Slide 1: Presentation
GEM piavionos Presentation November 2013
Slide 2: Disclaimer
1 November 2013 Disclaimer The following presentations are confidential and are being made only to, and are only No statement in this presentation is intended as a profit forecast or profit estimate and directed at, persons to whom such presentations may lawfully be communicated no statement in the
Slide 3: Year to date - November 2013 – Review
2 November 2013 Year to date - November 2013 – Review Diamond Market Letšeng - Operational overview - Letšeng resource - Diamond damage update - Letšeng project review Ghaghoo - Development update - Ghaghoo development – Phase 1 - Corporate social investment at Ghaghoo Corporate Costs Outlook © 2013
Slide 4: Diamond Market
3 November 2013 Diamond Market 2013 began with improved prices Improved polished trading Prices flattened from May onwards Long-term Supply/ demand imbalance Robust prices for Letšeng high value production Rough and Polished Prices Supply Demand and future prices Short term trends 1000 60 Supply and
Slide 5: Operational Review – Letšeng
4 November 2013 Operational Review – Letšeng Satellite pipe Main pipe © 2013 GEM DIAMONDS LIMITED
Slide 6: Operational Review – Letšeng
5 November 2013 Operational Review – Letšeng % Variance H1 H1 2013 H2 2012 2013 to H2 2012 H1 2012 Carat production 42 268 57 234 (26%) 57 116 Carats sold* 47 065 48 892 (4%) 58 725 Recovered grade (cpht) 1.39 1.80 (23%) 1.68 Waste mined (mT) 9.9 9.6 3% 7.8 Ore mined (mT) 3.1 3.0 3% 3.4 Ore treated
Slide 7: Letšeng Resource – Still delivering exceptional diamonds
6 November 2013 Letšeng Resource – Still delivering exceptional diamonds ( 7 diamonds worth US$42.9m since January 2013) 164ct sold for US$9.0m (US$54,911/ct) April 2013 92.9ct sold for $5.3m (US$56,494/ct January 2013 99.9ct sold for US$6.5m (US$64,631/ct) July 2013 12.5ct blue sold for US$7.5m (Le
Slide 8: Letšeng – Addressing Diamond Damage
7 November 2013 Letšeng – Addressing Diamond Damage Noticeable decrease in incidence of severe breakage following installation of 4 new cone crushers in Letšeng’s Plants 1 & 2 18 +50 carat diamonds recovered since the installation of the new cone crushers. Introduction of new crushers Kawasaki Cybas
Slide 9: Letšeng – Project Review
8 Half Year 2013 Results Letšeng – Project Review Current status Design and costing of a new modular Recovery Plant – advanced stage • To treat the high value, coarse fraction • Latest XRT technology to ensure recovery of type II diamonds • Security improvements • Diamond accounting of all diamonds
Slide 10: Ghaghoo Mine Development
9 November 2013 Ghaghoo Mine Development © 2013 GEM DIAMONDS LIMITED
Slide 11: Ghaghoo Development Update
10 November 2013 Ghaghoo Development Update Access decline continues to progress through competent basalt, with c.200m of basalt ramp development completed as at end October Total tunnel length at end Oct 2013 (sand & basalt portions) was 762m, with a further c.300m of waste development Sand portion
Slide 12: Ghaghoo Development - Phase 1
11 November 2013 Ghaghoo Development - Phase 1 CK VK Main VKSE © 2013 GEM DIAMONDS LIMITED
Slide 13: Corporate Social Investment at Ghaghoo
12 November 2013 Corporate Social Investment at Ghaghoo CSRI Action taken Education Workplace training conducted on site Infrastructure 4 boreholes drilled and equipped – Mothemelo, Metsiamanong, Molapo, Gope Employment 6.6% of the workforce is made up of locals from the Project Affected Communities
Slide 14: Corporate Costs
13 November 2013 Corporate Costs Alignment of costs to current asset base Restructuring undertaken in 2013 (includes certain once-off costs) Steady state costs in 2014 Forecast Planned 2011 2012 2013* 2014 US$14.9 US$14.2 c. US$14.1 c. US$12.0 *Includes once-off costs as part of restructuring © 2013
Slide 15: Outlook
14 November 2013 Outlook Mining in the Satellite pipe ramped up in Q4 2013 Decrease diamond damage – new crushers installed in H1 2013 Detailed design and estimate on improved recovery plant Complete access decline at Ghaghoo – on track for production H2 2014 Corporate office cost alignment with cur
Slide 16: Appendix - Share Information
15 November 2013 Appendix 1 - Share Information Share prices and trading volumes 200 1 750 Major Shareholders 15 Oct 2013 1 500 Graff Diamonds International Limited 15.09 175 1 250 Lansdowne Partners Ltd 14.99 1 000 BlackRock Investment Management 11.78 150 FIL Limited/FMR LLC 11.70 750 Gem Diamonds
Slide 17: Thank You
Thank You © 2013 GEM DIAMONDS LIMITED