Canada's Lucara Diamond annual revenue falls 22% due to lower sales volumes, prices

Overview

• Canada diamond producer's fiscal 2025 revenue fell 22% yr/yr

• Operating margins for fiscal 2025 decreased to 52% from 61% in 2024

• Company completed production and ventilation shafts for Karowe Underground Project

Outlook

• Lucara expects 2026 diamond revenue between $100 mln and $130 mln

• Company anticipates 2026 diamond sales of 340,000 to 360,000 carats

• Lucara plans up to $110 mln in UGP capital expenditure for 2026

Result Drivers

• REVENUE DECLINE - Revenue fell 22% yr/yr due to lower sales volumes and prices

• OPERATING MARGINS - Operating margins decreased to 52% from 61% in 2024, reflecting lower revenue and managed expenses

• KAROWE PROJECT MILESTONE - Completion of production and ventilation shafts for Karowe Underground Project marks key progress

Company press release: ID:nCNWcWVR8a

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "hold"

• The average consensus recommendation for the non-gold precious metals & minerals peer group is "buy."

• Wall Street's median 12-month price target for Lucara Diamond Corp is C$0.30, about 5.3% above its March 3 closing price of C$0.29

• The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 2 three months ago

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