VANCOUVER, BC, Feb. 24, 2022 /CNW/ - (TSX: LUC)
(BSE: LUC) (Nasdaq Stockholm: LUC)
Lucara Diamond Corp. ("Lucara" or the "Company") today reports
its results for the year and quarter ended December 31, 2021. View PDF version
YEAR END 2021 HIGHLIGHTS:
- Revenue of $230.1 million
increased 84% over the previous year.
- Average price per carat sold increased to $603/carat, an 80% increase over the previous
year.
- Adjusted EBITDA(1) of $102.5
million increased more than five-fold over the adjusted
EBITDA(1) of $18.4 million
for the same period in 2020, attributed primarily to higher
revenues.
- Net income for the year increased to $23.8 million, or $0.06 earnings per share.
- A total of 841 Specials (single diamonds in excess of 10.8
carats) recovered, representing 7.8% weight percent Specials, the
highest annual volume of Specials recovered since Karowe commenced
production in 2012.
- The third +1,000 carat diamond recovered since 2015.
- A record 2.8 million tonnes of ore processed, representing a
new annual record since the start of production at the Karowe
Mine.
- Equity and debt financings totalling $250 million concluded mid-2021 will support a
$534 million underground expansion
project at the Karowe Mine in Botswana.
- The Karowe underground expansion project was formally approved
by the Board of Directors and a total project investment of
$86.3 million during 2021 focused on
detailed design and engineering, establishing surface
infrastructure and shaft pre-sinking.
- Total sales volume of $28.7
million transacted on the Clara platform, a 168% increase
from the $10.7 million transacted in
2020.
(1)
Adjusted EBITDA is a non-IFRS measures (See "Non-IFRS
Financial Performance Measures").
|
Eira Thomas, President & CEO commented: "2021 was a pivotal
year for Lucara, having de-risked our future growth strategy with
the sanction of the fully financed, Karowe underground expansion
project, conservatively estimated to add $4
billion to future revenues and extend mine life to at least
2040. As important, the diamond market continued to gain
momentum throughout the year, supported by improving fundamentals
that reflect declining global rough diamond supply combined with
rising demand and record diamond jewelry sales. Higher
diamond prices combined with solid operational performance at the
mine and Lucara's novel, diversified approach to diamond sales
through HB, Clara and traditional tenders has delivered strong
revenues for the Company in 2021, demonstrating a full recovery
from the challenges of the pandemic, and reflecting a much better
outlook for 2022 and beyond as we continue to benefit from one of
the strongest diamond markets we have seen in the better part of a
decade."
REVIEW FOR THE QUARTER AND YEAR ENDED DECEMBER 31, 2021
- Operational highlights for 2021 from the Karowe Mine
included:
-
- Ore and waste mined of 3.7 million tonnes (2020: 3.0) and 2.6
million (2020: 2.7), respectively.
- 2.8 million tonnes (2020: 2.7) of ore processed representing a
new annual record since the start of production at the Karowe
Mine.
- A total of 369,390 carats recovered at a recovered grade of
12.93 carats per hundred tonnes of direct milled ore.
- A total of 39 diamonds greater than 100 carats were recovered
during the year, including eight diamonds greater than 300 carats,
eight diamonds between 200 and 300 carats, along with a further 23
stones between 100 and 200 carats in weight.
- Highlights of Specials recoveries during the year
included:
-
- five top white Type IIa gem quality diamonds in excess of 200
carats, including three in excess of 300 carats.
- a 1,174 carat clivage gem of variable quality with significant
domains of high-quality white gem material, the third +1,000 carat
diamond recovered from the Karowe Mine since 2015.
- a 470 carat top light brown clivage diamond.
- a 62.7 carat high quality, fancy pink Type IIa gem
diamond.
- Total Recordable Injury Frequency Rate ("TRIFR") in 2021
declined to 0.1 from 0.3 in 2020, with zero recordable injuries in
three of four quarters of 2021.
- Financial highlights for the year ended December 31, 2021 included:
-
- Total revenues of $230.1 million
(2020: $125.3 million) or
$603 per carat (2020: $335 per carat). The amended and extended sales
agreement with HB Trading BV ("HB") accounted for 65% (44%) of
total revenues recognized in 2021.
- Operating cash costs of $30.02
per tonne processed(1) (2020: $27.80 per tonne processed) are 8% higher than
the prior year because of a combination of increased mining and
processing activity and higher power, labour and insurance
costs.
- Net income for the year increased to $23.8 million ($0.06 earnings per share) as compared to net loss
of $26.3 million ($0.07 loss per share) in 2020.
- As at December 31, 2021, the
Company had cash and cash equivalents of $27.0 million and $23.0
million drawn ($27.0 million
available) from a $50 million working
capital facility.
|
|
(1)
Operating cash cost per tonne processed is a non-IFRS
measures (See "Non-IFRS Financial Performance
Measures").
|
- First drawdown under the $220
million senior secured project financing debt package for an
underground expansion at the Karowe Mine occurred in September 2021. As at December 31, 2021, the Company had drawn
$25.0 million from the project loan
facility and had reduced the outstanding balance on the working
capital facility from $50.0 to
$23.0 million. After year-end the
Company completed a second draw of $20.0
million from the project finance facility.
- Two equity financings were closed that generated net proceeds
of $31.3 million from the sale
of 55,157,733 common shares at a price of C$0.75 per share, including the acquisition of
16.4 million common shares by the Company's largest shareholder,
Nemesia S.a.r.l. ("Nemesia").
RECENT DEVELOPMENTS
- As a result of strong forecast revenues for 2021 and amidst
strengthening prices for large, high value diamonds, a strategic
decision was taken late in 2021 to defer the sale of the Sethunya,
one of the finest, gem quality, exceptional diamonds produced from
the Karowe Mine.
- In February 2022, the Company's
Chairman Lukas Lundin advised the
Company of his intention to retire from the Board of Directors upon
completion of his term at the Company's upcoming Annual General
Meeting to be held May 6, 2022.
DIAMOND SALES
In 2021, diamond sales continued to be held through a
combination of regular tenders, and the Clara platform, for
diamonds less than 10.8 carats, and through HB under the sales
agreement for those gem and near-gem diamonds greater than 10.8
carats which are to be manufactured and sold as polished. All other
diamonds are sold in quarterly tenders. The Company recognized
revenue of $230.1 million or
$603 per carat from the sale of
381,681 carats. The exceptionally strong performance throughout
2021 was driven by higher diamond prices which were reflective of
the impact of strong demand for both rough and polished diamonds,
combined with supply constraints in certain size classes. Beginning
in Q2 2020, all +10.8 carat diamonds mined from Karowe were
delivered to HB pursuant to the terms of the diamond sales
agreement described below.
HB SALES AGREEMENT FOR +10.8 CARAT DIAMOND PRODUCTION FROM
KAROWE
Karowe's large, high value diamonds have historically accounted
for approximately 60% to 70% of Lucara's annual revenues.
Though the mine remained fully operational following the
declaration of COVID-19 as a global pandemic in early 2020, Lucara
decided not to tender any of its +10.8-carat production after early
March 2020 amidst the uncertainty
caused by the global crisis and the significant weakness observed
in the rough diamond market, particularly for large, high quality
rough stones. In July 2020, Lucara
announced a partnership agreement with HB, entering into a
definitive sales agreement for the remainder of 2020, for all
diamonds recovered that exceed +10.8 carats from the Company's 100%
owned Karowe Diamond mine in Botswana. In April 2021, this agreement was subsequently
extended for a 24-month period, effective from January 1, 2021 to December 31, 2022.
Under the amended sales agreement, +10.8 carat gem and near gem
diamonds from the Karowe Mine of qualities that can directly enter
the manufacturing stream are being sold to HB at prices based on
the estimated polished outcome of each diamond. The estimated
polished value is determined through state-of-the-art scanning and
planning technology, with an adjusted amount payable on actual
achieved polished sales, less a fee and the cost of manufacturing.
Following the extension of the HB Agreement in Q2 of 2021, all
+10.8 carat non-gem quality diamonds and all diamonds less than
10.8 carats in weight which did not meet the criteria for sale on
Clara are being sold as rough through the quarterly tender. In the
agreement extension, changes to the payment terms were amended to
better reflect the timing of mine production and the manufacturing
process. This unique pricing mechanism delivers regular cash flow
for this important segment of our production profile.
For the year ended December 31,
2021 the Company recorded revenue of $150.4 million from the HB agreement from the
sale of 23,832 carats, as compared to $55.2
million in 2020 from the sale of 19,556 carats. The increase
is attributed to the contract covering twelve months in 2021,
versus six months in 2020. In addition, prices achieved continued
to increase through 2021 and certain high value stones delivered in
2020 were sold in 2021, resulting in higher revenue and an increase
in the average price per carat sold to $6,433 per carat in 2021 from $2,822 per carat in 2020.
CLARA SALES PLATFORM
Clara, Lucara's 100% owned proprietary, secure, web-based
digital sales platform, continues to gain scale and interest.
Interest in Clara has grown considerably since 2020, sparked by
global restrictions on travel, combined with a new openness to
purchasing rough diamonds in an innovative way. In 2021, 21
sales took place with a total sales volume transacted of
$28.7 million, a 168% increase from
the $10.7 million transacted in 2020.
During Q4 2021, the sales volume transacted was $7.7 million (Q4 2020: $4.0 million), a 93% increase when compared to Q4
2020. Clara also observed a steady upward price trend at each
subsequent sale throughout fiscal 2021. The number of buyers on the
platform increased to 88 at December 31,
2021 with the Company maintaining a waiting list to manage
supply and demand.
While most of the stones transacted through the platform came
from the Karowe Mine, during the last half of 2021, certain
secondary market stones were also offered for sale through the
platform, with good results. Additional supply is required to meet
existing demand and drive the platform's growth. The Company
intends to continue to seek additional supply in 2022, both from
third-party producers and the secondary market.
KAROWE UNDERGROUND EXPANSION UPDATE
The Karowe underground expansion project ("UGP") will extend the
mine life to at least 2040, with mining predominately from the
highest value EM/PK(S) unit and is forecast to contribute
approximately $4 billion in
additional revenues, using conservative diamond prices. Following
Financial Close of the $220 million
senior secured project debt financing on September 2, 2021, the Company's Board of
Directors formally approved the UGP, which has a $534 million capital cost and a five-year
construction period. Mine ramp up is expected in Q1 2026 with full
production from the UGP expected in H2 2026.
$86.3 million has been spent
during the year ended December 31,
2021, primarily in relation to engineering and procurement
of long lead items and the commencement of construction activities
including:
- Pre-sink activities for both the production and ventilation
shafts.
- Clearing for and construction of 40 out of 88 tower foundations
for the 29 km 132kV transmission line bulk power upgrade.
- Mobilization of headframe materials and surface infrastructure
including a 200-person camp and a water treatment facility.
- Pre-sinking of the ventilation and production shafts to -36 and
41m respectively below the shaft
collar with shaft liner toe-in construction completed in the
ventilation shaft and shaft lining continuing back to the
sub-collar. Toe-in construction also was started in the production
shaft by year end.
- Commissioning of the temporary generator farm, which will be
used to power the shaft hoists during sinking until line power is
commissioned, was completed.
Upcoming Activities for the UGP – 2022
Activities for the UGP in 2022 are expected to include the
following:
- Commissioning of the four main sinking winders.
- Completion of the steel headframe structure for the production
and ventilation shafts.
- Transition and sustained main sinking for the production and
ventilation shafts.
- Continuation of detailed design and engineering of the
underground mine infrastructure and layout.
- Commissioning of the 29 km 132kV bulk power supply powerline by
December 2022.
DIAMOND MARKET
Diamond price recovery began in the fourth quarter of 2020 and
had largely improved to pre-pandemic levels by the end of 2021,
owing to strengthening diamond jewelry demand against a backdrop of
declining global diamond supply. Importantly, this price strength
has been broad based, observed across a range of sizes, qualities
and colors for both rough and polished diamonds, highlighting a
return to a healthier, balanced supply chain and a positive outlook
for sustained price strength going forward. The price performance
of very large (+50 carat polished), high value diamonds remained
somewhat of an outlier to this trend owing to the significant
volume of large, high value rough diamond inventory that was sold
by others at deep discounts during the pandemic. Our novel,
committed sales agreement with HB, initiated during 2020 and
subsequently extended in 2021, afforded us the opportunity to begin
protecting and defending prices for this important segment of our
production and by December 31, 2021
this market segment had stabilized and begin to strengthen
also.
UPDATE ON COVID-19 RESPONSE
Measures and guidelines implemented by the Government of
Botswana in late March 2020 have allowed the Karowe Mine to remain
fully operational throughout the pandemic. These measures
designated mining as an essential service in Botswana and included increased travel
restrictions, reduced overall staffing levels and appropriate
social distancing, among other restrictions. The Government of
Botswana extended the state of
emergency several times before it was lifted on September 30, 2021. The Company was able to
continue mining and processing activities during the state of
emergency as most of the workforce (+98%) are Botswana
Nationals.
The Company continues to operate under its approved crisis
management plan, designed to protect the health and well-being of
our employees in Botswana and
Canada as well as the financial
well-being of the business. The Company has permission to conduct
COVID-19 testing at our operations in Botswana which began in January 2021, and regular health screening,
temperature checks and the use of infrared measurements are also
routine. All contractors and visitors are required to have negative
COVID-19 tests and adhere to all COVID-19 protocols while
conducting work at company operations in Botswana. A government-sponsored vaccination
program commenced in Botswana
mid-year. At the end of December
2021, 94% of the Company's workforce was fully vaccinated
and 3% had received a first dose.
QUARTERLY AND ANNUAL FINANCIAL HIGHLIGHTS
|
Three months
ended
December 31
|
|
Year
ended
December
31
|
In millions of
U.S. dollars, except carats or otherwise noted
|
2021
|
2020
|
|
2021
|
2020
|
|
|
|
|
|
|
Revenues
|
$
|
57.9
|
$
|
42.4
|
|
$
|
230.1
|
$
|
125.3
|
Operating
expenses
|
(22.3)
|
(21.7)
|
|
(80.3)
|
(72.6)
|
Net income (loss)
for the period
|
1.7
|
(3.9)
|
|
23.8
|
(26.3)
|
Earnings (loss)
per share (basic and diluted)
|
0.00
|
(0.01)
|
|
0.06
|
(0.07)
|
Operating cash
flow per share1
|
0.05
|
0.02
|
|
0.24
|
0.04
|
Cash on
hand
|
27.0
|
4.9
|
|
27.0
|
4.9
|
Amounts drawn on
working capital facility
|
23.0
|
30.5
|
|
23.0
|
30.5
|
|
|
|
|
|
|
Average price per
carat sold ($/carat)
|
560
|
402
|
|
603
|
335
|
Operating expenses
per carat sold ($/carat)
|
215
|
205
|
|
210
|
194
|
Operating margin
per carat sold ($/carat)1
|
345
|
197
|
|
393
|
141
|
Carats
sold
|
103,501
|
105,648
|
|
381,681
|
373,748
|
1
Operating cash flow per share before working capital adjustments
and operating margin per carat sold are non-IFRS measures. See "Use
of Non-IFRS Financial Performance Measures".
|
QUARTERLY RESULTS OF OPERATIONS – KAROWE MINE, BOTSWANA
|
UNIT
|
Q4-21
|
Q3-21
|
Q2-21
|
Q1-21
|
Q4-20
|
|
Sales
|
|
|
|
|
|
|
|
Revenues generated
from the sale of Karowe
diamonds in the quarter
|
US$M
|
56.5
|
72.5
|
45.9
|
53.1
|
42.3
|
|
Carats recovered
from Karowe sold for
revenues recognized during the period
|
Carats
|
102,791
|
117,162
|
68,806
|
91,734
|
105,329
|
|
Average price per
carat for proceeds
received during the period
|
US$
|
550
|
619
|
667
|
579
|
401
|
|
Production
|
|
|
|
|
|
|
|
Tonnes mined
(ore)1
|
Tonnes
|
610,072
|
1,190,856
|
900,660
|
967,089
|
748,296
|
|
Tonnes mined
(waste)1
|
Tonnes
|
276,263
|
696,907
|
787,227
|
859,347
|
434,082
|
|
Tonnes processed
|
Tonnes
|
705,877
|
738,986
|
726,379
|
673,646
|
684,768
|
|
Average grade
processed
|
cpht
(*)
|
12.8
|
13.2
|
13.9
|
11.9
|
14.6
|
|
Carats
recovered
|
Carats
|
90,634
|
97,412
|
101,330
|
80,014
|
100,059
|
|
Costs
|
|
|
|
|
|
|
|
Operating expense
per carat sold
|
US$
|
217
|
198
|
219
|
215
|
205
|
|
Sustaining capital
expenditures
|
US$M
|
9.1
|
3.4
|
2.4
|
0.4
|
4.4
|
|
Underground
expansion project2
|
US$M
|
21.8
|
32.0
|
22.6
|
9.9
|
8.3
|
|
(*) carats per
hundred tonnes
|
(1)
|
The ore and waste
tonnes for Q1 2021, Q2 2021 and Q3 2021 were adjusted in Q4 2021 to
reflect the results of the year-end depletion reconciliation, which
impacted the allocation of tonnes mined between ore and
waste.
|
(2)
|
Excludes qualifying
borrowing cost of $1.5 million capitalized during Q4
2021.
|
2022 OUTLOOK
This section of the press release provides management's
production and cost estimates for 2022. These are "forward-looking
statements" and subject to the cautionary note regarding the risks
associated with forward-looking statements. Based on updated
expectations for revenue in 2022, attributed to the recent and
expected strength in the rough and polished diamond markets,
diamond revenue guidance has been increased to between $195.0 million and $225.0
million (from $185.0 million
to $215.0 million). Diamond
revenue guidance does not include revenue related to the sale of
exceptional stones, or the Sethunya.
Karowe Diamond
Mine
|
Full Year –
2022
|
In millions of
U.S. dollars unless otherwise noted
|
|
Diamond revenue
(millions) (revised)
|
$195 to
$225
|
Diamond sales
(thousands of carats)
|
300 to
340
|
Diamonds recovered
(thousands of carats)
|
300 to
340
|
Ore tonnes mined
(millions)
|
3.1 to
3.5
|
Waste tonnes mined
(millions)
|
1.5 to
2.1
|
Ore tonnes
processed (millions)
|
2.6 to
2.8
|
Total operating
cash costs(1) including waste mined(2)
(per tonne processed)
|
$29.50 to
$33.50
|
Botswana general
& administrative expenses including marketing costs (per tonne
processed)
|
$3.50 to
$4.00
|
Tax
rate(3)
|
0%
|
Average exchange
rate – USD/Pula
|
11.0
|
(1)
|
Operating cash costs
are a non-IFRS measure. See "Non-IFRS Financial Performance
Measures".
|
(2)
|
Includes ore and
waste mined cash costs of $5.75 to $6.25 (per tonne mined) and
processing cash costs of $12.00 to $13.00 (per tonne
processed).
|
(3)
|
The Company is
subject to a variable tax rate in Botswana based on a profit and
revenue ratio which increases as profit as a percentage of revenue
increases. The lowest variable tax rate is 22% while the highest
variable tax rate is 55% (only if taxable income were equal to
revenue). Capital expenditures are deductible when incurred.
With planned capital expenditures of up to $110 million for the
UGP, a tax rate of 0% is forecast for 2022. Should capital
expenditures vary from plan, the Company could be subject to
current tax.
|
In 2022, the Company's revenue forecast assumes that 100% of the
carats recovered will come from the higher value M/PK(S) and
EM/PK(S) units within the South Lobe in accordance with the mine
plan.
The assumptions for carats recovered and sold are consistent
with achieved performance in recent years. The number of tonnes
processed is also consistent with recent achievements, noting that
actual tonnes processed in 2021 was about 6% higher than 2020 due
to improving plant reliability because of the success of the
preventative maintenance plan that has been implemented.
Waste tonnes that were deferred in 2021 as other mining areas in
the open-pit were prioritized are expected to be caught up in
between 2022 and 2024. The estimated processing cost per tonne
processed is higher than previous years, reflecting expected
inflationary pressure on labour and commodity costs.
In 2022, capital costs for the underground expansion are
expected to be up to $110 million and
will focus on the commencement of main shaft sinking activities,
the commissioning of the bulk power supply 132 kV line and
substations and detailed engineering for the underground
development. Sustaining capital and project expenditures are
expected to be up to $17 million with
a focus on completion of a community sports facility, dewatering
activities and an expansion of the tailings storage
facility.
Lucara Botswana's progressive tax rate computation allows for
the immediate deduction of operating costs, including capital
expenditures, in the year in which they are incurred. Based
on the updated 2022 revenue guidance of $195
million to $225 million and
assuming the underground development expenditures are incurred, the
expected tax rate will be 0% for 2022.
CONFERENCE CALL
The Company will host a conference call and webcast to discuss
the results on Friday, February 25,
2022 at 7:00am Pacific,
10:00am Eastern, 3:00pm UK, 4:00pm
CET.
CONFERENCE CALL:
Please call in 10 minutes before the
conference call starts and stay on the line (an operator will be
available to assist you).
Conference ID:
80467256 / Lucara Diamond
Dial-In Numbers:
Toll-Free Participant
Dial-in North America
|
(+1) 888 390
0546
|
UK Toll
free
|
0 800 652
2435
|
All Other
International Participant Dial-In
|
(+1) 778 383
7413
|
Webcast:
To view the live webcast presentation, please log on using this
direct link:
https://produceredition.webcasts.com/starthere.jsp?ei=1528332&tp_key=a5283bd7b2
The presentation slideshow will also be available in PDF format
for download from the Lucara website (Link to presentation).
Conference Replay:
A replay of the telephone conference will be available two hours
after the completion of the call until March
4, 2022.
Replay number (Toll
Free North America)
|
(+1) 888 390
0541
|
Replay number
(International)
|
(+1) 416 764
8677
|
The pass code for the replay is: 467256 #.
On behalf of the Board,
Eira Thomas
President and Chief Executive Officer
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ABOUT LUCARA
Lucara is a leading independent producer of large exceptional
quality Type IIa diamonds from its 100% owned Karowe Mine in
Botswana and owns a 100% interest
in Clara Diamond Solutions, a secure, digital sales platform
positioned to modernize the existing diamond supply chain and
ensure diamond provenance from mine to finger. The Company
has an experienced board and management team with extensive diamond
development and operations expertise. The Company operates
transparently and in accordance with international best practices
in the areas of sustainability, health and safety, environment, and
community relations.
The information is information that Lucara is obliged to make
public pursuant to the EU Market Abuse Regulation and the Swedish
Securities Markets Act. This information was submitted for
publication, through the agency of the contact person set out
above, on February 24, 2022 at
3:30pm Pacific Time.
NON-IFRS FINANCIAL PERFORMANCE MEASURES
This news release refers to certain financial measures, such as
adjusted EBITDA, adjusted operating earnings, operating cash flow
per share, operating margin per carat sold and operating cost per
tonne of ore processed, which are not measures recognized under
IFRS and do not have a standardized meaning prescribed by IFRS.
These measures may differ from those made by other corporations and
accordingly may not be comparable to such measures as reported by
other corporations. These measures have been derived from the
Company's financial statements, and applied on a consistent basis,
because the Company believes they are of assistance in the
understanding of the results of operations and financial position.
Please refer to the Company's MD&A for the year ended
December 31, 2021 for an explanation
of non-IFRS measures used.
CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS
Certain of the statements made and contained herein and
elsewhere constitute forward-looking statements as defined in
applicable securities laws. Generally, these forward-looking
statements can be identified by the use of forward-looking
terminology such as "expects", "anticipates", "believes",
"intends", "estimates", "potential", "possible" and similar
expressions, or statements that events, conditions or results
"will", "may", "could" or "should" occur or be achieved.
Forward-looking statements are based on the opinions and
estimates of management as of the date such statements are made,
and they are subject to a number of known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of the Company to be materially
different from any future results, performance or achievement
expressed or implied by such forward-looking statements. The
Company believes that expectations reflected in this
forward-looking information are reasonable, but no assurance can be
given that these expectations will prove to be accurate and such
forward-looking information included herein should not be unduly
relied upon.
In particular, forward-looking information and forward-looking
statements in this news release may include, but are not limited
to, information or statements with respect to the equity and
project debt financings, the intended use of proceeds, the
Company's ability to comply with the terms of the Facilities which
are required to construct the Karowe UGP, that expected cash flow
from operations, combined with external financing will be
sufficient to complete construction of the UGP, the economic
potential of a mineralized area, the size and tonnage of a
mineralized area, anticipated sample grades or bulk sample diamond
content, future production activity, the future price and demand
for diamonds, future forecasts of revenue and variable
consideration in determining revenue, estimation of mineral
resources, exploration and development plans, cost and timing of
the development of deposits and estimated future production,
permitting time lines, currency exchange rates, success of
exploration, requirements for and availability of additional
capital, capital expenditures, operating costs, timing of
completion of technical reports and studies, tax rates, timing of
drill programs, government regulation of operations, environmental
risks and ability to comply with all environmental regulations,
reclamation expenses, title matters including disputes or claims,
limitations on insurance coverage, negotiations and agreements
among the Company and the Botswana Mine Workers Union, the
completion of transactions and timing and possible outcome of
pending litigation, the profitability of Clara and the Clara
Platform, and the scaling of the digital platform for the sale of
rough diamonds owned by Clara, the benefits to the Company of
diamond supply agreements with HB and the ability to generate
better prices from the sale of the Company's +10.8 carat production
as a polished stone.
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-looking information as a result of those factors discussed
in or referred to under the heading "COVID-19 Global Pandemic" in
the Company's most recent MD&A and under the heading "Risks and
Uncertainties" in the Company's most recent Annual Information
Form, both available at http://www.sedar.com, as well as changes in
general business and economic conditions, the ability to continue
as a going concern, changes in interest and foreign currency rates,
changes in inflation, the supply and demand for, deliveries of and
the level and volatility of prices of rough diamonds, costs of
power and diesel, impacts of potential disruptions to supply
chains, acts of foreign governments and the outcome of legal
proceedings, inaccurate geological and recoverability assumptions
(including with respect to the size, grade and recoverability of
mineral reserves and resources), and unanticipated operational
difficulties (including failure of plant, equipment or processes to
operate in accordance with specifications or expectations, cost
escalations, unavailability of materials and equipment, government
action or delays in the receipt of government approvals, industrial
disturbances or other job actions, adverse weather conditions, and
unanticipated events relating to health safety and environmental
matters).
Accordingly, readers are cautioned not to place undue reliance
on these forward-looking statements which speak only as of the date
the statements were made, and the Company does not assume any
obligations to update or revise them to reflect new events or
circumstances, except as required by law.
SOURCE Lucara Diamond Corp.