Lucara Diamond Corp. · TSX:LUC
Lucara Diamond — Q1 2022 Earnings Presentation
17 slides from Lucara Diamond's earnings presentation, May 6, 2022
Slide 1: Q1 2022 Results Conference Call
Q1 2022 Results Conference Call MAY 6, 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: Q1 2022 Highlights
Q1 2022 Highlights (All currency figures in U.S. Dollars, unless otherwise stated) Revenues up 28% 6.9% Specials (+10.8 Underground Q1 to $68.2 M carats) by weight spend of $31.1 M Strong cashflow, EBITDA2 of Including 10 >100 carats Tracking on plan; $36.1 M Transitioning to main sink in Q2 Strong,
Slide 4: Q1 2022 Financial Highlights
Q1 2022 Financial Highlights Three months ending March 31, 2022 (All currency figures in U.S. Dollars) Revenue (millions) Adjusted EBITDA(1) (millions) $68.2 $36.0 $53.1 $22.2 Q1 2022 Q1 2021 Q1 2022 Q1 2021 Net income (millions) Average Price ($/Carat)(2) Cash flow from operations per share (1) $19
Slide 5: Q1 2022 Operational Highlights – Karowe Mine
Q1 2022 Operational Highlights – Karowe Mine Three months ending March 31, 2022 (All currency figures in U.S. Dollars) Ore mined (tonnes) Ore processed (tonnes) 967,089 666,488 673,646 811,947 Q1 2022 Q1 2021 Q1 2022 Q1 2021 Carats recovered (carats) Carats sold (carats) Operating expense per carat
Slide 6: Sales Channels Q1 2022
Sales Channels Q1 2022 Sales through HB Antwerp, Clara, and Quarterly Tender • High value Specials (+10.8 carats) are manufactured and sold as polished through the HB Antwerp supply agreement. • Diamonds between 1 and 10 carats that meet specific criteria are sold through Clara. • All other diamonds
Slide 7: 2022 Annual Guidance Updated
2022 Annual Guidance Updated (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 million Ore ton
Slide 8: 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 Fully Financed, Board Sanction Received Drawdown of $45 Mill
Slide 9: Karowe Underground Expansion
Karowe Underground Expansion Q1 2022 Highlights $31.1 million was spent on the Karowe UGP development, primarily in relation to engineering, procurement of long lead items and ongoing construction activities, including: • Pre-sink activities for both the production and ventilation shafts with a focu
Slide 10: Diamond Market
Diamond Market Re-stocking activity in the midstream late 2020 continues in 2022, driving better prices; Longer term outlook remains strong supported by supply constraints Rough diamond supply and demand 25 20 Optimistic Demand 15 Base Demand Optimistic Supply 10 Base Supply 5 2000 2005 2010 2015 20
Slide 11: Consistent Recovery of Large Diamonds
Consistent Recovery of Large Diamonds Specials contribute ~70% by revenue and ~5% by volume historically Revenue and production Q1 2022 Recoveries: Since 2012: 26 diamonds in 11 diamonds sold for > US$ 10 includes 2015 to 2020 excess of 300 carats have million each (not included in 186 specials, 6.9
Slide 12: Sales Channels – Strong Q1 2022 Results
Sales Channels – Strong Q1 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 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: Clara Potential Growth Profile
Clara 5 Year Potential Growth Profile 64 sales completed Growth Potential in Primary 100 2000 since inception & Secondary Markets ~$58 million 90 1800 Buyers increased from of diamonds sold by value 88 to 92 in 2022: 80 1600 through the platform Wait-list being maintained Revenue (US$mln) 70 1400 Vo
Slide 15: 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 16: Lucara Investment Rationale
Lucara Investment Rationale A Premium Diamond Equity De-Risked and Positioned for Long-Term Growth Diamonds LUC: TSX APRIL 29, 2022 Diamond market fundamentals are the best they have been in the last five years Share Price CAD $0.62 Market Cap CAD $281 M Lucara Shares Outstanding1 453,566,923 Prolif
Slide 17: 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