Sales and earnings at Lucara Diamond Corp. rose in the second quarter as its supply deal with HB and focus on high-value stones helped the miner weather the global market’s turbulence. 

Revenue from the company’s lucrative Karowe mine in Botswana grew 7% year on year to $41.3 million for the three months that ended June 30, management reported Friday. Net profit more than doubled to $11.4 million from $5 million a year earlier. 

Lucara’s arrangement with Antwerp-based manufacturer HB, which is contracted to buy all stones of 10.8 carats or larger, drove the overall increase. Sales from that agreement jumped 15% year on year to $29.5 million, the company reported. 

The number of 10.8-carat or larger diamonds the company recovered during the quarter increased 27% year on year to 206 stones from 162 a year earlier.

Revenue from Lucara’s Clara online platform dropped 15% to $2.5 million. Tender sales dipped 6% to $9.2 million. 

“In the face of a challenging diamond market, Lucara’s unique production profile sets us apart,” commented company CEO William Lamb. “Our Karowe mine’s consistent delivery of large, high-quality diamonds provides a natural hedge against market volatility. These exceptional stones, coupled with our innovative sales strategies, allow us to navigate current market conditions effectively.” 

Sales for the first half of 2024 gained 1% year on year to $80.8 million, with net profit down 43% at $3.4 million. 

Update, August 14, 2024: Extra information about the impact of special stones on Lucara’s revenue has been added to this article.

Image: Rough-diamond sorters at the Karowe mine. (Lucara Diamond Corp.)