Lucara Diamond (LUC) investor relations material

Executive summary

• Q1 2026 was a transitional quarter with strengthened capital structure through C$165 million equity financing and $350 million bond issuance, fully repaying $220 million in project debt and ending with $244.3 million in cash.

• Over $472 million of the $779 million UGP capital budget has been spent, with more than 75% of the project capital now committed and key milestones achieved in shaft equipping and lateral development.

• Maintained uninterrupted processing operations despite temporary suspension of open pit mining due to unseasonal rainfall, relying on stockpiled ore.

• Safety performance remains exceptional, with over 2,249 days without a lost time injury and a zero injury frequency rate for Q1, earning multiple safety awards.

• Recovery of large, high-value stones continued, including six stones over 100 carats, a 300-carat stone, and a notable 36.92-carat blue diamond.

Financial highlights

• Q1 2026 revenue was $21.8 million, down from Q1 2025 due to increased processing of lower-value stockpile material.

• Operating costs rose to $21.6 million from $14 million last year, with cost per tonne processed at $24.74.

• Carats sold increased to 79,744 from 72,871 year-over-year, but average prices per carat declined.

• Ended the quarter with $244.3 million in cash and restricted cash.

• Net loss from operations was $21.6 million, compared to $14.0 million in Q1 2025.

Outlook and guidance

• Full-year 2026 revenue guidance is maintained at $100–$130 million, with production expected at 340,000–360,000 carats and 2.6–2.9 million tonnes of ore processed.

• UGP capital expenditure for 2026 expected up to $110 million; sustaining capital up to $11.5 million.

• Monetization of the 36.92-carat blue diamond is expected to positively impact future cash flows.

• Full-scale underground production scheduled for H1 2028, with underground development ore replacing stockpiles in 2027.