REG - Lucara Diamond Corp - LUCARA ANNOUNCES Q2 2024 RESULTS

Lucara DiamondAnnouncement

12/08/2024 07:00

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RNS Number : 9821Z  Lucara Diamond Corp  12 August 2024

August 9, 2024

 

NEWS RELEASE

 

LUCARA ANNOUNCES Q2 2024 RESULTS

VANCOUVER, B.C., August 9, 2024 /CNW/ (LUC - TSX, LUC - BSE, LUC - Nasdaq
Stockholm)

 

Lucara Diamond Corp. ("Lucara" or the "Company") today reports its results for
the quarter ended June 30, 2024. All amounts are in U.S. dollars unless
otherwise noted.

 

Q2 2024 HIGHLIGHTS

·      Karowe registered no lost time injuries during the three months
ended June 30, 2024. As of June 30, 2024, the mine had operated for over three
years without a lost time injury.

·      The recovery of a 491-carat Type IIa diamond, a 225.6-carat Type
IIa diamond, followed by the recovery of a 109-carat Type IIa diamond.

·      A total of 76,387 carats of diamonds were sold, generating
revenue of $41.3 million during the second quarter of 2024.

·      Significant progress was made in shaft sinking in the ventilation
and production shafts in Q2 2024 with the critical path ventilation shaft
ahead of the July 2023 rebase schedule. At the end of Q2, the production and
ventilation shafts had reached a depth of 557 metres below collar ("mbc") and
550 mbc respectively.

·      A total of 92,419 carats were recovered during the quarter at a
recovered grade of 12.9 carats per hundred tonnes ("cpht") of direct milled
ore. A further 8,349 carats were recovered from processing of historic
recovery tailings. The recovery of 206 Specials (defined as rough diamonds
larger than 10.8 carats) equated to 6.9% by weight of the total recovered
carats from Q2's ore processed which is in line with the Company's
expectation.

·      Operational highlights from the Karowe Mine included:

o Ore and waste mined of 0.7 million tonnes ("Mt") (Q2 2023: 0.7Mt) and 0.2
million tonnes (Q2 2023: 0.9Mt), respectively.

o 0.7 million tonnes of ore processed (Q2 2023: 0.7Mt).

·      Financial highlights for Q2 2024 included:

o Operating margins of 67% were achieved (Q2 2023: 59%). A strong operating
margin continues to be achieved due to robust pricing for the Company's larger
stones and cost reduction initiatives assisted by a strong U.S. dollar.

o Operating cost per tonne processed((1)) was $26.32, a decrease of 6% over
the Q2 2023 cost per tonne processed of $27.97 and stayed relatively
consistent with Q1 2024 of $26.00 cost per tonne. The continued impact of
inflationary pressures, particularly labour, has been well managed by the
operation. A strong U.S. dollar continues to offset a small increase in costs
over the comparable period.

o Adjusted EBITDA((1)) was $18.8 million (Q2 2023: $16.5 million), with the
increase attributable to the increase in revenue and lower operating expenses.

·      During Q2 2024, the Company invested $11.2 million into the
Karowe Underground Project ("UGP"), excluding capitalized cash borrowing
costs:

o During Q2 2024, the ventilation shaft sank 128 metres and commenced
development of the 470-level station (at approximately 550 mbc).

o Production shaft activities included sinking a total of 104 metres, and the
completion of three probe hole covers with no water being intersected. A total
of 26 metres of lateral development on the 470-level together with the
470-level station development was completed.

·      Cash position and liquidity as at June 30, 2024:

o Cash and cash equivalents of $21.9 million.

o Working capital (current assets less current liabilities excluding held for
sale) of $21.7 million.

o $165.0 million drawn on the $190.0 million Project Facility ("Project
Facility") for the Karowe UGP with $25.0 million drawn on the $30.0 million
working capital facility ("WCF") and Cost Overrun Reserve Account ("CORA")
balance of $37.5 million.

((1)) Operating cash cost per tonne processed and adjusted EBITDA are non-IFRS
measures (See "Use of Non-IFRS Financial Performance Measures" in MD&A).

William Lamb, President & CEO commented: "Lucara's performance this
quarter reaffirms our position as a leader in the diamond industry. Our
unwavering commitment to safety and operational excellence continues to drive
our success, with both our open pit operations and underground construction
progressing admirably. The Underground Expansion Project, in particular, is
advancing well, with shaft sinking progress surpassing our expectations.

In the face of a challenging diamond market, Lucara's unique production
profile sets us apart. Our Karowe mine's consistent delivery of large,
high-quality diamonds provides a natural hedge against market volatility.
These exceptional stones, coupled with our innovative sales strategies, allow
us to navigate current market conditions effectively.

Looking ahead, I'm confident that Lucara is well-positioned for sustainable
growth. Our expansion strategy and focus on operational efficiency provide us
with the flexibility to adapt to market dynamics while continuing to deliver
value. As we move forward, Lucara remains committed to setting new industry
standards and capitalizing on the opportunities that lie ahead in the evolving
diamond market."

DIAMOND MARKET

The long-term outlook for natural diamond prices remains positive due to
improving supply and demand dynamics due to long-term reductions from major
producing mines. However, the market for the smaller size stones remains soft
as demand is impacted by a weak Asian market and laboratory-grown diamonds.
Demand for larger stones over 10.8 carats remains robust, as reflected in the
Company's sales. The G7 sanctions on Russian diamonds over one carat,
effective March 2024, have caused some trade delays. New regulations require
these diamonds to be processed through the Antwerp World Diamond Centre for
origin verification. The Company views this as short-term support for diamond
prices, as the emphasis on stone provenance increases. Lucara, with its
established operations producing exceptional Botswana diamonds, stands to
benefit from this heightened focus on origin verification.

 

Sales of laboratory-grown diamonds increased steadily through 2023 and into
2024 with many smaller retail outlets increasingly adopting these diamonds as
a product. In Q2 2024, De Beers announced it will cease creating synthetic
diamonds and direct its efforts to sell natural diamonds. This is in
conjunction with several major brands confirming that they would not market
laboratory-grown diamonds. The overall long-term impact will support the
natural diamond market as the Company expects to see bifurcation between the
natural and laboratory-grown diamond market in the medium term. The
longer-term market fundamentals for natural diamonds remains positive, as
demand is expected to outstrip future supply, which has been declining
globally over the past few years.

 

 

KAROWE UNDERGROUND PROJECT 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 Karowe UGP is expected to extend mine life to 2040.

 

An update to the Karowe UGP schedule and budget was announced on July 16, 2023
(link to news release
(https://lucaradiamond.com/newsroom/news-releases/lucara-provides-karowe-underground-expansion-proje-122862/)
). The anticipated commencement of production from the underground is H1 2028.
The revised forecast of costs at completion is $683.0 million (including
contingency). As at June 30, 2024, capital expenditures of $336.3 million had
been incurred and further capital commitments of $69.7 million had been
made.

 

With the 2023 update, the Karowe Mine production and cash flow models were
updated for the revised project schedule and cost estimate. Open pit mining
will continue until mid-2025 and provide mill feed during this time.
Stockpiled material (North, Centre, South Lobe) from working stocks and life
of mine stockpiles will provide uninterrupted mill feed until late 2026 when
Karowe UGP development ore will begin to offset stockpiles with high-grade ore
from the underground production feed planned for H1 2028. The long-term
outlook for diamond prices, combined with the potential for exceptional stone
recoveries and the continued strong performance of the open pit could mitigate
the modelled impact on project cash flows due to the changes in schedule. The
Company continues to explore opportunities to further mitigate the modelled
impact.

 

During Q2 2024, the UGP achieved a twelve-month rolling Total Recordable
Injury Frequency Rate of 0.65. Project to date Total Recordable Injury
Frequency Rate at June 30, 2024 was 0.56.  A total of $11.2 million was spent
on the Karowe UGP development in Q2 2024 for the following surface
infrastructure and ongoing shaft sinking activities:

 

The ventilation shaft Q2 2024 development:

·      Reached a depth of 550 metres below collar out of a planned final
depth of 731 metres.

·      Commenced 470-level station development.

 

The production shaft Q2 2024 development:

·      Reached a depth of 557 metres below collar, out of a planned
final depth of 765 metres.

·      The 470-level station and development excavation at the
production shaft was completed.

 

Related infrastructure Q2 2024 development:

·      Construction of the permanent bulk air coolers at the production
shaft continued during Q2 and was completed in July 2024.

·      Detailed engineering and fabrication of the permanent people and
materials winder continued during the quarter, representing the last major
component for the permanent winders.

·      Preparation of tender documents for the underground lateral
development work. Tenders for this contract are expected to be received in
September 2024.

·      Mining engineering advanced with a focus on supporting shaft
sinking, underground infrastructure engineering and finalizing drilling level
plans.

 

The capital cost expenditure for the UGP in 2024 is expected to be up to $100
million - see "2024 Outlook" below.

 

Activities planned for the Karowe UGP in Q3 2024 include the following:

·      Production shaft sinking to 310-level.

·      Complete station and commence lateral development at the
470-level for the ventilation shaft.

·      Procurement of underground equipment, including an additional
Load Haul Dump (LHD) vehicle for the production shaft station development.
Major components of the underground crusher and dewatering pumps will be
delivered to site.

·      Continuation of detailed design and engineering of the
underground mine infrastructure, draw bells and underground layout.

·      Finalise engineering of the permanent people and materials
winder.

·      Commencement of people and materials winder earthworks and
civils.

 

FINANCIAL HIGHLIGHTS - Q2 2024

                                                                        Three months ended                                Six months ended
                                                                        June 30,                                          June 30,
 In millions of U.S. dollars, except carats                                      2024                   2023                       2024                   2023

 Revenues                                                           $   41.3                   38.6                   $   80.8                   79.9
 Operating expenses                                                     (13.7)                 (13.9)                     (32.0)                 (30.8)
 Net income from continuing operations for the period                   11.9                   6.1                        5.0                    7.9
 Net loss from discontinued operations for the period                   (0.6)                  (1.1)                      (1.5)                  (2.0)
 Earnings per share from continuing operations (basic and diluted)      0.03                   0.01                       0.01                       0.02

 Cash on hand                                                           21.9                   26.7                       21.9                   26.7
 Cost overrun facility (restricted cash)                                37.5                   18.0                       37.5                   18.0
 Amounts drawn on WCF((1))                                              25.0                   35.0                       25.0                   35.0
 Amounts drawn on Project Facility                                      165.0                  86.2                       165.0                  86.2

 Carats sold                                                            76,387                 72,717                     169,948                156,091

((1)) Excludes amounts drawn from the Clara Facility.

 

QUARTERLY RESULTS FROM OPERATIONS - KAROWE MINE

                                                 UNIT        Q2-24    Q1-24    Q4-23    Q3-23    Q2-23
 Sales
 Revenues from the sale of Karowe diamonds       US$M        41.3     39.5     36.3     56.2     38.6
 Karowe carats sold                              Carats      76,387   93,560   111,523  111,673  72,717

 Production
 Tonnes mined (ore)                              Tonnes      699,846  809,999  607,101  869,188  682,636
 Tonnes mined (waste)                            Tonnes      245,006  386,849  456,880  954,226  907,051
 Tonnes processed                                Tonnes      714,301  698,870  703,472  724,640  720,345
 Average grade processed((1))                    cpht ((*))  12.9     11.7     14.0     13.6     12.6
 Carats recovered((1))                           Carats      92,419   81,611   98,177   98,311   90,497

 Costs
 Operating cost per tonne of ore processed((2))  US$         26.32    26.00    31.96    28.62    27.90

 Capital Expenditures
 Sustaining capital expenditures                 US$M        3.5      1.8      8.0      3.2      2.4
 Underground expansion project((3))              US$M        11.2     17.9     28.0     20.3     22.5
 (*)  Carats per hundred tonnes
 (1)   Average grade processed is from direct milling carats and excludes carats recovered from re-processing historic recovery tailings
 (2)   Operating cost per tonne of ore processed is a non-IFRS measure.  See Table 6.
 (3)   Excludes qualifying borrowing cost capitalized

 

 

 

 

DIAMOND SALES

Karowe diamonds are sold through three sales channels: through a diamond sales
agreement concluded with HB Antwerp ("HB"), on the Clara digital sales
platform and through quarterly tenders.

 

HB Sales

Karowe's large, high value diamonds have historically accounted for
approximately 60% to 70% of Lucara's annual revenues. In February 2024, Lucara
entered into a ten-year New Diamond Sales Agreement ("NDSA") with HB. Under
the sales arrangements with HB, +10.8 carat gem and near gem diamonds from the
Karowe Mine of qualities that could directly enter the manufacturing stream
are sold to HB at prices based on the estimated polished outcome of each
diamond. The estimated polished value is determined using advanced scanning
and planning technology, with an adjusted amount payable on actual achieved
polished sales, less a fee. The timing of payments varies based on the
category of stones being delivered, as determined by the estimated diamond's
polished value.

 

Additional consideration, in the form of a "top-up" payment, is payable to the
Company if the final sales price of the polished diamond sold is higher than
the initial estimated polished price. Any polished diamonds sold to an end
buyer for less than the initial estimated polished price (after deductions for
HB's fee) will result in the difference being refunded to HB.

 

Top-up payments, net of HB's fees, are payable when polished diamonds are sold
to an end buyer and the sales prices achieved exceeds the initial purchase
price paid to Lucara. Top-up payments primarily relate to carats delivered in
previous quarters. The amount and timing of top-up payments received is
impacted by the complexity of certain rough diamonds and the qualitative
assumptions that are part of the initial planning process. At various points
during the manufacturing process, the stones are re-assessed, and adjustments
may be made to the manufacturing plan, with the objective of maximizing the
final sales price, also taking into account the marketability of the polished
outcome.

 

Payments owing for the final polished sales price and top-up payments received
are estimated, after deductions for HB's fee and the cost of manufacturing,
when determining the transaction price recognized for accounting purposes.
This estimate is updated at each period end until the transaction price is
confirmed.

 

Sethunya Diamond

Sethunya, a 549ct stone recovered in 2020, distinguished by its considerable
size and quality is subject to a separate agreement with HB, in which HB acts
as an agent to the sale of the stone to the end customer. Lucara received an
advance of future proceeds of $20.0 million from HB that has been classified
as deferred revenue, as this advance relates to the future sale of the stone,
it will decrease the remaining consideration to be received from the sale. As
of June 30, 2024, the Sethunya had not yet been sold and the $20.0 million
advance remains recorded as deferred revenue on the Statement of Financial
Position.

 

Quarterly Tenders

All +10.8 carat non-gem quality diamonds and all diamonds less than 10.8
carats which are not sold on the Clara platform are sold as rough diamonds
through quarterly tenders. Viewings take place in both Gaborone, Botswana and
Antwerp, Belgium.

 

Clara

Clara Diamond Solutions Limited Partnership, a wholly owned subsidiary of
Lucara, has developed a secure web-based digital marketplace which is designed
to transact diamonds between 1 and 10 carats, in higher colours and quality.

 

During the six months ended June 30, 2024, Lucara received an indicative
non-binding offer for the purchase of the Company's interest of Clara Diamond
Solutions Limited Partnership, Clara Diamond Solutions B.V., and Clara Diamond
Solutions GP (together referred to as "Clara"). The Company has concluded
that, despite the uncertainty regarding completion of a potential definitive
agreement, there is a high probability that its interest in Clara is likely to
be sold within the next 12 months. Therefore, under IFRS 5, Clara is
classified as held for sale on statement of financial position ended June 30,
2024. Based on the expected sales proceeds on June 30, 2024, the Company has
determined that the net book value of Clara is recoverable, and no impairment
has been recorded in connection with the reclassification. Further, Clara
remained operational during the period ended June 30, 2024, and its activities
from operations has been reported as discontinued operations on the Company's
statements of operations and cash flows.

 

 

 

 

 

QUARTERLY SALES RESULTS

                                         Three months ended          Six months ended

                                         June 30,                    June 30,
 Revenue is in millions of U.S. dollars  2024        2023            2024       2023
 Sales Channel
 HB Arrangements                         29.5        25.8            52.8       50.4
 Tender((1))                             9.2         9.8             22.2       22.7
 Clara                                   2.6         3.0             5.8        6.8
 Total Revenue                           41.3        38.6            80.8       79.9

((1)) Non-gem +10.8 carat diamonds and diamonds less than 10.8 carats that did
not meet characteristics for sale on Clara were sold through tender.

 

HB Arrangements

For the three months ended June 30, 2024, the Company recorded revenue of
$29.5 million from the HB arrangements as compared to revenue of $25.8 million
on the period ending June 30, 2023. Revenue generated from HB was 71% of total
revenue recognized in the second quarter of 2024 (Q2 2023: 67%).  The revenue
includes "top-up" payment which is payable to the Company for final sales
price of the polished diamond sold when it is higher than the initial
estimated polished price.

Quarterly Tender & Clara

During Q2 2024, the sales volume transacted by Tender was $9.2 million (Q2
2023: $9.8 million) and by Clara was $2.6 million (Q2 2023: $3.0 million).
Both sales channels experienced lower prices compared to Q2 2023 reflecting
the weakening of prices in the smaller sized diamond market.

 

2024 OUTLOOK

This section of the news release provides management's production and cost
estimates for 2024.  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 $10.0 million), or the Sethunya. No changes have been made to the
guidance released in November 2023.

 

 Karowe Diamond Mine                                                          2024
 In millions of U.S. dollars unless otherwise noted                           Full Year
 Diamond revenue (millions)                                                   $220 to $250
 Diamond sales (thousands of carats)                                          345 to 375
 Diamonds recovered (thousands of carats)                                     345 to 375
 Ore tonnes mined (millions)                                                  2.8 to 3.2
 Waste tonnes mined (millions)                                                0.8 to 1.4
 Ore tonnes processed (millions)                                              2.6 to 2.9
 Total operating cash costs((1)) including waste mined (per tonne processed)  $28.50 to $33.50
 Underground Project                                                          Up to $100 million
 Sustaining capital                                                           Up to $10 million
 Average exchange rate - Botswana Pula per United States Dollar               12.5

(1) Operating cash costs are a non-IFRS measure.  See "Use of Non-IFRS
Performance Measures".

 

The Company had expected higher diamond recoveries and diamond quality during
Q4 2023 and Q1 2024 and has seen diamond recoveries and quality improve in the
second quarter of 2024.

 

In 2024, the Company expects to mine between 3.6 and 4.6 million tonnes, of
which ore tonnes mined represent approximately three quarters of total tonnes
mined. The assumptions for carats recovered and sold as well as the number of
ore tonnes processed are consistent with achieved plant performance in recent
years. A portion of the tonnes mined in 2024 will be stockpiled, prior to the
end of open pit mining in mid-2025. Stockpiled material is planned to be
processed between 2025 to 2027 before the mine transitions to the underground
operations. Ore from the underground development is expected to supplement
lower grade stockpile material, primarily from the upper benches of the South
lobe, during the transition period to the underground mining operations,
beginning in 2027.

 

In 2024, capital costs for the Karowe UGP are expected to be up to $100
million and will focus predominantly on shaft sinking activities and station
development. Surface works will focus on completing the construction of the
bulk air cooler and installation of the people and materials winder building.
Tendering the underground lateral development contract along with underground
equipment purchases are also included in the 2024 project plan.

 

Sustaining capital and project expenditures are expected to be up to $10
million with a focus on replacement and refurbishment of key asset components
in addition to dewatering activities, and an expansion of the tailings storage
facility in accordance with Global Industry Standard on Tailings Management
("GISTM").

 

On behalf of the Board,

 

William Lamb

President and Chief Executive Officer

 

Follow Lucara Diamond on Facebook (https://www.facebook.com/LucaraDiamond/) ,
Instagram (https://www.instagram.com/lucaradiamond/) and LinkedIn
(https://www.linkedin.com/company/lucara-diamond-corp-/)

 

For further information, please contact:

 

 Vancouver            Hannah Reynish, Investor Relations & Communications

                      +1 604 674 0272| info@lucaradiamond.com (mailto:info@lucaradiamond.com)
 Sweden               Robert Eriksson, Investor Relations & Public Relations

                      +46 701 112615 | reriksson@rive6.ch (mailto:reriksson@rive6.ch)
 UK Public Relations  Charles Vivian / Jos Simson, Tavistock

                      +44 79 772 97903 | lucara@tavistock.co.uk (mailto: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 which ensures 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 is certified by the Responsible Jewellery Council, complies with the
Kimberley Process, and 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. This information was submitted for
publication, through the agency of the contact person set out above, on August
9, 2024, at 4:00 p.m. Pacific Time.

 

 

CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS

Certain of the statements made in this news release 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", "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.

 

By their nature, forward-looking statements and information involve
assumptions, inherent risks and uncertainties, many of which are difficult to
predict and are usually beyond the control of management, that could cause
actual results to be materially different from those expressed by these
forward-looking statements and information. 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 that 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 the expectations
reflected in this forward-looking information are reasonable, but no assurance
can be given that these expectations will prove to be correct. Readers and
investors should not place undue reliance on such statements.

 

This press release contains forward-looking information in several places,
such as in statements relating to the Company's ability to continue as a going
concern, the project schedule and capital costs for the Karowe UGP, the
diamond sales, production and cost estimates under "2024 Outlook", the
Company's ability to meet its obligations under the Rebase Amendments with its
Lenders, the Company's ability to fill the CORA, 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 grouting events at the
Karowe UGP, 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, the economic potential of a mineralized area,
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
2024, future forecasts of revenue and variable consideration in determining
revenue, the impact of the renewed HB sales arrangements on the Company's
projected revenue and sales channels, the outcome of tax assessments and the
likelihood of recoverability of tax payments made, estimation of mineral
resources, 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, the profitability of Clara, and the potential impacts
of economic and geopolitical risks.

 

Certain risks which could impact the Company are discussed under the heading
"Risks and Uncertainties" in the Company's most recent MD&A and Annual
Information Form available at SEDAR+ at www.sedarplus.ca
(http://www.sedarplus.ca) . Forward-looking information and statements
contained in this news release are made as of the date of this news release
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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