Lucara Diamond: Results for Q2 2021

11th August 2021

LUCARA ANNOUNCES STRONG RESULTS FOR THE SECOND QUARTER OF 2021 AND FULL PROJECT FINANCING FOR THE KAROWE UNDERGROUND EXPANSION

Lucara Diamond Corp. (“Lucara” or the “Company”) today reports its results for the second quarter of 2021 ending June 30, 2021, with strong financial and operational performance.

RECENT HIGHLIGHTS:

  • Full project funding for the Karowe underground expansion project following successful completion of debt and equity financings in July:
    • On July 12, 2021, loan documentation was signed in relation to the previously announced senior secured project financing debt package of $220 million (the “Facilities”) between Lucara Botswana as the Borrower and a syndicate of five mandated lead arrangers. The Facilities include two tranches: a project finance facility of $170 million to fund the development of the underground project, and a $50 million working capital facility to re-finance the Company’s existing debt and to support on-going operations.
    • On July 15, 2021, the Company closed two previously announced financings, generating gross proceeds of C$41.4 million from the sale of 55,157,733 common shares at a price of C$0.75 per share. Net proceeds from these financings will be used for working capital to support the development and ongoing operation of the Karowe Mine, including the underground expansion.
  • Recovery of four pink diamonds from direct milling from the EM/PK(S) unit of the South Lobe, including a 62.7 carat high quality, fancy pink Type IIa gem diamond and a 22.21 carat pink gem of similar quality along with two additional pink gems of similar colour and purity weighing 11.17, and 5.05 carats.
  • Diamond market recovery in 2021 evidenced in Lucara’s strong operational and financial results for Q2 2021, with revenue of $46.3 million resulting in an average price per carat sold of $671.
  • Sales through Clara increased 38% from Q1 2021, with transaction values of $8.3 million over six sales. Strong price increases continued through Q2 2021 and the number of buyers on the platform increased to 84 as of June 30, 2021.
  • A record production quarter for the recovery of specials, +10.8 carats, in Q2 2021 resulting in 10.2% weight percentage of total direct milling recovered carats.
  • The recovery of the third +1,000 carat diamond recovered from the Karowe Mine since 2015, at 1,174.76 carat stone. During the first half of 2021, 21 diamonds greater than 100 carats, and 5 diamonds over 300 carats have been recovered from Karowe.

Eira Thomas, President & CEO commented: “We end the second quarter with a stronger, more positive outlook on the diamond market, our business, and our plans for growth. With a fully financed underground project now confirmed, we are excited to be ramping up on our expansion plans at Karowe in the second half of the year. Sales through Clara also continued strong in Q2, demonstrating a great need for this transformational technology as modernization of the diamond supply chain continues. In respect of mining, Karowe delivered another record quarter in respect of diamonds >10.8 carats in size, including 21 diamonds >100 carats, 3 diamonds > 300 carats and our 3rd diamond over 1,000 carats. This remarkable resource continues to improve the deeper we mine, consistent with the resource model and underpins our rationale for the Karowe underground expansion, extending mine-life out to at least 2040.”

News in full

In the TV clip below, Lucara’s CEO Eira Thomas explains the business, including the deal with Louis Vuitton and tells us more about Clara, Lucara’s wholly owned digital sales platform