Lucara Diamond Corp. · TSX:LUC
Lucara Diamond — Q3 2021 Earnings Presentation
18 slides from Lucara Diamond's earnings presentation, Nov 4, 2021
Slide 1: Q3 2021 Results Conference Call
Q3 2021 Results Conference Call NOVEMBER 4, 2021 LucaraDiamond.com | LUC.TSX | LUC.XSTO | LUC.BSE
Slide 2: Cautionary Statement
Cautionary Statement Forward‐looking information There can be no assurance that such forward looking statements will prove to be accurate, as the Company's results and future events could differ materially from those anticipated in this forward-looking Certain of the statements made and contained he
Slide 3: Q3 2021 Highlights
Q3 2021 Highlights (All currency figures in U.S. Dollars, unless otherwise stated) Karowe Diamond Mine Clara Diamond Solutions Balance Sheet & Liquidity $72.7 million in revenue in Q3, a 57% 4 sales in Q3 2021; 136% increase in volume Cash and cash equivalents of increase qoq; average price per cara
Slide 4: COVID-19 Response
COVID-19 Response Health & Well-Being Focus As mining has been designated an essential service in Botswana, the Karowe mine has remained fully operational throughout the pandemic. COVID-19 measures and guidelines, which were implemented by the Government of Botswana in late March 2020, remain in pla
Slide 5: Karowe Underground Expansion
Karowe Underground Expansion Financing Completed Full board sanction of the $534 million expansion project, following the arrangement of full project funding through project finance facilities of up to $220 million and equity financing of $31.3 million; First drawdowns under the $170 million project
Slide 6: Karowe Underground Expansion
Karowe Underground Expansion Q3 Activities • Over 500,000 hours LTI free on project; • Civil construction for winder building, temporary power ph. 1 installed, change house, construction camp, water and sewage treatment plant expansion work Shaft Pre-sink • Tracking to plan • Ventilation shaft at to
Slide 7: Consistent Recovery of Large Diamonds
Consistent Recovery of Large Diamonds Specials contribute ~70% by revenue and ~5% by volume historically Revenue and production includes 2015 to 2020 2021 YTD Recoveries: Since 2012: 25 diamonds 11 diamonds sold for > US$ 2 diamonds >500 carats, in excess of 300 carats 10 million each (not included
Slide 8: Diamond Market
Diamond Market Strong market due to healthy supply & demand balance; Increasing price performance Longer term outlook remains strong supported by supply constraints Rough natural diamond supply and demand ($ billions) Forecast 20 Optimistic Demand 15 Conservative Demand Optimistic Supply 10 Conserva
Slide 9: Sales Channels – Strong Q3 Results
Sales Channels – Strong Q3 Results Optimized Sales of Rough and Polished Diamonds to Create Alignment Along the Supply Chain and Maximize Revenues Rough Clara Polished (HB) Jewellery Increasing Margin Capture Downstream Tenders (Auctions) of Proprietary Digital Manufacturing into Collaboration with
Slide 10: 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 11: Clara
Clara Digital sales platform (1 to 15 carat) All currency figures in U.S. Dollars 55 sales completed since inception Buyers on the platform increased from ~$42.2 million 75 to 87 in 2021: of diamonds sold by value Wait-list being maintained through the platform Fifty-five sales between December 2018
Slide 12: Q3 2021 Financial Highlights
Q3 2021 Financial Highlights Three months ending September 30, 2021 (All currency figures in U.S. Dollars) Revenue (millions) Adjusted EBITDA(1) (millions) $72.7 $36.8 $41.3 $9.9 Q3 2021 Q3 2020 Q3 2021 Q3 2020 Net income (loss) (millions) Average price ($/Carat) (1) Cash flow from operations per sh
Slide 13: YTD 2021 Financial Highlights
YTD 2021 Financial Highlights Nine months ending September 30, 2021 (All currency figures in U.S. Dollars) Average price (Average $/Carat) (1) Operating cost ($ per tonne processed)(1) Operating cash flow per share(1) $619 $0.19 $29.36 $26.92 $309 $0.03 YTD 2021 YTD 2020 YTD 2021 YTD 2020 YTD 2021 Y
Slide 14: Q3 2021 Operational Highlights – Karowe Mine
Q3 2021 Operational Highlights – Karowe Mine Three months ending September 30, 2021 (All currency figures in U.S. Dollars) Ore mined (tonnes) Ore processed (tonnes) 1,323,218 738,986 646,447 678,110 Q3 2021 Q3 2020 Q3 2021 Q3 2020 Carats recovered (carats) Carats sold (carats) Operating cost per car
Slide 15: YTD 2021 Operational Highlights – Karowe Mine
YTD 2021 Operational Highlights – Karowe Mine Nine months ending September 30, 2021 (All currency figures in U.S. Dollars) Ore mined (tonnes) Ore processed (tonnes) 3,444,107 2,139,011 1,991,298 2,239,479 YTD 2021 YTD 2020 YTD 2021 YTD 2020 Carats recovered (carats) Carats sold (carats) Operating co
Slide 16: Sales Channels Q3 2021
Sales Channels Q3 2021 Sales through HB Antwerp, Clara and Quarterly Tender • High value Specials (+10.8 carats) are manufactured and sold as polished through the HB Antwerp supply agreement. • Diamonds between 1 and 10 carats that meet specific criteria are sold through Clara. • All other diamonds
Slide 17: 2021 Annual Guidance Updated
2021 Annual Guidance Updated (All currency figures in U.S. Dollars) Karowe Diamond Mine Full Year - 2021 Diamond revenue (revised in Q3) $195 million to $210 million* Diamond sales 350,000 to 390,000 carats Diamonds recovered 340,000 to 370,000 carats Ore tonnes mined (revised in Q2) 3.8 million to
Slide 18: Contact
Contact Suite 502 1250 Homer St. Vancouver, BC V6B 2Y5 Canada Tel: +1 604 674 0272 Email: info@lucaradiamond.com LucaraDiamond.com | LUC.TSX | LUC.XSTO | LUC.BSE