Slide 1: Mining Indaba
Mining Indaba February 2012 © 2012 GEM DIAMONDS LIMITED
Slide 2: Disclaimer
1 DISCLAIMER The following presentations are being made only to, and are only directed at, persons The presentations also contain certain non-IFRS financial information. The to whom such presentations may lawfully be communicated (“relevant persons”). Any Group’s management believes these measures p
Slide 3: Group – Q4 2011 Update: Letšeng
2 GROUP – Q4 2011 Update LETSENG: Record carat production for FY 2011 of 112 367 cts (90 933 cts in FY2010). Average of US$2 776/ct achieved for FY 2011 (US$2 149/ct in FY 2010). Sale of the 550ct Letšeng Star diamond in a profit sharing arrangement for US$16.5 m. FY 2011 total of 184 diamonds recov
Slide 4: Group – Q4 2011 Update: Letšeng operating table
3 GROUP – Q4 2011 Update LETŠENG Q4 2011 Q4 2010 % Change FY 2011 FY 2010 Waste stripped (tonnes) 3 998 926 3 510 318 14% 16 932 222 11 676 929 Ore mined (tonnes) 1 545 053 1 674 154 (8%) 6 661 189 7 419 610 Ore treated (tonnes) 1 740 756 1 693 608 3% 6 805 152 7 557 079 Carats recovered 29 783 22 0
Slide 5: Sales and Marketing – Letšeng
4 GROUP – Q4 2011 Update SALES AND MARKETING – Letšeng: Q4 2011 the average value of Letšeng exports for Q4 2011 was US$2 543 per carat (US$3 291 per carat in Q4 2010). 10 rough diamonds achieved a value in excess of US$1m each during Q4 2011. 168 rough diamonds greater than 10.8 cts recovered in Q4
Slide 6: Group – Q4 2011 Update: Ellendale
5 GROUP – Q4 2011 Update ELLENDALE: Significant production improvement in Q4 2011 over previous quarters. FY 2011 carat production of 120 302 cts (166 708 cts in FY 2010). Fancy yellow goods averaged US$4 409/ct for FY 2011 (US$2 891/ct in FY 2010). Commercial goods averaged US$188/ct for FY 2011 (U
Slide 7: Group – Q4 2011 Update: Ellendale operating table
6 GROUP – Q4 2011 Update ELLENDALE Q4 2011 Q4 2010 % Change FY 2011 FY 2010 Waste stripped (tonnes) 1 449 913 1 054 346 38% 6 183 668 4 794 748 Ore mined (tonnes) 1 160 472 1 341 247 (13%) 2 728 821 3 803 559 Ore treated (tonnes) 820 375 1 026 119 (20%) 3 116 017 4 016 338 Carats recovered 35 305 39
Slide 8: Sales and Marketing – Ellendale
7 GROUP – Q4 2011 Update SALES AND MARKETING – Ellendale: Record carat recovery in November, the highest of 2011. Ellendale achieved an average price of US$4 269 per carat during Q4 2011 for its fancy yellow diamonds supplied to Tiffany & Co. (US$3 482 per carat in Q4 2010). For its commercial goods
Slide 9: Group – Q4 2011 Update: Ghaghoo
8 GROUP – Q4 2011 Update GHAGHOO: Phase 1 development progressing well and on budget, with the box cut and portal completed in Q4 2011 Development of the decline commenced in Jan 2012. Phase 1 is on plan to be completed on time (mid 2013) and on budget. FY 2011 capital expenditure was US$19m, and pl
Slide 10: Ghaghoo
9 Ghaghoo © 2012 GEM DIAMONDS LIMITED
Slide 11: Ghaghoo
10 Ghaghoo © 2012 GEM DIAMONDS LIMITED
Slide 12: The Uniqueness of Letšeng
11 THE UNIQUENESS OF LETSENG Source – internal 2010 © 2012 GEM DIAMONDS LIMITED
Slide 13: The Uniqueness of Letšeng
12 THE UNIQUENESS OF LETSENG Elite Production Market Share 45% 40% 35% 30% Letšeng Alrosa 25% De Beers 20% 15% 10% 2011 2012 2013 2014 2015 Currently leading producer of Elite – this position to grow after expansion Source – internal 2010 updated 2011 © 2012 GEM DIAMONDS LIMITED
Slide 14: Letšeng – Project Kholo
13 LETSENG – PROJECT KHOLO Project Kholo has commenced in January 2012, and will ramp up to full production by July 2014 Increasing production to 10 million tonnes per annum (from 5.6 mtpa) Improving grade through increased liberation Reducing diamond damage Reducing unit costs Increasing value from
Slide 15: Letšeng – Project Kholo Snapshot
14 LETSENG – PROJECT KHOLO SNAPSHOT Letšeng Snapshot - (100% project value) November 2011 Total Project Kholo capital expenditure (US$m) 280 Revenue available for Cutting & Polishing up to 50% by 2017 Net Cutting & Polishing uplift 10-13% Exchange rate (Rand/US$) 8.00 Project Kholo NPV (US$m) 8% dis
Slide 16: Project Kholo – Execution Timeline
15 PROJECT KHOLO – EXECUTION TIMELINE Letseng Project Kholo Execution Program 2011 2012 2013 2014 J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D PFS / Feasibility study Option Selection Complete Board approval Procurement Long Lead items Detail Design Construction Early Works - Earthw
Slide 17: Project Kholo Internal Risks Mitigated
16 Project Kholo Internal Risks Mitigated Risks Issue Solutions Power Additional 10 MVA required for 2 options available. Preferred option costed expansion into capital estimate ($25m). Possible delay, cost of diesel generated power will be required for delay period. Process water Depending on rainf
Slide 18: Group – Cash Position
17 GROUP – CASH POSITION Current group cash on hand as of 31 December 2011, circa US$158m (US$141m attributable) Standby working capital facility implemented 3 year working capital facility - M250m (US$31m) with Standard Lesotho Bank Agreements signed Facility available for draw down as from January
Slide 19: Thank You
Thank You © 2011 GEM DIAMONDS LIMITED