Lucara Completes First Sale Through Clara Diamond Solutions
NEWS RELEASE
LUCARA COMPLETES FIRST SALE THROUGH CLARA DIAMOND SOLUTIONS
VANCOUVER , January 8, 2018 /CNW/ - (LUC – TSX, LUC – BSE, LUC – Nasdaq Stockholm)
Lucara Diamond Corp. (“Lucara” or the “Company”) is pleased to report that its inaugural
diamond sale through Clara Diamond Solutions, its 100% owned digital sales platform , was
successfully launched on Friday, November 30 and final matching was completed on December
16, 2018. A total of seven manufacturers participated in the sale, five of whom matched and
received their orders. All told, diamonds successfully matched to orders generated revenue of
US$660,865, achieving +8% over Lucara’s market price and +15% over Lucara’s reserve price
for these goods. Goods of approximately similar value have been set aside for the next sale,
scheduled to take place later this month. Diamonds will be added onto the platform in the
coming weeks gradually, as additio nal manufacturers are on -boarded and in response to
increasing variety and size of orders received . In time, a s supply and demand is optimized,
Lucara will progress into continuous sales of appropriate, qualifying goods through Clara.
Further, Lucara wil l continue to augment its overall sales strategy through a combination of
Clara and its regular tender process.
Eira Thomas, CEO commented: “ This trial sale marks a momentous milestone for Clara. O n
November 30, Clara successfully initiated its inaugur al diamond sale with positive results ,
confirming that the platform is commercially viable. Though we are delighted with the prices
achieved for the rough diamonds sold in this first sale, Clara’s longer-term value will be realized
through its ’ scalability, increasing the volume of rough diamonds transacted by adding
production from other global diamond producers. Onboarding of additional manufacturers is
continuing and Lucara is in active discussion with a number of leading diamond producers who
are also interested in trialing the platform in 2019. We want to thank all of our partners for their
enthusiasm and commitment to the trial, and for embracing the opportunity to innovate and
modernize the diamond sales process to increase co nsumer confidence and unlock value for
all participants in the value chain.”
This first trial sale, which was conducted in partnership with a select group of large vertically
integrated jewelry houses and global diamond manufacturers was designed to demonstrate
that Clara can unlock significant value throughout the diamond pipeline , by facilitating rough
diamond sales on a stone by stone basis, based on specific polished demand. Clara will utilize
the results of this inaugural sale to help optimize the quantity and selection of rough diamonds
offered in the short term, as the platform moves into continuous sales and more participants
are on-boarded.
How does Clara work?
Clara uses proprietary analytics, with the latest cloud and blockchain technologies, to sell rough
diamonds individually, based on polished characteristics and demand, transforming the sales
process, driving efficiencies and unlocking value for diamond pro ducers and manufacturers
alike.
Under an exclusive collaboration agreement with Sarine Technologies , a digital fingerprint of
each rough diamond is created and uploaded to the Clara platform with a corresponding asking
2
price. Simultaneously, diamond buyers upload their specific polished diamond requirements in
terms of size, cut, color and quality, inclu ding their desired purchase price, creating an 'order'
within Clara. Clara uses proprietary analytics to match individual, scanned rough diamonds to
the buyers’ optimal polished requirements. Clara earns the differential between the asking price
and purchase price of each match as its revenue and requires a minimum transaction spread to
facilitate an optimal match.
Inaugural Sale Commenced November 30
The selection of rough diamonds offered in Clara’s first sale include d diamonds between 1 and
4 carats in size in the better colors and qualities from Lucara’s Karowe mine as well as additional
aggregated third- party rough . Seven vertically integrated jewelry and global diamond
manufacturers placed their polished diamond orders on Clara and Clara completed its first
digital matching cycle on December 16 with positive results. The initial sale limited the number
of manufacturers to ensure that each participant had a high likelihood of matching orders and
receiving stones so feedback could be easily incorporated and monitored.
Data collected from th is sale will also provide key metrics to demonstrate the premium Clara
can obtain over historical tenders and for rough purchased through long term supply contracts.
In co -operation with our manufacturing partners , Clara wi ll analyze both qualitative and
quantitative feedback about their experience s as purchasers, at the time of sale and following
delivery of the diamonds purchased. Additional feedback is anticipated as diamonds move
through the diamond pipeline into manufacturing and ultimately final retail sale. This test has
confirmed that the platform is now ready and has the capacity to on -board additional
manufacturers in the short term.
Benefits of Clara
• Eliminates diamond sales by assortments; facilitates diamond sales “stone by
stone” achieving best possible pricing for producers
• Manufacturers purchase only the diamonds they want, eliminating the need to re -
trade and finance unwanted inventories, achieving higher margins
• Continuous sales versus fixed sales cycles, smooths out revenue streams
• Clara is integrated with blockchain technology, so every rough diamond is tracked
with a secure and immutable record of its origins and ownership, providing peace
of mind for consumers
Next Steps
This inaugural trial has demonstrated that the platform works as intended and further confirms
that it is now ready and has the capacity to on -board additional manufacturers in the short
term. Further, Clara continues to receive expressions of interest from both manufacturers and
producers alike, and growth in both volume of orders and supply is expected over the coming
months as the platform moves into continuous sales. A second sale on the platform is planned
for later in January and thereafter, a steady ramp up in sales through Clara is anticipated in
2019. Lucara will be reporting sales thro ugh Clara quarterly, along with additional guidance ,
once the platform has moved into continuous sales. Lucara will continue to optimize its sales
strategy through a combination of Clara and its regular tender process.
3
For further information about the platfor m please visit www.claradiamonds.ca , where you will
find a link to the Clara video.
Eira Thomas
President and Chief Executive Officer
Follow Lucara Diamond on: Facebook, Twitter, Instagram and LinkedIn
For further information, please contact:
Investor and Public Relations +1 604 689 7842 [email protected]
Sweden: Ulrika Häggroth, Investor Relations +46 70 298 6001 [email protected]
ABOUT LUCARA
Lucara is a leading independent producer of large exceptional quality Type IIa diamonds from
its 100% owned Karowe Mine in Botswana. 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.
ABOUT CLARA
Clara Diamond Solutions (Clara), wholly owned by Lucara Diamond Corp, is 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.
The information in this release is accurate at the time of distribution but may be superseded or
qualified by subsequent news releases.
The information in this release is subject to the disclosure requirements of the Company under
the EU Market Abus e Regulation. This information was publicly communicated on January 8,
2019 at 4:00am Pacific Time.
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 a s "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, including in respect of the development and functionality of
the technology related to the Clara platform, the intended benefits and performance of the
Clara platform, including achieved margins in pricing, the timing and cost of commercialization
and operation of the Clara platform , the timing and frequency of sales on the Clara Platform,
and future participation of third parties on the Clara platform. These assumptions, opinion and
4
estimates 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 ach ievement 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.
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 "Risks and Uncertainties"' in the Company's most recent Annual Information Form
available at http://www.sedar.com, as well as changes in gene ral business and economic
conditions, changes in interest and foreign currency rates, the supply and demand for,
deliveries of and the level and volatility of prices of rough and polished diamonds, the cost and
availability of computational resources, and unanticipated technical and operational difficulties.
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 obligati ons to update or revise them to reflect new events or circumstances,
except as required by law.