Lucara Diamond Corp. · TSX:LUC
Lucara Diamond — FY2020 Earnings Presentation
18 slides from Lucara Diamond's earnings presentation, Feb 23, 2021
Slide 1: 2020 Results Conference Call
2020 Results Conference Call FEBRUARY 23, 2021 LucaraDiamond.com | LUC.TSX | LUC.XSTO | LUC.BSE
Slide 2: Cautionary Statement
Cautionary Statement Forward‐looking information Certain of the statements made and contained herein and elsewhere constitute forward- the growth of the Clara platform, the timing and frequency of sales on the Clara looking statements as defined in applicable securities laws. Generally, these forwar
Slide 3: Fiscal 2020 Highlights
Fiscal 2020 Highlights (All currency figures in U.S. Dollars, unless otherwise stated) Karowe Diamond Mine Clara Diamond Solutions Balance Sheet & Liquidity Strong, safe, reliable production results; Growth in customers from 25 to 75 participants Strong cash position and available All physicals achi
Slide 4: COVID-19 Response
COVID-19 Response Operations consistent, Diamond sales continue 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, work from home, impl
Slide 5: 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 2020 Life of mine recovery of Since 2012: 19 diamonds in 10 diamonds sold for > US$ 10 +182,000 carats of excess of 300 carats have million each (not included in indivi
Slide 6: 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 7: Karowe Underground Expansion Update
Karowe Underground Expansion Update Covid-19 Response Pushed out early surface civil works due to travel restrictions and reduced capital spend 2020 Plan Rescoped Focus on detailed engineering and early site works using local contractors; Commenced long lead time item procurement; Underground invest
Slide 8: Diamond Market
Diamond Market Restocking activity in the midstream late 2020, continues in 2021 driving better prices; Longer term outlook remains strong supported by supply constraints Rough diamond supply and demand 25 20 Optimistic Demand 15 Base Demand Optimistic Supply 10 Base Supply 5 2000 2005 2010 2015 202
Slide 9: Supply Agreement with HB Antwerp
Supply Agreement with HB Antwerp 2020 +10.8 carat diamonds 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 manufa
Slide 10: Clara
Clara Digital sales platform 42 sales completed since inception Buyers on ~US$23.7 million the platform increased from of diamonds sold by value 27 to 75 in 2020: +178% through the platform Forty-two sales between December 2018 and January 2021 POSITIVE RESULTS Trials of third party supply Regular S
Slide 11: Q4 2020 Financial Highlights
Q4 2020 Financial Highlights Three months ending December 31, 2020 (All currency figures in U.S. Dollars) Revenue (millions) Adjusted EBITDA(1) (millions) $56.0 $22.8 $42.4 $10.2 Q4 2019 Q4 2020 Q4 2019 Q4 2020 Net income (loss) (millions) Average Price ($/Carat) (1) Cash flow from operations per sh
Slide 12: 2020 Financial Highlights
2020 Financial Highlights Twelve months ending December 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) $468 $31.88 $27.80 $0.15 $335 $0.04 2019 2020 2019 2020 2019 2020 Revenue (mill
Slide 13: Q4 2020 Operational Highlights – Karowe Mine
Q4 2020 Operational Highlights – Karowe Mine Three months ending December 31, 2020 (All currency figures in U.S. Dollars) Ore mined (tonnes) Ore processed (tonnes) 748,296 694,591 684,768 647,502 Q4 2019 Q4 2020 Q4 2019 Q4 2020 Carats recovered (carats) (2) Carats sold (carats) Operating cost per ca
Slide 14: 2020 Operational Highlights – Karowe Mine
2020 Operational Highlights – Karowe Mine Twelve months ending December 31, 2020 (All currency figures in U.S. Dollars) Ore mined (tonnes) Ore processed (tonnes) 2,804,517 2,676,066 3,303,376 2,987,775 2019 2020 2019 2020 Carats recovered (carats) (2) Carats sold (carats) Operating cost per carat so
Slide 15: Sales Channels 2020
Sales Channels 2020 Sales through Clara, HB Antwerp and Tenders • All +10.8 carat 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 car
Slide 16: 2021 Guidance
2021 Guidance (All currency figures in U.S. Dollars) 16
Slide 17: Conclusion
Conclusion Lucara is a premier, mid-tier, investible diamond company, positioned for long term, sustainable growth High margin diamond producer Botswana - a low risk jurisdiction Strong balance sheet and available liquidity Consistent recovery of high value Specials (+10.8 carats); Open pit mineable
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