1 million in cash at the end of Q3 and $30

Lucara Announces Strong Q3 2020 Sales and Operational Results

Recognized $41.3 million in revenue during Q3 cheap replica handbags 2020 or $365 per carat. This includes diamonds sold through a combination of regular tenders and Clara as well as 5,633 carats sold through HB Antwerp (“HB”) under the supply agreement announced in July 2020. dollar.

Lucara continues to have a strong availability of working capital, including $10.1 million in cash at the end of Q3 and $30.0 million available from a revolving term credit facility.

Clara’s customer base doubled during Q3 2020, from 35 to 71 customers. The platform began selling stones on behalf of third party sellers, meeting a significant objective for 2020.

An agreement was replica louis vuitton announced on November 4, 2020 between Lucara, Louis Vuitton and HB to collaborate on the planning, cutting and polishing of the exceptional, 549 carat white gem diamond referred to as “Sethunya” meaning “Flower” in Setswana recovered from the Karowe Mine in February 2020 (Press Release November 4, 2020). markets. Karowe continued to perform well, delivering safe, reliable production in line with plan. In Q3 we began recognizing revenue from our new sales agreement with HB Antwerp, and though it is still in its infancy, Lucara is now receiving regular, predictable revenue for its +10.8 carat diamonds using a superior pricing mechanism based on estimated polished outcomes less a commission and the cost of polishing. For diamonds 10.8 carats in size, Clara continues to deliver strong results, growing its customer base to more than 70 clients during this period and completing its first sales of third party goods through the platform. Clara cheap louis vuitton bags from china uk continues to resonate strongly with manufacturers that are restricted from traveling to purchase diamonds in traditional venues and we are expecting to expand trials with third party goods in Q4 and into 2021.

Finally, we are delighted to have entered into a second, strategic collaboration with Louis Vuitton aaa replica designer handbags , the world’s leading luxury brand, and HB Antwerp for the planning and polishing of the exceptional, 549 carat white gem diamond referred to as “Sethunya” meaning “Flower” in Setswana and recovered from the Karowe Mine in February 2020. Sethunya is one of the highest quality exceptional diamonds ever recovered at Karowe and we believe this partnership is a unique opportunity to showcase it to the world and ultimately transform it into an extraordinary, bespoke, polished diamond collection, catering exclusively to Louis Vuitton’s global customer base.”

REVIEW FOR THE QUARTER AND NINE MONTHS ENDED SEPTEMBER 30, 2020

The Karowe Mine continued to deliver strong, safe, reliable production results in the third quarter with the process plant continuing to operate at full capacity.

Operational 1:1 replica handbags highlights from Q3 2020 were as follows:

Ore and waste mined of 0.7 million tonnes and 0.4 million tonnes, respectively

0.65 million tonnes of replica designer handbags ore processed resulting in 88,909 carats recovered, achieving a recovered grade of 13.8 carats per hundred tonnes

193 Specials (+10.8 carats) recovered from direct milling during the third quarter, representing 6.5% weight percentage of total direct milling recovered carats, in line with mine plan expectations

8 diamonds were recovered greater than 100 carats in weight, including replica louis vuitton bags 3 stones > 200 carats in weight

No lost time injuries, resulting in Discount Replica Louis Vuitton Bags a rolling twelve month Long Term Injury Frequency Rate of high quality replica handbags china zero.

The Company recorded a net loss of $5.4 million for Q3 2020 (Q3 2019 $4.0 million net loss) resulting in a $0.01 loss per share (Q3 2019 loss of $0.01) for the quarter.

Lucara recognized revenue of $82.9 million for the nine months ended September 30, 2020 from the sale of 268,101 carats or $309 per carat. This represents a decrease from revenue of $136.5 million recognized for the nine months ended September 30, 2019 (313,189 carats sold at an average price of $436 per carat). The reduction in revenue results from a combination of a 15% decrease in the number of high quality replica handbags china carats sold and a deliberate decision not to sell any diamonds +10.8 carats in favour of entering into a committed supply agreement for these diamonds for the remainder of the year. All +10.8 carat diamonds produced since the second quarter sales cut off in March 2020 are now being sold to HB at regular intervals, approximately twice a month. As a result, revenue for stones ordinarily part of the Q2 and Q3 tenders will continue to be recognized in Q4 2020.

Capital allocated for the underground expansion program has been reduced to $22 million (from the original $53 million budget) and the 2020 program objectives have been re scoped to focus on long lead time critical path items, detailed engineering and design, and limited site activity focused on earth works and geotechnical studies. During the nine months ended September 30, 2020, $10.4 million was spent on these project execution activities.

SUPPLY AGREEMENT FOR +10.8 CARAT DIAMOND PRODUCTION FROM KAROWE

Karowe’s large, high value diamonds have historically accounted for approximately 60% to 70% of Lucara’s annual revenues. Though the mine has remained fully operational throughout the COVID 19 pandemic, high quality designer replica handbags Lucara made a deliberate decision not to tender any of its +10.8 carat production after early March 2020 amidst the uncertainty caused by the global crisis and the significant weakness observed in the rough diamond market. The polished diamond market performed much better through this period and subsequently, in July 2020, Lucara announced a ground breaking partnership agreement with HB, entering into a definitive supply agreement for the remainder of 2020, for all of the diamonds produced in excess of +10.8 carats from our 100% owned Karowe Diamond mine in Botswana.

Under the supply agreement with HB, Lucara’s +10.8 carat production is being sold at prices based on the estimated polished outcome of each diamond, determined through state of the art scanning and planning technology, with a true up amount payable to Lucara on actual achieved polished sales in excess of the initial estimated polished price, less a fee and the cost of manufacturing. The +10.8ct diamonds of poorer quality (clivage low, rejection goods) are sold as rough parcels and do not enter the polishing pipeline at HB This unique pricing mechanism is expected to deliver regular cash flow at superior prices for this important segment of our production profile. The decision to enter into the supply agreement with HB for the remainder of 2020 followed a trial period during Q2 2020 where approximately 3,100 carats of +10.8 carat rough diamonds were placed into manufacturing (“Shipment 1”). Lucara will receive payment for the polished diamonds from Shipment 1 once those diamonds are sold by HB to an end customer aaa replica designer handbags , less a fee and the cost of manufacturing.

Beginning in Q3 2020, the Company recognized revenue of $25.9 million from these sales agreements. fake designer bags The $13.5 million deposit received in June as partial payment for +10.8 carat goods delivered under the HB sales agreement has been fully allocated and reduced to $nil as of September 30, 2020. During Q3 2020, Clara began selling stones on behalf of third party sellers, which was a significant objective for 2020. Seven sales occurred on Clara during the third quarter of 2020, with total transaction volumes of $3.2 million. 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 high quality replica handbags china , health and safety, environment, and community relations.

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