Lucara Diamond Corp. · TSX:LUC
Lucara Diamond — FY2015 Earnings Presentation
18 slides from Lucara Diamond's earnings presentation, 2016
Slide 1: Lucara Diamond Corp. Full Year 2015 Results
Lucara Diamond Corp. Full Year 2015 Results
Slide 2: Cautionary statement
Cautionary statement 2 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 volume
Slide 3: Full Year 2015 – Highlights
Full Year 2015 – Highlights 3 Where Bigger Is™ Recovery of Lesedi La Rona the world’s second largest gem quality ✔ diamond in November 2015 Strong operating and financial performance with return on equity at ✔ 30% and continued cash growth Plant optimization delivered on budget and on time ✔ Explora
Slide 4: Key financial performance
Key financial performance 4 Revenue EBITDA Net Income (millions) (millions) (millions) $173.4 $265.5 $77.8 $223.8 $133.9 $45.7 Full Year Full Year Full Year Full Year Full Year Full Year 2015 2014 2015 2014 2015 2014 Total Sales Earnings per share (average dollar per carat) EBITDA Margin 65% $644 $0
Slide 5: Strengthening cash position
Strengthening cash position 5 C Cash flow growth of 173% since December 2013. Strong operating cash flow generation has financed capital projects and resulted in cumulative shareholder dividends paid of US$39 million. Company enters 2016 with over 60,000 carats in inventory, including the Lese
Slide 6: Karowe Mine – Botswana
Karowe Mine – Botswana 6
Slide 7: Karowe operating performance
Karowe operating performance 7 Karowe Operating Performance: Tonnes processed post plant optimization commissioning increased each quarter. Fourth quarter processing was focused on south lobe ore which recovered the Lesedi La Rona and the 813 carat stones. Operational and cost discipline:
Slide 8: Sales performance
Sales performance 8 Total Sales Regular Tenders Exceptional Stone Tenders (average dollar per carat) (average dollar per carat) (average dollar per carat) $31,597 $32,471 $644 $335 $24,290 $593 $318 $249 $411 Full Year Full Year Full Year Full Year Full Year Full Year Full Year Full Year Full Year 2
Slide 9: Product excellence
Product excellence 9 239.1 carats 104.4 carats Exceptional recovery of large stones with a total of 47 stones greater than 100 carats (2014: 31 stones) including 20 stones greater than 200 carats (2014: 4 stones) of which 7 stones were greater than 300 carats. Lesedi La Rona – 1,109 carats
Slide 10: CSR and Health & Safety
CSR and Health & Safety 10 Safety performance for the year was excellent with Safety and Health Lost time injury frequency rates (‘LTIFR’) for 2015 of less than 0.4 (measured per 1,000,000 hours) (2014: 0.99). Karowe wins three safety awards in Botswana for medium size mines in the following cat
Slide 11: Exploration
Exploration 11
Slide 12: Resource replacement
Resource replacement 12 • In 2014, the Company was awarded two precious stone prospecting licenses (PL367/2014 and PL371/2014) which are known to host the kimberlites, BK02, AK11 and AK12, AK13 and AK14. • The prospecting licenses are located within a distance of 15 km and 30 km from the Karowe Diam
Slide 13: Exploration update
Exploration update 13 BK02 AK12 Bulk Sample Plant • Bulk sampling activities at BK02 were 50% complete at year end and processing of the surface sample was initiated during Q4 2015. • The BK02 diamond results will be released once processing of the sample is complete – forecast during the first half
Slide 14: 2016 Karowe guidance Unchanged
2016 Karowe guidance Unchanged 14 Revenue (US$ million) 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 Operating cash costs per tonne ore processed (dollars) 33.5 - 36.5 Larg
Slide 15: Lucara and outlook
Lucara and outlook 15 Proven Attractive and operational sustainable excellence growth potential Financial Product strength and excellence stability
Slide 16: The Diamond market
The Diamond market & cs we rs Lucara Diamond 16
Slide 17: Diamond market and Lucara production
Diamond market and Lucara production 17 The diamond market experienced some weakening in 100% 5% 2015. 90% Although there has been some price recovery in Q1 80% 2016, a cautious outlook for prices in 2016 is 70% 47% maintained. 60% 79% +10.8ct Karowe production, with 79% of diamonds sold 50% +
Slide 18: Contact information
Contact information Lucara Diamond WHERE BIGGER IS™ North America: Sophia Shane Corporate Development +1 (604) 689-7842 sophias@namdo.com Sweden Robert Eriksson Investor Relations +46 701-112615 reriksson@rive6.ch UK Louise Mason Portland Communications +44 20 7554 1854 louise.mason@portland- commun