Lucara Diamond (LUC) AI Stock Analysis

• Market Cap: C$91.00M
• Dividend Yield: N/A
• Average Volume (3M): 126.85K
• Price to Earnings (P/E): 1.3
• Beta (1Y): -0.20
• Revenue Growth: 15.28%
• EPS Growth: N/A
• Country: CA
• Employees: 324
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Other Precious Metals
• EPS (TTM): 0.04
• Shares Outstanding: 454,988,800
• 10 Day Avg. Volume: 191,941
• 30 Day Avg. Volume: 126,853
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$0.40
• Price Target Upside: 100.00% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 64 Neutral
• Price Target: C$0.00 ▼(-100.00% Downside)

Lucara Diamond's strong valuation score, driven by a low P/E ratio, is the most significant factor, suggesting potential undervaluation. However, technical analysis indicates bearish momentum, and financial performance highlights cash flow challenges, which weigh down the overall score.

Positive Factors

Innovative Technology

Lucara's use of XRT technology enhances diamond recovery efficiency, providing a competitive edge in the market by improving yield and reducing damage.

Strong Market Position

The Karowe Mine's reputation for large, high-value diamonds strengthens Lucara's market position, ensuring demand and premium pricing for its products.

Healthy Margins

Strong profit margins indicate efficient operations and pricing power, supporting long-term profitability and financial health.

Negative Factors

Cash Flow Challenges

Negative free cash flow growth poses a risk to sustainability, requiring improved cash management to support operations and growth initiatives.

Revenue Fluctuations

Past revenue fluctuations highlight the need for consistent growth strategies to stabilize earnings and enhance investor confidence.

Debt Level Concerns

While current leverage is conservative, past debt fluctuations suggest potential risks, necessitating vigilant financial management to maintain stability.

Lucara Diamond Business Overview & Revenue Model

Company Description

Lucara Diamond Corp., a diamond mining company, focuses on the development and operation of diamond properties in Africa. The company holds 100% interests in the Karowe mine located in Botswana. It also operates Clara Platform, a digital platform for the sale of rough diamonds. The company was formerly known as Bannockburn Resources Limited and changed its name to Lucara Diamond Corp. in August 2007. Lucara Diamond Corp. was incorporated in 1981 and is based in Vancouver, Canada.

How the Company Makes Money

Lucara Diamond Corp. generates revenue primarily through the mining and sale of rough diamonds. The company's key revenue stream is the sale of diamonds extracted from the Karowe Mine, which is known for producing large, high-quality diamonds. Lucara sells its diamonds through a combination of regular tenders, auctions, and direct sales, targeting both traditional and special diamond markets. The company also leverages its proprietary digital sales platform, Clara, which matches diamond parcels with buyer requirements, enhancing efficiency and potentially obtaining better prices. Additionally, Lucara has strategic partnerships and collaborations that may contribute to its earnings, such as agreements with luxury brands for exclusive sales of exceptional diamonds.

Lucara Diamond Financial Statement Overview

Summary

Lucara Diamond shows strong profitability and operational efficiency with healthy margins and a solid balance sheet. However, cash flow challenges and past revenue fluctuations pose risks. Continued focus on cash flow management and consistent revenue growth is crucial.

Income Statement

Lucara Diamond's income statement shows a strong recovery with a TTM revenue growth rate of 1.22% and improving margins. The gross profit margin is healthy at 41.52%, and the net profit margin has improved to 24.81%. EBIT and EBITDA margins are also robust, indicating efficient operations. However, the revenue has fluctuated in the past, and maintaining consistent growth remains a challenge.

Balance Sheet

The balance sheet reflects a solid financial position with a low debt-to-equity ratio of 0.15, indicating conservative leverage. Return on equity is strong at 17.77%, showcasing effective use of equity. The equity ratio is stable, suggesting a well-capitalized structure. However, past fluctuations in debt levels highlight potential risks in financial stability.

Cash Flow

Cash flow analysis reveals challenges with negative free cash flow growth and a negative free cash flow to net income ratio. While operating cash flow is positive, the company needs to address free cash flow deficits to ensure long-term sustainability. The operating cash flow to net income ratio is moderate, indicating room for improvement in cash generation efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	197.04M	203.88M	172.40M	212.93M	230.08M	125.26M
Gross Profit	81.82M	84.45M	62.35M	84.60M	75.14M	-7.73M
EBITDA	75.49M	66.61M	53.50M	87.18M	100.29M	18.97M
Net Income	48.89M	39.90M	-20.19M	40.43M	23.83M	-26.28M
Balance Sheet
Total Assets	710.74M	660.83M	575.80M	495.84M	411.95M	333.85M
Cash, Cash Equivalents and Short-Term Investments	22.73M	22.79M	13.34M	26.42M	27.01M	4.92M
Total Debt	45.65M	195.83M	137.99M	78.60M	48.90M	32.27M
Total Liabilities	413.50M	389.10M	333.67M	225.78M	162.98M	125.66M
Stockholders Equity	297.24M	271.73M	242.13M	270.06M	248.97M	208.19M
Cash Flow
Free Cash Flow	-42.20M	-38.71M	-52.33M	77.15M	68.10M	-35.48M
Operating Cash Flow	70.56M	56.30M	63.36M	96.23M	83.39M	-1.53M
Investing Cash Flow	-101.28M	-94.35M	-115.79M	-125.42M	-97.54M	-33.95M
Financing Cash Flow	31.44M	47.76M	39.66M	29.14M	36.80M	29.37M

Lucara Diamond Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:LUC, the sentiment is Negative. The current price of 0.2 is below the 20-day moving average (MA) of 0.20, below the 50-day MA of 0.22, and below the 200-day MA of 0.32, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 44.63 is Neutral, neither overbought nor oversold. The STOCH value of 20.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:LUC.

Lucara Diamond Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LUC	64 Neutral	C$91.00M	1.33	19.39%	―	15.28%	―
TAI	50 Neutral	1.28M	-3.06	0.00%	―	0.00%	0.00%
MPVD	46 Neutral	8.49M	-0.06	-28.77%	―	-29.37%	-71.84%
DMI	29 Underperform	1.69M	―	0.00%	―	0.00%	0.00%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Lucara Diamond Corporate Events

Lucara Diamond Reports Revenue Growth and Major Diamond Recovery in Q2 2025

Lucara Diamond Corp. reported an increase in revenue for Q2 2025, driven by the sale of a significant 1,094 carat diamond and the recovery of a 2,036 carat diamond, the third largest ever found. The company also achieved operational milestones at the Karowe Mine, including a strong safety record and progress on the underground project, positioning itself well for future growth despite challenges such as inflationary pressures and a working capital deficit.

The most recent analyst rating on (TSE:LUC) stock is a Hold with a C$0.50 price target. To see the full list of analyst forecasts on Lucara Diamond stock, see the TSE:LUC Stock Forecast page.

Lucara Diamond Corp. Announces Key Resolutions from Annual Meeting

Lucara Diamond Corp. announced the results of its Annual General and Special Meeting of shareholders, where key resolutions were passed, including the election of board members and amendments to various share plans. The re-appointment of PricewaterhouseCoopers LLP as auditors and approval of executive compensation were also confirmed. These decisions reflect the company’s strategic focus on enhancing its governance and operational frameworks, potentially impacting its market positioning and stakeholder relations positively.

The most recent analyst rating on (TSE:LUC) stock is a Hold with a C$0.50 price target. To see the full list of analyst forecasts on Lucara Diamond stock, see the TSE:LUC Stock Forecast page.

Lucara Diamond Reports Q1 2025 Revenue Decline Amid Operational Adjustments

Lucara Diamond Corp. reported a decrease in revenue for Q1 2025 to $30.3 million, down from $39.5 million in Q1 2024, primarily due to lower carat sales resulting from processing lower-grade stockpile material and a shift in mining operations. The company is addressing liquidity concerns with a $28 million draw from the Cost Overrun Reserve Account, supported by its largest shareholder. Despite challenges, Lucara made significant progress in its underground project at the Karowe Mine, with advancements in shaft development and consistent recovery of large diamonds, reinforcing its operational expertise.