Lucara Diamond

Primary ticker: (Primary) TSX: LUC, Nasdaq OMX Stockholm:LUC; BSE:LUC
Stage of development: Production
Primary minerals: Diamonds
Project to promote: Karowe Diamond Mine, Clara Diamond Solutions

Live financials

Lucara Diamond Corp. owns 100% of the Karowe Diamond Mine (Karowe) in Botswana and Clara Diamond Solutions (Clara). Karowe has been in production since 2012 and is one of world’s foremost producers of large, high quality, Type IIA diamonds in excess of 10.8 carats, including the historic 1,109 carat Lesedi La Rona (second largest gem diamond ever recovered) and the 813 carat Constellation (sold for a record US$63.1 million).
Clara is a secure, digital sales platform that uses proprietary analytics together with cloud and blockchain technologies to modernize the existing diamond supply chain, driving efficiencies, unlocking value and ensuring diamond provenance from mine to finger.

Management Profile

Eira Thomas – President and CEO

Ms. Thomas brings more than 25 years’ experience in the mining industry, including 14 years with Aber Diamond Corporation (now Dominion Diamond), where she served in ever increasing roles from initial discovery as a geologist to Vice President Exploration and ultimately a Director of the Board. She was co-founder of Stornoway Diamond Corp., serving first as CEO and then as Executive Chairman. There she led the acquisition of the Renard diamond deposit which subsequently became Quebec’s first diamond mine. In 2007, she founded Lucara with partners Mr. Lukas Lundin and Ms. Catherine McLeod Seltzer. Ms. Thomas most recently served as CEO of Kaminak Gold Corporation which was acquired by Goldcorp in 2016 for $520 Million. Ms. Thomas is also a Director of Suncor Energy.

Ayesha Hira, CFA – VP, Corporate Development & Strategy
Ayesha Hira is an experienced executive with over 20 years experience in the mining industry. She began her career as a Canadian geologist, working initially in base metals and gold exploration and then in diamond exploration at De Beers Canada. She later transitioned to capital markets as an equity analyst at CIBC World Markets and then as a global mining specialist in institutional equity sales at RBC Capital Markets and Jefferies International. Ms. Hira has had extensive experience working with mining companies listed in North America, Australia, South Africa, UK and Europe, and dealing with a global buy side client base.

What is your rationale for attending 121 Mining Investment?

To introduce the story to new investors and update the market. To grow awareness of the Lucara story as one of world’s foremost producers of large, high quality, Type IIA diamonds in excess of 10.8 carats, paying a dividend with a strong balance sheet and of our growth potential with the Karowe Diamond Mine underground project and Clara Diamond Solutions.

What recent news would you like to highlight to investors attending?

We will be focused on providing an update on our operations at the Karowe Diamond Mine, and our strategy to grow the company going forward with respect to the Karowe underground project, Clara Diamond Solutions and corporate development. In June we released an Updated Mineral Resource for Karowe which is supporting the work on the feasibility study for the potential development of the underground expansion. We announced a 54% increase in the Indicated Mineral Resource of the prolific South Lobe of Karowe which is largely attributed to the higher-grade EM/PK(S) unit which becomes volumetrically more dominant at depth.

What are your key goals for the next 3, 6 and 12 months?

3 Months:

• Update the market on Clara Diamond Solutions as we move into continuous sales and grow the platform by inviting other producers and manufacturers to use Clara •Continued work on the Karowe underground feasibility study for a timely delivery of results to the market by H2/19 •Actively look for corporate development opportunities

6 Months:

• Focus on growth through Clara Diamond Solutions and •Completion of the Feasibility study of the Karowe Underground; •Ongoing brownfield and greenfields exploration

12 Months:

• Release of results on the underground feasibility study at Karowe expected in the second half of 2019 •Delivery of continued strong results from the Karowe Diamond Mine & growth of the Clara platform

What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?

Differentiating Lucara as a high quality large stone diamond producer not exposed to the same price pressures of small stone diamond producers & the emergence of synthetic diamonds.
Delivering growth through the feasibility study on the potential underground expansion of Karowe & through Clara.
Management continues to focus on solid operations at Karowe, & a timely delivery of the underground feasibility study at Karowe. Clara commenced sales on track in Nov 2018 & Lucara is in discussions with other producers & manufacturers to use the platform. Lucara actively engages with the investment community & helps promote the natural diamond industry through work & membership of the DPA.

In a sentence, what do you think makes your company such a compelling investment?

Lucara Diamond has a strong balance sheet, offers a progressive annual dividend, owns 100% of the Karowe mine which is one of the world’s foremost producers of large, high quality, Type IIA diamonds in excess of 10.8 carats and provides growth opportunities through the Karowe underground project and Clara Diamond Solutions.