“Lipari Mining reported robust FY2025 diamond sales of over 104,000 carats generating $21.8 million in revenue, but suspended operations at its Braúna Mine in Brazil amid weak global diamond markets and ore dilution issues; the company also revealed a CFO transition with the departure of a long-serving executive and appointment of an interim replacement.”
In a significant update from the diamond sector, Lipari Mining has detailed its operational and financial outcomes for the fiscal year ending December 31, 2025, highlighting both achievements and challenges at its wholly-owned Braúna Diamond Mine in Brazil. The company, which operates in a volatile global diamond market influenced by trade policies and supply chain dynamics, achieved notable increases in production metrics compared to the prior year, underscoring efforts to ramp up underground mining activities following a transition from open-pit methods.
Key production figures for FY2025 show ore mined reaching 574,466 tonnes, a substantial rise from 286,033 tonnes in FY2024. This escalation reflects intensified extraction efforts as the mine shifted focus to underground development. Similarly, ore processed climbed to 571,665 tonnes from 384,561 tonnes the previous year, enabling higher throughput despite external pressures. Diamond recoveries totaled 83,350 carats, up markedly from 46,026 carats in FY2024, with the average recovered diamond grade improving to 14.6 carats per hundred tonnes (cpht) from 12.0 cpht. This grade enhancement points to better ore quality in accessed zones, though challenges in later quarters tempered overall optimism.
Sales performance was a standout, with 104,508 carats sold generating revenue of $21,821,275 (equivalent to US$16,405,929), compared to 29,135 carats sold for $5,919,820 (US$4,652,368) in FY2024. The average price per carat edged up slightly to $209 (US$157) from $203 (US$160), indicating resilient pricing in a softening market. However, quarterly breakdowns reveal a downward trend in the latter part of the year. For instance, the December 2025 year-end sale averaged $179 per carat (US$136), lower than the September 2025 sale’s $212 per carat (US$161). Historically, the mine’s average unit sales value stands at US$183 per carat, providing a benchmark for future recoveries.
Underground development progressed to 1,542 meters in FY2025, down from 1,810 meters in FY2024, as resources were reallocated amid operational adjustments. Waste tonnes mined dropped to 310,523 from 1,115,119, contributing to a total tonnes mined of 884,989 versus 1,401,152 previously. These reductions align with strategic shifts to optimize costs in a high-dilution environment. At the end of the period, ore stockpiles stood at 35,665 tonnes, slightly below the 41,060 tonnes from the prior year-end.
To illustrate the quarterly and annual trends, the following table outlines key operating highlights:
| Key Operating Highlights | Units | Three months ended December 31, 2025 | Three months ended December 31, 2024 | Twelve months ended December 31, 2025 | Twelve months ended December 31, 2024 |
|---|---|---|---|---|---|
| Underground Development | m | 211 | 500 | 1,542 | 1,810 |
| Ore tonnes mined | t | 74,460 | 181,448 | 574,466 | 286,033 |
| Waste tonnes mined | t | 123,067 | 185,505 | 310,523 | 1,115,119 |
| Total tonnes mined | t | 197,527 | 366,953 | 884,989 | 1,401,152 |
| Ore in stockpile at end of period | t | 35,665 | 41,060 | 35,665 | 41,060 |
| Dry ore tonnes processed | t | 68,922 | 178,787 | 571,665 | 384,561 |
| Diamonds recovered | cts | 9,815 | 31,150 | 83,350 | 46,026 |
| Average recovered diamond grade | cpht | 14.2 | 17.4 | 14.6 | 12.0 |
This data underscores a year of growth in core metrics, yet the fourth quarter saw declines, with ore mined at 74,460 tonnes (down from 181,448) and diamonds recovered at 9,815 carats (down from 31,150). The average grade in Q4 2025 was 14.2 cpht, below the 17.4 cpht in Q4 2024, highlighting dilution impacts.
The suspension of operations at the Braúna Mine marks a pivotal response to these headwinds. The decision stems from a confluence of factors, primarily the weakened global market for natural diamonds, exacerbated by U.S. tariffs affecting Indian diamond manufacturers—who process over 90% of the world’s natural diamonds. With the U.S. representing about 55% of global diamond jewelry consumption, these tariffs have rippled through the value chain, leading to reduced demand, elevated inventories, and forced production cuts across the industry. At Braúna specifically, lower diamond recoveries arose from ore dilution, where waste rock from lower open-pit levels infiltrated underground draw points, contaminating higher-grade material.
As a result, the mine has been placed on care and maintenance, a status that involves minimal staffing for security, environmental monitoring, and equipment preservation while halting active extraction and processing. This move aims to preserve cash reserves and asset integrity until market conditions rebound. Company leadership emphasized a commitment to reevaluating the mine plan, potentially incorporating advanced dilution mitigation techniques such as improved draw point designs, enhanced blasting protocols, or selective mining strategies to isolate waste inflows. In the interim, the suspension allows for strategic pivots, including exploration of alternative revenue streams like utilizing dry tailings as a soil remineralizer, given the mine’s near-100% water recycling rate—a sustainability feature that has defined its operations.
Over its history, Braúna has produced more than 1.27 million carats, establishing it as a key player in Brazil’s diamond sector. The transition to underground mining, completed earlier in the fiscal year, was intended to extend mine life by accessing deeper kimberlite pipes, but current market dynamics have necessitated this pause. Investors should note that while this halts near-term revenue from Braúna, it positions the asset for a potential swift restart should diamond prices recover, driven by factors like easing trade barriers or renewed consumer demand in luxury goods.
Shifting focus to corporate developments, Lipari announced a leadership transition in its finance team. The long-serving Chief Financial Officer and Corporate Secretary stepped down after more than a decade of contributions, paving the way for an interim appointment. The new interim CFO brings extensive experience in financial reporting, internal controls, risk management, and capital markets, spanning operations in Brazil, North America, and beyond. This executive previously supported the company as a financial consultant, overseeing consolidation and audit functions, which ensures continuity during the handover period.
This transition occurs as Lipari redirects resources toward its Tchitengo Diamond Project in Angola, where it holds a 75% interest. Recent advancements include a National Instrument 43-101 compliant mineral resource estimate for the Tchiuzo kimberlite pipe, reporting indicated resources of 28.8 million tonnes containing 13.6 million carats at 47.2 cpht, and inferred resources of 6.5 million tonnes with 2.0 million carats at 30.7 cpht. To further de-risk the project, a 5 tonne-per-hour kimberlite processing plant was shipped from Canada to Angola for bulk sampling of approximately 10,000 tonnes from Tchiuzo, aimed at diamond valuation. This data will inform an updated feasibility study, building on historical assessments and recent Phase I drilling results.
Financially, the company anticipates releasing its full Q4 2025 statements and management discussion by the end of March 2026, offering deeper insights into cash positions, debt levels, and forward guidance. In the broader context of the diamond industry, Lipari’s FY2025 results reflect a sector grappling with oversupply from lab-grown alternatives and macroeconomic uncertainties, yet the company’s Brazilian and Angolan assets provide diversification. The average price achieved, while modest compared to high-end gem producers, aligns with Braúna’s output of primarily industrial and near-gem quality stones.
Operationally, the mine’s environmental practices remain a strength, with full water recycling minimizing ecological footprints in a water-scarce region. As the suspension takes effect, Lipari plans to maintain community engagements, supporting local economies through alternative programs while monitoring global indicators like diamond inventory levels in key cutting centers and retail sales trends in major markets.
From a market perspective, Lipari’s shares trade on prominent exchanges, offering U.S. investors exposure to emerging diamond plays. The FY2025 revenue surge demonstrates operational scalability, but the suspension introduces short-term volatility, potentially offset by progress in Angola. Analysts may view this as a prudent cost-control measure, preserving capital for high-potential explorations amid a cyclical downturn.
In summary of the operational shifts, the Braúna suspension and CFO change signal a strategic reset, balancing immediate challenges with long-term growth avenues in untapped regions.
Disclaimer: This news report is for informational purposes only and does not constitute financial advice or investment tips.