Lucara Diamond Corp. · TSX:LUC
Lucara Diamond — Q1 2020 Earnings Presentation
17 slides from Lucara Diamond's earnings presentation, May 8, 2020
Slide 1: Q1 2020 Results Conference Call
Q1 2020 Results Conference Call MAY 8, 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: COVID-19 Response and Implications
COVID-19 Response and Implications Operations Continue, 2020 Guidance Withdrawn Crisis Management Strategy Implemented Focus on protecting the health and well-being of our employees, contractors and host communities and the financial well being of the Company. Contributions to the Botswana Governmen
Slide 4: Q1 2020 Highlights
Q1 2020 Highlights (All currency figures in U.S. Dollars, unless otherwise stated) Karowe Diamond Mine Clara Diamond Solutions Strong Balance Sheet (100%) (100%) Continued strong operational results Cash and cash equivalents of Six sales completed in Q1 for proceeds of ~$3 & safety performance; All
Slide 5: 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 6: Another Record Recovery 549 carat
Another Record Recovery 549 carat in February 2020 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 Q1 2020: 190 specials, tracking with 2019/2018 in terms of volume
Slide 7: 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: 16 diamonds in Q1 2020 : 190 specials, 157,000 carats of individual excess of 300 carats have representing 6.7 wt.% of stones
Slide 8: Diamond Market
Diamond Market Evidence of strengthening market late 2019 was interrupted by COVID-19; Short term prices weak, longer term outlook remains strong Rough diamond supply and demand 25 20 Optimistic Demand 15 Base Demand Optimistic Supply 10 Base Supply 5 2000 2005 2010 2015 2020F 2025F 2030F Millennial
Slide 9: Diamond Sales Highlights Q1 2020
Diamond Sales Highlights Q1 2020 (All currency figures in U.S. Dollars) Total proceeds of $34.1 million (including Clara); Lower realized prices in the larger size classes; 10% fewer carats yoy (but in line with plan) Average Price $396/carat 4 diamonds which sold for > $1 million, including 2 for >
Slide 10: Q1 2020 Financial Highlights
Q1 2020 Financial Highlights Three months ending March 31, 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) $512 $30.52 $31.43 $396 $0.05 $0.02 Q1 2019 Q1 2020 Q1 2019 Q1 2020 Q1 2019 Q1 2
Slide 11: Q1 2020 Operational Highlights
Q1 2020 Operational Highlights Three months ending March 31, 2020 Ore mined (tonnes) Ore processed (tonnes) 1,011,048 878,087 763,313 639,430 Q1 2019 Q1 2020 Q1 2019 Q1 2020 Carats recovered (carats) Carats sold (carats) Operating margin (%) 121,437 67% 95,053 91,536 49% 86,178 Q1 2019 Q1 2020 Q1 20
Slide 12: Karowe Underground Extending Mine Life to 2040
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 ~ $4 bill
Slide 13: Karowe Underground Next Steps
Karowe Underground Next Steps Given the uncertainty in global Based on the assumptions Q1 2020 COVID-19 Response markets from COVID-19 used for this evaluation, the project shows Push out early surface civil works 2020 spend is Focused on detailed engineering positive and early site works using loca
Slide 14: Clara
Clara Clara sales platform 23 sales completed since inception Manufacturers on ~US$12.3 million the platform have grown of diamonds sold by value from 4 to 33 customers through the platform Twenty-three sales between December 2018 and April 2020 Focus on growing supply and POSITIVE RESULTS demand co
Slide 15: 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 16: Capital Structure
Capital Structure ~C$202M 404.7M LUC (March 2020) Market Cap Fully diluted Shares Lucara is a publicly listed company trading under US$19.0 US$27.4M (March 2020) (March 2020) the symbol “LUC” Working capital facility Cash on hand TSX US$31.0M 396.9M (March 2020) (available) NASDAQ Stockholm Credit F
Slide 17: 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