Lucapa Diamond — Investor Presentation (2017)
17 slides from Lucapa Diamond's investor presentation, 2017
Slide 1: The next diamond mine in the Kingdom of Lesotho: New Mine Development Plan
LUCAPA DIAMOND COMPANY. e next iamond mine’ gf gdom of Lesoth« j New Mine SU Eas Plan - Hts ABE?)
Slide 2: Mothae Kimberlite Project, Lesotho - Background snapshot
Mothae Kimberlite Project, Lesotho ...Background snapshot Lucapa secured 70% of the advanced, high S per carat Mothae kimberlite project from the Government of the Kingdom of Lesotho (“GoL” - 30%) for USS9m Located in the heart of the highest-value cluster of kimberlite mines and within Skm of LetSe
Slide 3: Mothae's Diamonds - Proven source of large and premium-quality diamonds
Mothae’s Diamonds i ..-Proven source of large and premium-quality diamonds LUCAPA = Extensive trial mining (>600,000 tonnes) has proven Mothae hosts large and valuable diamonds = 23,400 carats recovered * Trial mining sales of ~US$17m; individual diamond prices of up to US$41,500 per carat = Trial m
Slide 4: New Development Plan Overview
New Development Plan a .. Overview LUCAPA = New Mothae mine development plan now based on larger 150 tonne per hour plant and deeper pit design (307m depth) <j _ \ J = New plan set to enhance project economics including targeted production, Ve) cash flows and mine life Non se * Funding in place for
Slide 5: New Development Plan - Key outcomes of new plan
New Development Plan .. Key outcomes of new plan LUCAPA DIAMOND COMPANY ae 00 tph Plan 150 tph Plan Difference Difference 19.5 25.3 45.8 +297 Life of mine (years) 12 13.5 415 412.5 po Carats recovered (k carats) 405.5 4977 +92.2 t +22.7 Gross revenues (US$m) 600.5 776.5 4176.0 t 429.3 Net operating
Slide 6: Life of mine production schedule
New Production Targets & Financial Forecasts LUCAPA unit | ToTat | [Phase1 | Phase2| [2017 | 2018 [ 2019 | 2020 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | 2030 | 2031 | 72 |_ph2_| ph2_| pPh2 | ph2 | ph2_| ph2 | Ph2_| Ph2 | Ph2 | Ph2 Kimberlite mined K tpa 25,337 | [2,798 22,539 :
Slide 7: Mothae Kimberlite Development - Physicals
Mothae Kimberlite Development Physicals LUCAPA DIAMOND COMPANY Mining Production 7,000 2,500 50.0 6,000 = 5,000 = 7,000 40.0 _ y 4,000 1.500 30.0 5 5 000 = 1000 200 © "im HUME | = AAI me . i] a 7 . PBSSKLARAEARHRRERS ELLSAARRAERARSSA SRRERRSRERRRRER RRRSRLRRRARSRER Kimberlite mined ™ Waste mined mmm
Slide 8: US$ per tonne metrics and sensitivity analysis
Mothae Kimberlite Development . ngs . ..US$ per tonne metrics and sensitivity analysis LUCAPA DIAMOND COMPANY Revenue per tonne NPV (pre financing) sensitivity 50 4 160 4s 2 140 136.4 40 = : 35 ae no2 11.0 » 30 Ss . . # 2s 2 109 gas 54 5 20 80 761 15 60 60.2 10 5 40 45. - 29 33.2 EBSEZFRARARARARARAR
Slide 9: Sensitivities - Net Present Value Range
Sensitivities - Net Present Value Range ..Pre financing project NPV (USSm) at various price escalation & discount factors = Lucapa 55.4 67.8 83.0 70.3 a 103.8 86.5 104.4 126.3 103.9 124.9 150.7 Notes on targets and financial modelling: * Diamond revenues are generated in USS. Predominantly, the capi
Slide 10: Material assumptions
New Production Targets & Financial Forecasts ...Material assumptions LUCAPA DIAMOND COMPANY TE haseq Phrase? Development - USS60.5m Development - USS17.0m (inclusive of rehabilitation cost estimate) Sustaining - 2% of operating cost Conventional open-pit. Weathered kimberlite - by free dig load and
Slide 11: Material assumptions continued
New Production Targets & Financial Forecasts ...Material assumptions continued Royalty As a % of revenue As a % of revenue Method Beneficiation Maloti (parity to ZAR) AS:USS South west Marketing Exchange rate es by pit zone South centre South east North Per phase (escalated) Overall diamond prices O
Slide 12: Material assumptions continued - Work performed to date
New Production Targets & Financial Forecasts ...Material assumptions continued LUCAPA Work performed to date Drilling campaign I) Bulk sampling campaign NI43-101 Technical Report and Resource estimate completed by MSA (Pty) Ltd (I) Preliminary Economic Assessment was completed by ADP Projects (Pty)
Slide 13: Material assumptions continued - Power and project financing
New Production Targets & Financial Forecasts ...Material assumptions continued LUCAPA DIAMOND COMPAN' Power Phase 1 power has been modelled on diesel generated power with a diesel price of M8.06 per litre. Phase 2 power has been modelled on grid power being connected. The expected capital cost for t
Slide 14: Notes to material assumptions
New Production Targets & Financial Forecasts ..Notes to material assumptions LUCAPA DIAMOND COMPAN' The estimated mineral resources underpinning the production target and financial forecast have been prepared by Competent Persons in accordance with the requirements of the JORC code. There is a low l
Slide 15: Mothae Potential - Resource upside
Mothae Potential ...Resource upside LUCAPA DIAMOND COMPANY = JORC resource estimated to ~300m only - kimberlite pipe has been modelled to 500m by the competent persons = No resource tonnages included in current resource, targeted production or financial modelling for: = The “neck” which is kimberlit
Slide 16: Lucapa and Mothae Team
Lucapa and Mothae Team ..[n-country experience in Lesotho LUCAPA Stephen Wetherall Mothae Board Lucapa CEO Mr Wetherall is a qualified chartered accountant with 20+ years’ experience in financial and operational management, corporate transactions and strategic planning. He has held senior financial
Slide 17: Forward-Looking & Competent Person's Statements
Forward-Looking & Competent Person’s Statements . LUCAPA Forward-Looking Statements DIAMOND COMPANY This Presentation has been prepared by Lucapa Diamond Company Limited (“the Company"). This document contains background information about Lucapa Diamond Company Limited current at the date of this Pr
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