Machinery and equipment | 5 to 15 years |
Plant facilities | based on recoverable reserves on a unit of production basis |
Furniture and office equipment | 2 to 3 years |
2023 | 2022 | |
Trade | $ 12,981 | $ 18,769 |
Value-added and income taxes | 13,927 | 5,301 |
Deferred financing fees (Note 10) | \u2013 | 975 |
Prepayments | 8,012 | 7,078 |
Other | 130 | 979 |
$ 35,050 | $ 33,102 |
2023 | 2022 | |
Rough diamonds | $ 19,217 | $ 17,988 |
Ore stockpile | 2,038 | 6,967 |
Parts and supplies | 13,279 | 13,417 |
Total current inventories | $ 34,534 | $ 38,372 |
Non-current inventories \u2013 ore stockpile | $ 38,719 | $ 27,867 |
Mine and | Furniture | |||||
Construction | plant | and office | Right of | |||
Cost | in progress | facilities | equipment | Vehicles | use assets | Total |
Balance, January 1, 2022 | $ 13,645 | $ 208,279 | $ 14,262 | $ 4,227 | $ 4,205 | $ 244,618 |
Additions | 18,785 | \u2013 | \u2013 | \u2013 | 3,145 | 21,930 |
Reclassification | (11,937) | 9,692 | 1,955 | 335 | \u2013 | 45 |
Translation differences | (1,353) | (17,205) | (1,225) | (355) | (451) | (20,589) |
Balance, December 31, 2022 | $ 19,140 | $ 200,766 | $ 14,992 | $ 4,207 | $ 6,899 | $ 246,004 |
Additions | 12,993 | \u2013 | \u2013 | \u2013 | 1,292 | 14,285 |
Reclassification (Note 8) | (12,073) | 30,151 | 1,740 | 863 | 23,752 | 44,433 |
Disposals and other | (943) | (109) | (9) | (89) | (184) | (1,334) |
Translation differences | (903) | (9,352) | (700) | (201) | (443) | (11,599) |
Balance, December 31, 2023 | $ 18,214 | $ 221,456 | $ 16,023 | $ 4,780 | $ 31,316 | $ 291,789 |
Accumulated amortization | ||||||
Balance, January 1, 2022 | $ \u2013 | $ 144,306 | $ 8,913 | $ 2,282 | $ 1,796 | $ 157,297 |
Depletion and amortization | \u2013 | 7,843 | 2,469 | 618 | 2,854 | 13,784 |
Translation differences | \u2013 | (12,052) | (809) | (208) | (247) | (13,316) |
Balance, December 31, 2022 | $ \u2013 | $ 140,097 | $ 10,573 | $ 2,692 | $ 4,403 | $ 157,765 |
Depletion and amortization | \u2013 | 7,166 | 2,465 | 235 | 1,205 | 11,071 |
Reclassification (Note 8) | \u2013 | 4,056 | 148 | 412 | 985 | 5,601 |
Disposals and other | \u2013 | (39) | (6) | (88) | (184) | (317) |
Translation differences | \u2013 | (6,474) | (499) | (129) | (212) | (7,314) |
Balance, December 31, 2023 | $ \u2013 | $ 144,806 | $ 12,681 | $ 3,122 | $ 6,197 | $ 166,806 |
Net book value | ||||||
As at December 31, 2022 | $ 19,140 | $ 60,669 | $ 4,419 | $ 1,515 | $ 2,496 | $ 88,239 |
As at December 31, 2023 | $ 18,214 | $ 76,650 | $ 3,342 | $ 1,658 | $ 25,119 | $ 124,983 |
Capitalized | Karowe | |||
production | Underground | |||
Cost | stripping asset | Karowe Mine | Construction | Total |
Balance, January 1, 2022 | $ 66,073 | $ 41,857 | $ 126,117 | $ 234,047 |
Additions | \u2013 | \u2013 | 106,389 | 106,389 |
Borrowing cost capitalized | \u2013 | \u2013 | 6,676 | 6,676 |
Adjustment to restoration asset | \u2013 | (1,669) | \u2013 | (1,669) |
Reclassification | \u2013 | \u2013 | (45) | (45) |
Translation differences | (5,368) | (3,336) | (14,277) | (22,981) |
Balance, December 31, 2022 | $ 60,705 | $ 36,852 | $ 224,860 | $ 322,417 |
Additions | \u2013 | \u2013 | 92,128 | 92,128 |
Borrowing cost capitalized | \u2013 | \u2013 | 9,285 | 9,285 |
Adjustment to restoration asset | \u2013 | (472) | \u2013 | (472) |
Assets put into use (Note 7) | \u2013 | \u2013 | (38,832) | (38,832) |
Translation differences | (2,847) | (1,726) | (10,864) | (15,437) |
Balance, December 31, 2023 | $ 57,858 | $ 34,654 | $ 276,577 | $ 369,089 |
Accumulated depletion | ||||
Balance, January 1, 2022 | $ 43,381 | $ 33,088 | \u2013 | $ 76,469 |
Depletion | 7,042 | 1,286 | \u2013 | 8,328 |
Translation differences | (3,776) | (2,734) | \u2013 | (6,510) |
Balance, December 31, 2022 | $ 46,647 | $ 31,640 | \u2013 | $ 78,287 |
Depletion | 5,851 | 1,415 | \u2013 | 7,266 |
Translation differences | (2,218) | (1,491) | \u2013 | (3,709) |
Balance, December 31, 2023 | $ 50,280 | $ 31,564 | \u2013 | $ 81,844 |
Net book value | ||||
As at December 31, 2022 | $ 14,058 | $ 5,212 | $ 224,860 | $ 244,130 |
As at December 31, 2023 | $ 7,578 | $ 3,090 | $ 276,577 | $ 287,245 |
Cost | |
Balance, January 1, 2022 | $ 23,916 |
Development expenditures | 90 |
Translation differences | (1,495) |
Balance, December 31, 2022 | $ 22,511 |
Impairment of intangible asset | (11,200) |
Development expenditures | 112 |
Translation differences | 499 |
Balance, December 31, 2023 | $ 11,922 |
Accumulated amortization | |
Balance, January 1, 2022 | $ 3,192 |
Amortization | 1,348 |
Translation differences | (253) |
Balance, December 31, 2022 | $ 4,287 |
Amortization | 1,306 |
Translation differences | 118 |
Balance, December 31, 2023 | $ 5,711 |
Net book value | |
As at December 31, 2022 | $ 18,224 |
As at December 31, 2023 | $ 6,211 |
2023 | 2022 | |
Current | ||
Working capital facility | $ 35,000 | $ 15,000 |
Revolving credit facility | - | 338 |
Deferred financing fees (Note 5) | $ - | $ (975) |
Non-current | ||
Project finance facility, net of fees | $ 86,515 | $ 62,151 |
Due to related parties | 15,000 | - |
Deferred financing fees | $ (4,122) | $ (5,410) |
2023 | 2022 | |
Balance, beginning of year | $ 13,649 | $ 15,346 |
Changes in rates and estimates | (472) | (1,669) |
Accretion of liability component of obligation | 1,205 | 1,202 |
Foreign currency translation adjustment | (644) | (1,230) |
Restoration provisions | $ 13,738 | $ 13,649 |
Number of shares issuable | Weighted average exercise | |
pursuant to stock options | price per share (CA$) | |
Balance at January 1, 2022 | 6,249,000 | $ 1.26 |
Granted | 2,332,000 | 0.66 |
Expired | (1,065,000) | 2.35 |
Forfeited | (1,102,000) | 1.06 |
Balance at December 31, 2022 | 6,414,000 | $ 0.89 |
Granted | 2,412,000 | 0.57 |
Expired | (1,134,000) | 1.64 |
Forfeited | (1,148,000) | 0.65 |
Balance at December 31, 2023 | 6,544,000 | $ 0.68 |
| Outstanding Options | Exercisable Options | |||||
Weighted | Weighted | Weighted | Weighted | |||
average | average | average | average | |||
Range of | Number of | remaining | exercise | Number of | remaining | exercise |
exercise | options | contractual | price | options | contractual | price |
prices CA$ | outstanding | life (years) | (CA$) | exercisable | life (years) | (CA$) |
$0.50 - $0.74 | 3,765,000 | 3.21 | 0.61 | 1,284,999 | 2.78 | 0.63 |
$0.75 - $0.79 | 2,779,000 | 0.73 | 0.78 | 2,404,000 | 0.67 | 0.78 |
6,544,000 | 2.16 | $ 0.68 | 3,688,999 | 1.40 | $ 0.73 |
2023 | 2022 | |
Assumptions: | ||
Risk-free interest rate (%) | 2.99 | 1.59 |
Expected life (years) | 4.54 | 3.63 |
Expected volatility (%) | 49.81 | 51.56 |
Expected dividend | Nil | Nil |
Results: | ||
Weighted average fair value of options granted (per option) | CA$0.25 | CA$0.25 |
Estimated fair value at | ||
Number of share units | date of grant (CA$) | |
Balance at January 1, 2022 | 5,234,848 | $ 0.83 |
Granted | 2,860,000 | 0.64 |
Redeemed | (1,038,848) | 1.14 |
Balance at December 31, 2022 | 7,056,000 | $ 0.71 |
Granted | 3,337,000 | 0.57 |
Redeemed | (2,876,001) | 0.74 |
Cancelled | (3,902,999) | 0.62 |
Balance at December 31, 2023 | 3,614,000 | $ 0.65 |
Number of DSUs | Estimated fair value (CA$) | |
Balance at January 1, 2022 | 1,234,510 | $ 0.59 |
Granted | 881,593 | $ 0.58 |
Balance at December 31, 2022 | 2,116,103 | $ 0.50 |
Granted | 1,056,053 | $ 0.47 |
Balance at December 31, 2023 | 3,172,156 | $ 0.49 |
Country of | ||
incorporation and | ||
Name | place of business | Nature of business |
African Diamonds Limited. | UK | (1) |
Clara Diamond Solutions BV (2) | Belgium | (1) |
Clara Diamond Solutions Limited Partnership | Canada | Diamond sales platform |
Clara Diamond Solutions GP Inc. | Canada | (1) |
Lucara Management Services Limited | UK | (1) |
Lucara Diamond Holdings Inc. | Mauritius | (1) |
Boteti Diamond Holdings Inc. | Mauritius | (1) |
Wati Ventures Proprietary Limited | Botswana | (1) |
Debwat Exploration Proprietary Limited | Botswana | (1) |
Lucara Botswana Proprietary Limited | Botswana | Diamond mining |
2023 | 2022 | |
Revenue from diamond sales | $ 177,371 | $ 212,934 |
2023 | 2022 | |
Salaries and benefits | $ 7,797 | $ 7,849 |
Professional fees | 4,870 | 3,070 |
Insurance, office, and general | 1,698 | 2,038 |
Promotion | 1,054 | 1,136 |
Stock exchange, transfer agent, shareholder communication | 334 | 306 |
Travel | 727 | 1,086 |
Share-based compensation (Note 13) | 1,440 | 1,977 |
Depreciation | 815 | 446 |
Sustainability and donations (1) | 880 | 1,211 |
$ 19,615 | $ 19,119 |
2023 | 2022 | |
Current | $ 3,483 | $ 307 |
Deferred | 29,268 | 24,071 |
Income tax expense | $ 32,751 | $ 24,378 |
2023 | 2022 | |
Statutory tax rate | 27.00% | 27.00% |
Net (loss) income before tax | 12,560 | 64,811 |
Computed income tax expense | 3,391 | 17,499 |
Differences between Canadian and foreign tax rates | (1,880) | (3,729) |
Differences in Botswana variable tax rates | 19,352 | 7,702 |
Non-deductible expenses and other permanent differences | 2,542 | 1,179 |
Change in deferred tax assets not recognized | 4,613 | 1,912 |
Other | 3,793 | \u2013 |
Withholding taxes | 940 | (185) |
$ 32,751 | $ 24,378 |
2023 | 2022 | |
Balance, beginning of year | $ 87,808 | $ 70,285 |
Deferred income tax expense | 29,268 | 24,071 |
Foreign currency translation adjustment | (4,313) | (6,548) |
Balance, end of year | $ 112,763 | $ 87,808 |
Deferred income tax assets and liabilities recognized | 2023 | 2022 |
Deferred income tax assets | ||
Non-capital losses | $ 16,325 | $ 11,723 |
Accounts payable and other | 2,059 | \u2013 |
Unrealized foreign exchange loss | 978 | 1,144 |
Restoration provisions | 3,022 | 3,003 |
Total deferred income tax assets | 22,384 | 15,870 |
Deferred income tax liabilities | ||
Mineral properties, plant and equipment | 135,147 | 101,268 |
Other | - | 2,410 |
Deferred income tax liabilities | 135,147 | 103,678 |
Deferred income tax liabilities, net | $ 112,763 | $ 87,808 |
Deferred income tax assets not recognized | 2023 | 2022 |
Tax losses | $ 35,346 | $ 29,728 |
Mineral properties, plant and equipment | 379 | 59 |
Other deductible temporary differences | 262 | 445 |
$ 35,987 | $ 30,232 |
Subsequent | No expiry | |||||
2024 | 2025 | 2026 | to 2026 | date | Total | |
Botswana | $ \u2013 | $ \u2013 | $ \u2013 | $ \u2013 | $ 55,418 | $ 55,418 |
Canada | \u2013 | \u2013 | \u2013 | 121,547 | \u2013 | 121,547 |
United Kingdom | \u2013 | \u2013 | \u2013 | \u2013 | 5,619 | 5,619 |
$ \u2013 | $ \u2013 | $ \u2013 | $ 121,547 | $ 61,037 | $ 182,584 |
2023 | 2022 | |
Net (loss) income for the year | $ (20,191) | $ 40,434 |
Weighted average number of common shares outstanding | 454,781,585 | 453,479,480 |
Adjustment for share units | - | 8,473,773 |
Weighted average number of common shares for diluted | ||
earnings per share | 454,781,585 | 461,953,253 |
Basic and diluted earnings per share | $ (0.04) | $ 0.09 |
2023 | 2022 | |
Salaries and wages | $ 3,637 | $ 2,256 |
Short term benefits | 34 | 27 |
Share based compensation | 991 | 1,226 |
$ 4,662 | $ 3,509 |
| 2023 | |||
Corporate | |||
Karowe Mine | and other | Total | |
Revenues (1) | $ 172,400 | $ 4,971 | $ 177,371 |
Income (loss) from operations | 62,536 | (2,120) | 60,416 |
Finance expenses | (6,093) | 1,587 | (4,506) |
Loss on derivative financial instrument | (1,712) | \u2013 | (1,712) |
Exploration | (1,244) | \u2013 | (1,244) |
Foreign exchange loss | (4,823) | (351) | (5,174) |
Loss on disposal of assets | (943) | \u2013 | (943) |
Administrative and other | (11,517) | (22,760) | (34,277) |
Taxes | (32,489) | (262) | (32,751) |
Net income (loss) for the year | $ 3,715 | $ (23,906) | $ (20,191) |
Capital expenditures | $ 115,683 | $ 112 | $ 115,795 |
Total assets | $ 566,382 | $ 9,421 | $ 575,803 |
| 2022 | |||
Corporate | |||
Karowe Mine | and other | Total | |
Revenues (1) | $ 203,803 | $ 9,131 | $ 212,934 |
Income (loss) from operations | 86,722 | (2,120) | 84,602 |
Finance expenses | (3,420) | (270) | (3,690) |
Gain on derivative financial instrument | 10,662 | \u2013 | 10,662 |
Exploration | (835) | \u2013 | (835) |
Foreign exchange loss | (3,912) | (20) | (3,932) |
Administrative and other | (10,255) | (11,740) | (21,995) |
Taxes | (24,089) | (289) | (24,378) |
Net income (loss) for the year | $ 54,873 | $ (14,439) | $ 40,434 |
Capital expenditures | $ 125,331 | $ 90 | $ 125,421 |
Total assets | $ 470,814 | $ 25,025 | $ 495,839 |
| Plant and equipment | Mineral properties | Other | ||||||
| 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |||
Canada | $ 130 | $ 225 | $ \u2013 | $ \u2013 | $ 7,022 | $ 18,886 | ||
Belgium | 8 | 40 | \u2013 | \u2013 | \u2013 | \u2013 | ||
Botswana | 124,845 | 87,974 | 287,245 | 244,130 | 72,660 | 44,245 | ||
$ 124,983 | $ 88,239 | $ 287,245 | $ 244,130 | $ 79,682 | $ 63,131 |
2023 | 2022 | |
Level 1: Fair value through other comprehensive income | ||
\u2013 Investments | $ 811 | $ 661 |
Level 2: Derivative financial instruments | $ 8,107 | $ 9,820 |
Level 3: N/A |
2027 and | ||||||
2024 | 2025 | 2026 | 2028 | Total | ||
Underground expansion | ||||||
project | $ million | 36.3 | 24.2 | 12.7 | 4.0 | 77.2 |
Discount rate | A discount rate of 11.0%, calculated based on a real weighted cost of |
capital including the effect of factors such as market, project, and country | |
risk. | |
Economically | The current Karowe mine plan anticipates planned commencement of |
recoverable reserves, | production from the underground by mid-2028. |
including production | |
timing and volume | Production volumes and life of mine plans include economically |
recoverable reserves from the most recent reserve and resource | |
estimate based on technical studies undertaken in-house and by third | |
party specialists that consider internal management forecasts and long- | |
term development plans and expectations for the Karowe mine. | |
The current mine plan does not assume the conversion of additional | |
resources which are not currently categorized as reserves. | |
Diamond prices | The diamond price range is between $392 and $828 per carat, |
depending on the source of the ore, and these prices have been set with | |
reference to recently achieved pricing and market trends, supported by | |
industry views of long-term diamond market fundamentals. | |
Diamond prices are not escalated and remain unchanged over the life of | |
mine. The estimated contribution of exceptional diamonds, defined as an | |
individual diamond sold for more than $10.0 million, is determined with | |
reference to historical trends and management\u2019s expectations based on | |
the source of future production. |
Capital expenditure to | Capital to complete development of the UGP is based on the |
complete development of the | revised project schedule and an estimated cost to complete of $419 |
UGP, production costs and | million at June 30, 2023. |
future sustaining capital | |
expenditures | |
Exchange rates | Exchange rates are estimated based on an assessment of current |
market fundamentals and long-term expectations. With operations | |
in Botswana, a large proportion of operating costs and sustaining | |
capital expenditure is denominated in Botswana pula. The | |
exchange rate range used for the Karowe CGU is between 12.50 | |
and 13.00 Botswana pula to the U.S. dollar. |
Machinery and equipment | 5 to 15 years |
Plant facilities | based on recoverable reserves on a unit of production basis |
Furniture and office equipment | 2 to 3 years |
Machinery and equipment | 5 to 15 years |
Plant facilities | based on recoverable reserves on a unit of production basis |
Furniture and office equipment | 2 to 3 years |
Machinery and equipment | 5 to 15 years |
Plant facilities | based on recoverable reserves on a unit of production basis |
Furniture and office equipment | 2 to 3 years |
2023 | 2022 | |
Trade | $ 12,981 | $ 18,769 |
Value-added and income taxes | 13,927 | 5,301 |
Deferred financing fees (Note 10) | \u2013 | 975 |
Prepayments | 8,012 | 7,078 |
Other | 130 | 979 |
$ 35,050 | $ 33,102 |
2023 | 2022 | |
Rough diamonds | $ 19,217 | $ 17,988 |
Ore stockpile | 2,038 | 6,967 |
Parts and supplies | 13,279 | 13,417 |
Total current inventories | $ 34,534 | $ 38,372 |
Non-current inventories \u2013 ore stockpile | $ 38,719 | $ 27,867 |
Mine and | Furniture | |||||
Construction | plant | and office | Right of | |||
Cost | in progress | facilities | equipment | Vehicles | use assets | Total |
Balance, January 1, 2022 | $ 13,645 | $ 208,279 | $ 14,262 | $ 4,227 | $ 4,205 | $ 244,618 |
Additions | 18,785 | \u2013 | \u2013 | \u2013 | 3,145 | 21,930 |
Reclassification | (11,937) | 9,692 | 1,955 | 335 | \u2013 | 45 |
Translation differences | (1,353) | (17,205) | (1,225) | (355) | (451) | (20,589) |
Balance, December 31, 2022 | $ 19,140 | $ 200,766 | $ 14,992 | $ 4,207 | $ 6,899 | $ 246,004 |
Additions | 12,993 | \u2013 | \u2013 | \u2013 | 1,292 | 14,285 |
Reclassification (Note 8) | (12,073) | 30,151 | 1,740 | 863 | 23,752 | 44,433 |
Disposals and other | (943) | (109) | (9) | (89) | (184) | (1,334) |
Translation differences | (903) | (9,352) | (700) | (201) | (443) | (11,599) |
Balance, December 31, 2023 | $ 18,214 | $ 221,456 | $ 16,023 | $ 4,780 | $ 31,316 | $ 291,789 |
Accumulated amortization | ||||||
Balance, January 1, 2022 | $ \u2013 | $ 144,306 | $ 8,913 | $ 2,282 | $ 1,796 | $ 157,297 |
Depletion and amortization | \u2013 | 7,843 | 2,469 | 618 | 2,854 | 13,784 |
Translation differences | \u2013 | (12,052) | (809) | (208) | (247) | (13,316) |
Balance, December 31, 2022 | $ \u2013 | $ 140,097 | $ 10,573 | $ 2,692 | $ 4,403 | $ 157,765 |
Depletion and amortization | \u2013 | 7,166 | 2,465 | 235 | 1,205 | 11,071 |
Reclassification (Note 8) | \u2013 | 4,056 | 148 | 412 | 985 | 5,601 |
Disposals and other | \u2013 | (39) | (6) | (88) | (184) | (317) |
Translation differences | \u2013 | (6,474) | (499) | (129) | (212) | (7,314) |
Balance, December 31, 2023 | $ \u2013 | $ 144,806 | $ 12,681 | $ 3,122 | $ 6,197 | $ 166,806 |
Net book value | ||||||
As at December 31, 2022 | $ 19,140 | $ 60,669 | $ 4,419 | $ 1,515 | $ 2,496 | $ 88,239 |
As at December 31, 2023 | $ 18,214 | $ 76,650 | $ 3,342 | $ 1,658 | $ 25,119 | $ 124,983 |
Mine and | Furniture | |||||
Construction | plant | and office | Right of | |||
Cost | in progress | facilities | equipment | Vehicles | use assets | Total |
Balance, January 1, 2022 | $ 13,645 | $ 208,279 | $ 14,262 | $ 4,227 | $ 4,205 | $ 244,618 |
Additions | 18,785 | \u2013 | \u2013 | \u2013 | 3,145 | 21,930 |
Reclassification | (11,937) | 9,692 | 1,955 | 335 | \u2013 | 45 |
Translation differences | (1,353) | (17,205) | (1,225) | (355) | (451) | (20,589) |
Balance, December 31, 2022 | $ 19,140 | $ 200,766 | $ 14,992 | $ 4,207 | $ 6,899 | $ 246,004 |
Additions | 12,993 | \u2013 | \u2013 | \u2013 | 1,292 | 14,285 |
Reclassification (Note 8) | (12,073) | 30,151 | 1,740 | 863 | 23,752 | 44,433 |
Disposals and other | (943) | (109) | (9) | (89) | (184) | (1,334) |
Translation differences | (903) | (9,352) | (700) | (201) | (443) | (11,599) |
Balance, December 31, 2023 | $ 18,214 | $ 221,456 | $ 16,023 | $ 4,780 | $ 31,316 | $ 291,789 |
Accumulated amortization | ||||||
Balance, January 1, 2022 | $ \u2013 | $ 144,306 | $ 8,913 | $ 2,282 | $ 1,796 | $ 157,297 |
Depletion and amortization | \u2013 | 7,843 | 2,469 | 618 | 2,854 | 13,784 |
Translation differences | \u2013 | (12,052) | (809) | (208) | (247) | (13,316) |
Balance, December 31, 2022 | $ \u2013 | $ 140,097 | $ 10,573 | $ 2,692 | $ 4,403 | $ 157,765 |
Depletion and amortization | \u2013 | 7,166 | 2,465 | 235 | 1,205 | 11,071 |
Reclassification (Note 8) | \u2013 | 4,056 | 148 | 412 | 985 | 5,601 |
Disposals and other | \u2013 | (39) | (6) | (88) | (184) | (317) |
Translation differences | \u2013 | (6,474) | (499) | (129) | (212) | (7,314) |
Balance, December 31, 2023 | $ \u2013 | $ 144,806 | $ 12,681 | $ 3,122 | $ 6,197 | $ 166,806 |
Net book value | ||||||
As at December 31, 2022 | $ 19,140 | $ 60,669 | $ 4,419 | $ 1,515 | $ 2,496 | $ 88,239 |
As at December 31, 2023 | $ 18,214 | $ 76,650 | $ 3,342 | $ 1,658 | $ 25,119 | $ 124,983 |
Capitalized | Karowe | |||
production | Underground | |||
Cost | stripping asset | Karowe Mine | Construction | Total |
Balance, January 1, 2022 | $ 66,073 | $ 41,857 | $ 126,117 | $ 234,047 |
Additions | \u2013 | \u2013 | 106,389 | 106,389 |
Borrowing cost capitalized | \u2013 | \u2013 | 6,676 | 6,676 |
Adjustment to restoration asset | \u2013 | (1,669) | \u2013 | (1,669) |
Reclassification | \u2013 | \u2013 | (45) | (45) |
Translation differences | (5,368) | (3,336) | (14,277) | (22,981) |
Balance, December 31, 2022 | $ 60,705 | $ 36,852 | $ 224,860 | $ 322,417 |
Additions | \u2013 | \u2013 | 92,128 | 92,128 |
Borrowing cost capitalized | \u2013 | \u2013 | 9,285 | 9,285 |
Adjustment to restoration asset | \u2013 | (472) | \u2013 | (472) |
Assets put into use (Note 7) | \u2013 | \u2013 | (38,832) | (38,832) |
Translation differences | (2,847) | (1,726) | (10,864) | (15,437) |
Balance, December 31, 2023 | $ 57,858 | $ 34,654 | $ 276,577 | $ 369,089 |
Accumulated depletion | ||||
Balance, January 1, 2022 | $ 43,381 | $ 33,088 | \u2013 | $ 76,469 |
Depletion | 7,042 | 1,286 | \u2013 | 8,328 |
Translation differences | (3,776) | (2,734) | \u2013 | (6,510) |
Balance, December 31, 2022 | $ 46,647 | $ 31,640 | \u2013 | $ 78,287 |
Depletion | 5,851 | 1,415 | \u2013 | 7,266 |
Translation differences | (2,218) | (1,491) | \u2013 | (3,709) |
Balance, December 31, 2023 | $ 50,280 | $ 31,564 | \u2013 | $ 81,844 |
Net book value | ||||
As at December 31, 2022 | $ 14,058 | $ 5,212 | $ 224,860 | $ 244,130 |
As at December 31, 2023 | $ 7,578 | $ 3,090 | $ 276,577 | $ 287,245 |
Cost | |
Balance, January 1, 2022 | $ 23,916 |
Development expenditures | 90 |
Translation differences | (1,495) |
Balance, December 31, 2022 | $ 22,511 |
Impairment of intangible asset | (11,200) |
Development expenditures | 112 |
Translation differences | 499 |
Balance, December 31, 2023 | $ 11,922 |
Accumulated amortization | |
Balance, January 1, 2022 | $ 3,192 |
Amortization | 1,348 |
Translation differences | (253) |
Balance, December 31, 2022 | $ 4,287 |
Amortization | 1,306 |
Translation differences | 118 |
Balance, December 31, 2023 | $ 5,711 |
Net book value | |
As at December 31, 2022 | $ 18,224 |
As at December 31, 2023 | $ 6,211 |
2023 | 2022 | |
Current | ||
Working capital facility | $ 35,000 | $ 15,000 |
Revolving credit facility | - | 338 |
Deferred financing fees (Note 5) | $ - | $ (975) |
Non-current | ||
Project finance facility, net of fees | $ 86,515 | $ 62,151 |
Due to related parties | 15,000 | - |
Deferred financing fees | $ (4,122) | $ (5,410) |
2023 | 2022 | |
Balance, beginning of year | $ 13,649 | $ 15,346 |
Changes in rates and estimates | (472) | (1,669) |
Accretion of liability component of obligation | 1,205 | 1,202 |
Foreign currency translation adjustment | (644) | (1,230) |
Restoration provisions | $ 13,738 | $ 13,649 |
Number of shares issuable | Weighted average exercise | |
pursuant to stock options | price per share (CA$) | |
Balance at January 1, 2022 | 6,249,000 | $ 1.26 |
Granted | 2,332,000 | 0.66 |
Expired | (1,065,000) | 2.35 |
Forfeited | (1,102,000) | 1.06 |
Balance at December 31, 2022 | 6,414,000 | $ 0.89 |
Granted | 2,412,000 | 0.57 |
Expired | (1,134,000) | 1.64 |
Forfeited | (1,148,000) | 0.65 |
Balance at December 31, 2023 | 6,544,000 | $ 0.68 |
| Outstanding Options | Exercisable Options | |||||
Weighted | Weighted | Weighted | Weighted | |||
average | average | average | average | |||
Range of | Number of | remaining | exercise | Number of | remaining | exercise |
exercise | options | contractual | price | options | contractual | price |
prices CA$ | outstanding | life (years) | (CA$) | exercisable | life (years) | (CA$) |
$0.50 - $0.74 | 3,765,000 | 3.21 | 0.61 | 1,284,999 | 2.78 | 0.63 |
$0.75 - $0.79 | 2,779,000 | 0.73 | 0.78 | 2,404,000 | 0.67 | 0.78 |
6,544,000 | 2.16 | $ 0.68 | 3,688,999 | 1.40 | $ 0.73 |
2023 | 2022 | |
Assumptions: | ||
Risk-free interest rate (%) | 2.99 | 1.59 |
Expected life (years) | 4.54 | 3.63 |
Expected volatility (%) | 49.81 | 51.56 |
Expected dividend | Nil | Nil |
Results: | ||
Weighted average fair value of options granted (per option) | CA$0.25 | CA$0.25 |
Estimated fair value at | ||
Number of share units | date of grant (CA$) | |
Balance at January 1, 2022 | 5,234,848 | $ 0.83 |
Granted | 2,860,000 | 0.64 |
Redeemed | (1,038,848) | 1.14 |
Balance at December 31, 2022 | 7,056,000 | $ 0.71 |
Granted | 3,337,000 | 0.57 |
Redeemed | (2,876,001) | 0.74 |
Cancelled | (3,902,999) | 0.62 |
Balance at December 31, 2023 | 3,614,000 | $ 0.65 |
Number of DSUs | Estimated fair value (CA$) | |
Balance at January 1, 2022 | 1,234,510 | $ 0.59 |
Granted | 881,593 | $ 0.58 |
Balance at December 31, 2022 | 2,116,103 | $ 0.50 |
Granted | 1,056,053 | $ 0.47 |
Balance at December 31, 2023 | 3,172,156 | $ 0.49 |
Country of | ||
incorporation and | ||
Name | place of business | Nature of business |
African Diamonds Limited. | UK | (1) |
Clara Diamond Solutions BV (2) | Belgium | (1) |
Clara Diamond Solutions Limited Partnership | Canada | Diamond sales platform |
Clara Diamond Solutions GP Inc. | Canada | (1) |
Lucara Management Services Limited | UK | (1) |
Lucara Diamond Holdings Inc. | Mauritius | (1) |
Boteti Diamond Holdings Inc. | Mauritius | (1) |
Wati Ventures Proprietary Limited | Botswana | (1) |
Debwat Exploration Proprietary Limited | Botswana | (1) |
Lucara Botswana Proprietary Limited | Botswana | Diamond mining |
2023 | 2022 | |
Revenue from diamond sales | $ 177,371 | $ 212,934 |
2023 | 2022 | |
Salaries and benefits | $ 7,797 | $ 7,849 |
Professional fees | 4,870 | 3,070 |
Insurance, office, and general | 1,698 | 2,038 |
Promotion | 1,054 | 1,136 |
Stock exchange, transfer agent, shareholder communication | 334 | 306 |
Travel | 727 | 1,086 |
Share-based compensation (Note 13) | 1,440 | 1,977 |
Depreciation | 815 | 446 |
Sustainability and donations (1) | 880 | 1,211 |
$ 19,615 | $ 19,119 |
2023 | 2022 | |
Current | $ 3,483 | $ 307 |
Deferred | 29,268 | 24,071 |
Income tax expense | $ 32,751 | $ 24,378 |
2023 | 2022 | |
Statutory tax rate | 27.00% | 27.00% |
Net (loss) income before tax | 12,560 | 64,811 |
Computed income tax expense | 3,391 | 17,499 |
Differences between Canadian and foreign tax rates | (1,880) | (3,729) |
Differences in Botswana variable tax rates | 19,352 | 7,702 |
Non-deductible expenses and other permanent differences | 2,542 | 1,179 |
Change in deferred tax assets not recognized | 4,613 | 1,912 |
Other | 3,793 | \u2013 |
Withholding taxes | 940 | (185) |
$ 32,751 | $ 24,378 |
2023 | 2022 | |
Balance, beginning of year | $ 87,808 | $ 70,285 |
Deferred income tax expense | 29,268 | 24,071 |
Foreign currency translation adjustment | (4,313) | (6,548) |
Balance, end of year | $ 112,763 | $ 87,808 |
Deferred income tax assets and liabilities recognized | 2023 | 2022 |
Deferred income tax assets | ||
Non-capital losses | $ 16,325 | $ 11,723 |
Accounts payable and other | 2,059 | \u2013 |
Unrealized foreign exchange loss | 978 | 1,144 |
Restoration provisions | 3,022 | 3,003 |
Total deferred income tax assets | 22,384 | 15,870 |
Deferred income tax liabilities | ||
Mineral properties, plant and equipment | 135,147 | 101,268 |
Other | - | 2,410 |
Deferred income tax liabilities | 135,147 | 103,678 |
Deferred income tax liabilities, net | $ 112,763 | $ 87,808 |
Deferred income tax assets not recognized | 2023 | 2022 |
Tax losses | $ 35,346 | $ 29,728 |
Mineral properties, plant and equipment | 379 | 59 |
Other deductible temporary differences | 262 | 445 |
$ 35,987 | $ 30,232 |
Subsequent | No expiry | |||||
2024 | 2025 | 2026 | to 2026 | date | Total | |
Botswana | $ \u2013 | $ \u2013 | $ \u2013 | $ \u2013 | $ 55,418 | $ 55,418 |
Canada | \u2013 | \u2013 | \u2013 | 121,547 | \u2013 | 121,547 |
United Kingdom | \u2013 | \u2013 | \u2013 | \u2013 | 5,619 | 5,619 |
$ \u2013 | $ \u2013 | $ \u2013 | $ 121,547 | $ 61,037 | $ 182,584 |
2023 | 2022 | |
Current | $ 3,483 | $ 307 |
Deferred | 29,268 | 24,071 |
Income tax expense | $ 32,751 | $ 24,378 |
2023 | 2022 | |
Statutory tax rate | 27.00% | 27.00% |
Net (loss) income before tax | 12,560 | 64,811 |
Computed income tax expense | 3,391 | 17,499 |
Differences between Canadian and foreign tax rates | (1,880) | (3,729) |
Differences in Botswana variable tax rates | 19,352 | 7,702 |
Non-deductible expenses and other permanent differences | 2,542 | 1,179 |
Change in deferred tax assets not recognized | 4,613 | 1,912 |
Other | 3,793 | \u2013 |
Withholding taxes | 940 | (185) |
$ 32,751 | $ 24,378 |
2023 | 2022 | |
Balance, beginning of year | $ 87,808 | $ 70,285 |
Deferred income tax expense | 29,268 | 24,071 |
Foreign currency translation adjustment | (4,313) | (6,548) |
Balance, end of year | $ 112,763 | $ 87,808 |
Deferred income tax assets and liabilities recognized | 2023 | 2022 |
Deferred income tax assets | ||
Non-capital losses | $ 16,325 | $ 11,723 |
Accounts payable and other | 2,059 | \u2013 |
Unrealized foreign exchange loss | 978 | 1,144 |
Restoration provisions | 3,022 | 3,003 |
Total deferred income tax assets | 22,384 | 15,870 |
Deferred income tax liabilities | ||
Mineral properties, plant and equipment | 135,147 | 101,268 |
Other | - | 2,410 |
Deferred income tax liabilities | 135,147 | 103,678 |
Deferred income tax liabilities, net | $ 112,763 | $ 87,808 |
Deferred income tax assets not recognized | 2023 | 2022 |
Tax losses | $ 35,346 | $ 29,728 |
Mineral properties, plant and equipment | 379 | 59 |
Other deductible temporary differences | 262 | 445 |
$ 35,987 | $ 30,232 |
Subsequent | No expiry | |||||
2024 | 2025 | 2026 | to 2026 | date | Total | |
Botswana | $ \u2013 | $ \u2013 | $ \u2013 | $ \u2013 | $ 55,418 | $ 55,418 |
Canada | \u2013 | \u2013 | \u2013 | 121,547 | \u2013 | 121,547 |
United Kingdom | \u2013 | \u2013 | \u2013 | \u2013 | 5,619 | 5,619 |
$ \u2013 | $ \u2013 | $ \u2013 | $ 121,547 | $ 61,037 | $ 182,584 |
2023 | 2022 | |
Net (loss) income for the year | $ (20,191) | $ 40,434 |
Weighted average number of common shares outstanding | 454,781,585 | 453,479,480 |
Adjustment for share units | - | 8,473,773 |
Weighted average number of common shares for diluted | ||
earnings per share | 454,781,585 | 461,953,253 |
Basic and diluted earnings per share | $ (0.04) | $ 0.09 |
2023 | 2022 | |
Salaries and wages | $ 3,637 | $ 2,256 |
Short term benefits | 34 | 27 |
Share based compensation | 991 | 1,226 |
$ 4,662 | $ 3,509 |
| 2023 | |||
Corporate | |||
Karowe Mine | and other | Total | |
Revenues (1) | $ 172,400 | $ 4,971 | $ 177,371 |
Income (loss) from operations | 62,536 | (2,120) | 60,416 |
Finance expenses | (6,093) | 1,587 | (4,506) |
Loss on derivative financial instrument | (1,712) | \u2013 | (1,712) |
Exploration | (1,244) | \u2013 | (1,244) |
Foreign exchange loss | (4,823) | (351) | (5,174) |
Loss on disposal of assets | (943) | \u2013 | (943) |
Administrative and other | (11,517) | (22,760) | (34,277) |
Taxes | (32,489) | (262) | (32,751) |
Net income (loss) for the year | $ 3,715 | $ (23,906) | $ (20,191) |
Capital expenditures | $ 115,683 | $ 112 | $ 115,795 |
Total assets | $ 566,382 | $ 9,421 | $ 575,803 |
| 2022 | |||
Corporate | |||
Karowe Mine | and other | Total | |
Revenues (1) | $ 203,803 | $ 9,131 | $ 212,934 |
Income (loss) from operations | 86,722 | (2,120) | 84,602 |
Finance expenses | (3,420) | (270) | (3,690) |
Gain on derivative financial instrument | 10,662 | \u2013 | 10,662 |
Exploration | (835) | \u2013 | (835) |
Foreign exchange loss | (3,912) | (20) | (3,932) |
Administrative and other | (10,255) | (11,740) | (21,995) |
Taxes | (24,089) | (289) | (24,378) |
Net income (loss) for the year | $ 54,873 | $ (14,439) | $ 40,434 |
Capital expenditures | $ 125,331 | $ 90 | $ 125,421 |
Total assets | $ 470,814 | $ 25,025 | $ 495,839 |
| Plant and equipment | Mineral properties | Other | ||||||
| 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |||
Canada | $ 130 | $ 225 | $ \u2013 | $ \u2013 | $ 7,022 | $ 18,886 | ||
Belgium | 8 | 40 | \u2013 | \u2013 | \u2013 | \u2013 | ||
Botswana | 124,845 | 87,974 | 287,245 | 244,130 | 72,660 | 44,245 | ||
$ 124,983 | $ 88,239 | $ 287,245 | $ 244,130 | $ 79,682 | $ 63,131 |
2023 | 2022 | |
Level 1: Fair value through other comprehensive income | ||
\u2013 Investments | $ 811 | $ 661 |
Level 2: Derivative financial instruments | $ 8,107 | $ 9,820 |
Level 3: N/A |
2023 | 2022 | |
Level 1: Fair value through other comprehensive income | ||
\u2013 Investments | $ 811 | $ 661 |
Level 2: Derivative financial instruments | $ 8,107 | $ 9,820 |
Level 3: N/A |
2027 and | ||||||
2024 | 2025 | 2026 | 2028 | Total | ||
Underground expansion | ||||||
project | $ million | 36.3 | 24.2 | 12.7 | 4.0 | 77.2 |
Discount rate | A discount rate of 11.0%, calculated based on a real weighted cost of |
capital including the effect of factors such as market, project, and country | |
risk. | |
Economically | The current Karowe mine plan anticipates planned commencement of |
recoverable reserves, | production from the underground by mid-2028. |
including production | |
timing and volume | Production volumes and life of mine plans include economically |
recoverable reserves from the most recent reserve and resource | |
estimate based on technical studies undertaken in-house and by third | |
party specialists that consider internal management forecasts and long- | |
term development plans and expectations for the Karowe mine. | |
The current mine plan does not assume the conversion of additional | |
resources which are not currently categorized as reserves. | |
Diamond prices | The diamond price range is between $392 and $828 per carat, |
depending on the source of the ore, and these prices have been set with | |
reference to recently achieved pricing and market trends, supported by | |
industry views of long-term diamond market fundamentals. | |
Diamond prices are not escalated and remain unchanged over the life of | |
mine. The estimated contribution of exceptional diamonds, defined as an | |
individual diamond sold for more than $10.0 million, is determined with | |
reference to historical trends and management\u2019s expectations based on | |
the source of future production. |
Capital expenditure to | Capital to complete development of the UGP is based on the |
complete development of the | revised project schedule and an estimated cost to complete of $419 |
UGP, production costs and | million at June 30, 2023. |
future sustaining capital | |
expenditures | |
Exchange rates | Exchange rates are estimated based on an assessment of current |
market fundamentals and long-term expectations. With operations | |
in Botswana, a large proportion of operating costs and sustaining | |
capital expenditure is denominated in Botswana pula. The | |
exchange rate range used for the Karowe CGU is between 12.50 | |
and 13.00 Botswana pula to the U.S. dollar. |