Lucara Diamond Corp. · TSX:LUC
Lucara Diamond — FY2013 Earnings Presentation
12 slides from Lucara Diamond's earnings presentation, Feb 21, 2014
Slide 1: Full Year 2013 Results
Full Year 2013 Results F b February 21 21, 2014 TSX : LUC OMX : LUC (Sweden) TSX – LUC OMX –BSX LUC : LUC (Botswana) BOTSWANA ‐ LUC
Slide 2: Index
2 Index 2013 Highlights 3 Karowe Resource Update 4 2013 Operational Review – Karowe 5 2013 Karowe Financial Highlights 6 2013 Cash Flow Reconciliation 7 2013 Diamond Sales 8 2014 Diamond Sales and Market Status 9 2014 Outlook 10 Plant Optimization Project 11
Slide 3: 2013 Highlights
3 2013 Highlights ¾ Significant revenues due to exceptional stone sales ‐ $180.5 million compared to initial and revised gguidance of $ $90 million and $ $118 million respectively p y ¾ Operational and cost discipline: ¾ Strong operating margins of $311 per carat during the year ¾ Operating producti
Slide 4: Karowe Resource
4 Karowe Resource N h North 7622000.0 Y 7621900.0 Centre Y 74cts 138cts 125cts 239cts 281cts 118 t 167cts 118cts 67cts 60cts 56cts 138ct 86cts 165cts s 162cts 7621800.0 135cts Y 155cts 238cts 257cts South 7621700.0 Y • Resource update based on the consistent recovery of >10.8ct diamonds (732 in 2013
Slide 5: 2013 Operational Review - Karowe
5 2013 Operational Review ‐ Karowe Production Information 2013 Actual 2014 Outlook Ore processed (million tonnes) 24 2.4 2 2 – 2.4 2.2 24 Ore mined (million tonnes) 3.9 3.0 – 3.5 Waste mined (million tonnes) 5.5 10.0 – 11.0 Operating cash costs per tonne ore processed $18.6 $31 ‐ $33 Carats sold (th
Slide 6: 2013 Karowe Financial Highlights
6 2013 Karowe Financial Highlights USD millions 2013 Actual 20 2 Actuall 2012 (July 1 – Commercial Production) Revenues 180.5 41.8 R lt expenses Royalty 18 1 18.1 42 4.2 Operating expenses 43.1 14.0 / Administration/sales and marketingg 6.0 3.6 EBITDA 113.3 20.0 EBITDA margin 63% 48% Operating p g M
Slide 7: 2013 Cash Flow Reconciliation
7 2013 Cash Flow Reconciliation $140.0m $120.0m ($9 0m) ($9.0m) ($1.3m)) ($ $100.0m $80.0m $ $109 2m $109.2m ($50 0m) ($50.0m) $60.0m ($4.5m) ($7.8m) ($0.4m) $40 0m $40.0m $20.0m $49.3m $13.2m $0 0m $0.0m Exchange and Exploration owe cash flows Corporate costs repayment 2012 year end 2013 year end f
Slide 8: 2013 Diamond Sales
8 2013 Diamond Sales ¾ 2013 Diamond sales wereere Diamond Sales per Quarter very strong with a total of 500 ousands over 439,000 carats being 450 400 sold Tho 350 300 ¾ Sales in Q1 include 18,000 250 200 carats held over from the 150 last sale in Q4, 2012 100 50 ¾ Three large and exceptional 0 Q1 A
Slide 9: 2014 Diamond Sales and Market Status
9 2014 Diamond Sales and Market Status Diamond Sales ¾ Lucara expects to hold 8 Regular and 2 Exceptional diamond tenders in 2014 ¾ Total diamond sales expected to be between 400,000 400 000 and 420,000 420 000 carats ¾ First Exceptional Stone Tender planned for early Q2 Diamond Market ¾ Good increa
Slide 10: 2014 Outlook
10 2014 Outlook Outlook 2014 Revenue (US$ million) 150 ‐ 160 Sales (thousand carats) 400 ‐ 420 Tonnes of ore processed (million tonnes) 2.2 ‐ 2.4 Ore mined (million tonnes) 3 ‐ 3.5 Waste mined (million tonnes) 10 ‐ 11 Operating cash costs per tonne ore processed (dollars) $31 ‐ $33 Plant optimizatio
Slide 11: 2014 Plant Optimization Project
11 2014 Plant Optimization Project ¾ Project on track to achieve operational requirements ¾ Addition of large stone recovery system ¾ Improved up‐front comminution to treat harder material expected at depth (originally planned) ¾ Inclusion of a tertiary crushing circuit to maintain and improve diamo
Slide 12: Cautionary Statement
12 Cautionary Statement Forward‐looking information This document contains statements about expected or anticipated future events and financial results of Lucara that are forward‐ looking in nature and are based on Lucara’s current expectations, estimates and projections. This forward‐looking inform