Lucara Diamond Corp. · TSX:LUC
Lucara Diamond — 121 Mining Investment London 2021
20 slides from Lucara Diamond's conference presentation, Nov 15, 2021
Slide 1: 121 Mining Investment London
121 Mining Investment London NOVEMBER 17-18, 2021 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-looking Certain of the statements made and contained he
Slide 3: High operating margin
High operating margin 3.2 million Total capital investment less than sustained since production carats sold $200 million began in 2012 $1.7 billion $271 million in revenue in ~8 years in dividends paid 2014 - 2019 Consistent recovery of high value Innovative design Top of class, only mine in +10.8ct
Slide 4: Historic Diamond Recoveries
Historic Diamond Recoveries Karowe has yielded 25% of the World’s Largest Diamonds and 5 of the top 10 24 diamonds >300 carats have been recovered from Karowe, including 3 diamonds > 1,000 carats 1,758 ct 813 ct 1,109 ct 549 ct Sewelô Constellation Lesedi La Rona Sethunya
Slide 5: Consistent Recovery of Large Diamonds
Consistent Recovery of Large Diamonds Specials contribute ~70% by revenue and ~5% by volume historically Revenue and production includes 2015 to 2020 2021 YTD Recoveries: Since 2012: 25 diamonds 11 diamonds sold for > US$ 2 diamonds >500 carats, in excess of 300 carats 10 million each (not included
Slide 6: Diamond Market
Diamond Market Strong market due to healthy supply & demand balance; Increasing price performance Longer term outlook remains strong supported by supply constraints Rough natural diamond supply and demand ($ billions) Forecast 20 Optimistic Demand 15 Conservative Demand Optimistic Supply 10 Conserva
Slide 7: 2021 Highlights
2021 Highlights (All currency figures in U.S. Dollars, unless otherwise stated) Karowe Diamond Mine Clara Diamond Solutions Balance Sheet & Liquidity Strong, safe, reliable production 136% increase in volume transacted year on Cash and cash equivalents of results; all physicals achieved to plan; yea
Slide 8: YTD 2021 Financial & Operational Highlights
YTD 2021 Financial & Operational Highlights Nine months ending September 30, 2021 (All currency figures in U.S. Dollars) Revenue (millions) Adjusted EBITDA(1) (millions) Average Price ($/Carat) (1) $619 $172.1 $81.4 $82.9 $309 $8.1 YTD 2021 YTD 2020 YTD 2021 YTD 2020 YTD 2021 YTD 2020 Carats recover
Slide 9: Sales Channels
Sales Channels 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 Rough Diamonds < 10.8 Mar
Slide 10: Sales Channels – Strong Q3 Sales
Sales Channels – Strong Q3 Sales 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 Revenue Revenue Special Diamonds Revenue $15.6m $6.6m $50.5m Sethunya and Sewelô Q3 – R
Slide 11: Transforming the Diamond Sales Process
Transforming the Diamond Sales Process Using Innovation and Technology Opportunity to disrupt the existing supply Matched chain, driving efficiencies and unlocking value to buyer Rough diamonds are sold stone by stone based on polished demand Scan/ID Transparent supply chain for Diamond provenance i
Slide 12: Clara
Clara Digital sales platform (1 to 15 carat) All currency figures in U.S. Dollars 55 sales completed since inception Buyers on the platform increased from ~$42.2 million 75 to 87 in 2021: of diamonds sold by value Wait-list being maintained through the platform Fifty-five sales between December 2018
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: Karowe Underground Expansion
Karowe Underground Expansion Extending Mine-life to at least 2040 $534 million underground expansion adds ~ $4 billion additional net revenue NPV $1,280 million/$750 million (pre/post tax) @ 5%; using conservative diamond price assumptions Financing Completed, Full Board Sanction Received First draw
Slide 15: Karowe Underground Expansion
Karowe Underground Expansion Q3 Activities • Over 500,000 hours LTI free on project; • Civil construction for winder building, temporary power ph. 1 installed, change house, construction camp, water and sewage treatment plant expansion work Shaft Pre-sink • Tracking to plan • Ventilation shaft at to
Slide 16: 2021 Annual Guidance Updated
2021 Annual Guidance Updated (All currency figures in U.S. Dollars) Karowe Diamond Mine Full Year - 2021 Diamond revenue (revised in Q3) $195 million to $210 million* Diamond sales 350,000 to 390,000 carats Diamonds recovered 340,000 to 370,000 carats Ore tonnes mined (revised in Q2) 3.8 million to
Slide 17: COVID-19 Response
COVID-19 Response Health & Well-Being Focus As mining has been designated an essential service in Botswana, the Karowe mine has remained fully operational throughout the pandemic. COVID-19 measures and guidelines, which were implemented by the Government of Botswana in late March 2020, remain in pla
Slide 18: Approach to Sustainability
Approach to Sustainability Focused on transparency, the protection of our people and stakeholder engagement Lucara is certified by the Code of Business Conduct Responsible Jewellery Council and Ethics (RJC), compliant with the Lucara’s Sustainability Report is Whistleblower Policy Kimberley Process,
Slide 19: 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 mineab
Slide 20: 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