Slide 1: Mining Indaba 2015
q é Ss GEM DIAMONDS r ‘Mining Indaba 2015
Slide 2: Disclaimer
Disclaimer 2 The following presentations are confidential and are being made only to, and are No statement in this presentation is intended as a profit forecast or profit estimate only directed at, persons to whom such presentations may lawfully be and no statement in the presentation should be inte
Slide 3: Gem Diamonds
Gem Diamonds 3 Gem Diamonds shareprice performance, up 21% FY 2014 as at Major shareholders 15 January 2015 240 Price (GBp) Volume (‘000) 1,600 220 200 1,400 Graff Diamonds International Limited 15.12% 180 1,200 160 Lansdowne Partners Ltd 14.99% 1,000 140 120 800 Gem Diamonds Holdings Limited 6.74%
Slide 4: Gem Diamonds' operations
Gem Diamonds’ operations 4 Gem Diamonds Limited UK, BVI 2 employees Gem Diamonds Sales, Marketing and Manufacturing Belgium 16 employees Ghaghoo Mine Botswana 359 employees/contractors Gem Diamond Technical Services Letšeng Mine South Africa Lesotho 23 employees 1 557 employees/contractors
Slide 5: Gem Diamonds financial highlights
Gem Diamonds financial highlights 5 REVENUE EBITDA 77 USD Millions USD Millions 213 65 202 2012 2013 2014* 2012 2013 2014* EPS ATTRIBUTABLE PROFIT USD Millions US Cents 21 15 12 17 2012 2013 2014* 2012 2013 2014* * 2014 figures are unaudited
Slide 6: Investment thesis
Investment thesis 6 LETŠENG MINE - LONG LIFE, PROVEN EBITDA MARGIN GHAGHOO MINE RAMPING UP TO FULL PRODUCTION – EXPANSION STRONG DIAMOND MARKET FUNDAMENTALS - MEDIUM/LONG TERM Consumer confidence remains strong Ghaghoo ramping up to full production Positive outlook for diamond prices medium
Slide 7: Reserves and resources
Reserves and resources 7 Carats Grade In-situ value As at 1 January 2014 US$/ct (millions) (cpht) (US$ billions) Gross resources at Letšeng and Ghaghoo (incl. Reserves) 25.54 6.35 601 15.5 Letšeng Indicated Resource 3.23 1.73 2 086 6.7 Letšeng Reserve 2.26 1.71 2 045 4.6 Ghaghoo Indicated Resource 1
Slide 8: Letšeng resources
Letšeng resources 8 Carats Grade In-situ value As at 1 January 2014 US$/ct (millions) (cpht) (US$ billions) Letšeng Indicated Resource 3.23 1.73 2 086 6.7 Letšeng Reserve 2.26 1.71 2 045 4.6 Letšeng 21 year Life of Mine open pit is now wholly contained within the Reserve category Extension of In
Slide 9: Ghaghoo resources
Ghaghoo resources 9 Carats Grade In-situ value As at 1 January 2014 US$/ct (millions) (cpht) (US$ billions) Ghaghoo Indicated Resource 15.49 19.51 242 3.7 Ghaghoo Reserve (VKSE Phase Only) 2.08 27.81 267 0.5 Life of mine: 26 years for VKSE (at 700ktpa rate) Life of mine: +100 years for entire pi
Slide 10: Diamond market
Diamond market 10 Medium to long term outlook remains strong Liquidity concerns Letšeng’s high value production remained resilient during Q4 2014 US$ 2 799/ct achieved in December 2014 tender Source: WWW Diamond Forecasts Ltd, as at 01 December 2014
Slide 11: Letšeng diamond mine - Lesotho
Letšeng diamond mine - Lesotho Plant 2 Satellite pipe Plant 1 Contractor Plant 3 Main pipe
Slide 12: Letšeng overview
Letšeng overview 12 Ownership: 70% 30% Gem Diamonds Limited Government of Lesotho Two kimberlite pipes: Main pipe 17.0ha; and Operational performance 2014: Satellite pipe 5.2ha Waste mined: 19.8mT Highest average US$/ct Ore treated: 6.4mT Regular recovery of large, top-quality diamonds C
Slide 13: Letšeng project review
Letšeng project review 13 Letšeng expansion/improvement programme Continued phased introduction of technologies to improve recovery, throughput and diamond breakage Coarse Recovery Plant No.2 Plant phase 1 upgrade Capital - Maloti 140.0m (US$ 12.1m) Capital - Maloti 50.0m (US$ 4.3m) Optimising
Slide 14: Ghaghoo diamond mine - Botswana
Ghaghoo diamond mine - Botswana Sort house Tailings DMS Autogenous Mill Decline
Slide 15: Ghaghoo overview
Ghaghoo overview 15 Ownership: 100% Gem Diamonds Limited Located in the South-East portion of the Central Sales: Kalahari Game Reserve First sale of c.10 000 cts in Gaborone and Kimberlite pipe 10.4ha in size Antwerp in February 2015 25 year mining licence from 2011 Presence of coloured di
Slide 16: Ghaghoo development update as at end 2014
Ghaghoo development update as at end 2014 16 48 023 tonnes of ore treated 10 167 cts recovered Recovered grade averaged 21cpht, trending up Sealing of fissure water completed - 6 de-watering boreholes operational 3 kimberlite tunnels on Level 1 fully developed; 4th tunnel nearing completio
Slide 17: Group HSSE performance
Group HSSE performance 17 US$ 5.9m invested towards CSR initiatives over the last 5 years 526 910 hours of vocational training provided to staff over the last 5 years Serious disease management programs implemented Letšeng retained 5-star IRCA rating for a second year. Highest rating for goo
Slide 18: Sales, marketing and manufacturing
Sales, marketing and manufacturing
Slide 19: Sales, marketing and manufacturing overview
Sales, marketing and manufacturing overview 19 Ownership: 100% Gem Diamonds Limited Gem Diamonds Marketing Services Baobab Technologies The Group’s diamond sorting, valuation, sales and High-tech rough diamond analysis and marketing company based in Antwerp, Belgium manufacturing 2 700 6 and 12
Slide 20: Outlook
Outlook 20 Continued operational efficiency and performance improvements Delivery of Coarse Recovery Plant project by end Q2 2015 Delivery of No.2 Plant - Phase 1 upgrade by end Q1 2015 Refining longer term mine plans, optimising waste stripping profiles - maximise value Anticipated strong
Slide 21: Thank you
GEM piAMONDs Mf