Lucara Diamond Corp. · TSX:LUC

Lucara Diamond — Q2 2016 Earnings Presentation

16 slides from Lucara Diamond's earnings presentation, August 2016

  1. Slide 1: Lucara Diamond Corp. 2016 Second Quarter Results

    Lucara Diamond Corp. 2016 Second Quarter Results August 2016

  2. Slide 2: Cautionary statement

    FY16 Q2 Results 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

  3. Slide 3: Second Quarter 2016 Highlights

    FY16 Q2 Results Second Quarter 2016 Highlights Where Bigger Is™ Strong product demand - Revenue for the quarter was $140.8 million or $1,824 per carat (2015: Revenue $38.1 million or $412 per carat) Year to date costs at $26 per tonne ore milled. Cost guidance reduced to between $29.00- $31.00 per t

  4. Slide 4: Key performance indicators – H1 results

    FY16 Q2 Results Key performance indicators – H1 results Revenue EBITDA Net Income (millions) (millions) (millions) $140.5 $63.3 $191.4 $67.8 $28.4 $14.6 H1 2016 H1 2015 H1 2016 H1 2015 H1 2016 H1 2015 Total Sales EBITDA Margin Earnings per (average dollar per 73% share carat) $0.17 $1,233 42% $340 $

  5. Slide 5: Strong financial position

    FY16 Q2 Results Strong financial position Cash-on-hand • Cash increased by $66.5 million (millions) during the quarter resulting from $210.8 strong tender results. Revenue was partially offset by capital expenditures, tax and dividend $144.3 $134.8 payments • Further cash receipts of $8.3 million re

  6. Slide 6: Karowe Mine

    FY16 Q2 Results my, Karowe Mine I vcoca Pomeone

  7. Slide 7: CSR and Health & Safety

    FY16 Q2 Results CSR and Health & Safety • Excellent Safety performance with Safety and Health Lost time injury frequency rates (‘LTIFR’) for 2016 of zero (measured per 1,000,000 hours) (H1 2015: 0.65) • Letlhakane abattoir handed over to the district counsel for commissioning and operations • Lady K

  8. Slide 8: Karowe operating performance

    FY16 Q2 Results Karowe operating performance Production Information Q2 2016 Q2 2015 H1 2016 H1 2015 Ore processed (tonnes) 680,190 506,538 1,332,100 1,110,508 Ore mined (tonnes) 1,124,743 722,855 1,802,509 1,284,141 Carats recovered (carats) 99,582 85,714 190,279 175,792 Plant feed grade (carats per

  9. Slide 9: Sales update

    FY16 Q2 Results Sales update Sales Tenders (average dollar per • Strong Q2 sales results in carat) sales price of $1,824 per carat $1,824 • Excluding sale of the 813 $593 $644 carat Constellation, average revenue per carat was $831, Q2 2016 Full Year Full Year an increase of 20% compared 2015 2014 t

  10. Slide 10: Exploration

    FY16 Q2 Results " Exploration I vcoca Pomeone

  11. Slide 11: Resource Expansion AK06

    FY16 Q2 Results Resource Expansion AK06 • 10,000 metre drill program with target to bring inferred mineral South Lobe Centre Lobe North Lobe resources into the indicated Existing category pierce • Three active drill rigs. Two holes point completed • 2400 metres drilled to 1 August • Pierce points ar

  12. Slide 12: Prospecting Licences

    FY16 Q2 Results Prospecting Licences Boteti awarded 2 PLs in mid Sept 2014 Both PLs host known diamondiferous kimberlites Block A (BK02) Block E (AK11, 12, 13, 14) Surface trenching and processing during Q2/16 Drilling to commence in Q3/16 12

  13. Slide 13: Prospecting Licences

    FY16 Q2 Results Prospecting Licences BK02 BK02 AK12 • Bulk sampling activities at BK02 were completed • An additional 5000 tonnes is to be collected and processed from BK02 in Q3/Q4 • AK12 processing was terminated due to low recovered sample grade, no further work is planned • Diamond drilling is d

  14. Slide 14: Product excellence

    FY16 Q2 Results Product excellence Best In Class exposure to diamonds 297 carats - $12.2 million 245 carats - $10.5 million ($41,088 per carat) ($42,738 per carat) 813 carats - $63.1 million 14 ($77,649 per carat)

  15. Slide 15: 2016 Outlook

    FY16 Q2 Results 2016 Outlook Revenue (US$ million) – excluding sale of the Constellation and Lesedi La Rona 200 – 220 Sales (thousand carats) 340 – 380 Tonnes of ore processed (million tonnes) 2.2 – 2.4 Ore mined (million tonnes) 3.0 – 3.5 Waste mined (million tonnes) 13.0 –14.0 $29.0–$31.0 from Ope

  16. Slide 16: Diamond Market

    FY16 Q2 Results Diamond Market 16

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