Lucara Diamond Corp. has released an optimistic forecast for 2025, projecting significant growth in revenue and production as it focuses on mining higher-value sections of the Karowe deposit in Botswana.
Strong Financial and Production Forecast
Lucara expects:
- Revenue to climb to between $195 million and $225 million, up from the revised $160 million to $180 million projected for 2024.
- Production to increase to 360,000 to 400,000 carats in 2025.
- Sales volume to range between 400,000 and 420,000 carats.
The boost in revenue is partly attributed to improved recovery of larger stones, which fetch premium prices in the market.
Focus on High-Value Mining Areas
The company plans to mine 79% of its carats from the higher-value M/PK(S) and EM/PK(S) units within the south lobe of the Karowe deposit. While the south lobe has a lower grade compared to the center and north lobes, it contains a higher percentage of diamonds over 10.8 carats, making it a lucrative focus area.
The remaining carats will be sourced from the center lobe, contributing to a balanced approach to resource utilization.
Increased Investment in Underground Projects
Lucara will increase its investment in its underground project, allocating up to $115 million in 2025, compared to $80 million this year. Some of these funds reflect deferred costs rolled over from 2024.