Lucara Diamond Corp. · TSX:LUC
Lucara Diamond — Q1 2017 Earnings Presentation
19 slides from Lucara Diamond's earnings presentation, 2017
Slide 1: Lucara Diamond Corp. Q1 2017 Results
Lucara Diamond Corp. Q1 2017 Results
Slide 2: Cautionary Statement
Cautionary Statement Forward‐looking information • This investor presentation contains forward‐looking statements and information as defined in applicable securities laws including: the estimates of the Company’s mineral reserve and resources; estimates of the Company’s production and sales volumes,
Slide 3: Q1 2017 Results
Q1 2017 Results Revenue for Q1 was $26.1 million or $405 per carat (2016: Revenue $50.6 million or $649 per carat) EBITDA of $5m and earnings per share of $nil due to: • Timing of tenders: Single sale during Q1 with first Exceptional Stone Tender closing on 11th May • Mining from stockpiles as plann
Slide 4: Key Performance Indicators
Key Performance Indicators Revenue EBITDA Net Income (millions) (millions) (millions) $50.6 $30.7 $17.1 $26.1 $5.0 Q1 2017 Q1 2016 Q1 2017 Q1 2016 $(1.6) Q1 2017 Q1 2016 Total Sales (average dollar per Cost - Dollar per tonne processed Earnings per share carat) $649 $25.31 $0.05 $19.86 $405 $- Q1 20
Slide 5: Historical Revenue Performance
Historical Revenue Performance $100,000 $90,000 $80,000 $265M $70,000 $232M (*) $224M Revenue (USD 000’s) Revenue USD(,000) $60,000 $181M $50,000 EST $40,000 Regular $30,000 $20,000 $10,000 $0 (*) Q2 2016 and Full Year 2016 exclude the sale of the Constellation diamond for $63.1 million 5
Slide 6: Strong Financial Position
Strong Financial Position • Robust net cash balance of $43.5 million. • Fundamentals in place to deliver 2017 cash Cash-on-hand flow returns: (millions) • Exceptional Stone Tender closing on $134.8 May 11th • Project costs and operating costs well controlled and on forecast. Focus on maximizing marg
Slide 7: Track Record – Shareholder Returns
Track Record – Shareholder Returns Regular Dividend Per Share Growth in Regular Dividend Payments Dividend 67% Yield 3.2%* 50% Dividend Yield 2.8%* Dividend Yield Dividend 2.4%* Yield 2.0%* C$0.10/share C$0.06/share C$0.04/share C$0.04/share 2017 2016 2015 2014 2017 2016 2015 *Share price beginning
Slide 8: Karowe Mine
Karowe Mine 8
Slide 9: Karowe Operating Performance
Karowe Operating Performance Production Information Q1 2017 Q1 2016 Ore processed (tonnes) 598,934 651,909 Ore mined (tonnes) 131,380 605,705 Carats recovered (carats) 65,241 90,697 Plant feed grade (carats per hundred tonnes) 10.9 13.9 Waste mined (tonnes) 587,177 2,368,218 Revenues and Operating M
Slide 10: CSR and Health & Safety
CSR and Health & Safety • Karowe achieved 5 million Loss Time Injury (LTI) free hours in January 2017, a total of more than 2 years of LTI free operation • Karowe had one lost time injury during the quarter resulting in a twelve month rolling Lost Time Injuries Frequency Rate (“LTIFR”) of 0.08 10
Slide 11: Exploration & Resource Expansion
Exploration & Resource Expansion 11
Slide 12: Resource Expansion AK06
Resource Expansion AK06 South Lobe Centre Lobe North Lobe • 10,000 metre drill program with target to bring inferred mineral Existing resources into the indicated pierce point category • Drilling completed during Q1 2017, with a program of core sampling for density, petrography, and microdiamond ana
Slide 13: Prospecting Licences
Prospecting Licences BK02: Due to the observed average price per carat for the combined parcel of US$56.76 per carat and a relatively low recovered sample grade, no further work is planned at this time AK14: During Q1 2017, a 327 metres drill program was conducted. Based on the drilling information,
Slide 14: 2017 Outlook
2017 Outlook 14
Slide 15: Exceptional Stone Tender – May 2017
Exceptional Stone Tender – May 2017 • The Company will hold its first Exceptional Stone Tender (“EST”) on May 11th with viewings scheduled between May 3rd to the 11th • A total of 15 diamonds are included in the EST, including 6 diamonds larger than 100 carats. The average stone size equates to 117
Slide 16: 2017 Outlook
2017 Outlook Revenue (US$ million) – excluding sale of the Lesedi La Rona 200 – 220 Sales (thousand carats) 290 – 310 Tonnes of ore processed (million tonnes) 2.2 – 2.5 Ore mined (million tonnes) 2.4 – 2.7 Waste mined (million tonnes) 17.0 – 20.0 Operating cash costs per tonne ore processed (dollars
Slide 17: Diamond Market
Diamond Market 17
Slide 18: Diamond Market
Diamond Market • Market is cautious – supply and demand fundamentals remain unbalanced • Large volumes of rough continue to be sold by the majors with a strong rebound in the price of rough in the categories where demand was affected the greatest by the demonetization in India in November 2016 • Ret
Slide 19: Contact Information
Contact Information Suite 2000 885 West Georgia St. Vancouver, BC V6C 3E8 Tel: 604 689 7872 Fax: 604 689 4250 info@lucaradiamond.com lucaradiamond.com 19