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Lucara Diamond Corp (TSX:LUC)

Summary

Lucara Diamond Corp. (TSX, Nasdaq Stockholm and Botswana Stock Exchanges:LUC) is a Canadian diamond mining company with a producing mine and exploration licenses in Botswana. The mine is called “Karowe” which means precious stone in the local language. The mine was completed in 2012 on time and today generates revenues greater than US$230 million per year.

Market Overview

$2.360 (0.000%)
Vol 205,986.00
10 Days Avg Vol 145,129.33
3 Mo Avg Vol 275,261.75
52 Wk Lo/Hi $1.970 - $2.910
YTD Price Gain % -19.57%
12 Wks Moving Avg 2.155778
200 Days Moving Avg 2.246950
Market Cap 935,762,153

Updated: Market Close, 09/21/2018

Company Background

Lucara Diamond Corp. (TSX, Nasdaq Stockholm and Botswana Stock Exchanges:LUC), a Lundin Group company, is a Canadian listed diamond mining company with a producing mine and prospecting licenses located in the highly prolific Orapa Kimberlite district of Botswana. Lucara’s key asset is its 100% owned Karowe Mine - a state-of-the-art mine which was fully commissioned in Q2 2012. Karowe is a large-scale asset that consistently recovers large, high-value Type IIa gem-quality diamonds, including the World’s highest and second highest valued rough diamonds on historical record.

Highlights

Company Highlights:

(All dollar amounts are in US dollars unless otherwise stated)
  • Operates the Karowe Mine in the politically stable diamond producing country of Botswana
  • 353,974 carats recovered in 2016
  • Earnings per share were $0.19 per share for 2016
  • Stable dividend yield stock
  • Cash in hand $91.4M (2017 Q3 report) & Strong Cash flow Generation (Sales and marketing activities increasing, and low cost production at Karowe)

Highlights of Lucara's Operating Outlook for 2018 (November 29, 2017 News Release):

(All dollar amounts are in US dollars unless otherwise stated)
  • Revenue is forecast at $170 million to $200 million.
  • The Company anticipates it will declare an annual dividend in 2018 of Canadian $0.10 per share to be paid in four equal payments in the last month of each financial quarter.
  • Based on the positive results from a Preliminary Economic Assessment ("PEA") for a potential underground mine at Karowe, the Company is continuing with a Pre-Feasibility Study ("PFS") with an anticipated release in Q2, 2018.
  • The performance of the Company's mining contractor has improved, and ore mined is forecast to increase to between 2.5 - 2.8 million tonnes in 2018 from 2017 forecast of between 1.4 - 1.6 million tonnes ore mined.

Share Structure

As of January 31, 2018
Shares Issued 382,619,337
Warrants 1,401,590
Options 3,738,337
Fully Diluted 387,759,261

Other Information

Projects:

Karowe Mine:

The mine is called “Karowe” which means precious stone in the local language. The mine was completed in 2012 on time and within a budget of US$120 million. It is a state-of-the-art operation comprising an open pit mine, crushers, Autogenous Mill, X-Ray Transmission machines, Dense Media Separation and an X-ray Florescent recovery plant. The mine has an annual production of approximately 300,000carats of gem quality (including Type IIa) diamonds which are sold through regularly scheduled tenders throughout the year. Of importance, in addition to its regular diamond production, the Karowe mine has been producing some very large, exceptionally high quality diamonds, including some coloured stones.

Management Profiles

LUKAS H. LUNDIN

Chairman & Director

Mr. Lundin is known for recognizing value and superior global investment opportunities in the natural resource sector. His uninhibited pursuit of highly prospective properties around the world has resulted in numerous resource discoveries, including the multi-million ounce Veladero gold discovery. Mr. Lundin has also led several companies through highly profitable business acquisitions and mergers such as Lundin Mining's $3.3 billion merger with EuroZinc Mining, the $2 billion sale of Tanganyika Oil Company Ltd. and most recently the $9.2 billion sale of Red Back Mining Inc. Mr. Lundin is a graduate of the New Mexico Institute of Mining and Technology. He currently sits on the Board of a number of publicly traded companies.

EIRA THOMAS

Chief Executive Officer & Director

Ms. Thomas brings more than 25 years experience in the mining industry, including 16 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 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.

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