06:41 AM EDT, 05/12/2025 (MT Newswires) -- Lucara Diamond ( LUCRF ) over the weekend raised concerns around its own ability to continue as a going concern

In a statement that included details of its Q1 2025 results, the company said: "Management has assessed the company's ability to continue as a going concern for at least 12 months from March 31, 2025. Based on this assessment, including the impact of revisions to revenue guidance for 2025, the company estimates that its working capital as at March 31, 2025, cash flow from operations, and other committed sources of liquidity will not be sufficient to meet its obligations, commitments, and planned expenditures. These conditions cast significant doubt on the company's ability to continue as a going concern.

As the Project Facility and WCF are fully drawn, the company noted, UGP completion will require utilizing working capital generated from existing mining operations, access to the CORA and guarantees and securing additional financing. Under the terms of the Project Facility, Nemesia provided a limited standby undertaking of up to $63.0 million. On April 3, 2025 , the lenders approved the company to draw up to $28.0 million from the CORA to fund the UGP construction in exchange for Nemesia amending the terms of its shareholder standby undertaking, including extending this undertaking until project completion. The company said it continues to develop plans to raise additional debt or equity financing required for UGP completion. While the company has previously been successful in raising debt and equity financing, future fundraising efforts may not succeed or may fall short of the required amounts.

In Q1, the company's revenue decreased to US$30.3 million compared to $39.5 million in Q1 2024, primarily due to fewer carats sold (Q1 2025 of 72,871 carats, Q1 2024 of 93,560 carats), which resulted from having to process lower-grade stockpile material because of unusually high January rainfall affecting mining in the open pit; and from mining a higher proportion of lower-grade M/PK(S) ore than planned higher-grade EM/PK(S) ore. It noted lower grade M/PK(S) was mined due to a shift in the contact between the two kimberlites.

It said these factors resulted in the company's 2025 revenue guidance being revised to $150-$160 million. This lower revenue outlook has led management to assess the company's ability to continue as a going concern, with concerns raised about sufficient working capital, cash flow from operations, and liquidity to meet obligations and ongoing UGP development.