Massive Diamond Discovery Sends Lucara Stock Soaring
In a stunning development that has captivated the diamond industry, Lucara Diamond Corp. announced the discovery of a 2,492-carat diamond at its Karowe mine in Botswana. The find, which is the world’s second-largest diamond ever unearthed, sent the company’s stock price skyrocketing by 91% on Thursday.
The enormous gem, weighing approximately one pound and comparable in size to a baseball, was unveiled by Botswana’s President Mokgweetsi Masisi at his office in Gaborone on August 22, 2024. This remarkable discovery falls just over 600 carats short of the legendary Cullinan diamond, found in South Africa in 1905.
The market reaction was swift and dramatic. Lucara’s shares on the Toronto Stock Exchange reached a high of $0.63, nearly doubling their previous day’s closing price. Although the stock later settled to a 33% gain in afternoon trading, the company’s market valuation still surged by over $40 million, reaching nearly $150 million.
While the diamond’s exact value remains to be determined, industry experts anticipate it could be worth tens of millions of dollars, potentially much more if classified as gem-quality. For context, a 1,109-carat gem-quality diamond discovered by Lucara at the same mine in 2015 sold for $53 million.
The discovery was made possible through Lucara’s investment in cutting-edge technology. The company’s Mega Diamond Recovery X-ray Transmission system, installed in 2017, detected and recovered the massive stone. This technology is specifically designed to identify and preserve large, high-value diamonds.
Lucara CEO William Lamb emphasized the significance of the find, stating, “This discovery not only showcases the remarkable potential of the Karowe Mine but also validates our strategic investment in advanced XRT technology.”
The diamond industry has faced challenges in recent years, including declining prices due to competition from lab-grown diamonds and the inherent difficulties in locating and extracting fragile gems without damage. This discovery represents a significant bright spot for the sector and highlights the ongoing potential for remarkable finds in natural diamond mining.
As the diamond undergoes thorough assessment and appraisal, the industry and investors alike eagerly await further details on this extraordinary gem that has already made history.
