Lucara Diamond: Record Production Drives Revenue Growth and Profitability in 2024

Lucara Diamond Corp. (TSX: LUC) (BSE: LUC) (Nasdaq FNGM: LUC) has reported its 2024 year-end results, highlighting a new annual production record and significant revenue growth. The company's Karowe mine in Botswana processed 2.9 million tonnes of ore, recovering 399,215 carats of diamonds, a 18% increase in revenue compared to 2023. This strong performance was driven by the recovery of exceptional diamonds, such as the 2,488 carat Motswedi and the 1,094 carat Seriti, which commanded higher prices in the market.

The company's operating margins improved to 61% in 2024, up from 58% in 2023, as revenue increased by 18% while operating expenses increased by 9%. This improvement in profitability can be attributed to the increased production and the recovery of large, high-value diamonds. The company's cash position and liquidity remained strong, with $22.8 million of cash and $27.1 million of working capital as of December 31, 2024.

Lucara's underground expansion project at the Karowe mine is a significant driver of its long-term growth and cash flow generation. The project aims to extend the mine's life by accessing deeper, higher-value ore bodies, which are expected to contain a higher proportion of large, high-quality diamonds. This expansion is crucial for the company's long-term success as it will allow Lucara to maintain its production levels and continue to recover exceptional diamonds, contributing to the company's strong revenue and market position.

The company's 2025 guidance projects revenue between $195 million and $225 million, with total cash operating costs of $28.50-31 per tonne processed. Lucara's position at the forefront of the diamond sector remains strong, particularly with the recently announced $54.0 million sale of the 549 carat Sethunya and 1,080 carat Eva Star diamonds.

In conclusion, Lucara Diamond Corp.'s record production in 2024 has driven significant revenue growth and improved profitability. The company's underground expansion project and the recovery of exceptional diamonds contribute to its long-term growth and cash flow generation. With strong guidance for 2025, Lucara Diamond remains well-positioned in the diamond sector.