It is not every day that we focus on the diamond mining industry. However, in this short piece I want to zero-in on one of the top diamond mining equities available on the Canadian market; Lucara Diamond (TSX:LUC).
Back in 2021, Straits Research valued the global diamond market size at US$94.9 billion. That same report projected that this market would reach US$139 billion by 2030. That would represent a compound annual growth rate (CAGR) of 4.4% over the period stretching from 2022 through to 2030.
Lucara Diamond is a Vancouver-based diamond mining company that is focused on the development and operation of diamond properties in Africa. Shares of this diamond stock have jumped 4.8% month-over-month as of close on Monday, August 28. Meanwhile, the stock is still down 14% so far in 2023. It is not too late to snatch up shares of Lucara on the dip.
This company released its second quarter (Q2) fiscal 2023 earnings on August 9. Lucara reported revenues of $41.1 million – down from $52.3 million in Q2 fiscal 2022. Meanwhile, net income was reported at $5.0 million or $0.01 per share compared to $12.5 million or $0.03 per share in the previous year. Adjusted EBITDA was reported at $15.7 million, which was down from $24.4 million in Q2 2022.
Diamond prices are expected to deliver solid growth going forward, which Lucara noted in its earnings report. Shares of this micro-cap currently possess an attractive price-to-earnings ratio of 9.8. I’m looking to snatch up this dirt-cheap diamond stock in the final days of August.
