost overrun. He also explained the higher net loss was mainly a one-off IFRS transaction cost of $10.5 million related to the rebase loan agreement, and reiterated that revenue guidance remains $220 million to $250 million despite early-year softness.

There was no analyst Q&A; management said no questions came through. The most notable discussion points were their explanation of weaker quarterly revenue due to a lower volume of large stones delivered to HP, versus an expected H2 uplift as more EMPTS ore is mined. They also clarified that the extra project loan draw was not a project cost overrun and that underground work is tracking ahead of the rebase schedule.