Botswana Mining Review Comprehensive Coverage of the Progress and Achievements in the Mining Sector
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Lucara Diamond Corp’s revenue for the second quarter ended 30 June fell 6% year on year to $41 million, driven largely by lower carat sales through tender and a softer average dollar per carat price on diamonds weighing less than 10.8 carats. The quarter’s revenue included the sale of the 2,488 carat Motswedi, against the sale of the 1,094 carat Seriti in the prior comparable period, a reminder that Lucara’s top line remains tied to the timing of a handful of exceptional stones rather than steady volume.
Operating discipline offset some of that softness. Costs fell 11% to $23.76 per tonne processed, below full year guidance of $27.50 to $31 per tonne, as higher tonnes processed outweighed rising electricity and fuel costs. The company recovered 90,082 carats in the period, 83,109 of them from direct ore feed and run of mine stockpiles at a grade of 10.9 carats per hundred tonnes, with a further 6,973 carats recovered from historical recovery tailings. A total of 176 special diamonds, those weighing more than 10.8 carats, came out of the pit during the quarter.
Lucara has held its full year outlook steady, with revenue guidance unchanged at $100 million to $130 million. Open pit mining remains on track to conclude in the fourth quarter, after which the company will shift to processing run of mine stockpiles, ore already mined but not yet processed. Subsequent to quarter end, Lucara recovered a 1,303 carat Type IIa diamond in July, its tenth stone above 1,000 carats since operations began, and had the 15 person auxiliary winder and 105 person man and material winder on the production shaft licensed by the Botswana Department of Mines, a significant milestone for the Karowe Underground Project.
Chief Executive and President William Lamb pointed to that tenth thousand carat recovery as validation of the orebody itself. “The quality of the Karowe resource is undeniable, as reaffirmed by the recovery of our tenth diamond weighing more than 1,000 ct, a stunning D-colour, Type IIa white diamond. During the second quarter, Lucara continued to execute against our strategic priorities while maintaining our focus on safe, disciplined operations at Karowe. With openpit mining substantially complete and the UGP advancing well, we continue to make meaningful progress toward the mine’s next phase of production and long-term value creation.”
Lamb added, “The successful completion of our financing strategy earlier this year has strengthened our financial position, allowing us to continue advancing the UGP while maintaining operational flexibility. As we move through the second half of 2026, our priorities remain firmly focused on the safe and timely delivery of the UGP. The UGP is expected to extend access to one of the world’s most exceptional diamond orebodies, supporting Lucara’s long-term ability to recover rare, high-value diamonds and create sustainable value for all stakeholders.”
The Underground Project is designed to access the highest value portion of the Karowe orebody, with initial underground carat production drawn predominantly from EM/PK(S)3, extending the mine’s life to 2038. Lucara updated the project’s schedule and budget on 30 January, targeting full scale underground production in the first half of 2028 at a total estimated cost of $779.2 million including contingency. At period end, remaining costs to completion stood at $275.9 million, with a further $99.8 million committed but not yet incurred.
Progress on the ground has been mixed but manageable. Both the 776 metre production shaft and 729 metre ventilation shaft reached bottom last year, substantially derisking the project as shaft sinking activities concluded, and the licensing of both winders in July marked a further milestone. Construction of the headframe steel, however, ran roughly six weeks behind schedule due to late and out of sequence deliveries and the need for on site rework, delaying mobilisation of lateral development contractor Group R Mining, which is now scheduled to begin underground mining this month.
Lucara states it completed additional lateral development during the quarter to create extra headings for Group R and support an accelerated ramp up once mining starts, and that licensing the main production shaft on 17 July also enabled major lateral development equipment to be slung underground ahead of that work. The company maintains it has held its overall project schedule and costs. The ventilation shaft continued lateral development during the quarter, primarily at the 310 level, advancing about 410 metres and bringing project to date lateral development to 1,655 metres, while the project’s hydrogeological monitoring programme continued throughout the period.
