Slide 1: Lucara Diamond Corp. Q2 2017 Results
Lucara Diamond Corp. Q2 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: Q2 2017 Results
Q2 2017 Results Revenue for Q2 was $79.6 million or $1,336 per carat (2016: Revenue $140.8 million or $77.7 million for $1,017 per carat excluding the sale of the Constellation) Operating margins at 82%, following strong sales and focus on cost control Mining Contractor Karowe: • Mining contractor f
Slide 4: Key Performance Indicators (H1)
Key Performance Indicators (H1) Revenue EBITDA Net Income (millions) (millions) (millions) $140.5 $191.4 $63.3 $77.4* $105.7 $128.3* $56.7 $30.6 $30.4* H1 2017 H1 2016 H1 2017 H1 2016 H1 2017 H1 2016 Total Sales (average dollar per carat) US$ per tonne processed Earnings per share $1,233 $0.17 $30.1
Slide 5: Historical Revenue Performance
Historical Revenue Performance $100,000 $300,000 $265 M $90,000 $106 M $250,000 $80,000 $232 M* $223 M USD Revenue (000's) per quarter USD Revenue (000's) per annum $70,000 $200,000 $180 M $60,000 $50,000 $150,000 $40,000 $100,000 $30,000 $20,000 $50,000 $10,000 $0 $0 Regular EST Cumula@ve per annum
Slide 6: Strong Financial Position
Strong Financial Position • Robust net cash balance of $62.7 million Cash-on-hand • Cash flow returns generated by: (millions) • Project costs and operating costs well controlled and on forecast. Focus on $134.8 maximizing margins • Mine Plan – higher proportion of south lobe ore to processed • N e
Slide 7: Karowe Mine
Karowe Mine 7
Slide 8: Karowe Operating Performance
Karowe Operating Performance ProducNon InformaNon Q2 2017 Q2 2016 H1 2017 H1 2016 Ore processed (tonnes) 513,643 680,190 1,112,577 1,332,100 Ore mined (tonnes) 432,017 884,212 563,397 1,489,917 Carats recovered (carats) 57,624 99,582 122,865 190,279 Plant feed grade (carats per hundred 11.2 14.6 11.
Slide 9: CSR and Health & Safety
CSR and Health & Safety Health & Safety • Karowe had one lost time injury during the quarter resulting in a twelve month rolling Lost Time Injuries Frequency Rate (“LTIFR”) of 0.13 • The incident resulting in the loss time injury involved a hand injury during equipment repair. Actions have been take
Slide 10: Exploration & Resource Expansion
Exploration & Resource Expansion 10
Slide 11: Resource Expansion AK06
Resource Expansion AK06 South Lobe Centre Lobe North Lobe • 10,000 metre drill program with target to bring inferred mineral Exis@ng resources into the indicated pierce point category • Preliminary Economic Assessment is expected Q4 2017 • Pre-Feasibility Study is expected to be completed by H1 2018
Slide 12: Prospecting Licences
Prospecting Licences AK11: During Q2 2017, the Company initiated large diameter drilling (‘LDD’) sampling program at the AK11 kimberlite. Drilling has commenced on the pilot drill- hole aspect of the program. Material recovered from the LDD samples will be processed at the Company’s Bulk Sample Plan
Slide 13: 2017 Outlook
2017 Outlook 13
Slide 14: 2017 Outlook
2017 Outlook Revenue (US$ million) – excluding sale of the Lesedi La Rona 200 – 220 Sales (thousand carats) – revised 260 – 275 (previous 290 – 310) Tonnes of ore processed (million tonnes) 2.2 – 2.5 Carats produced (thousand carats) – revised 265 – 285 (previous 290 – 310) Ore mined (million tonnes
Slide 15: Diamond Market
Diamond Market 15
Slide 16: Diamond Market
Diamond Market • Market is cautious – There are indications that the rough market is cooling. Customers have reported that the secondary market is down 3-5% • The US market has been weak during the first half of 2017. Given the sheer size of this market with a market share of roughly 45%, this refle
Slide 17: 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 17