Lucara Diamond Corp. · TSX:LUC
Lucara Diamond — Mining Indaba – AFC 2022
21 slides from Lucara Diamond's conference presentation, May 2022
Slide 1: Investing in the Future of Botswana Diamonds
INVESTING IN THE FUTURE OF BOTSWANA DIAMONDS UNDERGROUND EXPANSION PROJECT AT THE KAROWE MINE MINING INDABA – AFC MAY 2022 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: Overview: Lucara Diamond Corp. & Lucara Botswana
Overview: Lucara Diamond Corp. & Lucara Botswana Investing in the Future of Botswana Diamonds Impact investment Fully funded $534 million underground expansion project at the Karowe Mine in Botswana. Community-driven Advancing responsible and future focused project opportunities in support of local
Slide 4: Karowe Mine – Botswana
Karowe Mine – Botswana Experience Lucara 360O 3.2 million Africa is the second Lucara acquired 100% carats sold highest diamond producing ownership from region in the world De Beers in 2010 $1.7 billion in revenue in ~ 8 years Consistent recovery of high Innovative design Only mine in recorded histo
Slide 5: Diverse Leadership with Significant Resource Sector and Capital Markets Experience
Diverse Leadership with Significant Resource Sector and Capital Markets Experience EIRA THOMAS ZARA BOLDT, CPA, CGA DR. JOHN ARMSTRONG NASEEM LAHRI JOE MCHIVE PRESIDENT & CEO, DIRECTOR CFO & CORPORATE SECRETARY VP, TECHNICAL SERVICES MANAGING DIRECTOR, GENERAL MANAGER, LUCARA BOTSWANA LUCARA BOTSWAN
Slide 6: Karowe Underground Expansion
10-039 Winder Building Vent Shaft Barrel Karowe Underground Expansion $220 million project finance facility: • $170 million project finance facility • $50 million working capital facility Fully financed between project finance facilities and cash flow from operations: • Cost over run facility of $52
Slide 7: Accelerating impact in Africa
Accelerating impact in Africa Sustainable investment strategy Delivering impactful solutions for Africa. Mainstreaming climate finance thinking in all our activities. ESG investment and risk management. Driving thought leadership and conducting research. Strengthening strategic partnerships. SOURCE:
Slide 8: Sales Channels
Sales Channels Optimized Sales of Rough and Polished Diamonds to Create Alignment Along the Supply Chain and Maximize Revenues Rough Clara Polished Jewelry Increasing Margin Capture Downstream Tenders (Auctions) of Proprietary Digital Manufacturing into Collaboration with Rough Diamonds < 10.8 Marke
Slide 9: 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 10: Overview: Lucara Diamond Corp. & Lucara Botswana
Overview: Lucara Diamond Corp. & Lucara Botswana Investing in the Future of Botswana Diamonds Impact investment Fully funded $534 million underground expansion project at the Karowe Mine in Botswana. Community-driven Advancing responsible and future focused project opportunities in support of local
Slide 11: 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
Slide 12: Appendix
Appendix 1,758 carat Sewelô 12
Slide 13: Diamond Market
Diamond Market Re-stocking 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 20
Slide 14: US Jewelry Sales Hit Record Growth
US Jewelry Sales Hit Record Growth YoY Change in US Annual Jewelry Sales 60% 51.8% 50% 40% 30% 20% 10% 0% -10% -20% Source: Department of Commerce 14
Slide 15: Quarterly Aggregated Rough Diamond Price Indexed
Quarterly Aggregated Rough Diamond Price Indexed Zimnisky Global Rough Diamond Price Index Starting value 100 in December 2007 As of February 2022 230 New all-time high 200 Previous all-time high 170 Oversupplied market Support line 140 Chinese market weakness COVID-19 pandemic 110 80 Global financi
Slide 16: 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 17: Global Achieved Average Diamond Prices 2021 YTD
Global Achieved Average Diamond Prices 2021 YTD (All figures in U.S. Dollars per carat) Lucara’s Average Price ~ 6x Higher than Global Median $1,782 $619 $130 $45 $80 * $80 $72 2021 YTD 2021 YTD Median *Stornoway is a estimated diamond price based on 2020 data.
Slide 18: Supply Agreement with HB Antwerp
Supply Agreement with HB Antwerp 2021 All +10.8 carat diamonds produced from Karowe sold through novel supply agreement until at least 2023 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 ach
Slide 19: Louis Vuitton & HB Collaboration Agreements on the Sethunya & Sewelô
Louis Vuitton & HB Collaboration Agreements on the Sethunya & Sewelô Luxury Brand & Cutting Edge Manufacturing Alignment across the supply chain to maximize polished diamond value for all 549 ct Lucara participates in all sales of polished Sethunya diamonds resulting from the Sethunya and 50% of pol
Slide 20: Lesedi La Rona & Constellation
Lesedi La Rona & Constellation The 1,109 carat Lesedi La Graded by the GIA, one of Rona was recovered in 2015 the world’s largest square and purchased by Graff in emerald cut diamond; 2017 for US$53 million 66 satellite diamonds were resulting in the 302.37 carat also cut ranging from Graff Lesedi L
Slide 21: Karowe Diamond Mine: Unique Diamond Production
Karowe Diamond Mine: Unique Diamond Production • 1969 - The AK6 Kimberblite was discovered in 1969 in the Orapa district of Botswana, the largest diamond producing region in the world. • 2009- Lucara acquired a 70.268% interest in Boteti Exploration (Pty) Ltd. project, from De Beers which held the A