Lucara, a Vancouver-based diamond mining company, experienced a 7% increase in revenue during the second quarter despite tough market conditions.
The company reported revenue of $41.3 million for the three months ending June 30, up from $38.6 million during the same period last year. Lucara sold 76,387 carats of rough diamonds, marking a 5% increase compared to the previous year.
A significant portion of Lucara’s revenue, totaling $29.5 million, came from its partnership with HB Antwerp, which handles the sale of all diamonds over 10.8 carats from Lucara’s Karowe mine in Botswana. This figure represents an increase from $25.8 million last year.
Lucara had initially canceled its 10-year sales agreement with HB Antwerp last September but reinstated it in February.
The remaining $11.8 million in sales were generated through quarterly tenders and the Clara online platform.
In its Q2 report, Lucara expressed a positive long-term outlook for natural diamond prices, noting that price reductions from major mines are enhancing supply and demand dynamics. However, the market for smaller diamonds remains weak, affected by a sluggish Asian market and competition from lab-grown stones. In contrast, demand for diamonds over 10.8 carats remains strong.
William Lamb, Lucara’s President and CEO, commented, “Our Karowe mine’s consistent production of large, high-quality diamonds provides a natural hedge against market volatility. These exceptional stones, along with our innovative sales strategies, help us navigate current market conditions effectively.”
