A response from Lucara. ? directed at 09/09 presentation.You had asked the following: “Lucara has had several "exceptional" diamond discoveries in the last several years, dating back to the last "exceptional tender" on June of 2018, including the 1758ct Sewelo, 549ct Sethunya, other several large whites, pinks and even a blue. To this point when might there be some better clarity on sales and revenues associated with these exceptional finds that you have entered into under the agreement with Louis Vuitton and HB Antwerp?”
Answer:
Only the 1758ct Sewel and the 549ct Sethunya are in a collaboration agreement with Louis Vuitton and HB Antwerp. We will be receiving payment for the Sethunya before the end of the year 2021.
As for all the specials entered into the supply agreement with HB, we have continued to receive revenue on an ongoing basis since Q3 2020. Note, the supply agreement started with carats ready for sale from Q2 2020. Since ending the separate exceptional stone tenders in 2018, exceptional stones were sold in the regular stone tender until Q2 2020, when the HB supply agreement commenced. Under the HB agreement, we receive a payment based on the expected polished outcome once the special diamonds, including the exceptionals, are scanned and planned. Should the polished outcome sell for higher than the planned value, we will receive a top up payment. As polished sales were ramping up in 2020, we did not receive the full benefit of selling the specials as polished under HB in 2020. As such top up payments received for carats sold in 2020, will continue to be realised in 2021. As planning is becoming more efficient and the market continues to be strong, we are starting to see an improvement in the timing of revenue realisation under the agreement, as well as prices.