Gem Diamonds Limited · LSE:GEMD
Gem Diamonds — Investor Presentation (February 2019)
12 slides from Gem Diamonds's investor presentation, February 2019
Slide 1: Investor Presentation
Investor Presentation February 2019
Slide 2: Disclaimer
Disclaimer The following presentation is confidential and is being made only to, and is only directed at, persons to whom such presentation may lawfully be communicated (“relevant persons”). Any person who is not a relevant person should not act or rely on this presentation or any of its contents. I
Slide 3: Gem Diamonds – an overview
Gem Diamonds – an overview • Listed on the Main Board of the London Stock Exchange (LSE : GEMD) • Leading producer of large, high quality, exceptional Type II diamonds Mining - Letšeng Sales, Marketing and Innovation and Diamonds Manufacturing Technology • Located in Maluti mountains of • Sales and
Slide 4: Financial Highlights
Financial Highlights Revenue EBITDA Basic EPS (pre exceptional items) (US$ millions) (US$ millions) (US$ cents) 271 30.0 249 106 104 214 26.0 190 63 49 13.0 6.6 2014 2015 2016 2017 2018* 2014 2015 2016 2017 2018* 2014 2015 2016 2017 2018* Cash position - 31 December 2018: • US$51 million cash • Net
Slide 5: Our strategy and key priorities
Our strategy and key priorities Extracting maximum value Working responsibly and Preparing for our future from operations maintaining social licence • Business transformation – • Promoting a culture of zero • Advancing innovative driving business harm and responsible care technologies to enhance opt
Slide 6: Market information
Market information 2018 annual share performance Volume (000s) Price (GBp) 3000 1.40 Thousands 2500 1.20 1.00 2000 0.80 1500 0.60 1000 0.40 500 0.20 0 0.00 2018 annual share performance Analyst target prices (£) Price 29 January (£) 0.97 Finncap 1.50 Panmure Gordon 1.50 High 1.25 Liberum 1.45 Low 0.
Slide 7: Letšeng
Letšeng Mining Processing and recoveries HSSE • Total Resource: 5.0 million carats • Three treatment plants • No fatalities in 2018 • In-situ value US$10.3 billion • 6.4 – 6.6 mtpa • 4 Lost time injuries in 2018 • Two kimberlite pipes: Main & • Record recoveries > 100 carats in • Dairy farming proje
Slide 8: Letšeng – Sales and marketing
Letšeng Sales and marketing • Prices remain firm for Letšeng large high quality goods • Sold 125 111 carats (2017: 107 152) • Average price of US$2 131 per carat achieved during 2018 (US$1 930 in 2017) • 2018 sales highlights: ▪ 44 diamonds sold for > US$ 1.0 million each, generating revenue of US$1
Slide 9: Letšeng – Frequency of large diamond recoveries
Letšeng Frequency of large diamond recoveries Number of diamonds 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 >100 carats 7 6 7 6 3 6 9 11 5 7 15 60 - 100 carats 18 11 11 22 17 17 21 15 21 19 22 30 - 60 carats 96 79 66 66 77 60 74 65 70 74 83 20 - 30 carats 108 111 101 121 121 82 123 126 8
Slide 10: Letšeng – Significant diamond recoveries in 2018
Letšeng Significant diamond recoveries in 2018 151.78 ct ($48 306/ct) 66.27 ct (US$56 028/ct) 2.26ct pink 49.84 ct ($52 896/ct) ($62 433/ct) 910 ct Lesotho Legend ($43 956/ct) 169.10 ct ($55 354/ct) 10
Slide 11: Business Transformation
Business Transformation • Targeting revenue and productivity improvements and cost savings • 4 year cumulative target of US$100 million set to end of 2021 • Sustainable annual net benefit of US$30 million from 2022 • On track to deliver • To date, implemented initiatives expected to deliver +US$60 m
Slide 12: Contact us
Gem Diamonds Limited Celicourt Communications Glenn Turner Contact us T: +44 (0) 203 043 0280 Joanna Parker/Mark Antelme T: +44 (0) 207 520 9565 IR@gemdiamonds.com