Slide 1: Q4 2014 Trading update
Q4 2014 Trading update 27 January 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: Agenda
Agenda 3 Q4 2014 highlights Diamond market Operational overview Sales, marketing and manufacturing overview Financial performance Outlook
Slide 4: Q4 2014 highlights
Q4 2014 highlights 4 LETŠENG: Letšeng ends good year with continued strong performance Good operational performance Recovered 25 525 cts Average of US$2 140*/ct for Q4 2014 Average of US$ 2 540*/ct for FY 2014 Large diamond recoveries (299 ct yellow / 112 ct and 90 ct white diamonds) GHAGH
Slide 5: Diamond Market
Diamond Market 5 Strong prices in H1 2014, softening in Q4 Letšeng 12 month rolling average US$/carat Liquidity concerns for 2014 Letšeng’s high value production remained 2 700 2 656 relatively resilient during Q4 2014 2 543 2 540 2 500 US$ 2 799/ct achieved in December tender 2 350 US$ per
Slide 6: Operational Overview
Operational Overview Alan Ashworth
Slide 7: Group HSSE performance full year 2014
Group HSSE performance full year 2014 7 2014 FY LTIFR 0.2 2014 FY AIFR 3.0 Letšeng retains it’s 5 star IRCA rating and Ghaghoo awarded a 4-star IRCA rating Zero major or significant stakeholder or environment incidents occurred Continued implementation of international best Herd boys at sc
Slide 8: Letšeng operational performance
Letšeng operational performance 8 QoQ YoY Q4 2014 Q3 2014 FY 2014 FY2013 % Change % Change Waste stripped (tonnes) 5 075 503 4 787 791 6% 19 884 721 19 072 657 4% Ore treated (tonnes) 1 590 855 1 601 758 -1% 6 421 704 6 225 821 3% Carats recovered 25 525 28 365 -10% 108 569 95 053 14% Grade recovere
Slide 9: Letšeng project review
Letšeng project review 9 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 of Maloti 140.0m (US$12.1m) approved, of which Capital of Maloti 50.0m (US$
Slide 10: Ghaghoo development review Q4 2014
Ghaghoo development review Q4 2014 10 48 023 tonnes of ore treated 10 167 cts recovered as at the end of Q4 2014 Recovered grade averaged 21cpht Sealing of fissure water completed, with 6 de- watering boreholes now in place and operational 3 kimberlite tunnels on Level 1 fully developed; 4
Slide 11: Sales, marketing and manufacturing overview
Sales, marketing and manufacturing overview Clifford Elphick
Slide 12: Q4 2014 Sales Performance
Q4 2014 Sales Performance 12 LETŠENG: Rough Diamond sales: Q4 2014* Q3 2014* QoQ Full year Full year YoY (3 tenders) (2 tenders) % Change 2014* 2013* % Change Carats sold 31 614 23 550 34% 108 963 97 294 12% Total value (US$ millions) 67.7 61.3 10% 276.8 198.8 39% Achieved US$/ct 2 140 2 603 -18% 2
Slide 13: Ghaghoo preparation for first sale
Ghaghoo preparation for first sale 13 GHAGHOO: First sale of c.10 000 cts in Gaborone and Antwerp in January /February 2015 Encouraging presence of coloured diamonds: i.e 3 ct Orange diamond on tender
Slide 14: Financial performance
Financial performance Michael Michael
Slide 15: Group financial performance
Group financial performance 15 Solid operational performance leads to strong financial results Cost management and control Group cash of US$ 110.7m / drawn down US$ 37.1m resulting in a net cash position of US$ 73.6 m Undrawn available facilities of US$ 41.6m. In December 2014, Letšeng pai
Slide 16: Outlook
Outlook 16 Continued operational efficiency and performance improvements Delivery of Coarse Recovery Plant project Delivery of No.2 Plant - Phase 1 upgrade Refining longer term mine plans, including optimising waste stripping profiles to maximise value Anticipated strong diamond market/pri
Slide 17: Appendix – Capital and corporate structure
Appendix 1 – Capital and corporate structure 17 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
Slide 18: Appendix – FY 2015 Guidance
Appendix 2 – FY 2015 Guidance 18 Letšeng guidance for full year 2015 FY2015 Waste tonnes mined (Mt) 20 - 22 Ore tonnes treated (Mt) 6.3 – 6.5 Carats recovered (Kct) 100 – 105 Carats sold (Kct) 100 – 105 Direct cash costs (before waste) per tonne treated (Maloti) 145 – 155 Mining waste cash costs per