Lucara Diamond Corp. · TSX:LUC
Lucara Diamond — Q1 2023 Earnings Presentation
18 slides from Lucara Diamond's earnings presentation, May 12, 2023
Slide 1: Q1 2023 Results Conference Call
Q1 2023 Results Conference Call MAY 12, 2023 LucaraDiamond.com | LUC.TSX | LUC.XSTO | LUC.BSE
Slide 2: Cautionary Statement
Cautionary Statement Forward‐looking information 2
Slide 3: Q1 2023 Highlights
Q1 2023 Highlights (All currency figures in U.S. Dollars, unless otherwise stated) Revenues $42.8 million; 4% Specials (+10.8 carats) Long term market Karowe UGP main shaft Adjusted EBITDA1 of $15.3 by weight fundamentals remain sinking continued; successful million Including 2 stones >100 positive
Slide 4: Q1 2023 Operational Highlights – Karowe Mine
Q1 2023 Operational Highlights – Karowe Mine Three months ending March 31, 2023 (All currency figures in U.S. Dollars) Ore mined (tonnes) Ore processed (tonnes) 700,678 666,488 811,947 541,400 Q1 2023 Q1 2022 Q1 2023 Q1 2022 Carats recovered (carats) Carats sold (carats) Operating cost per tonne of
Slide 5: Q1 2023 Financial Highlights
Q1 2023 Financial Highlights Three months ending March 31, 2023 (All currency figures in U.S. Dollars) Adjusted EBITDA(1) (millions) Revenue (millions) $36.0 $68.2 $42.8 $15.3 Q1 2023 Q1 2022 Q1 2023 Q1 2022 Net income (millions) Operating cash flow per share (1) $0.08 $19.0 $0.03 $1.0 Q1 2023 Q1 20
Slide 6: Sales Channels Q1 2023 – Karowe Mine
Sales Channels Q1 2023 – Karowe Mine Sales through HB Antwerp, Clara, and Quarterly Tender • • • 6
Slide 7: (All currency figures in U.S. Dollars)
(All currency figures in U.S. Dollars) 7
Slide 8: Diamond Market
Diamond Market • Global supply constraints continue to support a positive, longer-term outlook on diamond prices; diamond fundamentals remain unchanged • Softer prices continue in Q1 2023 in response to global economic uncertainties; despite pull back, prices show signs of stabilization as China beg
Slide 9: Cumulative Carats +10.8
Specials contribute ~60-70% by revenue and ~5-7% by volume historically Revenue and production includes 2015 to 2022 100% 80% Karowe Cumulative Specials (ct) 60% 30,000 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Cumulative Carats +10.8 40% 25,000 20,000 20% 15,000 0% 10,000 Revenue Produ
Slide 10: Rough, Clara, Polished
Optimized Sales of Rough and Polished Diamonds to Create Alignment Along the Supply Chain and Maximize Revenues Rough Clara Polished Jewellery Tenders (Auctions) of Proprietary Digital Manufacturing into Collaboration with Rough Diamonds < 10.8 Marketplace for Rough Polished Diamonds Brands to Creat
Slide 11: Sewelô Sale to Louis Vuitton
Sewelô Sale to 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 Antwerp (25%) After almost 2 years of global touring, Louis Vuitton offered to purchase the
Slide 12: 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 13: Clara marketplace: sales completed and carats sold
80 sales completed Producer Trial completed in 2022 Additional trials of third-party ~$92 million sold by value supply began in Q1 2023 ~50,000 carats sold by weight Growth Potential in Primary & Secondary Markets Low operating cost $5.3 million transacted in Q1 2023 37% of goods from third-party 99
Slide 14: Karowe Underground Expansion
Karowe Underground Expansion Extending mine-life to at least 2040 Construction Advancing Project facility drawdown of $90 million end of Q1 2023 Q1 2023 Capital Spend $30.5 million spent Main shaft sinking activities continued Successful completion of the first grout programs in each shaft in Q1 202
Slide 15: Karowe Underground Expansion Q1 2023 Highlights
Karowe Underground Expansion Q1 2023 Highlights • Activities focused on ongoing construction: o Main sinking in both shafts continued; ventilation shaft at 213 metres below collar and production shaft at 187 metres below collar o Successful grouting events in both shafts completed in Q1 o Planned si
Slide 16: Approach to Sustainability
Approach to Sustainability Focused on transparency, the protection of our people, and stakeholder engagement ✓ Code of Business ✓ Lucara is certified by the ✓ Lucara’s Sustainability Report is Conduct and Ethics Responsible Jewellery Council prepared in accordance with the ✓ Whistleblower Policy (RJ
Slide 17: Lucara Investment Rationale
Lucara Investment Rationale A Premium Diamond Equity De-Risked and Positioned for Long-Term Growth DIAMONDS Diamond market fundamentals remain strong, bolstered by global supply declines Prolific, high-margin diamond mine in Botswana with a fully funded expansion program Disrupting the historical ap
Slide 18: Contact
Contact LucaraDiamond.com | LUC.TSX | LUC.XSTO | LUC.BSE