Lucapa Diamond — Diggers & Dealers 2017
24 slides from Lucapa Diamond's conference presentation, Aug 8, 2017
Slide 1: A Growing Producer of Large & Premium-Value Diamonds
A Growing Producer of Large & Premium-Value Diamonds Diggers & Dealers Presentation 8 August 2017 (ASX: LOM)
Slide 2: A Growing Global Diamond Company
A Growing Global Diamond Company …Production, growth, funded exploration and experience High-value production (alluvial) Achieving multiples above the world average diamond price 2016 achieved US$2,983 (world’s highest average price per carat) 2017 achieving US$1,458 per carat to date Seco
Slide 3: Lulo Diamond Mine (Angola)
Lulo Diamond Mine (Angola) Delivered the highest average price per carat in the world in 2016
Slide 4: The Lulo Project
The Lulo Project …Cornerstone asset 3,000km2 concession in the diamond heartland of Angola – 5th largest diamond producing nation Within 150km of Catoca, the world’s 4th biggest kimberlite mine Alluvial mining operations - producing large and premium-quality diamonds Kimberlite exploration o
Slide 5: The Lulo Diamond Mine
The Lulo Diamond Mine …Produces large, premium-value diamonds Regular recovery of rare, large diamonds 404ct 227ct 173ct known as Specials (>10.8 carats) High % are top-tier Type IIa gems Resulting in Specials accounting for ~90% of production value 133ct 131ct 120ct Lulo production has alre
Slide 6: The Lulo Diamond Mine
The Lulo Diamond Mine …Rare high-end production, strong demand and pricing Global demand and prices for large and Special Diamond Sales - 2013 - 2017 premium-quality diamonds remains robust 100,000 Sales of all Lulo alluvial diamonds ~US$85m Total average price of US$2,133 per carat is ~18 10,
Slide 7: The Lulo Diamond Mine
The Lulo Diamond Mine …Growing production and recoveries Dec 2017 Cumulative Gravel Treated (m3) 240,000 Specials Recovered 250,000 200,000 Dec, 190,745 160 Carats 150,000 Jun, 128,750 Dec, 113,928 100,000 40 50,000 10 - Oct-15 Nov-15 Oct-16 Nov-16 Feb-17 Apr-17 Jul-17 Apr-16 Jul-16 May-17 Feb-15 Ap
Slide 8: The Lulo Diamond Mine
The Lulo Diamond Mine …Production and cash generation into the future Operating at desired production capacity All plant upgrades completed: wet front-end (wet season efficiencies) XRT technology (to recover diamonds up to 1,100 carats in size) and diamond deep boiling facility Latest JO
Slide 9: The Lulo Diamond Mine
The Lulo Diamond Mine …Returns for Lucapa and funding exploration Strong operational performance and diamond revenues generating returns for Lucapa and funding kimberlite exploration Lucapa to receive 70% of cash generated and declared to repay US$35.6m loan funding provided over last ~8 years
Slide 10: Lulo Kimberlite Exploration
Lulo Kimberlite Exploration …The potential game-changer Targeting a tier-one kimberlite discovery – a potential game-changer for Lucapa Exploration focus in prolific alluvial areas with strong geological evidence of proximal primary kimberlite sources New 5 year exploration permit approved by
Slide 11: Lulo Kimberlite Exploration
Lulo Kimberlite Exploration … Drilling targets identified and re-prioritised Extensive Time Domain Electro Magnetic survey (“TDEM”) recently flown over Cacuilo River valley (8,566 line kms) TDEM results have upgraded and improved definition of kimberlite targets in priority areas Results mappe
Slide 12: Lulo Kimberlite Exploration
Lulo Kimberlite Exploration …Systematic drilling, laboratory analysis, bulk sampling Three rigs on site to drill priority kimberlite targets from TDEM survey continuously throughout 2017 Core samples to be progressively dispatched for mineral chemistry analysis in Cape Town. Results of first bat
Slide 13: Mothae Kimberlite Project
Mothae Kimberlite Project (The Kingdom of Lesotho) Second highest JORC resource price per carat in the world for a kimberlite
Slide 14: The Mothae Kimberlite Project
The Mothae Kimberlite Project …In diamond-rich Lesotho, next to the world’s highest price kimberlite mine Acquired 70% of Mothae from Government of Lesotho for US$9m in staged payments LESOTHO NORTHERN KIMBERLITE Located in the heart of the highest-value cluster of FIELD kimberlite mines - withi
Slide 15: Lesotho's Diamonds
Lesotho’s Diamonds …A prolific large diamond producer In production – 13 years In production – 6 years In production – < 1 year Being developed Diamond pictures sourced from companies - some pictures unavailable from owners (b) Denotes boart stone 15
Slide 16: The Mothae Kimberlite Project
The Mothae Kimberlite Project …A proven source of large and premium-quality diamonds Extensive trial mining (> 600,000 tonnes) has proven Mothae hosts large and valuable diamonds 23,400 carats recovered Trial mining sales of ~US$17m; prices up to US$41,500 per carat Trial mining diamonds rec
Slide 17: The Mothae Kimberlite Project
The Mothae Kimberlite Project …+1m carat resource at the world’s 2nd highest hard rock diamond price A well-defined 8.8ha kimberlite pipe Independent JORC resource containing +1 million carats World’s 2nd highest modelled JORC diamond price at $US1,063 per carat for a kimberlite Significant
Slide 18: Mothae Development Plan
Mothae Development Plan …Staged, low-risk approach to deliver early production & cash flows Phase 1 development targeting annual production ~720k t Development based around existing infrastructure - US$12m to optimise water, tailings, plant and technology Targeting ~44,000 carats of diamond pr
Slide 19: Other Diamond Exploration Projects
Other Diamond Exploration Projects Orapa Area F - Botswana Brooking - Western Australia Orapa Area F within ~40km of the Orapa diamond Brooking within ~40km of Ellendale, which once field in Botswana produced > 50% of world’s fancy yellow gems Well-defined coincident magnetic, EM & gravity D
Slide 20: Near-Term Strategic Objectives
Near-Term Strategic Objectives …Production growth, risk mitigation, new discoveries Production Growth: Mothae development and targeted Lulo production increases to exploit strong global demand for large and premium value diamonds Risk Mitigation: Mothae mitigates single asset risk by providing 2
Slide 21: Forward-Looking & Competent Person's Statements
Forward-Looking & Competent Person’s Statements Competent Person’s Statement Information included in this announcement that relates to exploration results and resource estimates is based on and fairly represents information and supporting documentation prepared and compiled by Albert Thamm MSc FAusI
Slide 22: Appendices
LUCAPA DIAMOND COMPANY Appendices
Slide 23: Lucapa Diamond Company
Lucapa Diamond Company …Corporate snapshot Australia (ASX: LOM) Germany (FSE: NHY) Share price (A$ cents) 29 Shares on issue (million) 330 Listed options (million, LOMOA) - underwritten1 46.3 Cash (Lucapa)2 US$7.8m Cash (SML)2,3 US$8.5m Market capitalisation A$96m No of shareholders ~7,500 1. $0.20c
Slide 24: Lucapa Board & Management
Lucapa Board & Management …Significant global diamond industry experience Miles Kennedy Mr Kennedy has held directorships of Australian listed resource companies for the past 30+ years. Was a founder and former Chairman of Non-Executive Chairman Kimberley Diamond Co, which developed the Ellendale di