Lucara says Karowe’s exceptional resource remains its core strength as open-pit mining nears completion and the underground project advances towards the mine’s next production phase.
GAZETTE REPORTER
Lucara President and Chief Executive Officer William Lamb says the quality of the resource at the company’s Karowe Diamond Mine remains a central strength as the operation moves towards its next phase of production.
Resource Strength
“The quality of the Karowe resource is undeniable,” Lamb said in Lucara’s second-quarter 2026 results, citing the recovery of the company’s tenth diamond weighing more than 1,000 carats.
Lucara owns 100 percent of Karowe, which has been in production since 2012. The company says the mine is the only diamond operation in the world to have recovered 10 diamonds exceeding 1,000 carats.
Lamb said Lucara continued to execute its strategic priorities during the second quarter while maintaining its focus on safe and disciplined operations.
“With open pit 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,” he said.
Financial Performance
Lucara reported second-quarter revenue of $41.0 million, compared with $43.7 million in the same period of 2025, a decline of 6 percent.
The company attributed the decrease primarily to lower carats sold through tender and a lower average dollar-per-carat from stones weighing less than 10.8 carats. Second-quarter 2025 revenue included the sale of the 1,094-carat Seriti, while this year’s quarter included the sale of the 2,488-carat Motswedi.
Operating costs fell 11 percent to $23.76 per tonne processed, from $26.76 a year earlier. Lucara attributed the decrease primarily to increased tonnes processed, partly offset by higher electricity and fuel costs.
The company recovered 90,082 carats during the quarter, including 83,109 carats from direct ore feed from the pit and run-of-mine stockpiles. A further 6,973 carats came from historical recovery tailings.
Lucara recovered 176 Specials, defined as stones above 10.8 carats, compared with 242 in the second quarter of 2025.
The company maintained its full-year revenue guidance of $100 million to $130 million.
Underground Progress
Open-pit mining remains on track to conclude in the fourth quarter of 2026. Lucara will then continue processing run-of-mine stockpiles containing previously mined but unprocessed ore.
The Underground Project has progressed, with the production shaft reaching 776 metres and the ventilation shaft reaching 729 metres in 2025. In July, the Botswana Department of Mines licensed the production shaft’s 15-person auxiliary winder and 105-person man-and-material winder.
Lamb said the company’s priorities for the second half of 2026 remained 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,” he said.
Safety Record
The project has achieved 2,340 lost-time injury-free days. Its project-to-date Total Recordable Injury Frequency Rate was 0.57, below the target of 0.90, while the 12-month rolling rate stood at 0.63.