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Lucara Diamond ( (TSE:LUC) ) has issued an update.
Lucara Diamond Corp. has closed an upsized, non-brokered private placement raising C$165 million through the issuance of 1,031,250,000 common shares at C$0.16 per share, following strong investor demand that included institutional investors and the Lundin Family Trusts. The net proceeds are intended to alleviate the company’s liquidity shortfall and support continued advancement of the Karowe Underground Project, including shaft equipping, conveyance commissioning, and key underground development work, while Lucara pursues longer-term project financing through a mix of operating cash flow, this equity raise, and prospective additional debt financing such as a potential bond issue; the financing was completed under a TSX financial hardship exemption, underscoring both the urgency of funding needs and the strategic importance of keeping the Karowe expansion on track for stakeholders.
The most recent analyst rating on (TSE:LUC) stock is a Buy with a C$0.26 price target. To see the full list of analyst forecasts on Lucara Diamond stock, see the TSE:LUC Stock Forecast page.
Spark’s Take on TSE:LUC Stock
According to Spark, TipRanks’ AI Analyst, TSE:LUC is a Outperform.
The score is driven primarily by strong profitability and a solid balance sheet, supported by constructive technical momentum and an extremely low P/E valuation. These positives are tempered by negative free cash flow and weak cash conversion, which raise near-term cash flow and liquidity risk.
To see Spark’s full report on TSE:LUC stock, click here.
More about Lucara Diamond
Lucara Diamond Corp. is a Canadian-listed, independent diamond producer focused on large, exceptional-quality Type IIa diamonds from its 100%-owned Karowe Diamond Mine in Botswana, which has been in production since 2012. The company’s operations and development activities are centred on Karowe, and it emphasizes international best practices in sustainability, health and safety, environmental management and community relations, with certification from the Responsible Jewellery Council.
Average Trading Volume: 343,257
Technical Sentiment Signal: Hold
Current Market Cap: C$118.5M
For a thorough assessment of LUC stock, go to TipRanks’ Stock Analysis page.