Slide 1: Third Quarter Results 2018
Lucara Diamond Corp. Third Quarter Results 2018
Slide 2: Cautionary Statement
Cautionary Statement Forward‐looking information This investor presentation contains forward‐looking statements and information as defined in applicable securities laws including: the estimates of the Company’s mineral reserve and resources; estimates of the Company’s production volumes; forecasted
Slide 3: Q3 2018 Highlights
Q3 2018 Highlights 100% owned Karowe Mine in Botswana • No LTI’s / 4.7 million man hours since last LTI / LTIFR of 0 • Third quarter operational performance at Karowe exceeds expectations; mining contractor transition progressing well • Record utilization rates for the process plant have positively
Slide 4: Diamond Market
Diamond Market • Overall, strong continued diamond demand in Q3 with the exception of small goods (half a carat or less) • Consumer demand remains decent, particularly in the USA, where a strong sales season is expected; China remains steady • DeBeers Lightbox initiative with a strategy to different
Slide 5: Lightbox and Synthetics
Lightbox and Synthetics • Lightbox production commences end of 2019 • 10,000cts per annum full production • Sold only in earrings and pendants. Fashion items. • Deep watermark on piece so cannot be re-polished • Made lab grown more acceptable • Production of lab grown diamonds (LGD) represents less
Slide 6: Lucara Diamond Sales YTD
Lucara Diamond Sales YTD (as at September 30, 2018) Q3: • 89,461 carats sold for total revenue of $41.8 million, proceeds of $3.9 million from June tender were received in Q3 • 5 diamonds sold for more than $1 million, of which 2 diamonds sold in excess of $3 million Year to date: • For nine months
Slide 7: Financial and Operational Highlights Three and Nine Months Ended September 30, 2018
Financial and Operational Highlights Three and Nine Months Ended September 30, 2018
Slide 8: Highlights - Karowe Operations Three Months Ended September 30th
Highlights - Karowe Operations Three Months Ended September 30th Production Q3 2017 Q3 2018 Change Ore Processed (tonnes) 591,196 728,962 + 137,766 Ore Mined (tonnes) 386,906 1,217,016 + 830,110 Carats Recovered (carats) 62,425 127,031 + 64,606 Plant Feed Grade (carats per hundred tonnes) 10.6 17.4
Slide 9: Highlights - Karowe Operations Nine Months Ended September 30th
Highlights - Karowe Operations Nine Months Ended September 30th Production YTD 2017 YTD 2018 Change Ore Processed (tonnes) 1,703,773 2,026,672 + 322,896 Ore Mined (tonnes) 950,303 2,550,083 + 1,599,780 Carats Recovered (carats) 185,290 284,236 + 98,946 Plant Feed Grade (carats per hundred tonnes) 10
Slide 10: Financial Highlights Nine Months Ended September 30th
Financial Highlights Nine Months Ended September 30th Revenue EBITDA Net Income (millions) (millions) (millions) $183.6 $106.4 $63.6 $135.6 $55.7 $17.8 YTD Q3 YTD Q3 YTD Q3 2017 YTD Q3 2018 YTD Q3 2017 YTD Q3 2018 2017 2018 Total Sales Operating Cost Earnings per share (average $/carat) ($/tonne) $0
Slide 11: 2018 Guidance
2018 Guidance LUCARA DIAMOND
Slide 12: 2018 Outlook Updated
2018 Outlook Updated (all amounts in USD) $180 – $190 million Diamond revenue (previously $170 – $200 million) 325,000 – 350,000 Diamond sales (carats) (previously 270,000 – 290,000) 325,000 – 350,000 Diamonds recovered (carats) (previously 270,000 – 290,000) 2.9 – 3.1 million Ore tonnes mined (prev
Slide 13: Process Plant Improvements
Process Plant Improvements • Steady increase in milled tonnes • Improvement in availability and utilization • September record: 268,108 milled tonnes 13
Slide 14: Resource – Carats Recovered
Resource – Carats Recovered Karowe Quarterly Specials Count Karowe Cumulative Weight % Specials • Resource performance for Q3/18 achieved a mine call factor of 115%, new resource model recoverable grades, • Improved fine diamond recovery in DMS and 4 -8mm XRT circuit • 197 specials recovered in Q3,
Slide 15: Consistency in Specials
Consistency in Specials • Consistent recovery of large diamonds • LoM over 121,600 carats in more than 4,300 individual diamonds • Influence of South Lobe as mining has progressed • 2018 YTD excellent recoveries with respect to count and weight Karowe Mine Specials Year >300 >100 >20<100 >10.8<20 20
Slide 16: 2018 Lucara Diamond Sales
2018 Lucara Diamond Sales Annual Achieved Average Price ($/Carat)* $700.00 $644.28 $647.50 $643.95 $593.00 $600.00 $564.37 $500.00 Steady $412.45 state $400.00 production $ ct mostly $300.00 $253.57 south lobe $200.00 $100.00 $0.00 2012 2013 2014 2015 2016 2017 2018** * Excluding Constellation and L
Slide 17: Growth Strategy 2018
Growth Strategy 2018 Underground & Clara
Slide 18: Karowe Underground Study
Karowe Underground Study • 2017 positive PEA released • 2018 completed Resource Update, IND to 600mbg • 2018 initiated Feasibility Study and technical studies • Trade off studies for: ‐ Access: decline, shaft ‐ Mining Method : Sub level cave, sub level retreat, block cave, hybrid scenarios ‐ Open pi
Slide 19: Karowe Underground Study
Karowe Underground Study Technical studies • Geotechnical drilling for country rock and kimberlite characterization (15,000 metres drilled to date), de-risk access and infrastructure • Ongoing life of mine (LOM) open pit de-watering and characterization of deep aquifers, initiate de-watering for und
Slide 20: Lucara's Next Generation Growth Project
Lucara’s Next Generation Growth Project
Slide 21: Clara Update
Clara Update • Clara uses proprietary analytics, with the latest cloud and blockchain technologies, to sell rough diamonds individually, based on polished characteristics and demand, transforming the sales process, driving efficiencies and unlocking value for diamond producers and manufacturers alik
Slide 22: Corporate Development Strategy – Focus on Diamonds, Growth & Value
Corporate Development Strategy – Focus on Diamonds, Growth & Value • Growth - Karowe underground project & Clara • Opportunities – Diversify asset base, Grow production profile, Additional product for Clara • Open geographically - Diamond universe is small • Value Add - Karowe – A high quality asset
Slide 23: Catalysts 2018
Catalysts 2018 • Inaugural Clara sale Q4 • Feasibility Study underway on Karowe underground with potential to extend the mine life to 2036 • Blended tender process started Q3 - lowers inventory time for large, high value diamonds, smoother more predictable revenue profile • Brownfields exploration c
Slide 24: Capital Structure
Capital Structure Lucara is a publicly listed company trading under the symbol “LUC” • TSX • NASDAQ Sweden • BSE (Botswana) Issued shares 396,509,387 (Nov 2018) Fully diluted shares 402,154,931 (Nov 2018) Insider Holdings 22% on fully diluted basis Debt NIL Cash on hand $31.1 million (Q3 2018) $50 m
Slide 25: 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 Website: lucaradiamond.com
Slide 26: Q&A
Q&A LUCARA DIAMOND