Slide 1: Q4 2023 Results Conference Call
Q4 2023 Results Conference Call FEBRUARY 21, 2024 LucaraDiamond.com | LUC.TSX | LUC.XSTO | LUC.BSE
Slide 2: Cautionary Statement
There can be no assurance that such forward looking statements will prove to be accurate, as the Cautionary Statement Company's results and future events could differ materially from those anticipated in this forward-looking information as a result of those factors discussed in or referred to under
Slide 3: 2023 Highlights
2023 Highlights (All currency figures in U.S. Dollars, unless otherwise stated) Revenues $177.4 million; Cash flow of $63.4 million Recovery of 1,080 ct $101.3 million2 invested in UGP 379,287 carats from Operating cost $28.75 per diamond, the fourth stone in 2023; shaft sinking, lateral Karowe sold
Slide 4: Successful Execution of Amended Lenders Agreement
Successful Execution of Amended Lenders Agreement Project financing debt package of $220 million Debt package consists of two facilities, a $190 million Project Loan to fund the development of the UGP at the Karowe Mine, and a $30 million senior secured working capital facility (the "WCF") which is
Slide 5: Karowe Underground Expansion – 2023 Progress
Karowe Underground Expansion – 2023 Progress $101.3 million invested in 2023 At the end of 2023, the production and ventilation shafts were both at 348 metres below collar and in the process of establishing the first shaft stations and lateral connection between the two shafts (670-level). Commissio
Slide 6: Karowe Underground Expansion – Q1 2024 Focus
Karowe Underground Expansion – Q1 2024 Focus Up to $100 million capital cost in 2024 Resumption of sinking within the ventilation and production shafts Completion of mining and construction activities on the 670-level station, including connection of the two shafts Planned grouting events at the bas
Slide 7: Underground Project – Ventilation Shaft Lateral Development
Underground Project – Ventilation Shaft Lateral Development 3. View North along drift axis to 1. View east from shaft into Production Shaft connections 670-level station 3 4 1 2 4. View west toward connection to 2. View North from shaft along Production and 670-level raise bore 7 cutout Substation l
Slide 8: Underground Project – Production Shaft 670 Level Station
Underground Project – Production Shaft 670 Level Station 2 1 2. View from shaft into cubby, pouring Final floor cement pad 1. View east, temporary blast screen with Floor civils and rail bed 8
Slide 9: Consistent Recovery of Large Diamonds
Consistent Recovery of Large Diamonds Specials contribute ~60-70% by revenue and ~5-7% by volume historically Since 2012: 34 diamonds in Over 11 diamonds sold for > US$10 First Years of Underground Production excess of 300 carats have million, represents US$237 million are dominated by EM/PK(S) ore
Slide 10: Underground – Large Diamond Potential
Underground – Large Diamond Potential • Size distribution model for +10.8 carat diamonds indicates that 30% of the +10.8ct production are expected to be in excess of 100 carat stones, based on historical production • Model for remaining Life of Mine indicates Karowe will produce over 450kct of Speci
Slide 11: 2023 Recovered Specials
2023 Recovered Specials 22 diamonds greater than 100 carats including 5 diamonds greater than 300 carats 602 recovered Specials 71% carats recovered from the South Lobe 5.3 wt.% of production 26% carats recovered from the Centre Lobe and 3% carats recovered from the North Lobe 1,080 carat Ty
Slide 12: Sales Channels
Sales Channels Optimized Sales of Rough and Polished Diamonds to Create Alignment Along the Supply Chain and Maximize Revenues Rough Clara Polished Increasing Margin Capture Along the Value Chain Tenders (Auctions) of Proprietary Digital Manufacturing into Rough Diamonds < 10.8 Marketplace for Rough
Slide 13: History Q4 2023
History Q4 2023 12% Karowe stones 92 sales completed Third-party 88% stones +$104 million sold by value ~57,500 carats sold by weight 1,757 $2.3 $2.3 million transacted in Q4 2023 Volume (carats) Value (millions) 104 buyers 13 13
Slide 14: Q4 2023 Sales Channels – Karowe Mine
Q4 2023 Sales Channels – Karowe Mine Sales through HB Antwerp, Clara, and Quarterly Tender • High value Specials (+10.8 carats) were manufactured and sold as polished through the HB Antwerp supply arrangements (shipments to HB resumed in December 2023, NDSA renewed in February 2024). • Diamonds betw
Slide 15: Q4 2023 Operational Highlights – Karowe Mine
Q4 2023 Operational Highlights – Karowe Mine Three months ending December 31, 2023 (All currency figures in U.S. Dollars) Ore mined (tonnes) Ore processed (tonnes) 703,742 690,946 607,101 484,705 Q4 2023 Q4 2022 Q4 2023 Q4 2022 Carats recovered (carats) Carats sold (carats) Operating cost per tonne
Slide 16: Q4 2023 Financial Highlights
Q4 2023 Financial Highlights Three months ending December 31, 2023 (All currency figures in U.S. Dollars) Revenue (millions) Adjusted EBITDA(1) (millions) $42.5 $12.6 $36.5 $1.4 Q4 2023 Q4 2022 Q4 2023 Q4 2022 Net income (millions) Operating cash flow before working Operating cash flow per share(1)
Slide 17: 2023 Operational Highlights – Karowe Mine
2023 Operational Highlights – Karowe Mine Twelve months ending December 31, 2023 (All currency figures in U.S. Dollars) Ore mined (tonnes) Ore processed (tonnes) 2,849,135 2,770,039 3,308,254 2,700,325 FY 2023 FY 2022 FY 2023 FY 2022 Carats recovered (carats) Carats sold (carats) Operating cost per
Slide 18: 2023 Financial Highlights
2023 Financial Highlights Twelve months ending December 31, 2023 (All currency figures in U.S. Dollars) Revenue (millions) Adjusted EBITDA(1) (millions) $212.9 $86.7 $177.4 $54.4 FY 2023 FY 2022 FY 2023 FY 2022 Net income (millions) Operating cash flow before working Operating cash flow per share(1)
Slide 19: 2024 Annual Guidance
2024 Annual Guidance (All currency figures in U.S. Dollars) Karowe Diamond Mine 2024 Guidance Diamond revenue1 (millions) $220 to $250 Diamond sales (carats) 345,000 to 375,000 Diamonds recovered (carats) 345,000 to 375,000 Ore tonnes mined (millions) 2.8 to 3.2 Waste tonnes mined (millions) 0.8 to
Slide 20: Botswana – Relationship with Diamonds
Botswana – Relationship with Diamonds Karowe Mine – Botswana (All currency figures in U.S. Dollars, unless otherwise stated) 20
Slide 21: Community Impact – Q4 Update
Community Impact – Q4 Update Mokubilo Mmadikola Khwee Small Kolonkwaneng Letlhakane Integrated Farm Hardware Store Stock & Fodder Horticulture Abattoir Horticulture & Egg Building Material Small Stock and Vegetable Production Upgrade from Production Fodder Production slaughterhouse to an Total Inves
Slide 22: Approach to Sustainability
Approach to Sustainability Focused on transparency, the protection of our people, and stakeholder engagement No lost time injuries in Q4; the Global Industry Standards Compliant with the Kimberley mine has operated for three Tailing Management Process and certified by the years without a lost
Slide 23: What Makes Us Excited
What Makes Us Excited The resource never disappoints Karowe’s AK6 kimberlite has consistently produced some of the world’s largest and highest value diamonds and we have only scratched the surface Learnings from past experience sets the Company up for the future. A significant knowledge base has bee
Slide 24: 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