Slide 1: Corporate Update
Corporate Update MAY 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- Certain of the statements made and contained herein an
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 $271 million in revenue in ~8 years in dividends paid 2014 - 2019 Consistent recovery of high value Innovative design Top of class, only mine in +10.8ct
Slide 4: Historic Diamond Recoveries
Historic Diamond Recoveries Lucara has become renowned as one of the world’s foremost producers of large, gem quality diamonds 998 ct 813 ct Constellation 1,758 ct Sewelô 1,109 ct 549 ct Lesedi La Rona Sethunya 4
Slide 5: Karowe Has Recovered 4 of the World's Largest Rough Diamonds
Karowe Has Recovered 4 of the World’s Largest Rough Diamonds Top Rough Diamonds Reported Recovered >300 Carats Rank Carats Name Country Mine Date 1 3106,75 Cullinan Diamond South Africa Premier Mine 1905 2 1758 Sewelô Botswana Karowe Mine 2019 3 1109 Lesedi La Rona Botswana Karowe Mine 2015 4 998 Bo
Slide 6: COVID-19 Response
COVID-19 Response Health & Well-Being Focus As mining has been designated an essential service in Botswana, the Karowe mine has remained fully operational throughout the pandemic. COVID-19 measures and guidelines, which were implemented by the GRB in late March 2020, remain in place and the current
Slide 7: Consistent Recovery of Large Diamonds
Consistent Recovery of Large Diamonds Specials contribute ~70% by revenue and ~5% by volume Revenue and production includes 2015 to 2020 Life of mine recovery of Since 2012: 21 diamonds in 11 diamonds sold for > US$ 10 +188,000 carats of excess of 300 carats have million each (not included in indivi
Slide 8: Supply Agreement with HB Antwerp Extended
Supply Agreement with HB Antwerp Extended Sale of specials +10.8 carats All +10.8 carat stones “specials” produced from the Karowe Mine 24-month extension to December 2022 Initial price is based on an estimated polished outcome, determined through state of the art scanning and planning technology, w
Slide 9: Louis Vuitton & HB Collaboration Agreements on the Sethunya & Sewelô
Louis Vuitton & HB Collaboration Agreements on the Sethunya & Sewelô Luxury Brand & Cutting Edge Manufacturing Working together within the supply chain, creating true alignment for the first time, to achieve maximum polished value for two of 549 ct Lucara’s rare, exceptional diamonds Sethunya In lin
Slide 10: 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 11: Clara
Clara Digital sales platform (1 to 10 carat) 47 sales completed since inception Buyers on the platform increased from ~US$29.4 million 75 to 80 in 2021: of diamonds sold by value Wait-list being maintained through the platform Forty-seven sales between December 2018 and April 2021 Trials of third pa
Slide 12: Diamond Market
Diamond Market Stable market due to healthy supply & demand balance in the midstream; Q1 2021 strengthening price performance in all sizes and qualities Longer term outlook remains strong supported by supply constraints Rough natural diamond supply and demand ($ billions) Forecast 20 Optimistic Dema
Slide 13: 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 results; Doubled volume transacted year on year Strong cash position and available All physicals achieved to plan. l
Slide 14: Q1 2021 Financial & Operational Highlights
Q1 2021 Financial & Operational Highlights Three months ending March 31, 2021 (All currency figures in U.S. Dollars) Revenue (millions) Adjusted EBITDA(1) (millions) Average Price ($/Carat) (1) $579 $53.1 $22.2 $396 $34.1 $8.1 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Carats recovered (carats)
Slide 15: Sales Channels Q1 2021
Sales Channels Q1 2021 Sales through Clara, HB Antwerp and Quarterly Tender • All +10.8 carat stones 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
Slide 16: 2021 Annual Guidance
2021 Annual Guidance (All currency figures in U.S. Dollars) 16
Slide 17: Karowe Underground
Karowe Underground Extending Mine-life to at least 2040 Underground expansion adds ~ $4 bln additional net revenue NPV $1,266 million/$718 million (pre/post tax) @ 5%; No real escalation in price Conservative Price Assumptions: highest value stones removed from the economic model EM/PK(S) unit domin
Slide 18: Approach to Sustainability
Approach to Sustainability Focused on transparency, the protection of our people and stakeholder engagement Code of Business Conduct Lucara is certified by the Responsible and Ethics Jewellery Council (RJC), compliant Lucara’s Sustainability Report is prepared with the Kimberley Process, and a in ac
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 mineable
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