Gem Diamonds Limited · LSE:GEMD

Gem Diamonds — RBC Diamond Conference 2012

18 slides from Gem Diamonds's conference presentation, Jun 12, 2012

  1. Slide 1: RBC Diamond Conference

    Presentation RBC Diamond Conference 12 June 2012 © 2012 GEM DIAMONDS LIMITED

  2. Slide 2: Disclaimer

    1 RBC Diamond Conference 12 June 2012 Disclaimer The following presentations are being made only to, and are only directed at, The presentations also contain certain non-IFRS financial information. The Group’s persons to whom such presentations may lawfully be communicated (“relevant management beli

  3. Slide 3: Full Year 2011 Results Highlights

    2 RBC Diamond Conference 12 June 2012 FULL YEAR 2011 RESULTS HIGHLIGHTS GEM DIAMONDS’ UNIQUE PRODUCTION Letšeng’s exceptional white and coloured diamonds Ellendale’s exceptional fancy yellow diamonds VALUE CREATION Growth Projects Letseng Expansion - Project Kholo Ghaghoo Mine Development Sales & Ma

  4. Slide 4: Full Year 2011 Results Highlights

    3 RBC Diamond Conference 12 June 2012 Full Year 2011 Results Highlights (US$’000) REVENUE BASIC EPS (continuing operations) (US cents) 450 US$396 m 50 US$0.47 400 +49% from 2010 45 +213% from 2010 350 40 300 35 250 30 200 25 150 20 100 15 50 10 5 - 2009 2010 2011 0 2009 2010 2011 EBITDA CASH GENERAT

  5. Slide 5: Letšeng's exceptional white and coloured diamonds

    4 RBC Diamond Conference 12 June 2012 Letšeng’s exceptional white and coloured diamonds Letšeng has produced 4 of the 5 largest white diamonds recovered this century 603ct (2006) US$12.4m 493ct (2007) US$10.4m 478ct (2008) US$18.4m 550ct (2011) US$16.5m + polished upside 2.79ct Sold for a combined t

  6. Slide 6: Ellendale's exceptional fancy yellow diamonds

    5 RBC Diamond Conference 12 June 2012 Ellendale’s exceptional fancy yellow diamonds Ellendale is regarded as the world’s leading producer of fancy yellow diamonds 603ct (2006) 493ct (2007) 478ct (2008) 550ct (2011) • Average price achieved - US$ 4,326 per carat(as at end Q1 2012) • Major producer of

  7. Slide 7: Value Creation

    6 RBC Diamond Conference 12 June 2012 Value Creation Growth Projects Letseng Expansion - Project Kholo Ghaghoo Mine Development Sales & Marketing Capturing Margin Downstream © 2011 GEM DIAMONDS LIMITED

  8. Slide 8: Letšeng Expansion – Project Kholo

    7 RBC Diamond Conference 12 June 2012 Letšeng Expansion – Project Kholo © 2011 GEM DIAMONDS LIMITED

  9. Slide 9: Letšeng Expansion - Project Kholo

    8 RBC Diamond Conference 12 June 2012 Letšeng Expansion - Project Kholo (‘000) cts Total carats Implementation underway, with ramp up to 200 full production by July 2014 150 Early procurement, detail design and early 100 earth works commenced in Q1 2012 Project manager and owner’s team members 50 ap

  10. Slide 10: Letšeng Expansion – Project Kholo

    9 RBC Diamond Conference 12 June 2012 Letšeng Expansion – Project Kholo Letšeng Snapshot - (100% project value) March 2012 Total Project Kholo capital expenditure (US$m) 280 Revenue available for Cutting & Polishing up to 50% by 2017 Net Cutting & Polishing uplift 10-13% Exchange rate (Rand/US$) 7.8

  11. Slide 11: Ghaghoo Mine Development

    10 RBC Diamond Conference 12 June 2012 Ghaghoo Mine Development © 2011 GEM DIAMONDS LIMITED

  12. Slide 12: Ghaghoo Development

    11 RBC Diamond Conference 12 June 2012 Ghaghoo Development Capital project of US$85 million Phase 1 underway with production planned for H2 2013 US$19 million spent in 2011 (21% of total Phase 1 capex)/US$45 million planned for 2012 & US$21 million for 2013 Decline advanced some 150 metres undergrou

  13. Slide 13: Ghaghoo Mine Development

    12 RBC Diamond Conference 12 June 2012 Ghaghoo Mine Development Carats recovered Capital expenditure Tonnes treated Carats (‘000) US$ million mt 160 50 0.6 140 45 0.5 40 120 35 0.4 100 30 80 Ghaghoo 25 Ghaghoo 0.3 Ghaghoo 60 20 0.2 15 40 10 0.1 20 5 0 0 0 2011 2012 2013 2014 2011 2012 2013 2014 2011

  14. Slide 14: Sales & Marketing

    13 RBC Diamond Conference 12 June 2012 Sales & Marketing Product differentiation Elite Production Market Share Letšeng is currently the leading producer of Elite diamonds – this position to grow after expansion 20000 45% Letšeng 40% 15000 35% Letšeng Average $/¢t 30% Alrosa 10000 25% De Beers 20% 50

  15. Slide 15: Sales & Marketing: Rough Sales Strategy

    14 RBC Diamond Conference 12 June 2012 Sales & Marketing Rough Sales Strategy Gem Diamonds’ unique, high value production – marketed through multiple methodologies to maximise value achieved. TENDER AUCTION OFF-TAKE $ per Carat Brought in-house to exercise control 4,000 3,448 Target appropriate clie

  16. Slide 16: Sales & Marketing: Polished Sales Strategy

    15 RBC Diamond Conference 12 June 2012 Sales & Marketing Polished Sales Strategy OWN MANUFACTURING PARTNERED MANUFACTURING GROWTH PROTECTION Access post mine gate margins on high Flexibility of strategy allows allocation quality production of production to rough or polished Grow revenue / margin dis

  17. Slide 17: Capturing Margin On Select Exceptional Diamonds

    16 RBC Diamond Conference 12 June 2012 Capturing Margin On Select Exceptional Diamonds Exceptional product, exceptional profit $16.5m © 2011 GEM DIAMONDS LIMITED

  18. Slide 18: Thank You

    Thank You © 2011 GEM DIAMONDS LIMITED

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