VANCOUVER, BC, Aug. 9, 2023 /PRNewswire/ -- (TSX: LUC), (BSE:
LUC), (Nasdaq Stockholm: LUC) Please view PDF version
Lucara Diamond Corp. ("Lucara" or the "Company") today reports
its results for the quarter ended June 30,
2023.
Q2 2023 HIGHLIGHTS
- Guidance maintained.
- Revenue for the quarter ended June 30,
2023 totalled $41.1
million.
- The Q2 2023 operating cash cost of $27.97 per tonne of ore processed(1)
was well below the expected annual operating cash cost range of
$32.50 to $35.50 per tonne of ore processed.
- All key operational metrics were on plan, with 0.7 million
tonnes of ore and 0.9 million tonnes of waste mined, 0.7 million
tonnes of ore processed, and 90,497 carats recovered from direct
milled ore.
- Cash flow generated from operating activities was $9.2 million.
- An updated schedule and budget for the Karowe underground
expansion project ("Karowe UGP") was released. The duration of the
construction period increased, extending the anticipated
commencement of production from the underground from H2 2026 to H1
2028. The revised forecast of costs at completion is $683 million.
- The long-term outlook for diamond prices, combined with the
potential for exceptional stone recoveries and the continued strong
performance of the open pit could mitigate the modelled impact on
project cash flows due to the schedule slippage.
- An investment of $22.5 million in
the Karowe UGP in Q2 2023 focused on sinking and grouting programs
in the ventilation and production shafts.
Eira Thomas, President & CEO commented: "Karowe delivered
another solid quarter against plan in Q2 and as we returned to
mining in the south lobe, the proportion of specials (diamonds
greater than 10.8 carats) increased and has so far included the
recovery of 13 stones over 100 carats that will be polished and
sold in the latter half of the year. The rebased schedule and
budget will delay production from the underground and has increased
costs by approximately 25%, however, sufficient surface stockpiles
ensure that the mill will operate to capacity during this period
and the project remains economically robust. The expansion
continues to have the support of our largest
shareholder."
REVIEW FOR THE QUARTER ENDED JUNE 30,
2023
- Operational highlights from the Karowe Mine for Q2 2023
included:
-
- Ore and waste mined of 0.7 million tonnes (Q2 2022: 1.1) and
0.9 million tonnes (Q2 2022: 0.4), respectively.
- 0.7 million tonnes (Q2 2022: 0.7) of ore processed.
- A total of 90,497 carats recovered (Q2 2022: 86,317) at a
recovered grade of 12.6 carats per hundred tonnes of direct milled
ore (Q2 2022: 12.0).
-
- A total of 162 Specials were recovered, with thirteen diamonds
greater than 100 carats including four diamonds greater than 200
carats in weight.
- Recovered Specials equated to 6.6% of the weight percentage of
total recovered carats from ore processed during Q2 2023 (Q2 2022 –
6.1%).
- The Karowe Mine has operated continuously for over two and a
half years without a lost time injury.
- Financial highlights for the three months ended June 30, 2023 included:
-
- Revenues of $41.1 million (Q2
2022: $52.3 million) reflected a
continuation of weaker diamond prices and a planned change in
product mix beginning in early 2023. During Q2 2023, 12% of the
carats processed were recovered from the Centre Lobe and 88% were
recovered from South Lobe material (Q2 2022: 100% South Lobe ore).
Most of the carats recovered in the second quarter will be sold in
the third quarter of 2023.
- Operating margins of 59% were achieved (Q2 2022: 67%). A strong
operating margin continues to be achieved despite price softness in
the rough diamond market.
- Karowe's +10.8 production, sold through HB, accounted for 63%
(Q2 2022: 65%) of total revenues recognized in Q2 2023.
- Adjusted EBITDA(1) was $15.7
million (Q2 2022: $24.4
million), with the change directly attributed to a decrease
in revenues.
- Net income was $5.0 million (Q2
2022: $12.5 million), or $0.01 earnings per share (Q2 2022: $0.03).
- During Q2 2023, the Company invested $22.5 million into the Karowe UGP:
-
- Grouting programs were the focus in both the ventilation and
production shafts. A grout cover was completed in the ventilation
shaft along with remedial grouting behind the concrete liner in
previously dry portions of the shaft. In the production shaft, a
grout cover was initiated 10 metres earlier than planned due to
increased water inflows related to a water-making subvertical joint
feature. Additional grouting was required to seal off areas within
an earlier grout cover.
- Shaft sinking in the ventilation shaft was comprised of 30
metres of vertical advance in April followed by grouting. Sinking
resumed in July 2023, 8 days ahead of
schedule.
- In the production shaft, a total of 27 metres of vertical
advance was achieved during Q2, with the remainder of time
dedicated to grouting.
- All components of the bulk power supply upgrade, including the
Letlhakane and Karowe Substations and 132 kV power line, were
handed over to Botswana Power Corporation.
- Mobilisation for civil works related to construction of the
bulk air cooler contractor commenced in late June.
- A contract for fabrication of the permanent men and materials
winder was signed during the quarter, representing the last major
component for the permanent winders.
- Cash position and liquidity at June 30,
2023:
-
- Cash and cash equivalents of $26.7
million.
- $90.0 million drawn on the
$170.0 million Project Loan for the
Karowe UGP, with no draws on the facility during the second
quarter.
- The outstanding balance on the WCF increased from $23.0 million to $35.0
million through Q2 2023, resulting in available liquidity of
$15.0 million.
- The Company has near-term commitments under its Facilities,
including the maturity date of the WCF on September 1, 2023 and the requirement to fund a
cost overrun facility. Due to these near-term commitments, there is
concern regarding the Company's ability to meet its commitments and
discharge its obligations in the normal course of business. While
Management believes the Company will be able to resolve the noted
items through its ongoing engagement with its Lenders, there can be
no assurance that those efforts will be successful. See further
details in the section "Liquidity and Capital Resources" of the
Company's MD&A for the quarter ended June 30, 2023 and refer to Note 1 of the
condensed interim consolidated financial statements for the three
and six months ended June 30,
2023.
(1) See "Non-IFRS Financial Performance
Measures"
DIAMOND MARKET
The longer-term outlook for natural diamond prices remains
positive, anchored on improving fundamentals around supply and
demand as many of the world's largest mines reach their natural end
of life over the next decade. Following on the record high
diamond prices achieved in early 2022, a softer diamond market
emerged in the latter half of 2022 which has persisted into the
second quarter of 2023, the result of global economic concerns
combined with geopolitical uncertainty, including the ongoing
conflict in Ukraine. Prices
continued to show signs of stabilization, however, as China continues to open-up post-Covid. Sales
of lab-grown diamonds increased during the period. Intense
competition combined with improvements in technology continue to
drive prices of lab grown diamonds down. This further
differentiates this market segment from the natural diamond market
and highlights the unique nature and inherent rarity of natural
diamonds. The longer-term market fundamentals remain unchanged and
positive, pointing to strong price growth over the next few years
as demand is expected to outstrip future supply, which is now
declining globally.
2023 OUTLOOK
This section of the press release provides management's
production and cost estimates for 2023. These are "forward-looking
statements" and subject to the cautionary note regarding the risks
associated with forward-looking statements. 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.
No changes were made to the Company's 2023 Guidance (released in
December 2022).
Karowe Diamond
Mine
|
Full Year –
2023
|
In millions of U.S.
dollars unless otherwise noted
|
|
Diamond revenue
(millions)
|
$200 to $230
|
Diamond sales
(thousands of carats)
|
385 to 415
|
Diamonds recovered
(thousands of carats)
|
395 to 425
|
Ore tonnes mined
(millions)
|
1.9 to 2.3
|
Waste tonnes mined
(millions)
|
2.2 to 2.8
|
Ore tonnes processed
(millions)
|
2.6 to 2.9
|
Total operating cash
costs(1) including waste mined(2) (per tonne
processed)
|
$32.50 to
$35.50
|
Botswana general &
administrative expenses including marketing costs (per tonne
processed)
|
$3.50 to
$4.50
|
Tax
rate(3)
|
0 %
|
Average exchange rate –
USD/Pula
|
12.0
|
(1)
|
Operating cash costs
are a non-IFRS measure. See "Non-IFRS Financial Performance
Measures".
|
(2)
|
Includes ore and waste
mined cash costs of $7.00 to $8.00 (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 $105 million for the
UGP, a tax rate of 0% is forecast for 2023. Should capital
expenditures vary from plan, the Company could be subject to
current tax.
|
DIAMOND SALES
Karowe diamonds are sold through three separate and distinct
sales channels: through the HB sales agreement, on the Clara
digital sales platform and through quarterly tenders.
HB SALES AGREEMENT FOR +10.8 CARAT DIAMOND PRODUCTION FROM
KAROWE
For the three months ended June 30,
2023, the Company recorded revenue of $25.8 million from the HB agreement (inclusive of
top-up payments of $5.1 million), as
compared to revenue of $32.4 million
(inclusive of top-up payments of $13.1
million). Lower revenue in Q2 2023 is reflective of an ore
mix which included Centre Lobe material.
The decrease in revenue in Q2 2023 versus the comparative
quarter can be attributed primarily to the number of high value
diamonds delivered to HB in preceding quarters which were sold in
the current period. Top-up values will typically increase as the
more valuable stones move through production and are sold. The
lower top-ups recognized in Q2 2023 reflect the value of the stones
delivered, consistent with the change in product mix during H1
2023.
Recovered Specials equated to 6.6% of the weight percentage of
total recovered carats from ore processed during Q2 2023 with 12%
of the carats recovered from the Centre Lobe and 88% recovered from
South Lobe material (Q2 2022: 100% South Lobe ore). Natural
variability in the quality profile of the +10.8ct production in any
production period or fiscal quarter results in fluctuations in
recorded revenue and associated top-ups. This result is
consistent with the resource model and expected.
Despite the overall decrease in revenue recognized in Q2 2023,
diamond market fundamentals continued to support healthy prices
from the multi-year highs observed at the peak in Q1
2022.
CLARA SALES PLATFORM
Total volume transacted on the platform was $5.7 million in Q2 2023, with non-Karowe goods
representing 48% of the total sales volume transacted, generating
revenue of $5.5 million. The Company
continues to be focused on growing third party volumes through the
platform in 2023, both from primary diamond producers and the
secondary market sources. The number of buyers on the platform
reached 100 as at June 30, 2023.
During Q2 2023, the sales volume transacted decreased as volumes
and lower valued goods were placed for sale due to the shift in
product mix from the Karowe Mine. A soft market was observed;
however, prices have remained fairly flat between Q1 2023 and Q2
2023 with strength in the stones between 5 to 10.8 carats in
size.
QUARTERLY TENDER
A total of 67,673 carats were sold in the May 2023 tender, generating revenues of
$9.8 million (Q2 2022 tender:
$10.5 million from the sale of 59,926
carats). Rough diamond prices remained near a multi-year high point
at the time of the Q2 2022 tender. The Q2 2023 tender reflected a
17% decrease in the market from the comparative quarter's
tender.
KAROWE UNDERGROUND EXPANSION UPDATE
The Karowe UGP is designed to access the highest value portion
of the Karowe orebody, with initial underground carat production
predominantly from the highest value eastern magmatic/pyroclastic
kimberlite ("EM/PK(S)") unit. The underground expansion is
expected to extend mine life to at least 2040 and is forecast to
contribute approximately $4 billion
in additional revenues using conservative diamond price assumptions
which are un-escalated and exclude exceptional stone revenues.
On July 16, 2023, an update to the
Karowe UGP schedule and budget was announced. This update was
initiated in response to slower than planned ramp up to expected
sinking rates, and, to account for time incurred to date, as well
as for anticipated future grouting programs. Grouting
programs took longer than anticipated due to a combination of
high-water volumes in the sandstone lithologies between 870 and 752
metres above sea level in depth (144 metres to 262 metres below the
shaft collar) combined with technical challenges associated with
the transition to main sinking.
The updated schedule incorporates a 28% increase in the duration
of construction, extending the anticipated commencement of
production from the underground from H2 2026 to H1 2028. The
revised forecast of costs at completion is $683 million (including contingency), a 25%
increase to the May 2022 estimated
capital cost of $547 million. The
increase of $136.0 million in
estimated capital to reach project completion is predominantly
related to increased schedule duration and related labour costs
(about 56% of the total), grouting costs (approximately 20% of the
total capital increase), with the balance of the increase
attributable to Owner's costs, procurement, and indirect project
costs. As at June 30, 2023,
capital expenditures of $264.5
million had been incurred and total capital commitments of
$369.7 million had been made,
inclusive of incurred amounts. The Company has notified its
lenders of the expected increases to both the schedule duration and
the projected cost to complete the Karowe UGP. The Company's debt
package consists of a $170 million
Project Loan to fund the development of an underground expansion at
the Karowe Mine, and a $50 million
WCF.
The Karowe UGP remains technically and economically feasible,
however, the impact of actual and modelled delays changes the
revenue profile due to the use of lower-grade, stockpiled ore for
mill feed rather than high-grade ore from the underground as
previously planned. Sufficient surface stockpiles of South,
Centre and North Lobe kimberlite ore are available to maintain
current, un-interrupted mill feed to the plant for the duration of
the anticipated delay. The long-term outlook for diamond
prices, combined with the potential for exceptional stone
recoveries and the continued strong performance of the open pit
could mitigate the modelled impact on project cash flows due to the
schedule slippage.
During the three months ended June 30,
2023, a total of $22.5 million
was spent on the Karowe UGP development, primarily in relation to
ongoing construction activities, including:
- Main sinking in the production and ventilation shafts:
-
- In response to water inflows from the sandstones, cover
grouting was the primary activity in both shafts.
- While the existence of water-bearing sandstones layers was
anticipated, grouting within the regional Ntane and Mosolotane
sandstone aquifers has required significantly more volumes of
chemical grout. In addition, some remedial grouting in previously
dry portions of the sandstone horizons has been required in the
ventilation shaft. These factors account for most of the incurred
delays to June 30, 2023.
- The ventilation shaft reached 213 metres below collar, with a
planned final depth of 731 metres. The production shaft reached 185
metres below collar, with a planned final depth of 765 metres.
- Mobilisation for civil works related to construction of the
bulk air cooler contractor started in late June
- A contract for fabrication of the permanent men and materials
winder was signed during the quarter, representing the last major
component for all of the permanent winders.
- All components of the bulk power supply upgrade, including the
Letlhakane and Karowe Substations and 132 kV power line, were
handed over to Botswana Power Corporation.
- The impact of implementing a behavioural-based safety training
program in Q4 2022 has been evident in 2023. Year-to-date, the UGP
achieved a six-month period with no reportable incidents delivering
a six-month rolling Total Recordable Injury Frequency Rate of
zero.
The capital cost estimate for the underground expansion in 2023
is $105 million – see "2023
Outlook". Activities for the Karowe UGP in Q3 2023 are
expected to include the following:
- Sinking and grouting within the ventilation and production
shafts is expected to continue.
- Planned grouting events to the base of the Mosolotane
sandstone/mudstone transition are expected to be completed early in
Q4 2023. After completion of the current sandstone layer being
grouted, one further grouting event is planned in the ventilation
shaft (213 metres below collar as of June
30, 2023). Two additional grouting events are planned within
the production shaft (185 metres below collar as of June 30, 2023). Thereafter, further grouting is
not anticipated to be required until sinking reaches the granite
basement lithologies in late 2024. Grouting in the granite
lithologies is expected to be localized, rather than formational in
nature.
- Procurement of underground equipment, including dewatering
pumps, underground crush and convey systems and the permanent stage
winder.
- Construction of the bulk air cooler system.
- Preparation of tender documents for a request for proposal for
the underground lateral development work; and,
- Continuation of detailed design and engineering of the
underground mine infrastructure and layout.
FINANCIAL HIGHLIGHTS – Q2 2023
|
|
|
|
|
|
|
|
|
Three months
ended
June 30,
|
|
Six months
ended June 30,
|
In millions of U.S.
dollars, except carats or otherwise noted
|
|
2023
|
2022
|
|
2023
|
2022
|
|
|
|
|
|
|
|
Revenues
|
$
|
41.1
|
52.3
|
$
|
83.9
|
120.5
|
Operating
expenses
|
|
(16.7)
|
(17.0)
|
|
(34.9)
|
(34.9)
|
Net income for the
period
|
|
5.0
|
12.5
|
|
6.0
|
31.5
|
Earnings per share
(basic and diluted)
|
|
0.01
|
0.03
|
|
0.01
|
0.07
|
Operating cash flow per
share(1)
|
|
0.04
|
0.05
|
|
0.07
|
0.13
|
Cash on hand
|
|
26.7
|
40.8
|
|
26.7
|
40.8
|
Amounts drawn on
working capital facility(2)
|
|
35.0
|
-
|
|
35.0
|
-
|
Amounts drawn on
project finance facility
|
|
90.0
|
65.0
|
|
90.0
|
65.0
|
Karowe
Revenue
|
|
38.6
|
50.0
|
|
79.9
|
117.2
|
Carats sold
|
|
72,717
|
66,167
|
|
156,091
|
146,462
|
(1)
|
Operating cash flow per
share before working capital adjustments is a non-IFRS measure. See
"Use of Non-IFRS Performance Measures" below.
|
(2)
|
Excludes amounts drawn
from the Clara revolving credit facility.
|
QUARTERLY RESULTS OF OPERATIONS – KAROWE MINE,
BOTSWANA
|
UNIT
|
Q2-23
|
Q1-23
|
Q4-22
|
Q3-22
|
Q2-22
|
Sales
|
|
|
|
|
|
|
Revenues from the sale
of Karowe diamonds
|
US$M
|
38.6
|
41.3
|
40.1
|
46.5
|
50.0
|
Karowe carats
sold
|
Carats
|
72,717
|
83,374
|
81,264
|
99,301
|
66,167
|
Production
|
|
|
|
|
|
|
Tonnes mined
(ore)
|
Tonnes
|
682,636
|
541,400
|
484,705
|
920,410
|
1,091,192
|
Tonnes mined
(waste)
|
Tonnes
|
907,051
|
761,295
|
199,385
|
453,860
|
357,764
|
Tonnes processed
|
Tonnes
|
720,345
|
700,678
|
690,946
|
693,398
|
719,207
|
Average grade
processed(1)
|
cpht
(*)
|
12.6
|
12.8
|
12.5
|
11.4
|
12.0
|
Carats
recovered(1)
|
Carats
|
90,497
|
89,640
|
86,655
|
78,879
|
86,317
|
Costs
|
|
|
|
|
|
|
Operating cost per
tonne of ore processed(2)
|
US$
|
27.97
|
26.65
|
26.20
|
29.33
|
28.78
|
|
|
|
|
|
|
|
Capital
Expenditures
|
|
|
|
|
|
|
Sustaining capital
expenditures
|
US$M
|
2.4
|
0.8
|
9.9
|
4.0
|
4.1
|
Underground expansion
project(3)
|
US$M
|
22.5
|
30.5
|
22.3
|
23.9
|
29.1
|
(*) carats per hundred
tonnes
|
(1)
|
Average grade
processed is from direct milling carats and excludes carats
recovered from re-processing historic recovery tailings from
previous milling.
|
(2)
|
Operating cost per
tonne of ore processed is a non-IFRS measure. See "Use of
Non-IFRS Performance Measures" below.
|
(3)
|
Excludes qualifying
borrowing cost capitalized in each quarter.
|
CONFERENCE CALL
The Company will host a conference call and webcast to discuss
the results on Thursday, August 10,
2023 at 7:00am Pacific,
10:00am Eastern, 3:00pm UK, 4:00pm
CET. To join the conference call please use the
following link https://emportal.ink/44C1eWS or the phone numbers
listed below.
Conference ID:
88318539 / Lucara Diamond
Dial-In Numbers:
Toll-Free Participant
Dial-In North America
|
(+1) 888 390
0605
|
UK Toll free
|
0800 652
2435
|
Local
Vancouver
|
(+1) 416 764
8609
|
Webcast:
To view the live webcast presentation, please
log on using this direct link:
https://app.webinar.net/5XdGxGqNErz
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 August 17, 2023. The pass
code for the replay is: 318539#.
Replay number (Toll
Free North America)
|
(+1) 888 390
0541
|
Replay number
(Local)
|
(+1) 416 764
8677
|
On behalf of the Board,
Eira Thomas
President and Chief Executive Officer
Follow Lucara Diamond on Facebook, Twitter, Instagram, and
LinkedIn
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 August 9, 2023 at
2:30pm 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 quarter ended
June 30, 2023 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 may include, but are not limited to, information or
statements with respect to the Company's revenues, sales, diamond
recoveries, ore and waste mined, ore processed, cash costs and
expenses, and the Company's ability to continue as a going concern,
economic and geopolitical risks, expectations regarding longer-term
market fundamentals and price growth, the disclosure under "2023
Outlook", the Company's ability to extend the maturity date of its
current WCF from its existing Lenders prior to expiry and the
related terms, the Company's ability to receive a deferral of the
deadline to fill the COF, the impact of supply and demand of rough
or polished diamonds, expectations regarding top-up values and
processing, 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, projected capital costs associated with the Karowe UGP,
estimated capital costs, the timing, scope and cost of additional
grouting events, 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
Karowe UGP, that the estimated timelines to achieve mine ramp up
and full production from the Karowe UGP can be achieved, that
sufficient stockpiled ore will be available to generate revenue
prior to the achievement of commercial production of the Karowe
underground mine, the economic potential of a mineralized area, the
size and tonnage of a mineralized area, anticipated sample grades
or bulk sample diamond content, expectations that the Karowe UGP
will extend mine life, forecasts of additional revenues, future
production activity, the future price and demand for, and supply
of, diamonds, expectations regarding the scheduling of activities
for the Karowe UGP in 2023, future forecasts of revenue and
variable consideration in determining revenue, estimation of
mineral resources, development plans.
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,
Economic and Geopolitical Risks" and "Risks and Uncertainties" 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.
Hannah Reynish, 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
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content:https://www.prnewswire.co.uk/news-releases/lucara-announces-q2-2023-results-301897324.html