LUC ChartLucara shares are trading at all-time highs, approaching $2.00/share (up over 184% in the past 12 months)!

After officially becoming the only Lundin Group dividend payer, Lucara Diamond (LUC:TSX) announced they have recovered an astounding 13 diamonds that are larger than 100 carats each, including 2 that exceeded 200 carats each (the five largest gem-quality stones weighed in at 259 carats, 239 carats, two stones weighing 153 carats each and one at 133 carats).

In Lucara's most recent quarter, they announced the recovery of 188 stones including 4 that exceeded 100 carats.

This latest batch of recovered stones highlights the rare size and quality of the Karowe diamonds.  With 2014 guidance of between 400,000 and 420,000 carats generating $150 to $160 million in revenue and YTD revenues sitting at over $84 million ($50 million from the first exceptional stone tender and $33.6 million from other sales); the company appears to be in shape to beat expectations and potentially by a substantial margin.

Lucara's 2014 guidance could be beat in a big way (Source: Lucara Diamond Corp.)

Lucara's 2014 guidance could be beat in a big way (Source: Lucara Diamond Corp.)

On the back of this announcement, the company released the date for their second exceptional stone tender of 2014, to be held on July 18 with client viewings in Antwerp and Gaborone.

With the continued large stones recovered, I would expect another $50 million in revenues from the exceptional stone tender in July which would bring $100 million in from two exceptional tenders alone, plus an additional $100 million from regular stone tenders.

If the company holds a third exceptional stone tender, which is now in the cards, Lucara could beat guidance by a landslide.  This third tender could bring in an additional $50 million, bringing potential annual revenues to $250 million (over 50% more than guided).

William Lamb, President and CEO, commented: "The ongoing recovery of these large and exceptional white diamonds continues to drive increased value for Lucara and its shareholders and has established the Karowe mine as a rare source of truly exceptional diamonds. The ongoing recovery of such stones is encouraging for a potential third exceptional stone tender during the fourth quarter of 2014."

Read: Lucara Recovers 13 Diamonds Greater Than 100 Carats

Disclosure: I am long Lucara.  I am biased and this should not be considered investment advice.  Due your own due diligence.