Slide 1: Q2 2022 Results Conference Call
Q2 2022 Results Conference Call AUGUST 11, 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: Q2 2022 Highlights
Q2 2022 Highlights (All currency figures in U.S. Dollars, unless otherwise stated) Revenues up 13% to 6.1% Specials (+10.8 Underground tracking $52.3 M carats) by weight on plan: main sink Strong cashflow, Adjusted Including 5 >100 carats phase commenced in EBITDA2 of $24.4 M Q2 Strong, Safe, Reliab
Slide 4: Q2 2022 Financial Highlights
Q2 2022 Financial Highlights Three months ending June 30, 2022 (All currency figures in U.S. Dollars) Revenue (millions) Adjusted EBITDA(1) (millions) $52.3 $46.3 $24.4 $22.2 Q2 2022 Q2 2021 Q2 2022 Q2 2021 Net income (millions) Average Price ($/Carat)(2) Operating cash flow per share (1) $0.05 $0.0
Slide 5: Q2 2022 Operational Highlights – Karowe Mine
Q2 2022 Operational Highlights – Karowe Mine Three months ending June 30, 2022 (All currency figures in U.S. Dollars) Ore mined (tonnes) Ore processed (tonnes) 1,091,192 719,207 726,379 900,660 Q2 2022 Q2 2021 Q2 2022 Q2 2021 Carats recovered (carats) Carats sold (carats) Operating expense per carat
Slide 6: H1 2022 Financial Highlights
H1 2022 Financial Highlights Six months ending June 30, 2022 (All currency figures in U.S. Dollars) Average price (Average $/Carat) (1) Operating cost ($ per tonne processed)(1) Operating cash flow per share(1) $28.22 $28.21 $619 $0.13 $510 $0.11 H1 2022 H1 2021 H1 2022 H1 2021 H1 2022 H1 2021 Reven
Slide 7: H1 2022 Operational Highlights – Karowe Mine
H1 2022 Operational Highlights – Karowe Mine Six months ending June 30, 2022 (All currency figures in U.S. Dollars) Ore mined (tonnes) Ore processed (tonnes) 1,903,139 1,867,749 1,385,695 1,400,025 H1 2022 H1 2021 H1 2022 H1 2021 Operating cost per carat sold(1) Carats recovered (carats) Karowe cara
Slide 8: Sales Channels Q2 2022
Sales Channels Q2 2022 Sales through HB Antwerp, Clara, and Quarterly Tender • High value Specials (+10.8 carats) are manufactured and sold as polished through the HB supply agreement. • Diamonds between 1 and 10 carats that meet specific criteria are sold through Clara. • All other diamonds are sol
Slide 9: 2022 Annual Guidance – No Changes in Q2
2022 Annual Guidance – No Changes in Q2 (All currency figures in U.S. Dollars) Karowe Diamond Mine FY2022 Diamond revenue1 $195 to $ 225 million Diamond sales 300,000 to 340,000 carats Diamonds recovered 300,000 to 340,000 carats Ore tonnes mined 3.1 to 3.5 million Waste tonnes mined 1.5 to 2.1 mill
Slide 10: Karowe Underground Expansion
Karowe Underground Expansion Extending mine-life to at least 2040 Fully Financed, Construction Advancing Project facility drawdown of $65 Million end of Q2 NPV $1,280 million/$750 million (pre/post tax) @ 5%; using conservative diamond price assumptions $547 million(1) underground expansion adds ~ $
Slide 11: Karowe Underground Expansion: Q2 2022 Highlights
Karowe Underground Expansion Q2 2022 Highlights • $29.1 M spent Q2 • $165 M to June 30th ; ~ $310 M committed • Execution of the main sink contract for both shafts; 2.5% increase to overall capex • Activities focused on ongoing construction and procurement: • Completion of Pre-sink activities for bo
Slide 12: Diamond Market
Diamond Market • Major mines are expected to reach economic depletion by the end of the decade, representing ~15% of global supply • Re-stocking activity in the midstream late 2020 continues in 2022, driving better prices; Longer term outlook remains strong supported by supply constraints Rough diam
Slide 13: Consistent Recovery of Large Diamonds
Consistent Recovery of Large Diamonds Specials contribute ~70% by revenue and ~5% by volume historically Revenue and production Q2 2022 Recoveries: Since 2012: 27 diamonds in 11 diamonds sold for > US$ 10 includes 2015 to 2022 excess of 300 carats have million each (not included in 194 specials, 6.1
Slide 14: Sales Channels – Strong Q2 2022 Results
Sales Channels – Strong Q2 2022 Results 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
Slide 15: 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 16: Clara growth profile
Clara 5 Year Potential Growth Profile 68 sales completed Growth Potential in Primary 100 2000 since inception & Secondary Markets ~$72 million 90 1800 Buyers stabilized and of diamonds sold by value wait-list being maintained 80 1600 through the platform Revenue (US$mln) 70 1400 Volume (US$mln) 60 1
Slide 17: 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 18: Lucara Investment Rationale
Lucara Investment Rationale A Premium Diamond Equity De-Risked and Positioned for Long-Term Growth Diamonds LUC: TSX JULY 29, 2022 Diamond market fundamentals are the best they have been in the last five years Share Price CAD $0.65 Market Cap CAD $294.8 M Lucara Shares Outstanding1 453,566,923 Proli
Slide 19: 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