VANCOUVER, BC, May 5, 2022 /PRNewswire/ -- (TSX: LUC) (BSE: LUC)
(Nasdaq Stockholm: LUC)
Lucara Diamond Corp. ("Lucara" or the "Company") today reports
its results for the quarter ended March
31, 2022. View PDF version.
Q1 2022 HIGHLIGHTS:
- Revenue in Q1 2022 increased by 28% to $68.2 million from $53.1
million in Q1 2021 a reflection of strong rough and polished
diamond market fundamentals into the first quarter.
- The combination of a strong diamond market, combined with the
sale of several higher value rough diamonds in Q1 2022 generated an
average price per carat (excluding top-up payments) of $690 for Karowe diamonds sold during the quarter
(Q1 2021: $480 per carat).
- A total of 186 Specials (single diamonds in excess of 10.8
carats) were recovered, representing 6.9% weight percent Specials
(Q1 2021: 6.8%).
- Sales volumes transacted on Clara during Q1 2022 totalled
$7.0 million, a 17% increase from the
$6.0 million in sales volume
transacted in Q1 2021. A third-party producer will commence a
series of trial sales beginning in Q2 of 2022.
- A total project investment of $31.1
million into the Karowe UGP during Q1 2022 focused on shaft
pre-sinking activities and construction of a new 29km 132kV
transmission line.
Eira Thomas, President & CEO commented: "Lucara begins the
year on a positive trajectory, having fully financed and
significantly de-risked our growth plans for the underground
expansion in 2021 and delivered another strong quarter of operating
and financial results in Q1, reflecting solid performance at the
mine combined with continued buoyancy in diamond
prices. Preparation for main shaft sinking is well underway
and anticipated to begin in Q2. Our multi-channel approach to
sales through tenders, Clara and HB continues to mature, creating
alignment along the value chain, delivering efficiencies and higher
margins. Despite current geo-political challenges, Lucara
remains optimistic about diamond prices as natural rough diamond
supply constraints continue to manifest globally."
REVIEW FOR THE QUARTER ENDED MARCH 31,
2022
- Operational highlights from the Karowe Mine for the three
months ended March 31, 2022
included:
-
- Mined 0.8 million tonnes (Q1 2021: 1.0) and 0.5 million (Q1
2021: 0.8) of ore and waste, respectively.
- Processed 0.7 million tonnes of ore (Q1 2021: 0.7) and
recovered 83,917 carats (Q1 2021: 80,014 carats), achieving a
recovered grade of 12.6 carats per hundred tonnes (Q1 2021: 11.9
cpht).
- A total of 10 diamonds greater than 100 carats were recovered
during the quarter.
- Total Recordable Injury Frequency Rate ("TRIFR") of 0.23 in Q1
2022 reflects one medical treatment case reported (Q1 2021:
zero).
- Financial highlights for the three months ended March 31, 2022 included:
-
- Revenues from the sale of 80,295 carats recovered from the
Karowe Mine were $67.2 million (Q1
2021: $53.0 million from the sale of
91,734 carats from Karowe). The sales agreement with HB
Trading BV ("HB") accounted for 66% (Q1 2021: 72%) of total
revenues recognized in the quarter.
- Operating cash costs of $29.30
per tonne processed(1) (Q1 2021: $29.24 per tonne processed) remained consistent
with the comparative period. Q1 2022 costs are inclusive of
the impact of higher power, labour and insurance costs, partially
offset by a comparatively stronger U.S. Dollar.
- Adjusted EBITDA(1) of $36.0
million increased by 62% from $22.2
million for the same period in 2021, attributed primarily to
higher revenues.
- Net income for the quarter increased to $19.0 million ($0.04 basic earnings per share) from $3.4 million ($0.01
basic earnings per share) in Q1 2021.
(1) Operating cash cost per tonne processed and
adjusted EBITDA are non-IFRS measures (See "Use of Non-IFRS
Financial Performance Measures").
- Cash position and liquidity:
-
- As at March 31, 2022, the Company
had cash and cash equivalents of $39.1
million.
- The Company drew an additional $20.0
million from the $170.0
million project loan facility in the quarter for a total
drawn amount of $45.0 million.
- Strong cash flow from operations allowed for a reduction
to the outstanding balance on the working capital facility, from
$23.0 to $12.0
million as at March 31, 2022.
DIAMOND SALES
Consistent with the Company's approach through 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 $68.2 million in the first quarter of 2022 from
the sale of 80,295 carats from Karowe. This amount included top-up
payments of $11.7 million as well as
$1.0 million from the sale of
third-party goods on the Clara platform. In comparison, the Company
achieved revenues of $53.1 million
from sales of 91,760 carats in the first quarter of 2021 which
included top-up payments of $9.1
million as well as $0.1
million in revenue from third-party goods sold through the
Clara platform.
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. This strength continued
into Q1 2022. 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. In 2020,
Lucara announced a partnership agreement with HB, entering into a
definitive sales agreement for diamonds recovered that exceed +10.8
carats from the Company's 100% owned Karowe Diamond mine in
Botswana. This agreement was
subsequently amended and extended to December 31, 2022. The mechanisms of the
agreement result in complete transparency within the value chain
and create important alignment between the producer and the
manufacturer for the first time.
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 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, 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 three months ended March 31,
2022, the Company recorded revenue of $45.2 million from the HB agreement (inclusive of
top-up payments of $11.7 million), as
compared to revenue of $38.0 million
in Q1 2021 (inclusive of top-up payments of $9.1 million). In Q1 2021, all +10.8 carat stones
were sold through HB. Beginning in April 2021 when the HB agreement was extended,
any +10.8 carat stones not earmarked for manufacturing by HB were
sold through the Company's quarterly tender process. The increase
in revenue in Q1 2022 is attributed to higher prices achieved,
despite lower sale volumes. This reflects a significant improvement
in diamond market fundamentals between the two comparative
quarters. Due to natural variability in the quality profile of the
+10.8ct production in any production period or fiscal quarter, the
recorded revenue and associated top ups will fluctuate. This
is expected and reflects a combination of current diamond market
prices as well as variability in the quality of Karowe's production
profile in any given period.
As a result of the sales agreement with HB, the Company also
participated in polished diamond price increases during Q1 2022 as
rough diamonds sold to HB in previous quarters were polished and
sold. In Q1 2022, top-up payments of $11.7 million (Q1 2021: $9.1 million) were included in revenue for the
quarter. At March 31, 2022 a number
of higher value and more technically complex stones that take
longer to manufacture had not fully completed the manufacturing and
sales process. These stones were delivered to HB in 2021 and Q1
2022. As these stones finish the manufacturing process and are
sold, the Company's may record additional revenue in the form of
"top-up" payments from these sales.
CLARA SALES PLATFORM
Clara, Lucara's 100% owned proprietary, secure, web-based
digital sales platform, continues to gain scale and
interest. Interest in Clara continues to grow as the benefits
of purchasing rough diamonds in an innovative way become
evident. In Q1 2022, three sales (Q1 2021: six sales) took
place with a total sales volume transacted of $7.0 million, a 17% increase from the
$6.0 million transacted in Q1 2021,
reflecting a strong upward price trend observed on Clara during Q1
2022. The number of buyers on the platform increased to 92 at
March 31, 2022 with the Company
maintaining a waiting list to manage supply and demand.
While most of the stones transacted through the platform are
supplied from the Karowe Mine, secondary market stones continued to
be offered for sale through the platform with good results.
Additional supply is required to meet existing demand and drive the
platform's growth and the Company expects to commence a series of
trial sales on the Clara platform with a third-party producer in Q2
2022. 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 UGP is expected to extend the mine life to at least
2040, with underground carat production predominantly from the
highest value EM/PK(S) unit and is forecast to contribute
approximately $4 billion in
additional revenues, using conservative diamond prices. The
Karowe UGP has an estimated $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. The Company is financing the Karowe
UGP through a combination of cash flow from operations and project
debt.
During the three months ended March 31,
2022, a total of $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 continued with a focus on the setup and transition to main
sinking.
- Placement of the ventilation shaft main sinking stage into the
shaft column along with placement of the ventilation shaft headgear
over the shaft collar.
- Assembly of the production shaft main sink stage with
outfitting planned for Q2 in preparation for its installation in
the shaft column, while pre-assembly of the production shaft
headgear steel continued.
- Cold commissioning of the ventilation shaft kibble winder was
completed, with progress on the ventilation shaft stage winder in
preparation for winder rope-ups in April, while installation of the
production shaft stage winder commenced.
- Completed construction of all 88 tower foundations for the 29
km 132kV transmission line bulk power upgrade and commenced
construction at both Letlhakane and Karowe substations.
Activities for the UGP in the upcoming quarters of 2022 are
expected to include the following:
- Execution of the main sinking contract for the production and
ventilation shafts
- Completion of the steel headgear structure for the production
and ventilation shafts.
- Commissioning of the four main sinking winders.
- Commencement of 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
A strong rebound in diamond jewelry demand, combined with
growing global natural rough diamond supply constraints,
contributed to a healthy recovery in diamond prices in 2021.
This price strength continued into the first quarter of 2022 where
increases were observed across most sizes, qualities and colors of
diamonds.
Current pricing trends have been impacted by uncertainty
triggered by geopolitical events, including the conflict in
Ukraine and the COVID-19 pandemic,
however, we continue to observe healthy market fundamentals
overall, and our longer-term outlook remains positive for diamond
prices. The diamond price impact of sanctions on Russian diamond
supply, which accounts for a significant portion of global
reserves, cannot be predicted at this time.
The benefits of the committed sales agreement with HB continued
to be realized during the first quarter of 2022 as the Company
participated in polished diamond price increases during Q1 2022 for
diamonds delivered in previous quarters. The integrated approach,
using state of the art scanning and planning technology has further
enhanced the final achieved polished outcome for very large (+50
carat polished) and high value diamonds, a critical production
segment for the Company.
QUARTERLY FINANCIAL HIGHLIGHTS
|
Three Months
ended March
31
|
In millions of U.S.
dollars, except carats or otherwise noted
|
2022
|
2021
|
|
|
|
|
Revenues
|
$
|
68.2
|
$
|
53.1
|
Operating
expenses
|
|
(18.0)
|
(19.7)
|
Net income for the
period
|
$
|
19.0
|
$
|
3.4
|
|
|
|
|
Earnings per share
(basic and diluted)
|
$
|
0.04
|
$
|
0.01
|
Operating cash flow per
share1
|
$
|
0.08
|
$
|
0.06
|
|
|
|
|
Cash on hand
|
$
|
39.1
|
$
|
27.9
|
Amounts drawn on
working capital facility
|
$
|
12.0
|
$
|
50.0
|
Amounts drawn on
project finance capital facility
|
$
|
45.0
|
$
|
–
|
|
|
|
|
Average price per carat
sold ($/carat)2
|
$
|
690
|
$
|
480
|
Carats sold
|
|
80,295
|
91,734
|
|
1 Operating cash flow per share
before working capital adjustments is a non-IFRS measures. See "Use
of Non-IFRS Financial Performance Measures".
|
2 The
Company's revenue is primarily generated from the sale of Karowe
diamonds. The average price per carat sold presented in this table
relates exclusively to the sale of Karowe diamonds and excludes
top-up payment received during the quarter. Also excluded is
the value of diamonds purchased from third parties and sold by the
Company through Clara. See Table 2 in the Q1 2022 MD&A for
additional information.
|
QUARTERLY RESULTS OF OPERATIONS – KAROWE MINE, BOTSWANA
|
UNIT
|
Q1-22
|
Q4-21
|
Q3-21
|
Q2-21
|
Q1-21
|
Sales
|
|
|
|
|
|
|
Revenues generated from
the sale of Karowe diamonds in the quarter
|
US$M
|
67.2
|
56.5
|
72.5
|
45.9
|
53.0
|
Carats recovered from
Karowe sold for revenues recognized during the period
|
Carats
|
80,295
|
102,791
|
117,162
|
68,806
|
91,734
|
Average price per carat
for proceeds received during the period, excluding top-up
payments
|
US$
|
690
|
418
|
588
|
522
|
480
|
Production
|
|
|
|
|
|
|
Tonnes mined
(ore)
|
Tonnes
|
811,947
|
610,072
|
1,190,856
|
900,660
|
967,089
|
Tonnes mined
(waste)
|
Tonnes
|
482,104
|
276,263
|
696,907
|
787,227
|
859,347
|
Tonnes processed
|
Tonnes
|
666,488
|
705,877
|
738,986
|
726,379
|
673,646
|
Average grade
processed
|
cpht
(*)
|
12.6
|
12.8
|
13.2
|
13.9
|
11.9
|
Carats
recovered
|
Carats
|
83,917
|
90,634
|
97,412
|
101,330
|
80,014
|
Costs
|
|
|
|
|
|
|
Operating expense per
carat sold
|
US$
|
224
|
217
|
198
|
219
|
215
|
Sustaining capital
expenditures
|
US$M
|
0.8
|
9.1
|
3.4
|
2.4
|
0.4
|
Underground expansion
project(1)
|
US$M
|
31.1
|
21.8
|
32.0
|
22.6
|
9.9
|
(*) carats per hundred
tonnes
(1) Excludes
qualifying borrowing cost capitalized in Q1 2022 and 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. In
February 2022, based on updated
expectations for revenue in 2022, the diamond revenue guidance
issued was 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 (an
individual rough diamond which sells for more than $10 million), or the Sethunya.
Karowe Diamond
Mine
|
Full Year –
2022
|
In millions of U.S.
dollars unless otherwise noted
|
|
Diamond revenue
(millions) (revised as of February 2022)
|
$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
CONFERENCE CALL
The Company will host a conference call and webcast to discuss
the results on Friday, May 6, 2022 at
7:00 a.m. Pacific, 10:00 a.m. Eastern, 3:00
p.m. UK, 4:00 p.m. CET.
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:
39751892 / 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=1544386&tp_key=18045919de
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 May 13, 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: 044225 #.
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 Diamond Mine
in Botswana. The Karowe Mine has
been in production since 2012 and is the focus of the Company's
operations and development activities. Clara Diamond Solutions
Limited Partnership ("Clara"), a wholly-owned subsidiary of Lucara,
has developed 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. Lucara has an experienced board and
management team with extensive diamond development and operations
expertise. Lucara and its subsidiaries operate transparently
and in accordance with international best practices in the areas of
sustainability, health and safety, environment, and community
relations. Lucara has adopted the IFC Performance Standards and the
World Bank Group's Environmental, Health and Safety Guidelines for
Mining (2007). Accordingly, the development of the Karowe
underground expansion project ("UGP") adheres to the Equator
Principles. Lucara is committed to upholding high standards while
striving to deliver long-term economic benefits to Botswana and the communities in which the
Company operates.
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 May 5, 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 three months ended
March 31, 2022 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.
For further information: Tetiana Konstantynivska Investor
Relations & Communications, +1 604 674 0272|
info@lucaradiamond.com; Sweden Robert Eriksson, Investor Relations
& Public Relations, +46 701 112615 | reriksson@rive6.ch; UK
Public Relations, Charles Vivian /
Jos Simson, Tavistock, +44 778 855
4035 | lucara@tavistock.co.uk