LUCARA Diamond Corp. forecast capital spend of $115m in 2025 in order to complete construction of the Karowe underground expansion.
The focus will fall on shaft sinking to the project’s final depth, said William Lamb, CEO of Lucara Diamond on Wednesday.
The project, which has a total capital cost of about $683m, will extend the life of Karowe until 2040. The mine, situated in Botswana, is renowned for yielding up some of the largest diamonds discovered in recent years.
In September, Lucara announced the recovery of a 1,094 carat diamond from Karowe which comes less than a month after the company announced the recovery of a 2,492 carat diamond – the largest since the 3,106 carat Cullinan diamond was discovered in 1905.
Lucara also said it expected to recover 360,000 to 400,000 carats in diamonds from Karowe but sell a higher amount of between 400,000 and 420,000 carats in its 2025 financial year as it cleared inventories.
It expected to generate between $195m and $225m in revenue with the majority of production from the mine’s higher value south lobe.
Total cash costs will range between $28,50 and $31 per ton processed for the year which compares to expectations of $28.50 to $33.50/t for 2024 as per the firm’s updated guidance on November 13.
In its adjusted guidance, Lucara said revenue would be lower than guided for its 2024 financial year – $160m to $180m compared to a previous forecast of $220-$250m – as it sold less high value stones than previously expected.
Commenting on the Karowe underground project, Lamb said: “The company’s strategic focus on the underground mining project showed significant advancement, with shaft depths reaching new records”.
Shares in the company have improved about a third year-to-date as the company established stability in respect of Karowe.
The diamond market has not been supportive of its miners, however, with prices heavily depressed going into the year-end sales season.
