Lucapa Diamond — Investor Presentation (November 2020)
24 slides from Lucapa Diamond's investor presentation, Nov 5, 2020
Slide 1: Delivering Growth as a High-Quality Producer & Explorer
LUCAPA DIAMOND COMPANY Delivering Growth asa High-Quality Producer & Explorer
Slide 2: Cautionary statements
Cautionary statements Forward-Looking Statements This Presentation has been prepared by Lucapa Diamond Company Limited (“the Company"). This document contains background information about the Company current at the date of this Presentation. The Presentation is in summary form and does not purport t
Slide 3: A Leading Producer of Large & High-Quality Diamonds: Value Accretive Expansion
...A LEADING PRODUCER OF LARGE & HIGH-QUALITY DIAMONDS... Value Accretive Expansion
Slide 4: Kimberlite diamond mine
ey Kimberlite diamond mine Lucapa holds 70% & Government of Lesotho 30% 2" highest average USS per carat kimberlite mine in the world Producer of high-quality diamonds ~US$500 - USS750 per carat on average +4.8 carat diamonds comprise >75% of revenue 3 +100ct diamonds recovered in 2019 Indicated and
Slide 5: US$6m investment
US$6m investment Forecast value generated* 7 | Accommodation & 6-Year” n n Year 1 Year 2 ~US$67m infrastructure ~US$14m ~US$12m \ _ (-AS95m) Working capital EBITDA > 100% increase Timeline to implement capacity ~ improvements ~4 months Tonnes Carats Revenue New marketing channel De-risked developmen
Slide 6: Mothae Diamond Mine: Phase development
Mothae Diamond Mine Phase 2 development... ** Plant modifications would increase throughput: 1. Replace primary crusher e- 2. Add bypass conveyor “* Accommodation (incl COVID required) > Infrastructure “* Working capital “* ~4 months to implement - completion Q1 2021 45% increase in processing capac
Slide 7: Mothae Diamond Mine: Phase forecast US$m value generated
Mothae Diamond Mine Phase 2 forecast USSm value generated*... VALUE a GENERATED TONNES ~1.1Mt to ~1.6Mt per UP ~45% annum ~ ~31,000 to ~44,000 CARATS UP ~45% carats per annum | REVENUE ~US$21m to UP -45% ~US$30m per annum — (Dor unitanorating Per unit operating costs reduced OPERAT= ING COSTS @) | 2
Slide 8: Mothae Diamond Mine: Phase forecast value generated per carat
Mothae Diamond Mine Phase 2 forecast USS value generated* per carat... — ** Rough Value Produced = updated resource Year1* (42) diamond price used 2019/20 selling prices. ear No price escalation in Year 1* 24 (319) | “o) > Selling Costs = 5% royalty, 1.5% selling ~ Cash Operating Costs = 1.6Mtpa bud
Slide 9: Mothae Diamond Mine: Partnership margin
Mothae Diamond Mine Partnership margin Partnership margin New ‘keting channe! Partnership margin 696 701 Partnership proposal approved 635 by Minister of Mines! MOTHAE TO PARTNER WITH SELECT DIAMANTAI RTNERSHIP - EQUAL SHARING OF POST MINE Partnership Total Average Total Average Total Average GATE M
Slide 10: Mothae Diamond Mine: Sensitivity
Mothae Diamond Mine Sensitivity...phase 2 6-Year forecast USS value generated* per carat... 771 PRICE UP 10% cosTSs UP 10% a ia Remaining Remaining Value Value atter IDC after IDC Payments Payments Rough Cos Polished Ine Rough C id Vane Operating Partnership lotrest Vahie Operating Partnership Inter
Slide 11: Mothae Diamond Mine: Price and cost sensitivities
PRICE DOWN 5% Mothae Diamond Mine PRICE ESC DOWN 50% COSTS UP 10% PSS $ poncata 172 (12) (43) 11 40 — =e (132) ie 32 EET 105 | cs) EE (incl Royalty) Value ‘Generated after IDC (incl Royalty) Value ‘Genclated after IDC cenarsed armen conered momen Rough Cash Polished Ipc Rough Cash Polished ! IDC Val
Slide 12: Diamond market recovering
Rough Diamond Index (Jan 2019=100) 120 100 80 60 40 20 May-19 Jul Sep-19 Nov-19 Jan-20 Source: GTD Consulting Mar-20 May-20 Jul-20 Sen-20 Diamond market recovering... Diamond Market > Early to mid 2019 diamond market softened Commercial rough oversupply, low midstream liquidity & high polished inven
Slide 13: Capital, Mining, Treatment
US$6m applied to plant modifications, infrastructure & accommodation Capital upgrades and working capital Sustaining capital provided @ 2% of total operating costs Conventional open-pit. Weathered kimberlite - by free dig load and haul Method Unweathered kimberlite and waste - by drill, blast, load
Slide 14: Royalty, Marketing, Exchange rate
Royalty As a % of net revenue 5% As a % of gross revenue 1.5% Marketing Rough sales value Rough market value through offtake, tender and/ or auction Cutting & polishing Estimated based on experience in cutting & polishing activities margin Exchange rate Maloti (parity to ZAR) M16.50:US$1.00 (current
Slide 15: New Production Targets and Financial Forecasts: Material assumptions
New Production Targets and Financial Forecasts Material assumptions... Power Power has been modelled on diesel generated power with a diesel price of M9.00 per litre. No grid power connection has been assumed. Project financing The Mothae plant capacity expansion, infrastructure and accommodation up
Slide 16: Mothae - September 2020 JORC Classified Resource Statement
Mothae - September 2020 JORC Classified Resource Statement Modelled Dry Dry Classification Resource Volume Density Carats Value Tonnes Grade Category Domain (Mm3) (g/cm3) (Mcts) (US$ per (Mt) (cpht) carat) South West 2.30 2.52 5.80 0.15 2.60 748 Indicated South Centre 0.64 2.50 1.61 0.06 3.90 649 Re
Slide 17: Work performed to date
Year Work performed to date 2008 - 2012 Drilling campaign Bulk sampling campaign 2013 NI43-101 Technical Report and Resource estimate completed by MSA (Pty) Ltd Preliminary Economic Assessment was completed by ADP Projects (Pty) Ltd Mine planning, including pit optimisation, pit design and mining sc
Slide 18: Group Snapshot
LUCAPA DIAMOND-COMPANY ASX: LOM Group Snapshot
Slide 19: Diamond Production: Growth path
Diamond Production... Growth path Lulo (“SML" Z : . Angola f : 5 39% 40% : E Kimberlite pate exploration Alluvial mine P } Pandemic q ; ‘ resulted in “"Wothae, ~ Cutting suspension of Mothae, polishing operations Lesotho iret Fee mi strategy J Kimberlite mine itoiemented at Revstarted 70% — 100% bui
Slide 20: ❖ ❖ ❖ ❖ ❖ ❖ ❖ ❖ ❖ ❖ ❖ ❖ ❖ ❖
❖ ❖ ❖ ❖ ❖ ❖ ❖ ❖ ❖ ❖ ❖ ❖ ❖ ❖ ❖ ❖ ❖ ❖ ❖ ❖ ❖ ❖ ❖ ❖ ❖ ❖ ❖ ❖
Slide 21: Large diamonds recovered
❖ ❖ ❖ ❖ ❖ ❖ ❖ ❖ ❖ 404ct 227ct 173ct 133ct 120ct 104ct ❖ [MB08] [MB28] [MB08] Compound [MB06] [MB06] [MB08] 92ct 90ct 88ct 86ct 83ct 39ct [MB28] [MB08] [MB46] [MB06] [MB06] pink [MB08 ] ❖ ❖ ❖ ❖ ❖ ❖ ❖ ❖ ❖
Slide 22: Vision Snapshot
Vision Snapshot ** Niche large and high-quality diamond resources 1,500 1 Y Two of the highest USS per carat diamond resources in poo | ~ | Ab... yy eet eee the world - SML (Lulo) e Mothae Lulo(A) ———Letéeng (kK) Mothae(K) —-Somiluana(A) —_-Karowe Global average . Angola Lesotho Lesotho ‘Angola Bots
Slide 23: Leading global producer of large and high-quality diamonds
o w oS r=] © 2 ad uu 3 3 ° a= a ..@ leading global producer of large and hig a) rs a a] a) <q <= _ s ° h uo of i= ° ih _ wn 9 Oo 9 & N production expansion cutting & polishing expansion furthering source discovery programs Diamond equities at near all-time lows = Significantly undervalues companies/
Slide 24: Corporate
Corporate 0 . 34 Bagot Road ™ 8 Subiaco, Perth - Email: general@lucapa.com.au LUCAP.A Western Australia Website: www.lucapa.com.au
Lucapa Diamond Company — Investor Presentation (November 2020) on 6ix