Lucara Diamond (LUC) Investor presentation summary

Strategic positioning and diamond market dynamics

• Recognized as a leading producer of large, high-quality diamonds, with over 9,500 stones above 10.8 carats and more than 40% of global +100 carat diamond production since 2013.

• Karowe mine has yielded several of the world's largest diamonds, including the 2,488 carat Motswedi and the 1,109 carat Lesedi La Rona, with historic stones valued at over $250 million.

• High-value diamond recoveries continue, with 100 Specials recovered in Q1 2026, including five over 100 carats and one exceeding 300 carats.

• Focus on large, rare stones insulates operations from lab-grown diamond disruption, as prices for large natural diamonds remain stable while lab-grown prices have dropped over 85% since 2020.

• Downstream partnerships with luxury retailers provide stable demand and premium positioning.

Operational and project development update

• Open pit mining was temporarily suspended in Q1 2026 due to heavy rainfall, but processing continued using lower-grade stockpiles, impacting revenue and stone quality.

• Karowe Underground Project (UGP) feasibility study confirms total cost at $779.2 million, with $472.4 million incurred and $117.7 million committed as of March 31, 2026.

• UGP progress includes 1,245 metres of lateral development, completion of shaft equipping, and ongoing surface infrastructure work.

• Technical enhancements such as advanced undercutting and optimized drawbell arrangements are designed to improve ore extraction and cave propagation.

Financial performance, guidance, and capital structure

• Completed C$165 million equity financing and issued $350 million bond at 12.5% coupon, with an option to increase to $400 million and establish a $50 million revolving credit facility.

• Net proceeds used to repay previous $220 million project finance facilities and fund UGP development and debt service.

• 2026 guidance: diamond revenue of $100–130 million, 340–360 thousand carats recovered and sold, up to $110 million UGP capital expenditure, and operating costs of $27.50–$31.00 per tonne processed.

• Projected strong cash flow from H1 2028, with over $1 billion after-tax cash generation post-project, operating margins above 50%, and EBITDA exceeding $200 million in 2028.