Lucara Diamond Corp.’s revenue fell 21% to $41.1 million in the second quarter as the market weakened.

The decline also reflected a planned shift to lower-value goods at the lucrative Karowe deposit in Botswana, the miner reported Wednesday. Profit slid 60% to $5 million.

“Following on the record high diamond prices achieved in early 2022, a softer diamond market emerged in the latter half of 2022, which has persisted into the second quarter of 2023,” the company explained.

This weakness was “the result of global economic concerns combined with geopolitical uncertainty, including the ongoing conflict in Ukraine,” management continued.

In addition, a smaller proportion of production came from the high-value south lobe in the first quarter of this year, impacting second-quarter sales, Lucara noted. The proportion of south-lobe recoveries increased in the second quarter, boding well for sales in the second half of the year.

 

Main image: The Karowe mine at dusk. (Lucara Diamond Corp.)