Slide 1: Full Year 2019 Results
Full Year 2019 Results FEBRUARY 24, 2020 CONFERENCE CALL 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- Certain of the statements made and contained herein an
Slide 3: 2019 Highlights
2019 Highlights (All currency figures in U.S. Dollars, unless otherwise stated) Karowe Diamond Mine Clara Diamond Solutions Strong Balance Sheet & (100%) (100%) Dividend Policy Change Very strong safety record & Fifteen sales completed for $22.4 million in dividends paid Operational results; First P
Slide 4: Sewelô Collaboration with Louis Vuitton
Sewelô Collaboration with Louis Vuitton Botswana’s Largest Diamond Sewelô “rare find”, an unbroken 1,758 carat near gem quality diamond recovered in April 2019 Collaboration between Lucara (50%), Louis Vuitton (25%), HB Company (25%) – planning, cutting and polishing a collection of diamonds from Se
Slide 5: Record Recoveries
Record Recoveries 549 carat diamond recovered Recovered unbroken from the MDR (Mega Diamond Recovery) XRT circuit A diamond of exceptional purity Recovered from direct milling ore sourced from the EM/PK(S) unit of the South Lobe Follows the recent recovery of a gem quality 176 carat stone from the s
Slide 6: Consistent Recovery of Large Diamonds
Consistent Recovery of Large Diamonds Specials contribute ~70% by revenue and ~5% by volume Revenue and production includes 2015 to 2019 Life of mine recovery of Since 2012: 15 diamonds in 10 diamonds sold for > US$ 10 157,000 carats of individual excess of 300 carats have million each (not included
Slide 7: Global Achieved Average Diamond Prices 2018/2019
Global Achieved Average Diamond Prices 2018/2019 (All figures in U.S. Dollars per carat) $2,131 $1,637 Lucara’s Average price ~4x Global Average $502 $468 $105 $79 $121 $122 $164 $133 $75 $73 $74 $63 2018 2019 2019 Median 7
Slide 8: Diamond Market
Diamond Market Long term fundamentals strong but pricing environment has been challenged; Evidence of market stability Rough diamond supply and demand Optimistic Demand 25 20 Base Demand Optimistic Supply 15 Base Supply 10 5 2000 2005 2010 2015 2020F 2025F 2030F Millennials will be the 2000‐2030: 20
Slide 9: Diamond Sales Highlights 2019
Diamond Sales Highlights 2019 (All currency figures in U.S. Dollars) Total proceeds of $192.5 million (including Clara); Strong December tender; Higher carat recovery yoy Average Price $468/carat 30 diamonds which sold for > $1 million, including 7 for > $3 million 241 carat sold for $8.1 million; 1
Slide 10: 2019 Financial Highlights
2019 Financial Highlights Full Year ending December 31, 2019 (All currency figures in U.S. Dollars) Revenue (millions) Adjusted EBITDA(1) (millions) Net Income (millions) $73.1 $12.7 $192.5 $60.5 $11.7 $176.2 Full Year 2018 Full Year 2019 Full Year 2018 Full Year 2019 Full Year 2018 Full Year 2019 A
Slide 11: 2019 Operational Highlights
2019 Operational Highlights Full Year ending December 31, 2019 Ore mined (tonnes) Ore processed (tonnes) 2,804,517 3,303,375 2,629,048 3,113,363 Full Year 2018 Full Year 2019 Full Year 2018 Full Year 2019 Carats recovered (carats) Carats sold (carats) Operating margin (%) 433,060 411,732 57% 60% 366
Slide 12: 2020 Outlook
2020 Outlook (All currency figures in U.S. Dollars) $180 – $210 million 3.5 – 3.9 Million $32 – $36 per tonne Diamond Revenue Ore Tonnes Mined of ore processed Operating Cash Cost 350,000 – 390,000 2.5 – 2.8 million Diamond Sales (Carats) Ore Tonnes Processed 342 ct 370,000 – 410,000 3.6 – 4.2 milli
Slide 13: Karowe Underground
Karowe Underground Extending Mine-life to 2040 UG development will double the mine life from original 2010 Feasibility Study Resource work completed since November 2017 identified a much larger economic opportunity at depth, on the basis of new drilling and open pit recoveries UG would add ~ US$4 bi
Slide 14: Karowe Underground Next Steps
Karowe Underground Next Steps Based on the assumptions In the first half of The Company will also be The anticipated capitalrequirements used for this evaluation, the project shows 2020 reviewing in 2020 represent the Company will focus on financing options less than 10% positive detailed engineerin
Slide 15: Clara
Clara Clara sales platform 19 sales completed Manufacturers on with ~US$11 million the platform have grown of diamonds sold by value from 4 to 32 customers through the platform Nineteen sales between December 2018 and February 2020 Focus on growing supply and POSITIVE RESULTS demand concurrently thr
Slide 16: Conclusions
Conclusions Lucara is a premier, mid-tier, investible diamond company, positioned for long term, sustainable growth High margin diamond producer Botswana - a low risk jurisdiction 813 ct Strong balance sheet Open pit mineable reserves to 2026, Underground reserves will double the mine life to 2040 A
Slide 17: Capital Structure
Capital Structure ~C$330M 402.5M (December 2019) Market Cap LUC Fully diluted Shares Lucara is a publicly listed $Nil US$11.2M company trading under (December 2019) (December 2019) the symbol “LUC” Working capital facility Cash on hand US$50.0M (available) TSX 396.9M (December 2019) Credit Facility
Slide 18: Contact
Contact Suite 2000 885 West Georgia St. Vancouver, BC V6C 3E8 Tel: +1 604 689 7872 Fax: +1 604 689 4250 Email: info@lucaradiamond.com LucaraDiamond.com | LUC.TSX | LUC.XSTO | LUC.BSE