Investors

Investors

2014 Q2 Highlights

Safety: Karowe had one lost time injury during the quarter, resulting in a Lost Time Injury Frequency Rate ("LTIFR") of 0.15 for the 12 months to June 30. LTIFR is the number of lost time injuries multiplied by 200,000 and divided by the number of hours worked.

Cash flows and operating margins: The Company achieved second quarter tender proceeds of $95.0 million ($849 per carat) from sales of 111,902 carats of diamond. This includes proceeds of $24.7 million, which were received after the quarter and will be reported in the Company's third quarter revenues. Total proceeds for the first half of the year were $128.6 million ($586 per carat) from the sale of 219,370 carats of diamond. Total Company proceeds for the half year of $586 per carat at an operating cost of $124 per carat resulted in an operating margin of $462 per carat.

Revenues for the second quarter, excluding the late proceeds of $24.8 million were $71.0 million ($836 per carat). At an operating cost of $132 per carat, the operating margin for the quarter was $704 per carat.

Following the second quarter the Company concluded its second exceptional stone tender in July for proceeds of $40.1 million, which results in full year to date proceeds of $168.6 million at a sales price of $764 per carat. This compares to the Company's 43-101 technical report average price of $394 per carat. These sales tenders excluding the exceptional stone sales have sold for an average sales price of $361 per carat and the exceptional stone tenders have achieved an average sales price of $33,839 per carat for the year.

Net cash position: The Company's quarter-end cash balance was $82.1 million compared to a net debt position of $29.6 million in the previous year and $49.4 million of cash at the end of 2013. The June cash balance of $82.1 million excludes $24.8 million of cash received after the quarter end.

Karowe operating performance: Karowe's operating performance exceeded plan during the period in terms of ore and waste mined and carats recovered. The Company recovered a record number of 252 special stones (+10.8 carats) during the period with an average size of 27.84 carats.

Adjusted Earnings per share: Adjusted earnings per share (see pages 5 and 7 Non-IRFS measures), is $0.10 per share for the three month period ended June 30, 2014 and $0.13 per share for year to date June. Adjusted earnings per share removes the non-cash foreign exchange impact on an intercompany loan between Corporate and Karowe and a deferred tax charge in order to present the current cash distributable on an earnings per share basis. This more accurately reports the Company's distributable profit per share (see select financial information for further detail).

Dividends paid: The Company paid its inaugural semi-annual dividend of 2 cents per share on June 19. The Company is forecast to pay its year-end and special dividend in December. The special dividend will be determined based on revenues generated from the exceptional stone tenders during the year, the Company's financial position and it's expected cash requirements in future periods.

Outlook: The Company has increased its revenue forecast by approximately 60% for the year to between $240-$250 million based on year to date sales, current diamond inventory and its forecast production. The Company has maintained its overall cost outlook for the mine of between $31-$33 per tonne ore processed. The forecast is discussed in the outlook section of the MD&A.

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Stock Info

  • Last: $2.31
    Change: +0.09
    % Change: +4.1
    Time: 10-24-2014
    17:15 EST
    Bid: $2.29
    Bid Size: 16
    Ask: $2.33
    Ask Size: 56
    Day High: $2.33
    Day Low: $2.22
    Volume: 174356
    Trading in $CDN
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Profile


Lucara Diamond Corp. is a new diamond producer. It's two key assets are the Karowe mine in Botswana and the Mothae project in Lesotho. The 100% owned Karowe Mine is a newly constructed state-of-the-art mine which was fully commissioned in Q2 2012 . At the 75% owned Mothae project the company has completed the trial mining stage. The Mothae plant was put on care and maintenance while the Company investigates further development options. Both Mothae and Karowe are large scale assets with tonnage and throughput upside and production has consistently included large, Type IIA stones. Lucara is a member of the Lundin Group of Companies and is listed on the TSX Exchange, NASDAQ OMX Stockholm and the Botswana Stock Exchange under the symbol "LUC".

Mission Statement

To build a leading African-focused diamond production and development company.


Values:

  • A healthy and safe work environment
  • Entrepreneurial spirit
  • Creation of shareholder value
  • Create positive economic and social impact on local communities where we operate
  • Focus on larger-scale advanced diamond projects
  • Seek value opportunities
  • Contribute to the Lundin Group's history of success and excellence in wealth creation for all stakeholders

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2014 Results

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