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Lucara sets record with Karowe’s historic diamond recoveries

Lucara Diamond Corp’s Karowe Mine set a new annual production record in 2024 by processing 2.9 million tonnes of ore, exceeding last year’s total. The company recovered an impressive 807 Specials (diamonds larger than 10.8 carats), including the 2,488-carat Motswedi diamond and the 1,094-carat Seriti diamond.

Lucara’s revenue for 2024 totaled $203.9 million, generated from the sale of 399,215 carats. An additional $44.0 million was earned from the sale of two standout diamonds—the 549-carat Sethunya and the 1,080-carat Eva Star. The company also reported a 61% operating margin, improving from 58% in 2023.

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The company’s cash balance stood at $22.8 million, with $180 million drawn on project financing for the underground expansion. Karowe Mine in Botswana delivered outstanding production, including two diamonds over 1,000 carats, while the report highlighted strong financial performance.

The report also confirmed that Lucara maintained a strong safety record, as it operated for over three years without a lost-time injury. Progress continued at the Karowe Underground Expansion Project, with the production shaft reaching 731 meters (final depth: 770m) and the ventilation shaft extending to 671 meters (final depth: 722m). The project remains on track for full underground production by H1 2028.

Lucara successfully divested its Clara Diamond Solutions digital sales platform, selling it for $3 million in cash and 10 million Lucara shares. The move aligns with the company’s focus on core mining operations.

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Looking ahead, Lucara remains cautiously optimistic about the diamond market. While smaller diamond prices continue to face pressure, demand for larger, high-value stones is expected to drive recovery. However, increasing competition from Angolan diamond producers and the rise of lab-grown diamonds present challenges to the industry.

Lucara’s President and CEO, William Lamb, expressed his enthusiasm for the company’s achievements in 2024, stating, “Our world-class Karowe mine continues to set new benchmarks, achieving record production while maintaining the highest safety standards in the industry.” He emphasised the strategic importance of the ongoing underground project, which is expected to extend the mine’s productive life and enhance the recovery of exceptional diamonds for years to come.

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As Lucara moves into 2025, the long-term outlook for natural diamond prices appears cautiously optimistic, with expectations for a gradual recovery driven by increasing demand for larger diamonds. The company remains committed to executing its strategic objectives while reinforcing its position as a leader in the recovery and marketing of exceptional diamonds.

2024 highlights:

• As of December 31, 2024, Karowe had operated for over three years without a lost time injury.
• Recoveries of two exceptional diamonds larger than 1,000 carats: the 2,488 carat(1) Motswedi and the 1,094 carat Seriti diamonds. The company recovered an additional 1,476 carat non-gem diamond in January 2025.
• A total of 399,215 carats were sold, generating revenue of $203.9 million as well as payments received for the sale of the Sethunya, a 549 carat Type IIA white gem quality diamond and the Eva Star, a 1,080 carat Type IIA diamond. The company sold the two stones for a combined sum of $54.0 million and recognized $44.0 million in revenue net of fees, excluding royalties.
• The recovery of 807 Specials (defined as rough diamonds larger than 10.8 carats) (2023: 602 Specials) equated to 7.6% (2023: 5.3%) by weight of the total recovered carats from ore processed in 2024.
• Significant progress was made in shaft sinking and shaft connection lateral development. During 2024, 702 metres (“m”) were sunk consisting of 375 m in the production shaft and 327 m in the ventilation shaft. A total of 464 m of lateral development was completed, connecting the two shafts at the 670-level and 470-level. Each level is equivalent to a metre above sea level.
• At the end of Q4 2024, the production shaft reached 731 metres below surface (“mbs”) out of a planned final depth of 770 mbs. The ventilation shaft reached 671 mbs out of a planned final depth of 722 mbs.
• A total of 94,713 carats were recovered in Q4 2024, including 91,046 carats from direct ore feed from the pit and stockpiles, at a recovered grade of 12.7 carats per hundred tonnes (“cpht”) and an additional 3,667 carats were recovered from processing of historic recovery tailings.On October 4, 2024, the company sold its interest in Clara Diamond Solutions Limited Partnership, Clara Diamond Solutions B.V., and Clara Diamond Solutions GP (together referred to as “Clara”) including all related intangible assets. The company received $3.0 million in cash less working capital adjustments and the return of 10,000,000 Lucara common shares as consideration for the sale.
• Operational highlights from the Karowe Mine included:
• Ore and waste mined of 3.0 million tonnes (“Mt”) (2023: 2.7 Mt) and 0.9 Mt (2023: 3.1 Mt), respectively.
• 2.9 Mt of ore processed (2023: 2.8 Mt), setting a new annual production record.

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Mining Review Africa
Content Team

Mining Review Africa

Mining Review Africa is a platform promoting advancement and sustainable development in African mining, providing insights on technology, finance, and industry trends through engagement with mining companies and suppliers.