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PRESSURE is growing on Lucara Diamond which said it will draw on additional financing facilities to remain liquid.
Commenting in notes to its first quarter results, the company’s CEO William Lamb said the firm’s lenders approved the drawdown of $28m from emergency funding account known as the cost overrun reserve account.
The $61.7m Cora is supplied by Lucara’s largest shareholder Nemesia, which represents the Lundin Group. Of this account, $35m is to complete the underground expansion of Karowe, Lucara’s only asset, in Botswana.
Lucara said the company would also draw from working capital generated by Karowe.
Diamond prices have slumped with De Beers cutting prices 10% in the first auction of 2025.
Lucara said in its first quarter announcement it was cautious on diamonds as the market “continues to navigate structural shifts”.
In this context, Lucara is looking for additional funding, including the possibility of issuing more shares. “The company continues to develop plans to raise additional debt or equity financing required for UGP completion,” said Lamb.
In 2023 Nemesia provided a guarantee consisting of up to $63m to lenders in return for which it will receive 1.9 million Lucara shares and a further 7,500 shares for each $500,000 withdrawn under the guarantee.
Lucara shares have fallen by 26% year-to-date on the Toronto Stock Exchange. The company is valued at C$154m.
“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,” said Lucara in its quarterly notes, adding in a regulatory standard statement there was no guarantee Lucara would remain a going concern.
The project, which is planned to replace mining from the Karowe open pit, ran into development problems in 2023 resulting in a project overshoot on budget and timeline. It is expected to be completed in the first half of 2028, two years late. Lucara said in February $347.9m of the $683m project capex has been spent to date.
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TORONTO, May 12, 2025 (GLOBE NEWSWIRE) — Hudbay Minerals Inc. (“Hudbay” or the “Company”) (TSX, NYSE: HBM) today released its first quarter 2025 financial results. All amounts are in U.S. dollars, unless otherwise noted.
“Our strong results in the first quarter reflect stable copper production and complementary gold production from our enhanced operating platform, which continued to deliver significant free cash flows and industry-leading margins,” said Peter Kukielski, President and Chief Executive Officer. “We are well-positioned to deliver our full year 2025 consolidated production and cost guidance with the operations delivering in line copper production, better-than-expected gold production and effective cost control in the first quarter. We continue to benefit from steady mill throughput in Peru, higher grades and mill throughput in Manitoba and ongoing optimization efforts in British Columbia. This resulted in record adjusted EBITDA and record low cash cost performance in the quarter. We made significant progress in advancing our growth strategy as we consolidated ownership at Copper Mountain to increase our exposure to a high-quality asset in a tier-1 jurisdiction. We are also now fully permitted at Copper World to increase our long-term copper production by more than 50%. We will continue to reinvest in our attractive portfolio of high-return brownfield and greenfield growth opportunities to further enhance our copper and gold exposure and unlock significant value for all our stakeholders.”
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Dual-listed Barrick Mining is officially trading under the single-letter ticker symbol ‘B’ on the New York Stock Exchange.
To mark the milestone, Barrick president and CEO Mark Bristow rang the opening bell at the NYSE on Friday.
“Barrick’s vision is to be the world’s most valued gold and copper exploration, development and mining company,” said Bristow.
“Along with our world-class portfolio of six Tier 1 gold mines, we are building a substantial copper business which will be a meaningful contributor to organically growing our production volumes in the coming years and beyond.”
Bristow said the new ticker better reflects Barrick’s evolving identity and strategy, as it seeks to expand its copper exposure alongside its core gold operations.
“Our new stock symbol ‘B’ better reflects Barrick’s current business and our mission to achieve sustainable and profitable gold and copper growth,” he said. “Together, gold and copper give Barrick the stability of a precious metal and the growth potential of a strategic one – anchoring our portfolio in resilience and aligning us with rising global electrification and infrastructure demand.”
Bristow pointed to key projects driving the miner’s gold and copper growth strategy, including the expansion of Pueblo Viejo in the Dominican Republic, the Fourmile project in Nevada, and the copper/gold Reko Diq project in Pakistan.
“Gold is core to our business and we continue to explore for and develop new gold mines,” he said.
Barrick’s shares will continue to trade on the TSX under the symbol ‘ABX’. The new CUSIP number for the NYSE-listed common shares is 06849F108.
TSX ends up 0.4% at 25,357.74
For the week, the index advances 1.3%
Materials sector rises 2.8% as gold rallies
Air Canada jumps 14.6% after earnings report
(Updates at market close)
By Fergal Smith
May 9 (Reuters) – Canada’s main stock index added to its weekly gain on Friday, led by energy and metal mining shares, as hopes that trade tensions could ease offset evidence that tariff-related uncertainty is already weighing on domestic activity.
The Toronto Stock Exchange’s S&P/TSX composite index ended up 103.68 points, or 0.4%, at 25,357.74, its highest closing level since February 28. For the week, the index advanced 1.3, its fifth straight weekly gain.
“The TSX is proving to be quite resilient,” said Elvis Picardo, a portfolio manager at Luft Financial, iA Private Wealth.
“Investors are still factoring in the best case scenario, hoping that the trade war blows over and if things get much worse then the Bank of Canada comes to the rescue with rate cuts, but I think that might be misguided optimism.”
The Canadian unemployment rate rose to 6.9% in April, the highest level since November, as U.S. tariffs started to hurt Canada’s export-dependent economy.
Investors see a 67% chance that the BoC would resume its interest rate cutting campaign next month, up from 46% before the jobs report.
“It’s going to take a while for that (trade) uncertainty to dissipate,” Picardo said.
The materials sector, which includes metal mining shares, rose 2.8% as gold and copper prices climbed.
Oil also rose, settling 3.2% higher at $59.91 a barrel. Energy added 2%, while real estate was up 0.5% as long-term borrowing costs fell.
The Canadian 10-year yield eased 4.5 basis points to 3.159%.
Shares of Air Canada jumped 14.6% after the airline reported a smaller than expected quarterly loss and said it would purchase and cancel up to C$500 million ($358.96 million) in shares by the end of next month.
Telus Corp was another standout. The communications technology firm’s shares rose 7.1% after quarterly results beat estimates. The technology sector was down 1.5%.
($1 = 1.3929 Canadian dollars) (Reporting by Fergal Smith in Toronto and Sanchayaita Roy in Bengaluru; Editing by Vijay Kishore)
