Lucara Diamond Corp. · TSX:LUC
Lucara Diamond — Q3 2020 Earnings Presentation
18 slides from Lucara Diamond's earnings presentation, Nov 11, 2020
Slide 1: Q3 2020 Results Conference Call
Q3 2020 Results Conference Call NOVEMBER 11, 2020 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: Q3 2020 Highlights
Q3 2020 Highlights (All currency figures in U.S. Dollars, unless otherwise stated) Karowe Diamond Mine Clara Diamond Solutions Strong Balance Sheet (100%) (100%) Strong, safe, reliable production results; 103% growth in customers from 35 to 71 Cash and cash equivalents of All physicals achieved to p
Slide 4: COVID-19 Response
COVID-19 Response Operations consistent, Diamond sales continue, Liquidity stable The Botswana Government declared mining an essential service in late March 2020 and recently extended the State of Emergency to the end of March 2021. Guidelines being followed include increased travel restrictions, wo
Slide 5: Karowe Underground Next Steps
Karowe Underground Next Steps Based on the assumptions 2020 Plan Rescoped Continue to explore used for the evaluation, COVID-19 Response the project shows Pushed out early surface civil Focus on detailed engineering financing options and early site works using local works due to travel restrictions
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$ 10 176,000 carats of individual excess of 300 carats have million each (not included
Slide 7: Another Historic Recovery – 998 carats
Another Historic Recovery – 998 carats November 2020 998 carat diamond recovered unbroken from the MDR (mega diamond recovery) in November 2020 High white clivage diamond sourced from the EM/PK(S) unit of the South Lobe Followed a notable series of diamond recoveries during this 998 carats recent pr
Slide 8: +10.8 carat recoveries
+10.8 carat recoveries November 2020 8
Slide 9: Collaboration Agreement on Sethunya with Louis Vuitton and HB Antwerp
Collaboration Agreement on “Sethunya” with Louis Vuitton and HB Antwerp November 2020 549 carat white gem diamond “Sethunya”, meaning flower in Setswana, recovered from the Karowe Mine in February 2020 Lucara, Louis Vuitton and HB will collaborate and plan the creation of the highest value polished
Slide 10: Supply Agreement with HB Antwerp
Supply Agreement with HB Antwerp July 2020 All +10.8 carat stones produced from the Karowe Mine Initial price is based on an estimated polished outcome, determined through state of the art scanning and planning technology, with a true-up paid on actual achieved polished sales, less a fee and cost of
Slide 11: Clara
Clara Clara sales platform 36 sales completed since inception Manufacturers on the platform have doubled in ~US$18.1 million Q3 from 35 to 71 customers of diamonds sold by value and grown 163% in 2020 through the platform Thirty-six sales between December 2018 and October 2020 POSITIVE RESULTS Trial
Slide 12: Sales Channels 2020
Sales Channels 2020 Sales through Clara, HB Antwerp and Tenders • All +10.8 carats are sold through HB Antwerp; only high value Specials (+10.8 carats) are manufactured and sold as polished • Higher quality diamonds between 1 and 10 carats are sold through Clara; all other diamonds less than 10.8 ca
Slide 13: Q3 2020 Financial Highlights
Q3 2020 Financial Highlights Three months ending September 30, 2020 (All currency figures in U.S. Dollars) Revenue (millions) Adjusted EBITDA(1) (millions) $45.3 $41.3 $11.8 $9.9 Q3 2019 Q3 2020 Q3 2019 Q3 2020 Net loss (millions) Average Price ($/Carat) (1) Cash flow from operations per share (1) $
Slide 14: YTD 2020 Financial Highlights
YTD 2020 Financial Highlights Nine months ending September 30, 2020 (All currency figures in U.S. Dollars) Average Price (Average $/Carat) (1) Operating Cost ($ per tonne processed)(1) Cash flow from operations per share(1) $0.10 $31.06 $436 $26.92 $309 $0.03 YTD 2019 YTD 2020 YTD 2019 YTD 2020 YTD
Slide 15: Q3 2020 Operational Highlights – Karowe Mine
Q3 2020 Operational Highlights – Karowe Mine Three months ending September 30, 2020 (All currency figures in U.S. Dollars) Ore mined (tonnes) Ore processed (tonnes) 823,875 680,665 646,447 678,110 Q3 2019 Q3 2020 Q3 2019 Q3 2020 Carats recovered (carats) (2) Carats sold (carats) Operating cost per c
Slide 16: YTD Operational Highlights – Karowe Mine
YTD Operational Highlights – Karowe Mine Nine months ending September 30, 2020 (All currency figures in U.S. Dollars) Ore mined (tonnes) Ore processed (tonnes) 2,608,785 2,157,015 1,991,298 2,239,479 YTD 2019 YTD 2020 YTD 2019 YTD 2020 Carats recovered (carats) (2) Carats sold (carats) Operating cos
Slide 17: 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 and available liquidity Consistent recovery of high value Specials (+10.8 carats); Open pit
Slide 18: 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