Lucara Diamond Corp. · TSX:LUC
Lucara Diamond — Q1 2021 Earnings Presentation
16 slides from Lucara Diamond's earnings presentation, May 7, 2021
Slide 1: Q1 2021 Results Conference Call
Q1 2021 Results Conference Call MAY 7, 2021 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: Q1 2021 Highlights
Q1 2021 Highlights (All currency figures in U.S. Dollars, unless otherwise stated) Karowe Diamond Mine Clara Diamond Solutions Balance Sheet & Liquidity 56% growth in revenue year on year; 6 sales in Q1 2021; doubled volume transacted Strong cash position and available average price per carat of $57
Slide 4: COVID-19 Response
COVID-19 Response Operations & Diamond sales continue, Underground ramp-up • As mining has been designated an essential service in Botswana, the Karowe mine has remained fully operational throughout the pandemic. COVID-19 measures and guidelines, which were implemented by the GRB in late March 2020,
Slide 5: Consistent Recovery of Large Diamonds
Consistent Recovery of Large Diamonds Specials contribute ~70% by revenue and ~5% by volume Revenue and production includes 2015 to 2020 Life of mine recovery of Since 2012: 21 diamonds in 11 diamonds sold for > US$ 10 +188,000 carats of excess of 300 carats have million each (not included in indivi
Slide 6: Supply Agreement with HB Antwerp Extended
Supply Agreement with HB Antwerp Extended +10.8 Carat “Specials” Includes all +10.8 carat “specials” produced from the Karowe Mine 24-month extension to December 2022 Initial price is based on an estimated polished outcome, determined through state of the art scanning and planning technology, with a
Slide 7: Collaboration Agreement on "Sethunya" with Louis Vuitton and HB Antwerp
Collaboration Agreement on “Sethunya” with Louis Vuitton and HB Antwerp Revenue in 2021 549 carat white gem diamond “Sethunya”, meaning flower in Setswana, recovered from the Karowe Mine in February 2020 Lucara, Louis Vuitton and HB will collaborate and plan the creation of the highest value polishe
Slide 8: Karowe Underground Expansion Update
Karowe Underground Expansion Update Financing Mandated lenders for up to $220M debt financing; credit approvals received; due diligence complete; targeting close in H2 2021 2021 Plan Investment of $105 million; H1 2021 funded from operating cash flow Focus on detailed engineering and early site work
Slide 9: Diamond Market
Diamond Market Stable market due to healthy supply & demand balance in the midstream; Q1 2021 strengthening price performance in all sizes and qualities Longer term outlook remains strong supported by supply constraints Rough natural diamond supply and demand ($ billions) Forecast 20 Optimistic Dema
Slide 10: Clara
Clara Digital sales platform (1 to 10 carat) 47 sales completed since inception Buyers on the platform increased from ~US$29.4 million 75 to 80 in 2021: of diamonds sold by value Wait-list being maintained through the platform Forty-seven sales between December 2018 and April 2021 Trials of third pa
Slide 11: Q1 2021 Financial Highlights
Q1 2021 Financial Highlights Three months ending March 31, 2021 (All currency figures in U.S. Dollars) Average Price (Average $/Carat) (1) $579 Operating Cost ($ per tonne processed)(1) Cash flow from operations per share(1) $396 $31.43 $0.06 $29.24 $0.02 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Q1 2020 Q1 2
Slide 12: Q1 2021 Operational Highlights – Karowe Mine
Q1 2021 Operational Highlights – Karowe Mine Three months ending March 31, 2021 (All currency figures in U.S. Dollars) Ore mined (tonnes) Ore processed (tonnes) 1,100,622 639,430 673,646 878,087 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Carats recovered (carats) Carats sold (carats) Operating cost per carat s
Slide 13: Sales Channels Q1 2021
Sales Channels Q1 2021 Sales through Clara, HB Antwerp and Quarterly Tender • All +10.8 carat stones are sold through HB Antwerp; only high value Specials (+10.8 carats) are manufactured and sold as polished • Higher quality diamonds between 1 and 10 carats are sold through Clara; all other diamonds
Slide 14: 2021 Annual Guidance
2021 Annual Guidance (All currency figures in U.S. Dollars) 14
Slide 15: Conclusion
Conclusion Lucara is a premier, mid-tier, investible diamond company, positioned for long term, sustainable growth High margin diamond producer Botswana - a low risk jurisdiction Strong balance sheet and available liquidity Consistent recovery of high value Specials (+10.8 carats); Open pit mineable
Slide 16: Contact
Contact Suite 502 1250 Homer St. Vancouver, BC V6B 2Y5 Canada Tel: +1 604 674 0272 Email: info@lucaradiamond.com LucaraDiamond.com | LUC.TSX | LUC.XSTO | LUC.BSE