Gem Diamonds Limited · LSE:GEMD
Gem Diamonds — H1 2021 Earnings Presentation
24 slides from Gem Diamonds's earnings presentation, Sep 2, 2021
Slide 1: Half Year Results 2021
HALF YEAR RESULTS 2021 2 September 2021
Slide 2: Disclaimer
DISCLAIMER This presentation is confidential and is being made only to, and is only directed at, persons to whom this 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. Informatio
Slide 3: H1 2021 in Review
H1 2021 IN REVIEW Revenue EBITDA Average US$ per carat US$104.5 million US$34.7 million US$1 886 Net cash position Business Transformation All Injury Frequency rate cumulative to date US$19.6 million US$95.4 million 1.29 Basis EPS (pre-exceptional Carats recovered Cash generated by items) operating
Slide 4: 2021 Diamond Market
2021 DIAMOND MARKET GLOBAL ECONOMIC DIAMOND MARKET GEM DIAMONDS’ MARKET BACKDROP POSITION World Bank expects global Strong 2020 holiday retail Remains highest US$ per carat economy to expand 5.6% in season kimberlite producer 2021 Strong demand and an increase Strong demand for Letšeng's Slow vaccin
Slide 5: Zero Harm & Responsible Care
ZERO HARM & RESPONSIBLE CARE GEM DIAMONDS LIMITED 5
Slide 6: COVID-19: Protecting Our People
COVID-19: PROTECTING OUR PEOPLE • Highest priority remains the safety of our workforce - protecting our people in a COVID-19 environment to safely and responsibly continue operations • Strict adherence to implemented COVID-19 protocols allowed us to continue operations in a safe and responsible mann
Slide 7: Zero Harm Remains a Priority
ZERO HARM REMAINS A PRIORITY • Zero fatalities and four LTIs during the Period • 20-hour safety campaign in June • No major or significant environmental incidents • No major or significant community incidents All injury frequency rate (AIFR) Lost time injury frequency rate (LTIFR) 0.32 2.02 0.28 1.4
Slide 8: Sustainability
SUSTAINABILITY • Focused tailings and freshwater storage facilities management: - Adoption of Global Industry Standard on Tailings Management - Independent Tailings Review Board appointed - Stringent structural safety inspections and audits at regular intervals continues - Daily, weekly & monthly in
Slide 9: Letšeng
LETŠENG GEM DIAMONDS LIMITED 9
Slide 10: Operational Review
OPERATIONAL REVIEW • Challenges during H1 2021: - COVID-19 impact on workforce, availability Carats recovered (thousands) of spares, skills & services 57 57 58 59 - High rainfall season 43 - Unrest and looting in SA - impact on supply chain • Operational metrics remain on track • Plant stabilisation
Slide 11: Operational Review
OPERATIONAL REVIEW Frequency of large diamond recoveries FY Average Weight category 2008 – 2020 H1 2020 H1 2021 >100 carats 8 7 3 60 – 100 carats 19 21 9 30 – 60 carats 76 47 43 20 – 30 carats 114 57 59 10 – 20 carats 433 180 317 Total diamonds >10 carats 650 312 431 GEM DIAMONDS LIMITED 11
Slide 12: Business Transformation
BUSINESS TRANSFORMATION • Initiatives embedded and will continue to deliver value • US$95.4 million cumulative benefit achieved as at 30 June • On track to deliver targeted US$100 million by end 2021 US$100 million contribution by workstream $34m Mining 11% $24m $20m $21m 7% Processing Working capit
Slide 13: Sales & Marketing
SALES & MARKETING • H1 2021 sales highlights: - Achieved US$1 886 per carat - Highest price achieved was $119 886 per carat for a 3.35 carat pink diamond - Sold 10 diamonds for more than US$1 million - Sold 34 diamonds for more than US$20 000 per carat - >10.8 carat diamonds contributed 74% of reven
Slide 14: Significant Diamond Recoveries in H1 2021
SIGNIFICANT DIAMOND RECOVERIES IN H1 2021 367 carat white diamond (US$26 160/ct) 254 carat white diamond (US$40 139/ct) 147 carat white diamond (US$38 100/ct) 3.35 carat pink diamond (US$119 886/ct) GEM DIAMONDS LIMITED 14
Slide 15: Financial Results
FINANCIAL RESULTS GEM DIAMONDS LIMITED 15
Slide 16: Income Statement
INCOME STATEMENT US$ million H1 2021 H1 2020 H1 2019 Revenue 104.5 69.5 91.3 Royalty and selling costs (11.0) (7.6) (8.4) Cost of sales (53.6) (43.7) (52.5) COVID-19 costs / standing costs (0.4) (3.3) - Corporate expenses (4.8) (3.6) (5.1) Underlying EBITDA from continuing operations 34.7 11.3 25.3
Slide 17: Letšeng Cost Analysis
LETŠENG COST ANALYSIS H1 2021 H1 2020 H1 2019 Ore tonnes treated (millions) 3.1 2.4 3.3 Direct cash costs¹ 172.43 186.49 160.43 Operating Costs Plant 3 operator costs 12.52 12.51 13.67 Total direct cash costs (before waste) per tonne treated 184.95 199.00 174.10 Non-cash accounting charges² 64.34 11
Slide 18: Financial Position
FINANCIAL POSITION 30 June 31 December % US$ million 2021 2020 Variance Non-current assets 343.6 323.5 IFRS 16 Right of use assets 3.9 4.8 Current assets 37.5 32.4 Income tax receivable 0.1 0.1 Cash 33.9 49.8 Total assets 419.0 410.6 2 Equity attributable to the parent company 173.5 163.1 Non-contro
Slide 19: Cash Management
CASH MANAGEMENT • Cash of US$33.9 million • Net cash of US$19.6 million • Capital debt repayments of US$2.0 million in H1 2021 • Three available facilities totaling US$61.0 million • Group debt refinancing of existing credit facilities expected to be complete in Q4 2021 64 36 61 16 US$ millions 61 1
Slide 20: Sale of Ghaghoo
SALE OF GHAGHOO • Binding share sale agreement signed on 23 August with Okwa Diamonds • Okwa Diamonds is a joint venture SPV owned by AIM-listed Botswana Diamonds PLC and Vast Resources PLC • The transaction is subject to final Government and Competitions Commission approvals and is expected to be c
Slide 21: Contact Us
CONTACT US Gem Diamonds Limited Glenn Turner / Susan Wallace T: +44 (0) 20 3043 0280 IR@gemdiamonds.com Celicourt Communications Mark Antelme/ Ollie Mills T: +44 (0) 20 7520 9565 GEM DIAMONDS LIMITED 21
Slide 22: Appendix A: Market Information
APPENDIX A: MARKET INFORMATION 12 Month share price performance Gem Diamonds Limited is listed on the Main Board of the London Stock Exchange LSE: GEMD 4 0.9 0.8 Daily average trading volume across all 219k 3 0.7 platforms over the past 12 months 0.6 GBP Millions 0.5 Shares in issue 140 487 759 2 0.
Slide 23: Gem Diamonds Limited
GEM DIAMONDS LIMITED 23
Slide 24: Registered office details
2nd Floor, Coastal Building, Wickham’s Cay II, PO Box 2221, Road Town, Tortola, British Virgin Islands, Registration number: 669758 www.gemdiamonds.com