The Vancouver-based diamond miner received lender approval to access the funds from its Cost Overrun Reserve Account (CORA), as financial pressures mount from reduced sales, operational disruptions, and ongoing weakness in the global diamond market. The drawdown will support the continuation of its underground expansion project, a key part of the company’s long-term growth strategy.

Lucara reported Q1 revenue of $30.3 million, marking a 23% drop year-on-year. The company sold 72,871 carats during the quarter, down 22% from the same period in 2024. The revenue slump was attributed in part to heavy rainfall in January, which forced operations to shift to processing lower-grade stockpile material.

As a result of the weaker-than-expected performance, Lucara has revised its 2025 revenue guidance from an earlier range of $195 million–$225 million to a lower band of $150 million–$160 million. This revised figure does not include any potential proceeds from the high-profile Motswedi diamond, a 2,488-carat stone recovered in August 2024.

The company’s latest financial results raise concerns about its short-term liquidity and working capital. In its Q1 update, Lucara acknowledged the need to evaluate its ability to continue as a going concern, citing pressure on operational cash flow and funding requirements for the underground expansion.

To maintain progress on the expansion, Lucara's largest shareholder, Nemesia, has agreed to extend its shareholder standby undertaking through to the project's completion.

Despite the tough quarter, Lucara reported the recovery of six stones over 100 carats, including a 1,476-carat non-gem diamond sold via tender for $1.11 million.