Lucara Diamond Corp. · TSX:LUC
Lucara Diamond — PDAC 2020 Diamond Session
23 slides from Lucara Diamond's conference presentation, Mar 2, 2020
Slide 1: PDAC 2020 Diamond Session
PDAC 2020 Diamond Session MARCH 2, 2020 LucaraDiamond.com | LUC.TSX | LUC.XSTO | LUC.BSE
Slide 2: Cautionary Statement
Cautionary Statement Forward‐looking information There can be no assurance that such forward looking statements will prove to be accurate, as the Company's results and future events could differ materially from those anticipated in this forward- Certain of the statements made and contained herein an
Slide 3: 2019 Highlights
2019 Highlights (All currency figures in U.S. Dollars, unless otherwise stated) Karowe Diamond Mine Clara Diamond Solutions Strong Balance Sheet & (100%) (100%) Dividend Policy Change Strong, stable operations for Fifteen sales completed for $22.4 million in dividends paid consecutive quarters in 20
Slide 4: Sewelô Collaboration with Louis Vuitton
Sewelô Collaboration with Louis Vuitton Botswana’s Largest Diamond Sewelô “rare find”, an unbroken 1,758 carat near gem quality diamond recovered in April 2019 Collaboration between Lucara (50%), Louis Vuitton (25%), HB Company (25%) – planning, cutting and polishing a collection of diamonds from Se
Slide 5: Record Recoveries
Record Recoveries 549 carat diamond recovered Recovered unbroken from the MDR (Mega Diamond Recovery) XRT circuit A diamond of exceptional purity Recovered from direct milling ore sourced from the EM/PK(S) unit of the South Lobe Follows the recent recovery of a gem quality 176 carat stone from the s
Slide 6: Consistent Recovery of Large Diamonds
Consistent Recovery of Large Diamonds Specials contribute ~70% by revenue and ~6% by volume Revenue and production Life of mine recovery Since 2012: 15 10 diamonds sold for > includes 2015 to 2019 of 157,000 carats of diamonds in excess of US$ 10 million each (not individual stones > 300 carats have
Slide 7: Global Achieved Average Diamond Prices 2018/2019
Global Achieved Average Diamond Prices 2018/2019 (All figures in U.S. Dollars per carat) $2,131 $1,637 Lucara’s Average price ~4x Global Average $502 $468 $105 $79 $121 $122 $164 $133 $75 $73 $74 $63 2018 2019 2019 Median 7
Slide 8: Diamond Market
Diamond Market Long term fundamentals strong but pricing environment has been challenged; Evidence of market stability Rough diamond supply and demand Optimistic Demand 25 20 Base Demand Optimistic Supply 15 Base Supply 10 5 2000 2005 2010 2015 2020F 2025F 2030F Millennials will be the 2000‐2030: 20
Slide 9: Diamond Sales Highlights 2019
Diamond Sales Highlights 2019 (All currency figures in U.S. Dollars) Total proceeds of $192.5 million (including Clara); Strong December tender Average Price $468/carat 30 diamonds which sold for > $1 million, including 7 for > $3 million 241 carat sold for $8.1 million; 127 carat sold for $5.14 mil
Slide 10: 2019 Financial & Operational Highlights
2019 Financial & Operational Highlights Full Year ending December 31, 2019 (All currency figures in U.S. Dollars) Revenue (millions) Adjusted EBITDA(1) (millions) Average price ($/Carat)(1) $73.1 $502 $468 $192.5 $60.5 $176.2 +9% +21% -7% Full Year 2018 Full Year 2019 Full Year 2018 Full Year 2019 F
Slide 11: 2019 Operational Highlights
2019 Operational Highlights Full Year ending December 31, 2019 Ore mined (tonnes) Ore processed (tonnes) 2,804,517 3,303,375 2,629,048 3,113,363 +6% +7% Full Year 2018 Full Year 2019 Full Year 2018 Full Year 2019 Carats recovered (carats) Carats sold (carats) Operating margin (%) 433,060 411,732 366
Slide 12: 2020 Outlook
2020 Outlook (All currency figures in U.S. Dollars) $180 – $210 million 3.5 – 3.9 Million $32 – $36 per tonne Diamond Revenue Ore Tonnes Mined of ore processed Operating Cash Cost 350,000 – 390,000 2.5 – 2.8 million Diamond Sales (Carats) Ore Tonnes Processed 342 ct 370,000 – 410,000 3.6 – 4.2 milli
Slide 13: Karowe Underground
Karowe Underground Extending Mine-life to 2040 UG development will double the mine life from original 2010 Feasibility Study Resource work completed since November 2017 identified a much larger economic opportunity at depth, on the basis of new drilling and open pit recoveries UG would add ~ US$4 bi
Slide 14: Underground Feasibility Key Findings
Underground Feasibility Key Findings (All currency figures in U.S. Dollars) Updated geological resource Long hole shrinkage selected Strong Economics on both confirms increasing value as underground mining stand alone UG and OP+UG with depth method (700-310 masl) scenarios OP &UG Combined: Undergrou
Slide 15: Karowe Underground Next Steps
Karowe Underground Next Steps Based on the assumptions In the first half of The Company will also be The anticipated capital used for this evaluation, 2020 the Company will reviewing financing requirements in 2020 the project shows focus on detailed options and will update represent less than 10% po
Slide 16: Karowe Production Carats by Source
Karowe Production Carats by Source (All currency figures in U.S. Dollars) 2019 Carats by Source UG Carats By Source 2025-39 South Lobe Ore 82% South Lobe Ore 100% 9% 9% 25% 36% Average Price Average Price $468/carat $725/carat 64% 57% EM/PK(S) M/PK(S) Centre North EM/PK(S) M/PK(S) Production schedul
Slide 17: Karowe Underground Mine Design
Karowe Underground Mine Design Prod. Shaft (767 m deep) Vent. Shaft (717 m deep) Final Pit 680 Level 580 Level Total development: 16,300 m lateral 2,800 m vertical 480 Level 380 Level 310 Level 17
Slide 18: Underground Estimated Pre-production Capital
Underground Estimated Pre-production Capital (All currency figures in U.S. Dollars) $51.6 $46.9 $161.5 $47.7 Total Pre -Production $19.6 Capital Costs $1.6 $514 $5.9 million $0.1 $161.0 $18.8 Mining - Shaft Mining - non-shaft Bulk Earthworks Process Plant Onsite Infrastructure Buildings & Facilities
Slide 19: Transforming the Diamond Sales Process
Transforming the Diamond Sales Process Using Innovation and Technology Opportunity to disrupt the existing supply chain, driving efficiencies and Matched to buyer unlocking value Rough diamonds are sold stone by stone based on polished demand Scan/ID Transparent supply chain for Diamond provenance i
Slide 20: Clara
Clara Clara sales platform 19 sales completed Manufacturers on with ~US$11 million the platform have grown of diamonds sold by value from 4 to 32 customers through the platform Nineteen sales between Focus on growing supply and December 2018 and February 2020 demand concurrently POSITIVE RESULTS thr
Slide 21: Conclusions
Conclusions Lucara is a premier, mid-tier, investible diamond company, positioned for long term, sustainable growth High margin diamond producer Botswana - a low risk jurisdiction 813 ct Strong balance sheet Open pit mineable reserves to 2026, Underground reserves will double the mine life to 2040 A
Slide 22: Capital Structure
Capital Structure ~C$330M 402.5M (December 2019) Market Cap LUC Fully diluted Shares Lucara is a publicly listed $Nil US$11.2M company trading under (December 2019) (December 2019) the symbol “LUC” Working capital facility Cash on hand US$50.0M (available) TSX 396.9M (December 2019) Credit Facility
Slide 23: Contact
Contact Suite 2000 885 West Georgia St. Vancouver, BC V6C 3E8 Tel: +1 604 689 7872 Fax: +1 604 689 4250 Email: info@lucaradiamond.com LucaraDiamond.com | LUC.TSX | LUC.XSTO | LUC.BSE