Lucara Announces Operating Guidance FOR 2025
Tel: +1 604 674 0272 Suite 2800, Four Bentall Centre lucaradiamond.com
[email protected] 1055 Dunsmuir Street, PO Box 49225
Vancouver, BC, V7X 1L2
December 3, 2024
NEWS RELEASE
LUCARA ANNOUNCES OPERATING GUIDANCE FOR 2025
VANCOUVER, B.C., December 3, 2024 /CNW/ (LUC – TSX, LUC – BSE, LUC – Nasdaq Stockholm)
Lucara Diamond Corp. (“Lucara” or the “Company”) is pleased to provide operating guidance for 2025. All amounts are
in USD unless otherwise stated.
William Lamb, Lucara ’s President and CEO, commented on the 2024 progress noting that , “To date in 2024, Lucara
achieved remarkable milestones at its Karowe Mine in Botswana, successfully meeting and exceeding all production
targets. The Company's strategic focus on the underground mining project showed significant advancement, with shaft
depths reaching new records. Further, our innovative extraction technologies are once again proving the quality of the
resource through the recovery of two exceptional diamonds larger than 1,000 carats , including the epic 2,488-carat
diamond and the 1,094-carat diamond. We have also demonstrated substantial progress in reducing operational costs
and improving sustainable mining practices.”
2025 OUTLOOK
This section provides management's production and cost estimates for 202 5. These are “forward-looking statements”
and subject to the cautionary note regarding the risks associated with forward -looking statements.
Karowe Mine Full Year 2025
Diamond revenue ($ million) 195 – 225
Diamond sales (carats) 400,000 – 420,000
Diamonds recovered (carats) 360,000 – 400,000
Ore mined (million tonnes) 1.6 – 2.0
Waste mined (tonnes) Up to 200,000
Ore processed (million tonnes) 2.6 – 2.9
Total cash operating costs ($ per tonne processed) 28.50 – 31.00
Underground project ($ million) Up to 115
Sustaining capital ($ million) Up to 13
Average exchange rate (Botswana Pula per United States Dollar) 13.0
REVENUE AND SALES CHANNELS
For 2025, the Company’s revenue forecast assumes that 79% of the carats recovered will come from the higher value
M/PK(S) and EM/PK(S) units within the South Lobe , the sale of its diamond inventory, and the remaining carats
recovered come from the Centre Lobe in accordance with the mine plan, generating revenue between $ 195 and $225
million. South Lobe material, while lower grade than the Centre and North Lobes, has a higher weight percentage of
stones greater than 10.8 carats in size (“Specials”).
MINING AND PROCESSING ASSUMPTIONS
In 2025, the Company expects to mine between 1.8 and 2.2 million tonnes of combined ore and water, which will be
processed in combination with stockpile d materials in 2025. The assumptions for carats recovered and sold as well as
the number of ore tonnes processed are consistent with achieved plant performance in recent years. Stockpiled material
(North, Centre, South Lobe) from working stockpiles and life-of-mine stockpiles should provide uninterrupted mill feed
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until 2027 when Karowe underground project (“UGP”) development ore is scheduled to start offsetting stockpiles with
high-grade ore from the underground development. Full scale underground production is planned for H1, 2028 .
UNDERGROUND AND SUSTAINING CAPITAL EXPENDITURES
The underground development is expected to extend Karowe’s mine life to beyond 2040. In 2024, significant progress
was made in shaft sinking and lateral development connecting the production and ventilation shafts, with the critical
path ventilation shaft being ahead of the July 2023 rebase schedule. In 2025, capital costs for the UGP are expected to
be up to $115 million and will focus predominantly on shaft sinking activities to final depth, equipping of the production
shaft and station development. Surface works will focus on permanent winders being installed and cold commissioned.
Tendering the underground lateral development contract along with underground equipment purchases will also be
completed in 2025.
Sustaining capital are expected to be up to $13 million with a focus on the replacement and refurbishment of key asset
components, in addition to expansion of the tailings storage facility and pit steepening activities which will extend the
mine’s ability to extract South lobe material from the pit in 2025.
On behalf of the Board,
William Lamb
President and Chief Executive Officer
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For further information, please contact:
Vancouver Hannah Reynish, Investor Relations & Communications
+1 604 674 0272| [email protected]
Sweden Robert Eriksson, Investor Relations & Public Relations
+46 701 112615 | [email protected]
UK Public Relations Charles Vivian / Jos Simson, Tavistock
+44 79 772 97903 | [email protected]
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. 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 is certified by the Responsible Jewellery Council, complies with the Kimberley Process, and 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.
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The information is information that Lucara is obliged to make public pursuant to the EU Market Abuse Regulation. This
information was submitted for publication, through the agency of the contact person set out above , on December 3,
2024, at 2 p.m. Pacific Time.
CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS
Certain 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 "expe cts", "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.
These statements relate to future events or our future performance. All statements other than statements of historical
fact are forward-looking statements.
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 , many of
which are difficult to predict, and 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 expectatio ns reflected in this forward -looking information are
reasonable, but no assurance can be given that these expectations will prove to be accurate . F orward-looking
information should not be unduly relied upon. This information speaks only as of the date of this press release, and the
Company will not necessarily update this information, unless required to do so by securities laws.
In particular, forward-looking information and forward-looking statements in this news release may include, but are not
limited to, the Company’s revenues, sales, diamond recoveries, mine life, expectations regarding the updated schedule
and budget for the Karowe underground expansion project (the “Karowe UGP”), ore and waste mined, ore processed,
cash costs and expenses, anticipated t otal capital expenditures for the Karowe UGP and the schedule to develop and
complete the Karowe UGP, and the Company’s ability to continue as a going concern, the ability to meet its obligations
under the Rebase Amendments with its Lenders, the Company’s ability to fill the COF, the size distribution model,
including expectations regarding +10.8ct and specials production, fore cast cost at completion, expectations regarding
construction and production, expectations regarding the project economics and recovery, expectations regarding the
first years of the Karowe UGP recovery and production, including by source, estimated capital to reach project
completion, expectations regarding the sufficiency of surface stockpiles, estimates regarding after -tax cash flow,
economic risks, expectations regarding longer -term market fundamentals and price growth, the impact of supply and
demand of rough or polished diamonds, expectations regarding top -up values and processing, the benefits to the
Company of the diamond supply agreement with HB Antwerp and the ability to generate better prices from the sale of
the Company’s +10.8 carat production as polished stones, projected capital costs associated with the Karowe UGP,
estimated capital costs, expectations regarding the sales changes and margin capture, the timing, scope and cost of
additional grouting events, whether expected cash flow from operat ions, combined with external financing will be
sufficient to complete construction of the Karowe UGP, sufficient stockpiled ore will be available to generate revenue
prior to the achievement of commercial production of the Karowe underground mine, that the estimated timelines to
achieve mine ramp up and full production from the Karowe UGP can be achieved, 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, future forecasts of revenue, estimation of mineral resources, exploration and development plans,
cost and timing of the development of deposits and estimated future production, interest rates, currency exchange
rates, rates of inflation, requirements for and availability of additional capital, operating costs, timing of drill programs,
timing of completion of technical reports and studies, tax rates, government regulation of operations, environmental
risks and ability to comply with all environmental regulations and inte rnationally recognized standards, and macro -
economic and geopolitical risks.
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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 i n or referred to under the heading “Risks and Uncertainties” in the Company’s most recent MD&A
and Annual Information Form, both available on the Company’s website and under its profile on SEDAR+ at
www.sedarplus.ca, 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 pri ces 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).