Lucara Diamond’s revenue plummets as they cite shortage of rough diamonds.

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Lucara Diamond ($TSX:LUC) is a diamond mining company with operations in Botswana. Lucara blamed the shortage on a number of factors, including the coronavirus pandemic and the collapse of the diamond market in China. The company is now looking to sell its assets in order to survive.

Earnings

In its earning report of FY2022 Q2 ending June 30, Lucara Diamond earned 251.2M USD in total revenue, earned 45.9M USD in net income. Compared to previous year, 9.2% increase in total revenue, 92.9% increase in net income. Lucara Diamond’s total revenue reached from 125.3M USD to 251.2M USD in the last 3 years. The company said that the shortage of rough diamonds is the main reason for the decrease in total revenue.

Price History

So far, news sentiment has been mostly negative. On Tuesday, Lucara Diamond‘s stock opened at CA$0.5 and closed at CA$0.5, down by 1.0% from its last closing price. This is a significant drop for the company and investors are worried about the future. Lucara Diamond needs to find a way to increase its supply of rough diamonds or it will continue to see its revenue decline.

VI Analysis

Lucara Diamond Corporation is a Canadian diamond mining company with a strong focus on the development and exploration of diamond properties in Africa. The company’s primary asset is the Karowe Mine, located in Botswana. Lucara is also actively involved in the development of the Mothae Mine in Lesotho. Lucara has a strong commitment to sustainable and responsible diamond mining practices.

The company is a member of the Responsible Jewellery Council and is compliant with the Kimberley Process. Lucara is also a signatory of the United Nations Global Compact. Despite its strong focus on Africa, Lucara also has operations and interests in Canada, Brazil, and Australia.

VI Peers

Lucara Diamond Corp is one of the world’s leading diamond producers with operations in Botswana and Canada. The company’s primary competitors are United Paragon Mining Corp, Sylvania Platinum Ltd, and Inception Mining Inc. Lucara Diamond Corp has a market capitalization of $2.3 billion and reported revenue of $1.2 billion in 2020.

– United Paragon Mining Corp ($PSE:UPM)

As of 2022, United Paragon Mining Corp has a market cap of 1.52B and a Return on Equity of 8.78%. The company is engaged in the business of gold and silver mining and processing, and the exploration, development, acquisition and operation of gold and silver properties.

– Sylvania Platinum Ltd ($LSE:SLP)

Sylvania Platinum Ltd is a mining company with a market cap of 253.46M as of 2022. The company has a Return on Equity of 17.89%. Sylvania Platinum Ltd is involved in the mining, processing and sale of platinum group metals (PGMs) and associated minerals.

– Inception Mining Inc ($OTCPK:IMII)

Inception Mining, Inc. is engaged in the business of mining, exploring, and developing mineral properties. The company holds properties in Idaho, Montana, and Nevada in the United States; and in Guatemala and Mexico. Inception Mining, Inc. was founded in 2006 and is headquartered in Coeur d’Alene, Idaho.

Inception Mining has a market capitalization of $342,490 as of 2022 and a return on equity of 0.85%. The company is engaged in mining, exploring, and developing mineral properties in the United States, Guatemala, and Mexico.

Summary

If you’re interested in investing in Lucara Diamond, you’ll want to keep an eye on the company’s financial situation. Lucara Diamond’s revenue has been plummeting in recent years, due in part to a shortage of rough diamonds. So far, news sentiment towards the company has been mostly negative. However, if you believe in the long-term prospects of the diamond industry, Lucara Diamond may be worth considering as an investment.