Lucara Diamond Corp. · TSX:LUC
Lucara Diamond — Q3 2022 Earnings Presentation
18 slides from Lucara Diamond's earnings presentation, Nov 3, 2022
Slide 1: Q3 2022 Results Conference Call
Q3 2022 Results Conference Call NOVEMBER 3, 2022 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 2022 Highlights
Q3 2022 Highlights (All currency figures in U.S. Dollars, unless otherwise stated) Revenues $49.9 million 7.1% Specials (+10.8 Market fundamentals Underground cycle times Strong sales through HB, carats) by weight remain positive improving: main sink Clara and Tenders, Adjusted Including 6 stones >1
Slide 4: Q3 2022 Financial Highlights
Q3 2022 Financial Highlights Three months ending September 30, 2022 (All currency figures in U.S. Dollars) Revenue (millions) Adjusted EBITDA(1) (millions) $72.7 $36.8 $49.9 $13.8 Q3 2022 Q3 2021 Q3 2022 Q3 2021 Net income (millions) Average Price ($/Carat)(1)(2) Operating cash flow per share (1) $5
Slide 5: Q3 2022 Operational Highlights – Karowe Mine
Q3 2022 Operational Highlights – Karowe Mine Three months ending September 30, 2022 (All currency figures in U.S. Dollars) Ore mined (tonnes) Ore processed (tonnes) 738,986 693,398 1,190,856 920,410 Q3 2022 Q3 2021 Q3 2022 Q3 2021 Carats recovered (carats) Carats sold (carats) Operating expense per
Slide 6: YTD 2022 Financial Highlights
YTD 2022 Financial Highlights Nine months ending September 30, 2022 (All currency figures in U.S. Dollars) Average price (Average $/Carat) (1)(2) Operating cost ($ per tonne processed)(1) Operating cash flow per share(1) $0.19 $0.17 $546 $28.57 $28.70 $528 YTD 2022 YTD 2021 YTD 2022 YTD 2021 YTD 202
Slide 7: YTD 2022 Operational Highlights – Karowe Mine
YTD 2022 Operational Highlights – Karowe Mine Nine months ending September 30, 2022 (All currency figures in U.S. Dollars) Ore mined (tonnes) Ore processed (tonnes) 2,079,093 2,139,011 3,058,605 2,823,549 YTD 2022 YTD 2021 YTD 2022 YTD 2021 Carats recovered (carats) Karowe carats sold (carats) Opera
Slide 8: Sales Channels Q3 2022
Sales Channels Q3 2022 Sales through HB, Clara, and Quarterly Tender • High value Specials (+10.8 carats) are manufactured and sold as polished through the HB supply agreement. • Diamonds between 1 and 10 carats that meet specific criteria are sold through Clara. • All other diamonds are sold throug
Slide 9: 2022 Annual Guidance – No Changes in Q3
2022 Annual Guidance – No Changes in Q3 (All currency figures in U.S. Dollars) Karowe Diamond Mine FY2022 Diamond revenue1 $195 to $ 225 million Diamond sales 300,000 to 340,000 carats Diamonds recovered 300,000 to 340,000 carats Ore tonnes mined 3.1 to 3.5 million Waste tonnes mined 1.5 to 2.1 mill
Slide 10: Diamond Market
Diamond Market • Global supply constraints continue to support a positive, longer-term outlook on diamond prices • Softer prices in Q3 in response to global economic uncertainties; prices for large high value rough remain stable Rough diamond supply and demand 25 Optimistic Demand 20 15 Base Demand
Slide 11: Consistent Recovery of Large Diamonds
Consistent Recovery of Large Diamonds Specials contribute ~70% by revenue and ~5% by volume historically Revenue and production includes 2015 to 2022 Q3 2022 Recoveries: Since 2012: 27 diamonds in 11 diamonds sold for > US$ 10 excess of 300 carats have million each (not included in 183 specials, 7.1
Slide 12: Sales Channels – Strong Q3 2022 Results
Sales Channels – Strong Q3 2022 Results Optimized Sales of Rough and Polished Diamonds to Create Alignment Along the Supply Chain and Maximize Revenues Rough Clara Polished Jewellery Increasing Margin Capture Downstream Tenders (Auctions) of Proprietary Digital Manufacturing into Collaboration with
Slide 13: Supply Agreement with HB Antwerp
Supply Agreement with HB Antwerp High Value +10.8 Carat “Specials” Only Initial price is based on an estimated polished outcome, determined through state-of-the-art scanning and planning technology, with an adjustment for actual achieved polished sales, less a fee and cost of manufacturing Regular c
Slide 14: Clara Potential Growth Profile
Clara 5 Year Potential Growth Profile 72 sales completed 100 2000 since inception Growth Potential in Primary ~$80 million & Secondary Markets 90 1800 of diamonds sold by value Buyers stabilized and 80 1600 through the platform wait-list being maintained Revenue (US$mln) 70 1400 Volume (US$mln) 60 1
Slide 15: Karowe Underground Expansion
Karowe Underground Expansion Extending mine-life to at least 2040 Fully Financed, Construction Advancing Project facility drawdown of $65 Million end of Q3 NPV $1,280 million/$750 million (pre/post tax) @ 5%; using conservative diamond price assumptions $547 million(1) underground expansion adds ~ $
Slide 16: Karowe Underground Expansion Q3 2022 Highlights
Karowe Underground Expansion Q3 2022 Highlights • $23.9 million spent in Q3 • $190.0 million to September 30 and $315 million committed • Activities focused on ongoing construction and procurement: o Main sinking of the production shaft commenced; main sinking in ventilation shaft continued; o The t
Slide 17: Lucara Investment Rationale
Lucara Investment Rationale A Premium Diamond Equity De-Risked and Positioned for Long-Term Growth Diamonds LUC: TSX SEPTEMBER 30, 2022 Diamond market fundamentals are the best they have been in the last five years Share Price CAD $0.55 Market Cap (CAD million) CAD $249.5 Lucara Shares Outstanding1
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