REG - Lucara Diamond Corp - Annual Financial Report

Lucara DiamondAnnouncement

22/02/2023 07:00

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RNS Number : 6861Q  Lucara Diamond Corp  22 February 2023

February 21, 2023

 

NEWS RELEASE

 

2022 GUIDANCE ACHIEVED ACROSS ALL METRICS. SHAFT SINKING FOR UNDERGROUND
EXPANSION CONTINUES

 

VANCOUVER, February 21, 2023 /CNW/ (LUC - TSX, LUC - BSE, LUC - Nasdaq
Stockholm)

 

Lucara Diamond Corp. ("Lucara" or the "Company") today reports its results for
the year and quarter ended December 31, 2022.

FISCAL 2022 HIGHLIGHTS:

·      All key operational and financial metrics from the Company's 2022
Guidance were achieved, including 3.3 million tonnes of ore and 1.5 million
tonnes of waste mined, and 2.8 million tonnes of ore processed.

·      Revenue for the year ended December 31, 2022 totalled $212.9
million, including $9.1 million through Clara.

·      A total of 327,028 carats were sold through the Company's three
sales channels, generating revenue of $165.4 million before top-up payments of
$38.4 million for the year ended December 31, 2022.

·      A strong U.S. dollar helped to mitigate increases in input costs,
resulting in an operating cash cost of $27.94 per tonne of ore processed((1))
for the year ended December 31, 2022.

·      Cash flow of $96.2 million from operating activities.

·      $35.7 million in sales transacted on Clara, with approximately
40% of sales from third-party goods transacted, reflecting a positive trend
towards increased diversification of supply and less reliance on Karowe
production.

·      $106 million invested in the Karowe underground expansion project
("UGP") during 2022 with a total project to-date investment of $226.1
million.  Several significant milestones were achieved in 2022 including:

o Substantial completion of surface civil works, including headgear erection
and winder installs on time and within budget.

o Main shaft sink activities started in both the ventilation and production
shafts to depths below collar of 179 metres and 132 metres, respectively.

o Commencement of grouting programs in each shaft during December.

o Completion and energization of the bulk power upgrade consisting of a 29km,
132kV power line and the Letlhakane and Karowe substations.

o Procurement of underground mobile equipment and the signing of a contract
for construction and supply of a bulk air cooler.

Eira Thomas, President & CEO commented: "The Karowe diamond mine completed
its tenth year of continuous operations and successfully delivered on all of
its' financial and operating metrics, including safety, production,
processing, sales and revenues, with costs trending below guidance and
continued access to sufficient liquidity in support of our growth plans. For
the underground expansion project, we achieved a number of important
milestones, including the completion of all pre-sinking activities on schedule
and budget, the execution of a main shaft sinking contract, the commencement
of main shaft sinking and the completion of a new power line on schedule and
budget.  Importantly, we commenced our first grouting phase in the production
shaft in December which was successfully completed in February 2023,
confirming that our planned approach and methodology is effective. The impact
of delays and a slower than anticipated ramp up in shaft sinking cycle times,
together with experience gained from our first grouting program will be
incorporated into  a refreshed schedule and budget which is expected to be
completed in the second quarter of 2023. As a final comment, the diamond
market remained healthy and stable in 2022, though price softening was
observed in the latter half of the year which impacted revenues year over
year, achieving the mid-range of guidance. Despite rising global economic
uncertainties, our outlook for 2023 and beyond remains optimistic as global
supply shortages continue to play out in the market."

 

REVIEW FOR THE YEAR ENDED DECEMBER 31, 2022

·      Operational highlights from the Karowe Mine for the year ended
December 31, 2022 included:

o Ore and waste mined of 3.3 million tonnes (2021: 3.7) and 1.5 million tonnes
(2021: 2.6), respectively.

o 2.8 million tonnes (2021: 2.8) of ore processed.

o 335,769 carats recovered (2021: 369,390) at a recovered grade of 12.12
carats per hundred tonnes of direct milled ore (2021: 12.93).

o 795 Specials (diamonds greater than 10.8 carats) were recovered during 2022,
representing 7.2% weight percentage of total carats recovered. A total of 34
diamonds greater than 100 carats were recovered, including 9 diamonds greater
than 200 carats.

o The twelve-month Total Recordable Injury Frequency Rate of 0.40 (2021: 0.1)
at the end of Q4 2022 reflects a series of medical treatment cases reported
during the third and fourth quarters of 2022.

o The Karowe Mine has surpassed two years without a lost time injury.

·      Financial highlights for the year ended December 31, 2022
included:

o Revenues of $212.9 million (2021: $230.1 million). The sales agreement with
HB for Karowe's +10.8 production accounted for 60% (2021: 65%) of total
revenues recognized in 2022.

o Adjusted EBITDA((1)) of $86.7 million decreased from $102.5 million in 2021,
attributed primarily to a decrease in revenues.

o Net income increased to $40.4 million ($0.09 basic earnings per share) from
$23.8 million ($0.06 basic earnings per share) in 2021.

o Cash flow of $96.2 million (2021: $83.4 million) from operating activities.

 

·      Cash position and liquidity at December 31, 2022:

o Cash and cash equivalents of $26.4 million.

o $65.0 million drawn from the $170.0 million project finance facility for the
Karowe UGP.

o $15.0 million drawn from the $50.0 million working capital facility.

o After year-end, the Company drew $25.0 million from the project finance
facility and $8.0 million from the working capital facility.

DIAMOND MARKET

2022 began on a solid trajectory following a banner year for diamond prices in
2021.  Prices began to soften in the second half of the year in response to
increasing global economic and geopolitical uncertainties and resulted in
weaker achieved holiday sales results in the US compared to the previous year.
Despite this pull back, the market remained stable and price improvement along
with increasing market depth has been observed in early 2023.  A cautious
economic outlook combined with the uncertainty caused by geopolitical events,
including the ongoing conflict in Ukraine and continuing implications of the
COVID-19 pandemic (specifically in China where the demand for diamonds has not
yet recovered) remain a risk to diamond pricing trends in the short term with
demand from the US a critical driver on prices of both rough and polished
diamonds. The longer-term market fundamentals remain unchanged and positive,
pointing to strong price growth over the next few years as demand is expected
to outstrip future supply.

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. No changes were made to the Company's 2023 Guidance released in
December 2022.  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.

 Karowe Diamond Mine                                                                    Full Year - 2023
 In millions of U.S. dollars unless otherwise noted
 Diamond revenue (millions)                                                             $200 to $230
 Diamond sales (thousands of carats)                                                    385 to 415
 Diamonds recovered (thousands of carats)                                               395 to 425
 Ore tonnes mined (millions)                                                            1.9 to 2.3
 Waste tonnes mined (millions)                                                          2.2 to 2.8
 Ore tonnes processed (millions)                                                        2.6 to 2.9
 Total operating cash costs((1)) including waste mined((2)) (per tonne processed)       $32.50 to $35.50
 Botswana general & administrative expenses including marketing costs (per tonne        $3.50 to $4.50
      processed)
 Tax rate((3))                                                                          0%
 Average exchange rate - USD/Pula                                                       12.0

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

(2) Includes ore and waste mined cash costs of $7.00 to $8.00 (per tonne
mined) and processing cash costs of $12.00 to $13.00 (per tonne processed).

(3) The Company is subject to a variable tax rate in Botswana based on a
profit and revenue ratio which increases as profit as a percentage of revenue
increases. The lowest variable tax rate is 22% while the highest variable tax
rate is 55% (only if taxable income were equal to revenue).  Capital
expenditures are deductible when incurred. With planned capital expenditures
of up to $105 million for the UGP, a tax rate of 0% is forecast for 2023.
Should capital expenditures vary from plan, the Company could be subject to
current tax.

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

For the three months ended December 31, 2022, the Company recorded revenue of
$24.1 million from the HB agreement (inclusive of top-up payments of $3.6
million), as compared to revenue of $31.2 million in Q4 2021 (inclusive of
top-up payments of $7.9 million). The decrease in revenue in Q4 2022 versus
the comparative quarter can be attributed primarily to the number of high
value diamonds delivered to HB earlier in 2021 for which the value of top-ups
was, as expected, higher. Top-up values will typically increase as the more
valuable stones move through production and become available for sale. A lower
number of carats was delivered to HB in Q4 2021 (1,895 carats) compared to Q4
2022 (2,812 carats), however, the initial value of the shipments was
comparable owing to the value of stones delivered in Q4 2021.

At December 31, 2022 a number of higher value and more technically complex
stones that take longer to manufacture had not fully completed the
manufacturing and sales process. These stones were delivered to HB in 2021 and
2022. As these stones finish the manufacturing process, the Company may record
additional revenue in the form of "top-up" payments when these diamonds are
sold.

Despite the overall decrease in revenue recognized in Q4 2022, diamond market
fundamentals continued to support healthy prices as steady demand and some
inventory shortages were reported. 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 between periods is
expected.  During Q4 2022, 8.2% weight percentage of Specials of total carats
recovered was consistent with the Karowe resource model.  As more North and
Centre lobe material is expected to be processed in 2023, while higher grade,
the weight percentage of Specials is expected to decrease.

CLARA SALES PLATFORM

Clara, Lucara's 100% owned proprietary, secure, web-based digital sales
platform, continues to gain scale and interest.  Interest in Clara continues
to grow as the benefits of purchasing rough diamonds in an innovative way
become evident.  Trial sales with a third-party producer continued through Q4
2022, with encouraging results and positive margin earned.  Transaction
volumes were supplemented with other secondary market supply, which included
diamonds purchased by the Company and re-sold through Clara.  Karowe goods
transacted through Clara represented approximately 60% of the total sales
volume transacted during 2022.  The Company intends to continue to seek
additional supply in 2023, both from third-party producers and the secondary
market.

During Q4 2022, the sales volume transacted was $6.6 million (Q4 2021: $7.7
million), as fewer sales were held within the period.

QUARTERLY TENDER

The Q4 2022 tender reflected a good performance in rough diamond pricing
across all tendered size classes, although lower than what was achieved in the
first two quarterly tenders of 2022 and higher than the price achieved in
September as concerns of a global economic slowdown became more prominent
against a backdrop of high inflation, interest rate increases and uncertainty
in supply chains. A total of 76,264 carats were sold in the December 2022
tender, generating revenues of $12.2 million (Q4 2022 tender: $19.0 million
for 97,211 carats).

KAROWE UNDERGROUND EXPANSION UPDATE

The Karowe UGP is expected to extend the mine life to at least 2040, with
initial underground carat production predominantly from the highest value
EM/PK(S) unit and is forecast to contribute approximately $4 billion in
additional revenues, using conservative diamond prices.  The updated
estimated capital cost for the Karowe UGP is $547 million (including
contingency) and reflects expected pricing changes following execution of the
main sink contract in Q2 2022.  Mine ramp up is expected in 2026 with full
production from the Karowe UGP expected in H2 2026.  The Company is using a
combination of cash flow from operations and project debt for the investment
in the Karowe UGP, which is fully financed.

During the three months ended December 31, 2022, a total of $22.3 million was
spent on the Karowe UGP development, primarily in relation to ongoing
construction activities and procurement of long lead items, including:

·      Main sinking in the production and ventilation shafts:

o Cover grouting began in the production and ventilation shafts in December
2022 in response to expected water inflows from the sandstones. Planned
methodology, which includes the use of chemical grouting, has been effective.
Experiences gained from this first grouting event, which was subsequently
completed in February in the production shaft and remains ongoing in the
ventilation shaft, will inform future anticipated cover grouting events as the
shafts progress to depth.

o Main sinking activities continued to ramp up in Q4, however, equipment and
operational challenges continued to negatively impact planned cycle times.
Cycle time is the period it takes to complete a series of activities within
the sinking process to achieve the next planned vertical advance. Active
interventions and mitigations implemented in Q4 including equipment and
personnel changes as well as shift and rotation schedule optimization along
with the roll-out of a behavioural-based safety training program are helping
to resolve these issues.

o The Company intends to assess the impact of the incurred delays against the
effectiveness of the operational changes implemented in Q4 2022 combined with
recent grouting experiences to refresh estimates around planned sinking rates
and overall project schedule and budget, before the end of Q2, 2023.

·      The 29 km, 132kV bulk power supply powerline, including the
Letlhakane and Karowe substations, was energized and handed over to the
Botswana Power Corporation at the end of December 2022.

·      The 11kV transmission line to the project site was commissioned
in mid-January 2023. This represents a significant milestone for the Karowe
UGP as it is now fully powered through grid-supplied electricity.  Back-up
power will continue to be provided by diesel generators.

·      Procurement of shaft station underground mobile equipment
progressed with equipment deliveries expected to commence in Q1 2023.

·      The underground mine bulk air cooler and shaft cooling tender was
awarded.

Activities for the Karowe UGP in Q1 2023 are expected to include the
following:

·      Sinking and grouting within both the ventilation and production
shafts.

·      Procurement of underground equipment, including dewatering pumps
and underground crush and convey systems.

·      Development of a request for proposal for the underground lateral
development work.

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

·      Transition of the temporary power supply to a back-up power
configuration; and,

·      Stage two of the bulk power supply upgrade to connect all mine
power requirements to the new Karowe Substation and 132kV power line.

FINANCIAL HIGHLIGHTS

                                                                    Three months ended December 31,                  Year ended
                                                                                                                     December 31,
 In millions of U.S. dollars, except carats or otherwise noted      2022                       2021                  2022           2021

 Revenues                                                       $   42.5                       57.9              $   212.9          230.1
 Operating expenses                                                 (18.5)                     (22.3)                (79.3)         (80.3)
 Net income for the period                                          7.1                        1.7                   40.4           23.8
 Earnings per share (basic and diluted)                             0.02                       0.00                  0.09           0.06
 Operating cash flow per share((1))                                 0.03                       0.05                  0.19           0.24
 Cash on hand                                                       26.4                       27.0                  26.4           27.0
 Amounts drawn on working capital facility                          15.0                       23.0                  15.0           23.0
 Amounts drawn on project finance facility                          65.0                       25.0                  65.0           25.0
 Karowe Revenue                                                     40.1                       56.5                  203.8          227.9
 Average price per carat sold ($/carat)((2))                         450                       473                   506            536
 Carats sold                                                        81,264                     102,791               327,028        380,493

 

QUARTERLY RESULTS OF OPERATIONS - KAROWE MINE, BOTSWANA

                                                   UNIT        Q4-22    Q3-22    Q2-22      Q1-22    Q4-21
 Sales
 Revenues from the sale of Karowe diamonds         US$M        40.1     46.5     50.0       67.2     56.5
 Karowe carats sold                                Carats      81,264   99,301   66,167     80,295   102,791
 Average price per carat - excluding top-ups((1))  US$         450      377      557        690      436
 Production
 Tonnes mined (ore)                                Tonnes      484,705  920,410  1,091,192  811,947  610,072
 Tonnes mined (waste)                              Tonnes      199,385  453,860  357,764    482,104  276,263
 Tonnes processed                                  Tonnes      690,946  693,398  719,207    666,488  705,877
 Average grade processed((2))                      cpht ((*))  12.5     11.4     12.0       12.6     12.8
 Carats recovered                                  Carats      86,655   78,879   86,317     83,917   90,634
 Costs
 Operating expense per Karowe carat sold((3))      US$         193      227      221        212      200
 Margin (mining operations) per Karowe carat sold  US$         257      150      336        478      236
 Operating cost per tonne of ore processed((4))    US$         26.20    29.33    28.78      27.80    29.74

 Capital Expenditures
 Sustaining capital expenditures                   US$M        9.9      4.0      4.1        0.8      9.1
 Underground expansion project((5))                US$M        22.3     23.9     29.1       31.1     21.8

CONFERENCE CALL

The Company will host a conference call and webcast to discuss the results on
Wednesday, February 22, 2023 at 7:00am Pacific, 10:00am Eastern, 3:00pm UK,
4:00pm CET.

 

To join the conference call without operator assistance, you may register and
enter your phone number at
https://event.mymeetingroom.com/Public/ClickToJoin/ZW5jPW92VGJmMTVyM05HanZYeFVVVjBPcXRzaHl1NW5jVGVodEtGUTJ0WFZJNjVmaUR6bDhWTmdndz09
(https://event.mymeetingroom.com/Public/ClickToJoin/ZW5jPW92VGJmMTVyM05HanZYeFVVVjBPcXRzaHl1NW5jVGVodEtGUTJ0WFZJNjVmaUR6bDhWTmdndz09)
to receive an instant automated call back.

 

Conference ID:

9120717 / Lucara Diamond

 

Dial-In Numbers:

   Toll-Free Participant Dial-In North
America                 (+1) 888 204 4368

   UK Toll
free
                                      0800
358 6377

   Local
Vancouver
(+1) 604 449 6082

   Local
Toronto
(+1) 647 794 4605

 

Webcast:

To view the live webcast presentation, please log on using this direct link:
https://app.webinar.net/b9gawOPn86p (https://app.webinar.net/b9gawOPn86p)

 

The presentation slideshow will also be available in PDF format for download
from the Lucara website (Link to presentation
(https://lucaradiamond.com/newsroom/presentations/) ).

 

Conference Replay:

A replay of the telephone conference will be available two hours after the
completion of the call until

March 1, 2023.

 

   Replay number (Toll Free North
America)                    (+1) 888 203 1112

   Replay number
(Local)
               (+1) 647 436 0148

 

The pass code for the replay is: 9120717#.

 

On behalf of the Board,

Eira Thomas

President and Chief Executive Officer

 

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

 

For further information, please contact:

 

 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
                      +44 778 855 4035 | 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 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 February 21, 2023 at 2:00pm 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 year ended December 31, 2022 for an explanation of non-IFRS measures used.

CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS

Certain of the statements made and contained herein and elsewhere constitute
forward-looking statements as defined in applicable securities laws.
Generally, these forward-looking statements can be identified by the use of
forward-looking terminology such as "expects", "anticipates", "believes",
"intends", "estimates", "potential", "possible" and similar expressions, or
statements that events, conditions or results "will", "may", "could" or
"should" occur or be achieved.

Forward-looking statements are based on the opinions and estimates of
management as of the date such statements are made, and they are subject to a
number of 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 accurate and such forward-looking information included herein should not
be unduly relied upon.

In particular, forward-looking information and forward-looking statements in
this news release may include, but are not limited to, information or
statements with respect to the equity and project debt financings, the
intended use of proceeds, the Company's ability to comply with the terms of
the facilities which are required to construct the Karowe UGP, that expected
cash flow from operations, combined with external financing will be sufficient
to complete construction of the Karowe UGP, the potential impacts of COVID-19,
economic and geopolitical risks, including potential impacts from the Russian
military invasion of Ukraine, expectations regarding longer-term market
fundamentals and price growth, the disclosure under "2023 Outlook",
expectations regarding top-up payments, processing expectations, expectations
that the Karowe UGP will extend mine life, forecasts of additional revenues,
estimated capital costs, production and cost estimates, tax rates,
expectations regarding the activities for the Karowe UGP in Q1 2023, 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, the
size and tonnage of a mineralized area, anticipated sample grades or bulk
sample diamond content, future production activity, the future price and
demand for, and supply of, diamonds, future forecasts of revenue and variable
consideration in determining revenue, estimation of mineral resources,
exploration and development plans, cost and timing of the development of
deposits and estimated future production, currency exchange rates, success of
exploration, requirements for and availability of additional capital, capital
expenditures, operating costs, the completion of transactions the
profitability of Clara and the Clara Platform, and the scaling of the digital
platform for the sale of rough diamonds owned by Clara, the Company's intent
to continue to seek additional supply, both from third-party producers and the
secondary market, the benefits to the Company of diamond supply agreements
with HB and the ability to generate better prices from the sale of the
Company's +10.8 carat production as a polished stone.

There can be no assurance that such forward looking statements will prove to
be accurate, as the Company's results and future events could differ
materially from those anticipated in this forward-looking information as a
result of those factors discussed in or referred to under the heading
"COVID-19 Global Pandemic, Economic and Geopolitical Risks" in the Company's
most recent MD&A and under the heading "Risks and Uncertainties" in the
Company's most recent Annual Information Form, both available at
http://www.sedar.com, as well as changes in general business and economic
conditions, the ability to continue as a going concern, changes in interest
and foreign currency rates, changes in inflation, the supply and demand for,
deliveries of and the level and volatility of prices of rough diamonds, costs
of power and diesel, impacts of potential disruptions to supply chains, acts
of foreign governments and the outcome of legal proceedings, inaccurate
geological and recoverability assumptions (including with respect to the size,
grade and recoverability of mineral reserves and resources), and unanticipated
operational difficulties (including failure of plant, equipment or processes
to operate in accordance with specifications or expectations, cost
escalations, unavailability of materials and equipment, government action or
delays in the receipt of government approvals, industrial disturbances or
other job actions, adverse weather conditions, and unanticipated events
relating to health safety and environmental matters).

Accordingly, readers are cautioned not to place undue reliance on these
forward-looking statements which speak only as of the date the statements were
made, and the Company does not assume any obligations to update or revise them
to reflect new events or circumstances, except as required by law.

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