TIDM0QUI
RNS Number : 1573T
Lucara Diamond Corp
13 November 2023
November 10, 2023
NEWS RELEASE
LUCARA ANNOUNCES Q3 2023 RESULTS; STRONG REVENUE SUPPORTS
CONTINUED DEVELOPMENT OF THE UNDERGROUND EXPANSION
VANCOUVER, November 10, 2023 /CNW/ (LUC - TSX, LUC - BSE, LUC -
Nasdaq Stockholm)
Lucara Diamond Corp. ("Lucara" or the "Company") today reports
its results for the quarter ended September 30, 2023.
Q3 2023 HIGHLIGHTS
-- Revenue for the quarter ended September 30, 2023 totalled
$56.9 million, a 14% increase from Q3 2022.
-- The Q3 2023 operating cash cost of $28.62 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 achieved against plan, with
0.9 million tonnes of ore and 1.0 million tonnes of waste mined,
0.7 million tonnes of ore processed, and 98,311 carats recovered
from direct milled ore.
-- Cash flow generated from operating activities was $15.9 million.
-- A 1,080 carat Type IIA white gem quality diamond was
recovered from Karowe in August. The fourth +1,000 carat stone
recovered from the Karowe Mine. A 692 carat Type IIA diamond was
also recovered later that month.
-- An investment of $20.3 million in the Karowe Underground
Project ("UGP") in Q3 2023 focused on sinking and grouting programs
in the ventilation and production shafts. Grouting progressed well
in both shafts during the quarter and sinking rates were
significantly higher than in previous quarters.
-- Changes were made to 2023 guidance for revenue, diamond
sales, ore and waste tonnes mined, and total operating cash costs
per tonne processed.
William Lamb, President & CEO commented: "The third quarter
results for the Company were very good when considering market
dynamics and the current state of the diamond sector. During this
period of market weakness, the Company is focusing on operational
efficiency and key management positions, starting with the
promotion of Jennifer Harmer to VP Finance. Jennifer's knowledge
and understanding of the Company's operations and projects will be
invaluable as we move forward." William further added, "Lessons
learned in previous quarters of underground shaft sinking and
development have been successfully converted into knowledge which
is delivering weekly sinking rate records. Good progress has been
made with the Company's Lenders on the Rebase Amendment. A progress
update will be provided before the end of the fourth quarter. "
REVIEW FOR THE QUARTERED SEPTEMBER 30, 2023
-- Operational highlights from the Karowe Mine for Q3 2023 included:
o Ore and waste mined of 0.9 million tonnes (Q3 2022: 0.9) and
1.0 million tonnes (Q3 2022: 0.5), respectively.
o 0.7 million tonnes (Q3 2022: 0.7) of ore processed.
o A total of 98,311 carats recovered (Q3 2022: 78,879) at a
recovered grade of 13.6 carats per hundred tonnes ("cpht") of
direct milled ore (Q3 2022: 11.4 cpht).
-- A total of 189 Specials were recovered, with six diamonds
greater than 100 carats including three diamonds greater than 300
carats in weight.
-- Recovered Specials equated to 6.8% of the weight percentage
of total recovered carats from ore processed during Q3 2023 (Q3
2022 - 7.1%).
o 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 September 30, 2023, included:
o Revenues of $56.9 million (Q3 2022: $49.9 million) were
achieved despite a weaker rough diamond market. The strong
performance reflects the weighting of Lucara's revenue to larger
goods where pricing was observed to be stable. During Q3 2023, 16%
of the carats processed were recovered from the Centre Lobe and 84%
were recovered from South Lobe material (Q3 2022: 100% South Lobe
ore).
o Operating margins of 63% were achieved (Q3 2022: 48%). A
strong operating margin continues to be achieved through cost
reduction initiatives, a strong U.S. dollar and despite price
softness in the rough diamond market.
o Karowe's +10.8 carat production, sold through HB, accounted
for 67% (Q3 2022: 58%) of total revenues recognized in Q3 2023.
o Adjusted EBITDA(1) was $21.9 million (Q3 2022: $13.8 million),
with the change attributed to an increase in revenues, partially
offset by higher administrative expenses in the current
quarter.
o Net income was $10.5 million (Q3 2022: $1.8 million),
resulting in earnings per share of $0.02 (Q3 2022: $0.00).
-- During Q3 2023, the Company invested $20.3 million into the Karowe UGP:
o Sinking and grouting programs were the focus in both the
ventilation and production shafts in Q3 2023.
o The ventilation shaft reached 268.8 metres below collar,
completed two grouting events, and advanced the shaft 55.7 metres
in the reporting period. The ventilation shaft has completed
sinking through the water-bearing sandstone units.
o The production shaft reached 227 metres below collar, included
completion of two grouting campaigns and remedial grouting of
previously dry sections of the shaft. By the end of September, the
shaft was sinking through the bottom portion of the water-bearing
sandstones. An advance of 32.5 metres was achieved in Q3 2023.
-- In September 2023, Lucara terminated the definitive sales
agreement executed with HB in November 2022 (for all +10.8 carat
diamonds recovered from Karowe) due to HB's material breach of its
financial commitments.
-- During Q3 2023, the Company announced management changes with
the return of William Lamb as President and CEO, replacing Eira
Thomas. Zara Boldt, Chief Financial Officer and Corporate Secretary
and Dr. John Armstrong, VP, Technical Services, announced their
departures with plans to step down in Q4 2023. Jennifer Harmer has
been promoted to VP, Finance, effective November 8, 2023.
-- Cash position and liquidity at September 30, 2023:
o Cash and cash equivalents of $16.8 million.
o Cost overrun facility of $18.4 million.
o $90.0 million drawn on the $170.0 million Project Loan for the
Karowe UGP, with no draws on the facility during the third
quarter.
o The outstanding balance on the working capital facility
("WCF") was maintained at $35.0 million through Q3 2023.
The Company is not permitted to make further draws from the WCF
or the Project Loan until various amendments to the terms of these
loan agreements are negotiated with the Company's Lenders (the
"Rebase Amendments"). As part of the Rebase Amendments, the Lenders
have granted certain waivers and extensions to the Company.
The Company has near-term commitments under the Facilities,
including the maturity date of the WCF and the requirement to fund
a cost overrun facility. Due to these near-term commitments, there
is doubt 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"
and refer to Note 1 of the condensed interim consolidated financial
statements for the three and nine months ended September 30,
2023.
On October 31, 2023, the Company received a short-term extension
of the maturity of the WCF and a deferral of the requirement to
place $52.9 million in a cost overrun facility (the "COF") to the
earlier of the conclusion of discussions with its Lenders or
November 15, 2023 (the "Longstop Date"). An earlier extension
granted by the Lenders on August 23, 2023, was due to expire on
November 1, 2023.
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. A slow recovery of economic growth in
China and a voluntary import ban on rough diamonds into India has
muted the recovery of rough diamond prices following a soft market
in the first six months of 2023. Global economic concerns combined
with increasing geopolitical uncertainty have resulted in a
challenging market in Q3 2023 with demand reduced and downward
pressure on pricing, especially in the smaller size classes. With
supply restricted by the largest producers, it is possible that a
floor in pricing will be established that will benefit the broader
market, including smaller producers, in late 2023.
Sales of lab-grown diamonds increased beginning in late 2022.
Intense competition combined with improvements in technology
continue to drive prices of lab grown diamonds down. Signs are
emerging of financial instability of producers of lab-grown
diamonds. 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 for natural diamonds 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.
Changes were made to the Company's 2023 Guidance for revenue,
diamond sales, ore and waste tonnes mined, and total operating cash
costs per tonne processed which was released in December 2022 as
indicated below.
Revisions to diamond revenue guidance reflect changes to the
sales mechanism for the rough diamonds larger than 10.8 carats in
size following the termination of the Company's agreement with HB,
combined with global rough diamond market impacts. Revenue is
expected to be lower than initial guidance as the Company looks at
the timing of sales of its goods greater than 10.8 carats in
size.
Karowe Diamond Mine Initial Revised
2023 2023
In millions of U.S. dollars unless otherwise noted Full Year Full Year
------------------------------------------------------------------------------ ----------------- ------------------
Diamond revenue (millions) $200 to $230 $160 to $190
Diamond sales (thousands of carats) 385 to 415 365 to 385
Diamonds recovered (thousands of carats) 395 to 425 395 to 405
Ore tonnes mined (millions) 1.9 to 2.3 2.4 to 2.6
Waste tonnes mined (millions) 2.2 to 2.8 2.8 to 3.1
Ore tonnes processed (millions) 2.6 to 2.9 2.6 to 2.9
Total operating cash costs(1) including waste mined(2) (per tonne processed) $32.50 to $35.50 $28.00 to $30.50
------------------------------------------------------------------------------ ----------------- ------------------
(1) Operating cash costs are a non-IFRS measure. See "Non-IFRS
Financial Performance Measures".
(2) Includes ore and waste mined cash costs of $6.00 to $6.50
(per tonne mined) and processing cash costs of $9.00 to $10.00 (per
tonne processed).
Tonnes mined have been adjusted to reflect the acceleration of
mining in the open pit which has been implemented to access high
value ore from the south lobe earlier in the mine plan as well as
to optimize costs. Following the expected completion of processing
of the ex-pit material, in Q1 2026, the plant will transition to
processing stockpiled material until the delivery of ore from the
underground expansion project begins in Q1 2028.
In 2023, capital costs expectations for the underground
expansion remain at $105 million. As a result of the rebase
announced in July 2023, a review of sustaining capital and project
expenditures related to the open pit mining operations commenced.
Sustaining capital and project expenditures may be up to $16
million in 2023, previously up to $20 million.
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
Karowe's large, high value diamonds have historically accounted
for approximately 60% to 70% of Lucara's annual revenues. In
September 2023, Lucara terminated the definitive sales agreement
executed with HB Antwerp ("HB") in November 2022 (for all +10.8
carat diamonds recovered from Karowe) due to HB's material breach
of its financial commitments. The rough diamonds delivered to HB
prior to the termination of the agreement will continue to be
manufactured and sold as polished diamonds. The Company retains a
contractual right to receive "top-up" payments from polished
diamond sales for goods delivered prior to the termination of the
agreement. The Company plans to sell its +10.8 carat production
through its established sales channels, subject to pre-approval
from the Government of the Republic of Botswana.
For the three months ended September 30, 2023, the Company
recorded revenue of $38.4 million from the HB agreement (inclusive
of top-up payments of $0.9 million), as compared to revenue of
$27.1 million (inclusive of top-up payments of $9.0 million) for
the three months ended September 30, 2022. The third quarter saw
several high value stones recognized through the HB sales agreement
accounting for much of the 107% increase in initial revenue of
$37.5 million. The remaining increase in revenue was due to the 26%
increase in carats sold through the HB agreement versus the
comparable quarter. The product mix delivered in Q3 2023 was
predominately from the South Lobe ore body, with some contribution
from the Centre Lobe (Q3 2022 - 100% South Lobe ore).
A decrease in top-up payments in Q3 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
during the comparative period. Top-up values will typically
increase as the more valuable stones move through production and
are sold. The lower top-ups recognized in Q3 2023 reflect the value
of the stones delivered earlier in the year, consistent with the
change in product mix during H1 2023.
Recovered Specials equated to 6.8% of the weight percentage of
total recovered carats from ore processed during Q3 2023, with 84%
of carats recovered coming from the South Lobe and 16% recovered
from the Centre Lobe (Q3 2022: 7.1%; 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.
The large stone diamond market fundamentals continued to support
healthy prices from the multi-year highs observed at the peak in Q1
2022, despite an overall softening of demand in the market.
CLARA SALES PLATFORM
During Q3 2023, the sales volume transacted was $4.4 million (Q3
2022: $8.3 million), as lower volumes and lower valued goods were
placed for sale (due to the shift in product mix from the Karowe
Mine). Some sales are recognized on a net revenue basis. A softer
market was observed; however, prices decreased in most size
categories from Q3 2022. Price stability continues to be observed
in stones between 5 to 10.8 carats in size.
QUARTERLY TER
A total of 106,148 carats were sold in the August 2023 tender,
generating revenues of $14.1 million (Q3 2022 tender: $14.5 million
from the sale of 94,486 carats). Rough diamond prices began to
soften in the third quarter of 2022 following a significant
increase that started in 2021. The Q3 2023 tender reflected a 16%
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 (south) ("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 ( Press Release ). 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.
During the three months ended September 30, 2023, a total of
$20.3 million was spent on the Karowe UGP development, primarily in
relation to ongoing shaft sinking activities, including:
-- Main sinking in the production and ventilation shafts:
o The ventilation shaft reached 268.8 metres below collar, with
a planned final depth of 731 metres. The shaft is currently 22
metres ahead of the July schedule update. The production shaft
reached 227 metres below collar, with a planned final depth of 765
metres.
o In response to water inflows from the sandstones, cover
grouting continued as a primary activity in both shafts. Backwall
grouting programs were completed in the production shaft and
ventilation shaft as remedial work in areas of the shaft that were
previously dry.
o Civil works related to construction of the temporary and
permanent bulk air cooler contractor started in September and
detailed engineering was completed for these units.
-- Contract for fabrication of the permanent men and materials
winder was signed during the quarter, representing the last major
component for the permanent winders.
-- Mining engineering advanced with a focus on supporting shaft
sinking, underground infrastructure engineering and finalizing
level plans.
-- 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 nine-month period with no reportable incidents
delivering a nine-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 Q4 2023 are expected to include the following:
-- Sinking within the ventilation and production shafts is expected to continue.
o Excavation of the 718 level station in the ventilation shaft
and sinking to the 670 level station and start of station
development
o Planned grouting events to the base of the Mosolotane
sandstone/mudstone transition are expected to be completed early in
Q4 2023 for the production shaft.
-- 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 and commissioning of the temporary bulk air
cooler and construction of the permanent 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 - Q3 2023
Three months Nine months
ended September ended September
30, 30,
In millions of U.S. dollars, 2023 2022 2023 2022
except carats or otherwise noted
----------------------------------- --- ---------- ------- --------- --------
Revenues $ 56.9 $ 49.9 $ 140.8 $ 170.5
Operating expenses (21.3) (25.8) (56.3) (60.8)
Net income for the period 10.5 1.8 16.5 33.3
Earnings per share (basic and
diluted) 0.02 0.00 0.04 0.07
Operating cash flow per share(1) 0.04 0.03 0.11 0.17
Cash on hand 16.8 34.8 16.8 34.8
Cost overrun facility (restricted
cash) 18.4 - 18.4 -
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 56.2 46.5 136.1 163.7
Carats sold 111,673 99,301 267,764 245,763
---------------------------------------- ---------- ------- --------- --------
QUARTERLY RESULTS OF OPERATIONS - KAROWE MINE, BOTSWANA
UNIT Q3-23 Q2-23 Q1-23 Q4-22 Q3-22
Sales
Revenues from the sale of
Karowe diamonds US$M 56.2 38.6 41.3 40.1 46.5
Karowe carats sold Carats 111,673 72,717 83,374 81,264 99,301
Production
Tonnes mined (ore) Tonnes 869,188 682,636 541,400 484,705 920,410
Tonnes mined (waste) Tonnes 954,226 907,051 761,295 199,385 453,860
Tonnes processed Tonnes 724,640 720,345 700,678 690,946 693,398
cpht
Average grade processed(1) (*) 13.6 12.6 12.8 12.5 11.4
Carats recovered(1) Carats 98,311 90,497 89,640 86,655 78,879
Costs
Operating cost per tonne
of ore processed(2) US$ 28.62 27.97 26.65 26.20 29.33
Capital Expenditures
Sustaining capital expenditures US$M 3.2 2.4 0.8 9.9 4.0
Underground expansion project(3) US$M 20.3 22.5 30.5 22.3 23.9
--------------------------------- ------- ------- ------- ------- ------- -------
CONFERENCE CALL
The Company will host a conference call and webcast to discuss
the results on Monday, November 13, 2023 at 9:00am Pacific, 12:00pm
Eastern, 5:00pm UK, 6:00pm CET. To join the conference call please
use the following link https://emportal.ink/45LcfFu or the phone
numbers listed below.
Conference ID:
42548403 / Lucara Diamond
Dial-In Numbers:
Toll-Free Participant Dial-In North America (+1) 888 390 0605
UK Toll free 0800 652 2435
Local Toronto (+1) 416 764 8609
Webcast:
To view the live webcast presentation, please log on using this
direct link: https://app.webinar.net/X7Z2M2wLaxW
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 November 20, 2023. The pass
code for the replay is: 548403 #
Replay number (Toll Free North America) (+1) 888 390 0541
Replay number (Local) (+1) 416 764 8677
On behalf of the Board,
William Lamb
President and Chief Executive Officer
Follow Lucara Diamond on Facebook , Instagram , and LinkedIn
For further information, please contact:
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
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 November 10, 2023 at 6:00pm 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
September 30, 2023 for an explanation of non-IFRS measures
used.
CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS
Certain of the statements made herein contain certain
"forward-looking information" and "forward-looking statements" as
defined in applicable securities laws. Generally, any statements
that express or involve discussions with respect to predictions,
expectations, beliefs, plans, projections, objectives, assumptions
or future events or performance and often (but not always) using
forward-looking terminology such as "expects", "is expected",
"anticipates", "believes", "plans", "projects", "estimates",
"budgets", "scheduled", "forecasts", "assumes", "intends",
"strategy", "goals", "objectives", "potential", "possible" or
variations thereof or stating that certain actions, events,
conditions or results "may", "could", "would", "should", "might" or
"will" be taken, occur or be achieved, or the negative of any of
these terms and similar expressions) are not statements of
historical fact and may be forward-looking statements.
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 ability to continue as a
going concern, the project schedule and capital costs for the
Karowe UGP, the diamond sales, projection and outlook disclosure
under "2023 Outlook", the Company's ability to successfully agree
the Rebase Amendments with its Lenders, 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, estimated capital costs, the timing, scope
and cost of additional grouting events at the Karowe UGP, the
Company's ability to comply with the terms of the Facilities which
are required to construct the Karowe UGP, including future funding
requirements to the COF, 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, that depletion
and amortization expense on assets will be affected by both the
volume of carats recovered in any given period and the reserves
that are expected to be recovered, 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, the impact of
the termination of the HB sales agreement on the Company's
projected revenue and sales channels, estimation of mineral
resources, exploration and development plans, cost and timing of
the development of deposits and estimated future production,
interest rates, including expectations regarding the impact of
market interest rates on future cash flows and the fair value of
derivative financial instructions, currency exchange rates, rates
of inflation, success of exploration, credit risk, price risk,
requirements for and availability of additional capital, capital
expenditures, operating costs, timing of completion of technical
reports and studies, production and cost estimates, tax rates,
timing of drill programs, government regulation of operations,
environmental risks and ability to comply with all environmental
regulations, reclamation expenses, title matters including disputes
or claims, limitations on insurance coverage, the profitability of
Clara and the Clara Platform, and the scaling of the digital
platform for the sale of rough diamonds owned by Clara,
expectations regarding the Clara platform's growth, the expected
use of the Clara Facility, that the Company intends to continue to
seek additional supply, both from third-party producers and the
secondary market for Clara, and the potential impacts of COVID-19,
economic and geopolitical risks, including potential impacts from
the Russian military invasion of Ukraine and the escalating
conflict between Israel and Hamas.
Forward-looking information and statements are based on the
opinions and estimates of management as of the date such statements
are made, and they are subject to several 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 correct. Certain
risks which could impact the Company are discussed under the
heading "Risks and Uncertainties" in the Company's most recently
filed Interim MD&A and, in the Company's most recent Annual
Information Form available at http://www.sedar.com (the "AIF").
The foregoing is not exhaustive of the factors that may affect
any of our forward-looking statements. Forward-looking statements
are statements about the future and are inherently uncertain, and
our actual achievements or other future events or conditions may
differ materially from those reflected in the forward-looking
statements due to a variety of risks, uncertainties, and other
factors, including, without limitation, those referred to in this
news release.
Although the Company has attempted to identify important factors
that could cause actual actions, events, or results to differ
materially from those described in forward-looking statements,
there may be other factors that cause actions, events or results
not to be as anticipated, estimated or intended. The
forward-looking statements contained in this news release are based
on the beliefs, expectations, and opinions of management as of the
date of this disclosure. There can be no assurance that
forward-looking statements will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. Accordingly, readers and investors
should not place undue reliance on forward-looking statements.
Forward-looking information and statements are made as of the date
of this disclosure and accordingly are subject to change after such
date. Except as required by law, the Company disclaims any
obligation to revise any forward-looking information and statements
to reflect events or circumstances after the date of such
information and statements. All forward-looking information and
statements contained or incorporated by reference in this news
release are qualified by the foregoing cautionary statements.
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END
QRTUAOURORUAARA
(END) Dow Jones Newswires
November 13, 2023 02:00 ET (07:00 GMT)
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