Lucara Diamond Corp. · TSX:LUC
Lucara Diamond — Scotiabank Mining Conference 2021
17 slides from Lucara Diamond's conference presentation, Dec 1, 2021
Slide 1: Scotiabank Mining Conference
Scotiabank Mining Conference Virtual DECEMBER 1, 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: High operating margin
High operating margin 3.2 million Total capital investment less than sustained since production carats sold $200 million began in 2012 $1.7 billion $271 million in revenue in ~8 years in dividends paid 2014 - 2019 Consistent recovery of high value Innovative design Top of class, only mine in +10.8ct
Slide 4: Historic Diamond Recoveries
Historic Diamond Recoveries Karowe has yielded 25% of the World’s Largest Diamonds and 4 of the top 10 24 diamonds >300 carats have been recovered from Karowe, including 3 diamonds > 1,000 carats Rank Carats Name Country Mine Date 1 3106.75 Cullinan Diamond South Africa Premier Mine 1905 2 1758 Sewe
Slide 5: Consistent Recovery of Large Diamonds
Consistent Recovery of Large Diamonds Specials contribute ~70% by revenue and ~5% by volume historically Revenue and production includes 2015 to 2020 2021 YTD Recoveries: Since 2012: 25 diamonds 11 diamonds sold for > US$ 2 diamonds >500 carats, in excess of 300 carats 10 million each (not included
Slide 6: 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 7: 2021 Highlights
2021 Highlights (All currency figures in U.S. Dollars, unless otherwise stated) Karowe Diamond Mine Clara Diamond Solutions Balance Sheet & Liquidity Strong, safe, reliable production 136% increase in volume transacted year on Cash and cash equivalents of results; all physicals achieved to plan; yea
Slide 8: YTD 2021 Financial & Operational Highlights
YTD 2021 Financial & Operational Highlights Nine months ending September 30, 2021 (All currency figures in U.S. Dollars) Revenue (millions) Adjusted EBITDA(1) (millions) Average Price ($/Carat) (1) $619 $172.1 $81.4 $82.9 $309 $8.1 YTD 2021 YTD 2020 YTD 2021 YTD 2020 YTD 2021 YTD 2020 Carats recover
Slide 9: Sales Channels
Sales Channels Optimized Sales of Rough and Polished Diamonds to Create Alignment Along the Supply Chain and Maximize Revenues Rough Clara Polished Jewellery Increasing Margin Capture Downstream Tenders (Auctions) of Proprietary Digital Manufacturing into Collaboration with Rough Diamonds < 10.8 Mar
Slide 10: Sales Channels – Strong Q3 Sales
Sales Channels – Strong Q3 Sales Optimized Sales of Rough and Polished Diamonds to Create Alignment Along the Supply Chain and Maximize Revenues Rough Clara Polished Jewellery Increasing Margin Capture Downstream Special Diamonds Revenue Revenue Revenue Sethunya and Sewelo $31.9m $21.0m $119.2m YTD
Slide 11: Karowe Underground Expansion
Karowe Underground Expansion Extending Mine-life to at least 2040 $534 million underground expansion adds ~ $4 billion additional net revenue NPV $1,280 million/$750 million (pre/post tax) @ 5%; using conservative diamond price assumptions Financing Completed, Full Board Sanction Received First draw
Slide 12: 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 13: 2021 & 2022 Annual Guidance
2021 & 2022 Annual Guidance (All currency figures in U.S. Dollars) Karowe Diamond Mine FY2021 FY2022** Diamond revenue $195 to $210 million* $185 to $ 215 million Diamond sales 350,000 to 390,000 carats 300,000 to 340,000 carats Diamonds recovered 340,000 to 370,000 carats 300,000 to 340,000 carats
Slide 14: Approach to Sustainability
Approach to Sustainability Focused on transparency, the protection of our people and stakeholder engagement Lucara is certified by the Code of Business Conduct Responsible Jewellery Council and Ethics (RJC), compliant with the Lucara’s Sustainability Report is Whistleblower Policy Kimberley Process,
Slide 15: 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 16: Conclusion
Conclusion Lucara is a premier, mid-tier, investible diamond company, positioned for long term, sustainable growth High margin diamond producer Botswana - a low risk jurisdiction Strong balance sheet and available liquidity Consistent recovery of high value “Specials” (+10.8 carats); Open pit mineab
Slide 17: 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