HB Deal Boosts Lucara Diamond Sales

Lucara Diamond Corp. saw a rise in both sales and earnings during the second quarter, as its supply agreement with HB and a focus on high-value stones helped the company navigate the global market’s challenges.

Revenue from Lucara’s Karowe mine in Botswana increased by 7% year-on-year, reaching $41.3 million for the three months ending June 30, as reported by the company on Friday. Net profit more than doubled to $11.4 million, compared to $5 million in the same period last year.

The boost was largely attributed to Lucara’s partnership with Antwerp-based manufacturer HB, which has an exclusive contract to purchase all stones of 10.8 carats or larger. Sales from this agreement surged 15% year-on-year, totaling $29.5 million.

However, revenue from Lucara’s Clara online platform fell by 15% to $2.5 million, while tender sales declined by 6% to $9.2 million.

“In the face of a challenging diamond market, Lucara’s unique production profile sets us apart,” said CEO William Lamb. “Our Karowe mine’s consistent delivery of large, high-quality diamonds provides a natural hedge against market volatility. These exceptional stones, coupled with our innovative sales strategies, allow us to navigate current market conditions effectively.”

For the first half of 2024, sales edged up by 1% year-on-year to $80.8 million, though net profit fell by 43% to $3.4 million.

Here are the tables summarizing the key financial figures mentioned in the report:

Lucara Diamond Corp. Q2 2024 Financial Performance

Lucara Diamond Corp. H1 2024 Financial Performance

This report was sourced from Rapaport.com.