Burgundy Diamond Mines Ltd · ASX:BDM
Burgundy Diamond Mines — Investor Presentation (April 2024)
26 slides from Burgundy Diamond Mines's investor presentation, Apr 29, 2024
Slide 1: Q1 2024 Results Conference Call
Q1 2024 RESULTS CONFERENCE CALL 29th April 2024 Burgundy Diamond Mines Limited ASX: BDM BURGUNDYDIAMONDS.COM A reliable producer of premium diamonds to the global luxury market
Slide 2: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER This Presentation is given on behalf of Burgundy Diamond Mines Limited (ASX: BDM) (ABN 33 160 017 390) (Burgundy or Company). By accepting, accessing or reviewing this Presentation, you acknowledge and agree to the terms set out in this Important Notice and Disclaimer
Slide 3: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER Financial information Certain financial data included in this Presentation is 'non IFRS financial information’ and "non-GAAP" financial measures under Regulation G of the U.S. Securities Exchange Act of 1934, as amended. These measures are used internally by managemen
Slide 4: Presenters
PRESENTERS Kim Truter Chief Executive Officer 35 years of mining experience in both surface and underground operations and large-scale project development across multiple geographies. Previous positions include CEO De Beers Canada and COO Rio Tinto Diamonds Brad Baylis Chief Financial Officer Broad
Slide 5: Overview
OVERVIEW 01 ESG 02 Diamond industry overview 03 Burgundy’s strategy 04 Operational and financial results 05 Mine plan progress 06 Sales 5
Slide 6: ESG
01 ESG 6
Slide 7: ESG Highlights
ESG HIGHLIGHTS Community engagement Burgundy is committed to continuing its investment into community programs and providing quality employment opportunities for IBA partners and Northerners Cultivating and maintaining a Strengthening relationships with IBAs and northern Building a strong safety c
Slide 8: ESG Highlights Continued
ESG HIGHLIGHTS Continued Environment Uphold environmental best practice Safety A significant focus on fatality prevention and critical controls led to the implementation of 12 Life Saving Rules 8
Slide 9: Diamond industry overview
02 Diamond industry overview
Slide 10: Investment Thesis
INVESTMENT THESIS Natural diamond production6 Global annual diamond production of ~120 Mcts Includes Russian mines 200 - Burgundy contributes ~4% of this global supply, which is the largest in the G71 Paul Global Production (Mcts) Zimnisky G7 sanctions against Russian diamond imports taking effe
Slide 11: Burgundy's strategy
03 Burgundy’s strategy 11
Slide 12: Burgundy's Strategic Roadmap
BURGUNDY’S STRATEGIC ROADMAP Burgundy’s strategy will be guided by the roadmap below Optimise our flagship asset, Ekati 1 Since acquiring Ekati from Arctic Canadian Diamond Company, Burgundy – the natural owner of the asset – is focused on meeting its mining targets and optimising operations Capit
Slide 13: Operational and financial results
04 Operational and financial results
Slide 14: Performance Highlights
PERFORMANCE HIGHLIGHTS1 FY2024 Q1 Waste tonnes mined2 Ore tonnes mined2 Tonnes processed2 Carats recovered2 (Mwmt) (Mwmt) (Mdmt) (Mcts) Operational -63% +30% +6% -3% 4.2 1.5 1.4 1.1 1.0 1.0 1.2 1.2 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 CASH FLOW from Corporate REVENUE EBITD
Slide 15: 2024 Guidance
2024 GUIDANCE Operating and Sales Continued strong operating and sales forecast for 20241 On track to meet target CY 2024 CY 2024 CY 20232 Low High Waste tonnes mined Mwmt 16.6 10.5 11.0 Ore tonnes mined Mwmt 4.6 4.2 4.7 Tonnes processed Mdmt 4.2 4.0 4.4 Carats sold Mcts 4.7 4.9 5.3 Carats recov
Slide 16: Balance Sheet and Liquidity (US$M)
BALANCE SHEET AND LIQUIDITY (US$M) Property, Plant Other Non-current Cash and Cash and Equipment Assets1 Equivalents Robust balance sheet and liquidity profile (net cash of US$64M, including diamond inventories) 224 239 Incremental cash flow is being re-invested 76 75 83 94 to deliver mine life
Slide 17: Surety Update
SURETY UPDATE Legacy surety: Significantly improved proposed terms1 Agreement in principle with surety providers to 157 160 extend the term of cash collateralisation of closure liabilities over published mine life Collateralisation payments are now scheduled to be 120 US$ Payment completed in ea
Slide 18: Mine plan progress
05 Mine plan progress 18
Slide 19: Significant Progress on Ekati Mine Life Extensions
SIGNIFICANT PROGRESS ON EKATI MINE LIFE EXTENSIONS New mine plan set to be published by year end Sable office Sable open pit Mining rate ~60,000 tonnes per day Fox stockpile Active mine 970K cts (Inf)1 Preliminary test work has indicated the ability to increase the grade by Sable underground
Slide 20: Point Lake
POINT LAKE Dewatering for open pit preparation Ekati’s next production in early 2025 Overview 11th pipe to enter production at Ekati Ongoing work in preparation for open pit mining - Phase two dewatering complete - Open pit mining approval received - Waste Rock Storage Area construction and blas
Slide 21: Sable Underground
SABLE UNDERGROUND A new mining project rapidly advancing Significant progress towards a new mining operation; underground portal development scheduled for August 2024 Not considered by previous owners – quickly identified by Burgundy as “low hanging fruit” for Ekati mine life extension The dri
Slide 22: Sable Underground Continued
SABLE UNDERGROUND Continued RC Drilling complete; delineation drilling scheduled 1,009 m drilled and completed in March Ore body delineation and geotechnical drilling to commence in Q2 RC holes completed Delineation holes commencing in Q2 RC sample results pending Mineral Resources and Ore Reser
Slide 23: Misery
MISERY Tonnage addition evaluation Highly profitable operation Proposed drilling in Q2 Main body currently being mined Approximately two years of mining left in the mine plan, however early indications suggest extension potential: Current mining 1. Vertical extension (deeper mining of the Main b
Slide 24: Sales
06 Sales 24
Slide 25: Sales Enhancement
SALES ENHANCEMENT Added value beyond the mine gate Main Pipe currently Commodity origin and chain of custody information (food, materials, being mined consumables) have never been more important for the consumer; diamonds are held to an even higher standard Burgundy’s Ekati product is differenti
Slide 26: Q&A Period
Q&A PERIOD BURGUNDY DIAMOND MINES LIMITED ASX: BDM ABN: 33 160 017 390 WWW.BURGUNDYDIAMONDS.COM CONTACT P: +61 8 6313 3945 INFO@BURGUNDYDIAMONDS.COM 26
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