VANCOUVER, BC, May 10, 2025 /PRNewswire/ -- (TSX: LUC) (BSE: LUC) (Nasdaq FNGM: LUC)  

Lucara Diamond Corp. ("Lucara" or the "Company") today reports its results for the quarter ended March 31, 2025. All amounts are in U.S. dollars unless otherwise noted. PDF Version.

Q1 2025 HIGHLIGHTS

In Q1 2025, the Company's revenue decreased to $30.3 million compared to $39.5 million in Q1 2024, primarily due to fewer carats sold (Q1 2025: 72,871 carats, Q1 2024: 93,560 carats), which resulted from having to process lower-grade stockpile material because of unusually high January rainfall affecting mining in the open pit; and from mining a higher proportion of lower-grade M/PK(S)1 ore than planned higher-grade EM/PK(S)2 ore. Lower grade M/PK(S) was mined due to a shift in the contact between the two kimberlites. These factors resulted in the Company's 2025 revenue guidance being revised to $150 – $160 million. This lower revenue outlook has led management to assess the Company's ability to continue as a going concern, with concerns raised about sufficient working capital, cash flow from operations, and liquidity to meet obligations and ongoing UGP development.Subsequent to Q1 2025, the lenders approved a draw of up to $28.0 million from the Cost Overrun Reserve Account ("CORA") in exchange for the Company's largest shareholder, Nemesia S.à.r.l. ("Nemesia"), agreeing to amend the terms of its shareholder standby undertaking to extend it until project completion.During Q1 2025, the Company recovered six stones over 100 carats including the recovery of a 1,476 carat non-gem diamond. The 1,476 carat non-gem diamond was sold on tender for $1.11 million.The recovery of 139 Specials (defined as rough diamonds larger than 10.8 carats) (Q1 2024: 160 Specials) equated to 5.6% (Q1 2024: 5.1%) by weight of the total carats recovered from direct ore feed in Q1 2025.Significant progress was made in the lateral development connecting the two shafts. During Q1 2025, 230 metres ("m") of lateral development were completed on the production shaft and 83 m were completed on the ventilation shaft. At the end of Q1 2025, the production shaft had reached 731 metres below surface ("mbs") out of a planned final depth of 770 mbs. The ventilation shaft reached 680 mbs out of a planned final depth of 722 mbs.A total of 93,716 carats were recovered in Q1 2025; 90,500 carats were from direct ore feed from the pit and stockpiles, at a recovered grade of 13.4 carats per hundred tonnes ("cpht") and an additional 3,216 carats were recovered from processing of historical recovery tailings.Operational highlights from the Karowe Mine included:Ore mined of 0.4 million tonnes ("Mt") (Q1 2024: 0.8Mt). Ore mined in Q1 2025 was lower due to high rainfall in January which temporarily reduced access to the scheduled ore blocks.0.7Mt of ore processed (Q1 2024: 0.7Mt).Financial highlights for Q1 2025 included:Operating margins of 54% were achieved, consistent with Q1 2024, as both revenues and operating expenses decreased by 23%, resulting in consistent margins between the quarters.Operating cost per tonne processed was $23.41 per tonne, a 10% decrease compared to the Q1 2024 cost per tonne processed of $26.00 due to a lower volume of waste mined in Q1 2025. The continued impact of inflationary pressures, particularly labour, has been well managed by the operation. Operating cost per tonne processed is a non-IFRS measure.Cash position and liquidity as at March 31, 2025:$18.7 million of cash and $18.0 million of working capital (current assets less current liabilities).$190.0 million has been fully drawn from the project finance facility ("Project Facility") for the UGP, along with $30.0 million fully drawn from the working capital facility ("WCF").CORA balance of $50.5 million.