Lucara Diamond Corp. reported a rise in sales and earnings for the second quarter, driven by its supply agreement with HB and a focus on high-value diamonds.
For the three months ending June 30, revenue from the Karowe mine in Botswana increased by 7% to $41.3 million, compared to the same period last year. Net profit surged to $11.4 million, up from $5 million a year earlier.
The company’s deal with Antwerp-based HB, which purchases all stones weighing 10.8 carats or more, significantly contributed to the revenue boost. Sales under this agreement rose by 15% year on year to $29.5 million.
However, revenue from Lucara’s Clara online platform fell by 15% to $2.5 million, and tender sales decreased by 6% to $9.2 million.
CEO William Lamb highlighted the company’s resilience amidst a tough diamond market. “Lucara’s unique production profile differentiates us,” he said. “The consistent delivery of large, high-quality diamonds from our Karowe mine acts as a natural hedge against market volatility. Our innovative sales strategies help us navigate the current market effectively.”
For the first half of 2024, Lucara’s sales rose by 1% year on year to $80.8 million. However, net profit for the period dropped by 43% to $3.4 million.
