Burgundy Diamond Mines Ltd · ASX:BDM
Burgundy Diamond Mines — Investor Presentation (May 2024)
28 slides from Burgundy Diamond Mines's investor presentation, May 21, 2024
Slide 1: May 2024 Investor Presentation
May 21, 2024 ASX Announcement For personal use only May 2024 Investor Presentation Calgary, Alberta – Burgundy Diamond Mines Limited (ASX:BDM) has released an updated Investor Presentation. This announcement was authorised for release by the board of Burgundy Diamond Mines Limited. -ENDS- Investor E
Slide 2: Investor Presentation
INVESTOR PRESENTATION rsonal use only May 2024 Burgundy Diamond Mines Limited ASX: BDM BURGUNDYDIAMONDS.COM A reliable producer of premium diamonds to the global luxury sector, positioned for a changing market
Slide 3: 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 4: 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 5: Overview
rsonal use only OVERVIEW 01 Investment thesis 02 Mine plan progress Financial position and mine 03 extension funding 04 2024 mining guidance 05 Sales 4
Slide 6: Investment thesis
rsonal use only 01 Investment thesis
Slide 7: Why Diamonds, and Why Ekati?
EKATI DIAMOND MINE ACQUISITION Ekati diamond mine’s main camp WHY DIAMONDS, AND WHY EKATI? Countercyclical strategy Diamond mining “disinterest” has created a countercyclical environment that has worked for other rsonal use only commodities (iron ore, coal, uranium etc.) Provides an opportunity
Slide 8: Supply Tightening
SUPPLY TIGHTENING 2023 Global annual diamond production of ~121 Mcts, 2024 forecasted production of ~113 Mcts (see graphs) - Burgundy contributes ~4% of this global supply, which is the largest in the G71. Global annual diamond production not subject to G7 sanctions is ~77 Mcts2 rsonal use only
Slide 9: Demand Outlook Is Strong
DEMAND OUTLOOK IS STRONG The global luxury goods market for 2023E was a ~US$395-billion-dollar industry, Laboratory created diamonds have limited to no place in the increasing to ~US$632 billion by 202301 luxury diamond market rsonal use only Luxury brands are looking for natural, and ethical
Slide 10: Lab Grown Market Highlighting Demand
LAB GROWN MARKET HIGHLIGHTING DEMAND FOR FINITE NATURAL DIAMONDS rsonal use only The “new opportunity” excitement for lab grown diamonds is diminishing as high-end consumers and retailers look to Evolution of lab grown diamond price relative to natural2 finite, value appreciative natural diamonds
Slide 11: Brands Seeking Limited G7 Natural Diamond Supply
BRANDS SEEKING LIMITED G7 NATURAL DIAMOND SUPPLY Global operating diamond mines1 rsonal use only Big name brands are adapting to increased focus on origin, and are leveraging the “mine to jewelry” G7 mines Russian mines concept Diavik operation ending in 2027 Gahcho Kue current mine plan ends
Slide 12: Mine plan progress
rsonal use only 02 Mine plan progress 11
Slide 13: Recap: Pre-Acquisition to Today
RECAP PRE-ACQUISITION TO TODAY Historic open pits at the Ekati diamond mine rsonal use only Burgundy’s countercyclical (cost effective) play meant that we acquired the Ekati asset with five years of mine life remaining During our due diligence, we identified several mine life extension and cash
Slide 14: 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 rsonal use only 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 S
Slide 15: Point Lake
POINT LAKE EKATI’S NEXT PRODUCTION IN EARLY 2025 Dewatering for open pit preparation rsonal use only Overview 10th project to enter production at Ekati (11th kimberlite pipe) Open pit mine design Ongoing work in preparation for open pit mining - Phase two dewatering complete - Open pit mining ap
Slide 16: Sable Underground
SABLE UNDERGROUND A NEW MINING PROJECT RAPIDLY ADVANCING Significant progress towards a new mining operation; underground portal development scheduled for August 2024 rsonal use only Not considered by previous owners – quickly identified by Burgundy as “low hanging fruit” for Ekati mine life ext
Slide 17: Misery Tonnage Addition Evaluation
MISERY TONNAGE ADDITION EVALUATION Proposed drilling in Q2 Highly profitable operation Main body currently rsonal use only Approximately two years of mining left in the mine plan, being mined however early indications suggest extension potential: Current 1. Vertical extension (deeper mining of t
Slide 18: Exploration Potential
EXPLORATION POTENTIAL LARGE LAND PACKAGE OVER THE WORLD’S GREATEST CONCENTRATION OF ECONOMICAL KIMBERLITE DEPOSITS Ekati lease block overlaying Sydney, Australia rsonal use only Burgundy has significant tenure over one of the most successful diamond fields in the world 125 kimberlites within the
Slide 19: Financial position and mine extension funding
rsonal use only 03 Financial position and mine extension funding 18
Slide 20: Financial Performance, Balance Sheet and Liquidity
FINANCIAL PERFORMANCE, BALANCE SHEET AND LIQUIDITY (US$M) Property, Plant Other Non-current Cash and Cash rsonal use only and Equipment Assets2 Equivalents FY2023 revenue of ~US$500M1 239 Robust balance sheet and liquidity profile (net 224 cash of US$64M, including diamond inventories) 76 75 83
Slide 21: Capital for Long Term Mine Plan
CAPITAL FOR LONG TERM MINE PLAN HOW DO WE FUND OUR MINE EXTENSION WORK? rsonal use only 1. Re-configuring the legacy environmental commitment (surety) from previous operations was Significantly improved proposed reclamation payment schedule1 one of Burgundy’s top priorities 160 157 A proposed deal
Slide 22: 2024 mining guidance
rsonal use only 04 2024 mining guidance 21
Slide 23: 2024 Mining Guidance
2024 MINING GUIDANCE OPERATING AND SALES rsonal use only Continued strong operating and sales forecast for 20241 Ekati haul truck and loader CY 2024 CY 2024 CY 20232 Low High Total Tonnes Mined wMt 21.1 14.7 15.7 Ore Tonnes Mined wMt 4.6 4.2 4.7 Tonnes Processed dMt 4.2 4.0 4.4 Carats Sold M Carat
Slide 24: Sales
rsonal use only 05 Sales 23
Slide 25: Sales Enhancement
SALES ENHANCEMENT ADDED VALUE BEYOND THE MINE GATE Main Pipe currently being mined rsonal use only A revitalised leadership team has brought a “challenge the status quo” mindset, from mining operations to sales Burgundy’s cutting and polishing facility in Perth and CanadamarkTM brand makes the b
Slide 26: Contact
rsonal use only BURGUNDY DIAMOND MINES LIMITED ASX: BDM ABN: 33 160 017 390 WWW.BURGUNDYDIAMONDS.COM CONTACT P: +61 8 6313 3945 INFO@BURGUNDYDIAMONDS.COM 25
Slide 27: Appendix
rsonal use only AP Appendix 26
Slide 28: Peer Comparison Information
PEER COMPARISON INFORMATION (SLIDE 6) Production, Mineral Resources1 and Ore Reserves table (100% basis) Project Production volume, Mineral Resources and Ore Reserves References 2023 production Mineral Resources Ore Reserves Company Project Location volume estimate2 Production source Mineral Resourc
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