TSX

Lucara Diamond Corp.

LUC.TO•Basic Materials•Other Precious Metals
Current Price
$0.13
Today's Change
-3.85%
Market Cap
$172.74M
Volume
445.53K
⛏️

Commodity Exposure

Diversified Mining

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Industry Context

Diversified miners balance commodity exposure. Operating margins vary significantly by commodity mix.

💡 Quick Take

Lucara Diamond Corp. is a diamond mining company operating the Karowe mine in Botswana. It boasts strong financial metrics with a gross margin of 52% and an impressive EBITDA margin of 62.7%, indicating efficient operations. However, the low return on equity (3.7%) and return on assets (1.6%) raise concerns about overall profitability relative to shareholder equity. Additionally, despite high margins, the stock price of $0.13 suggests a potential undervaluation, warranting further investigation into market sentiment and growth prospects.

Based on 27 data points⚠️Not financial advice

📊 Key Metrics

52 Week High$0.35
52 Week Low$0.10
Avg Volume815.42K
Beta0.69
Shares Outstanding1.49B

🔥 Valuation

Market Cap$172.74M
Enterprise Value$340.20M
P/E Ratio3.12
EV/EBITDA ⚠️1.12x
Dividend Yield0.00%

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🚩 Red Flags

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Revenue Declining

Revenue fell 24.6% year-over-year from $197.0M to $148.5M. The decline has persisted for multiple quarters.

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Margin Compression

Gross profit margin declined from 41.5% to 25.1% year-over-year, suggesting pricing pressure or rising input costs are squeezing profitability.

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Rising Debt

Debt increased 746.7% from $45.6M to $386.5M while revenue growth remained modest.

🌟 Opportunities

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Excellent operating cash flow margin of 25.4% indicates high-quality earnings.

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Operating cash flow of $37.7M exceeds net income by 157%, indicating high-quality earnings with strong cash conversion.

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Excellent liquidity with current ratio of 9.9x ensures operational stability.

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Strong free cash flow margin of 25.4% provides substantial resources for dividends, buybacks, or reinvestment.

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