Lucara Diamond Corp. · TSX:LUC
Lucara Diamond — Q4 2022 Earnings Presentation
19 slides from Lucara Diamond's earnings presentation, Feb 22, 2023
Slide 1: Q4 2022 Results Conference Call
Q4 2022 Results Conference Call FEBRUARY 22, 2023 LucaraDiamond.com | LUC.TSX | LUC.XSTO | LUC.BSE
Slide 2: Cautionary Statement
Cautionary Statement Forward‐looking information 2
Slide 3: 2022 Highlights
2022 Highlights (All currency figures in U.S. Dollars, unless otherwise stated) Revenues $212.9 million 7.2% Specials (+10.8 Long term market Karowe UGP surface civil Strong sales through HB, carats) by weight fundamentals remain work complete: main shaft Clara and Tenders, Adjusted Including 34 sto
Slide 4: Q4 2022 Financial Highlights
Q4 2022 Financial Highlights Three months ending December 31, 2022 (All currency figures in U.S. Dollars) Revenue (millions) Adjusted EBITDA(1) (millions) $57.9 $21.1 $42.5 $12.6 Q4 2022 Q4 2021 Q4 2022 Q4 2021 Net income (millions) Average Price ($/Carat)(1)(2) Operating cash flow per share (1) $0.
Slide 5: Q4 2022 Operational Highlights – Karowe Mine
Q4 2022 Operational Highlights – Karowe Mine Three months ending December 31, 2022 (All currency figures in U.S. Dollars) Ore mined (tonnes) Ore processed (tonnes) 690,946 705,877 610,072 484,705 Q4 2022 Q4 2021 Q4 2022 Q4 2021 Carats recovered (carats) Carats sold (carats) Operating expense per car
Slide 6: 2022 Financial Highlights
2022 Financial Highlights Year ending December 31, 2022 (All currency figures in U.S. Dollars) Average price (Average $/Carat) (1)(2) Operating cost ($ per tonne processed)(1) Operating cash flow per share (1) $0.24 $27.94 $28.93 $536 $0.19 $506 2022 2021 2022 2021 2022 2021 Revenue (millions) Adjus
Slide 7: 2022 Operational Highlights – Karowe Mine
2022 Operational Highlights – Karowe Mine Year ending December 31, 2022 (All currency figures in U.S. Dollars) Ore mined (tonnes) Ore processed (tonnes) 3,668,677 2,770,039 2,844,888 3,308,254 2022 2021 2022 2021 Carats recovered (carats) Karowe carats sold (carats) Operating expense per carat sold
Slide 8: Sales Channels Q4 2022 – Karowe Mine
Sales Channels Q4 2022 – Karowe Mine Sales through HB, Clara, and Quarterly Tender • • • Q4 2022 / 2021 2022 / 2021 Rough Revenue Average Price Rough Revenue Average Price Recognized per Carat(1) Sales Channel Recognized per Carat(1) Carats Sold Carats Sold (USD million) (USD) (USD million) (USD) 2,
Slide 9: 2023 Annual Guidance
2023 Annual Guidance (All currency figures in U.S. Dollars) Karowe Diamond Mine FY2023 Diamond revenue1 $200 to $ 230 million Diamond sales 385,000 to 415,000 carats Diamonds recovered 395,000 to 425,000 carats Ore tonnes mined 1.9 to 2.3 million Waste tonnes mined 2.2 to 2.8 million Ore tonnes proc
Slide 10: Diamond Market
Diamond Market Global supply constraints continue to support a positive, longer-term outlook on diamond prices Softer prices in H2 2022 in response to global economic uncertainties; despite pull back, market remains stable. Cautious optimism early in 2023; increasing market depth. Rough diamond supp
Slide 11: Consistent Recovery of Large Diamonds
Consistent Recovery of Large Diamonds Specials contribute ~60-70% by revenue and ~5-7% by volume historically Revenue and production includes 2015 to 2022 100% 80% Karowe Cumulative Specials (ct) 60% 2016 2017 2018 2019 2020 2021 2022 30,000 40% 25,000 25088 Cumulative Carats +10.8 20% 20,000 0% 15,
Slide 12: Sales Channels – Strong 2022 Results
Sales Channels – Strong 2022 Results Optimized Sales of Rough and Polished Diamonds to Create Alignment Along the Supply Chain and Maximize Revenues Rough Clara Polished Jewellery Increasing Margin Capture Downstream Tenders (Auctions) of Proprietary Digital Manufacturing into Collaboration with Rou
Slide 13: Supply Agreement with HB Antwerp
Supply Agreement with HB Antwerp High Value +10.8 Carat “Specials” Only Initial price is based on an estimated polished outcome, determined through state-of-the-art scanning and planning technology, with an adjustment for actual achieved polished sales, less a fee and cost of manufacturing Regular c
Slide 14: Clara Growth Potential Profile
5 Year Potential Growth Profile 75 sales 100 2000 Growth Potential in Primary ~$86 million & Secondary Markets 90 1800 80 1600 wait-list Revenue (US$mln) 70 1400 Volume (US$mln) 60 1200 Low operating cost platform completed 50 1000 Refactored in 2022 and third-party 40 800 processing costs beginning
Slide 15: Karowe Underground Expansion
Karowe Underground Expansion Extending mine-life to at least 2040 Fully Financed, Construction Advancing Project facility drawdown of $65 Million end of Q4 2022 NPV $1,280 million/$750 million (pre/post tax) @ 5%; using conservative diamond price assumptions $547 million(1) underground expansion add
Slide 16: Karowe Underground Expansion Q4 2022 Highlights
Karowe Underground Expansion Q4 2022 Highlights • Activities focused on ongoing construction and procurement: o Main sinking in both shafts continued; o Slower cycle times being actively addressed; sinking rates are improving; o First grouting phase commenced in sandstones as anticipated – methodolo
Slide 17: Approach to Sustainability
Approach to Sustainability Focused on transparency, the protection of our people, and stakeholder engagement ✓ Code of Business ✓ Lucara is certified by the ✓ Lucara’s Sustainability Report is Conduct and Ethics Responsible Jewellery Council prepared in accordance with the ✓ Whistleblower Policy (RJ
Slide 18: Lucara Investment Rationale
Lucara Investment Rationale A Premium Diamond Equity De-Risked and Positioned for Long-Term Growth Diamonds Diamond market fundamentals remain strong, bolstered by global supply declines LUC: TSX FEBRUARY 17, 2023 Share Price CAD $0.61 Prolific, high-margin diamond mine in Botswana Market Cap (milli
Slide 19: Contact
Contact LucaraDiamond.com | LUC.TSX | LUC.XSTO | LUC.BSE