Lucara Diamond Corp. · TSX:LUC
Lucara Diamond — Q1 2015 Earnings Presentation
22 slides from Lucara Diamond's earnings presentation, 2015
Slide 1: Lucara Diamond Corp. Q1 2015 Results
LUCARA DIAMOND CORP. Q1 2015 Results
Slide 2: Cautionary Statement
Cautionary Statement ! " ! ! # $ % ! & % & % & % & % & % & % & ! % & % & % & % & # ' " ! #( ) * + ) , ! + , " - . %- ' / ( ' 00 # # # ' ! , # - # # " 2 )% &+ / 3 " ) + 4 5( 67 898 - - : ; < " 2 < =/ $ )< + 2 2 ; # ' 1> 1987 5( 67 898 - ' = / 3 < " 4 < =/ $ )< + 2 2 ; # ; 78 1989# . 5(67 898 ' 6 1986
Slide 3: Lucara 2015 Guidance
?#63 A6BB 1B1 Lucara 2015 Guidance Karowe • Forecast 2015 revenues of $230 - $240 million • Diamond sales of between 400,000 - 420,000 carats • Operating costs of $33 - $36 per tonne processed • Capital expenditure of up to $20 million (plant optimization project) • Sustaining Capital of up to $8.5
Slide 4: Capital Structure
Capital Structure • Lucara is a public Company listed under the symbol “LUC” • TSX • NASDAQ OMX (Sweden) A799 • BSE (Botswana) - ).=A+ :4( ;/ ).=A+ ' ).=A+ A133 ' A1C9 • Issued share 379M A199 A8>8 A8B7 • Fully diluted shares 381M A8C9 • Debt Nil A899 A897 A?8 A>C • Cash on hand US$ 87 million (Q1)
Slide 5: Focused on Southern Africa
Focused on Southern Africa 4 :! 899D E 4 /F: < 4 91 / 88 81 87 86 < " BCD E ; C
Slide 6: Geological Model
Geological Model Plan view of geological model 5 = ( 4)5+ 55 %% && 8999 G )5+ G )=+ G44H)=+ G ) + G 44H)5+ % & ' ) + ?99 G G 44H)5+ 44H)5+ 44H)=+ 44H)5+ ( 4) + 44H) + >99 0< )=+ ' )5+ ' ) + B99 44H)=+ ( 4 )=+ 399 ( C19 - ( 4)=+ < @' 198C 3
Slide 7: Resource
Resource • 2 / 3 8130>6 1>? 87C 17> 89BI89?08770893 1CB >> 87> 39 >3 >9 8CC 8B8 896088B0?8 B6 81C 83B 876 83C 8C3 1>8 876 876 81? 8C3 8?8 871 898 >> 88? 7610166 ?? ! E 7C B
Slide 8: Resource Performance
Resource Performance • - , 89#> >8C 1986 * 1?#8 0 • ; J8 198C 8C7 89#> * 1B#B • J8 1988 - ; 1987 - ; K : K : AB99 1986 / = K A3660 A399 AC99 1987 / = K 5 A699 A6880 A687 A1B3 A1B3 A7C8 A799 1981 / = K = A1C70 A199 A178 A18B A899 A 5 = 5 = >
Slide 9: Karowe Operating Performance
Karowe Operating Performance ! "# " * $% &'%( $% &'%) 18D 89D + AB#3 A83#> A3#9 E )+ 397 ?3? 3>9 B79 88D A8C#8 ) + ?9 9BB 888 97B 8?D < ) + 86#? 83#7 ?D G )+ 7 167 7B1 1 991 711 31D $% &'%( $% &'%) $% &'%( $% &'%) A0 A1>#1 A18#7 71D #, -. / / A0 A89> A88> >D 88D LC6 D A87#7 A>B#C :4( ;/ A88#?9 A87#7
Slide 10: Sales Update
Sales Update 87C 869 1C3 817 17? ! 1987 • ; J8 198C 893 BBB A1?#3 A1BB # • 5 ! , # ( ! ! , • / 8C7 89#> , . 0 1 * 1B#B 0 J8 J1 J7 J6 • 3C 899 ? 199 - :! = ) 4 + 89
Slide 11: 2014/15 Capital – Plant Optimization Project
2014/15 Capital – Plant Optimization Project Plant Modifications • < • < * 1#C • ( %2 ; - & 39 B9 * Capital Costs and Schedule • : ! ACC – Up to 20 million to be spent in 2015 • J1 198C – Construction activities are essentially complete with minor works being conducted around the tertiary crusher an
Slide 12: 2014/15 Capital – Plant Optimization Project
2014/15 Capital – Plant Optimization Project = $ H- 4 @ J8 H- = . H- 81
Slide 13: Resource Replacement
Resource Replacement Karowe Underground • Preliminary assessment • Opportunity to move Inferred into Indicated below current Cut 2 Design Prospecting Licenses • Boteti awarded 2 PL’s in mid- Sept 2014 • Both PL’s host known diamondiferous kimberlites • Block A (BK02) • Block E (AK11,12,13,14) 87
Slide 14: Prospecting License: Block A – BK 02
Prospecting License : Block A – BK 02 • 2 8#9B 1 4 91 8?3B ! ; 4 E ; 79 • = 1#6 • < #; # 5 • : • 2 3 • = • $ ;: • C999 * • ; 4 1 L8#8> 4 E M 86
Slide 15: Prospecting License: Block E – AK 11,12,13,14
Prospecting License : Block E – AK 11,12,13,14 • 2 CC#6 1 6 ; E 2 # :! 8C • / 88 / 81 E # / 87 86 ! • / 88 / 81 @ • = • $ • C999 * @ / 88 / 81 • ; / 81 8C
Slide 16: Management’s Focus
87C#7> A6B 91> Management’s Focus Lucara • Focus on the full integration of the new plant optimization equipment and sustainably process more competent and higher yielding ore • Develop resource extension programs for potential new and current assets Karowe • Revenue guidance for 2015 - $230 – $240
Slide 17: Contact Information
Contact Information 2 = : &''' 6 9')/94;/<4)& > 6 44( 2 5 " 6 :6 9')/94;/)&(' * 7 8 ,6 6 1116 6 *9 #4 # 8B
Slide 18: The Diamond Market
The Diamond Market - . !! ?. • N • $ • =GO <K ';( @ 1983 • < 4 F @ $ ; - 1986 8>
Slide 19: The Diamond Market
The Diamond Market 5 = @ " . < / 199 8>9 8B3 8B3 83> 837 4 8C? 839 ;- 869 81> = / 81> 879 819 817 / 819 N 899 - / >9 39 E 69 O 19 9 1996 199C 1993 199B 199> 199? 1989 1988 1981 1987 = < 8?
Slide 20: The Diamond Market
The Diamond Market #:! 1 5 ! 8> 1917 4 F @ $ ; - 1987 19
Slide 21: The Diamond Market
The Diamond Market @ " . . )1981 @ 1917+ ; ( ! A13 < 4 F @ $ ; - 1987 18
Slide 22: The Diamond Market
The Diamond Market . A 1 5 = @ " . A3>#C4 AB7#8 A36#>4 AC>#B4 A39#14 AB9#>4 AB1#84 AB6#34 199> @ 1987 L8CD /$- 199> @ 1987 L8BD /$- A19 999 899 A8> 999 A83 999 >9 A86 999 A81 999 39 A89 999 A> 999 69 A3 999 A6 999 19 A1 999 A9 9 199> 199? 1989 1988 1981 1987 1993 199B 199> 199? 1989 1988 1981 1987 .