Burgundy Diamond Mines Ltd · ASX:BDM
Burgundy Diamond Mines — Q2 2024 Earnings Presentation
33 slides from Burgundy Diamond Mines's earnings presentation, Jul 29, 2024
Slide 1: Q2-2024 Results Investor Presentation
July 29, 2024 ASX Announcement Q2-2024 Results Investor Presentation Calgary, Alberta – Burgundy Diamond Mines Limited (ASX:BDM) (Burgundy or the Company) has released an updated investor presentation for its second-quarter results conference call on the 30th July 2024. This announcement was authori
Slide 2: Q2-2024 Results
Q2-2024 RESULTS 29th July 2024 Burgundy Diamond Mines Limited ASX: BDM BURGUNDYDIAMONDS.COM A reliable producer of premium diamonds to the global luxury 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: Presenters
PRESENTERS Kim Truter Chief Executive Officer & Managing Director 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 Fina
Slide 6: Ekati Diamond Mine Acquisition
EKATI DIAMOND MINE ACQUISITION Ekati diamond mine Why diamonds and why Ekati? Countercyclical strategy Diamond mining “disinterest” has created a countercyclical investment environment that has worked for other commodities (iron ore, coal, uranium etc.) Provides an opportunity to pick-up cheap,
Slide 7: Corporate Snapshot
CORPORATE SNAPSHOT Experienced team with proven strategy of value creation Board and management team (~16.2% total shareholding) Capital structure Michael O’Keeffe | Non-Executive Chair Share price1 A$/sh 0.17 Well-known within the resources industry globally, with a wealth of successful mining M&A.
Slide 8: Overview
OVERVIEW 01 12-month progress 02 Operational and financial performance 03 Growth projects 04 ESG 05 Industry overview Ekati haul trucks 7 7
Slide 9: 12-month progress
@) 1 12-month progress
Slide 10: First 12 Months of Ownership
FIRST 12 MONTHS OF OWNERSHIP Progress on all fronts The Burgundy team has moved quickly to take full operational ownership of the Ekati mine, with key management and staff relocating in-country to manage the asset and implement improvements Prior to June 2023 Acquisition Present - June 2024 Annual p
Slide 11: Operational and financial performance
02 Operational and financial performance 10
Slide 12: Operational Highlights
OPERATIONAL HIGHLIGHTS Q2-2024 Ore mined (Mwmt) Waste mined (Mwmt) 8.00 Waste mined -76% 6.00 (Q2-2024 vs Q2-2023) 4.00 Ore mined +6% 2.00 (Q2-2024 vs Q2-2023) 0.00 Q1-2022 Q2-2022 Q3-2022 Q4-2022 Q1-2023 Q2-2023 Q3-2023 Q4-2023 Q1-2024 Q2-2024 Tonnes processed (Mdmt) Carats recovered (Mcts) Grade (
Slide 13: Sales and Financial Highlights
SALES AND FINANCIAL HIGHLIGHTS Q2-2024 Carats sold (Mcts) Revenue/ct sold (US$) 151 1.50 133 Carats sold -23% 109 116 (Q2-2024 vs Q2-2023) 103 1.00 90 95 93 86 89 Revenue/ct sold 0.50 -5% (Q2-2024 vs Q2-2023) 0.00 Q1-2022 Q2-2022 Q3-2022 Q4-2022 Q1-2023 Q2-2023 Q3-2023 Q4-2023 Q1-2024 Q2-2024 US$494
Slide 14: Balance Sheet Position
BALANCE SHEET POSITION Disciplined cash management As of June 30, As of September As of December As of March 31, As of June 30, Time 2023 30, 2023 31, 2023 2024 2024 Property, plant, equipment Priorities: 277 205 239 224 232 (US$M) 1. 1 Funding cash-accretive mine life optimisation and extension Oth
Slide 15: Cash Change Details
CASH CHANGE DETAILS March 31, 2024 to June 30, 2024 Cash of US$56.9M negatively impacted due to an annual lump sum tax payment of US$25M in June 2024 related to 2023 taxable income Of the US$21M capital expenditures incurred over the June quarter, ~US$10M was spent on development capital for Poi
Slide 16: 2024 Guidance
2024 GUIDANCE Operating and sales Continued strong operating and sales forecast for 20241 On track to meet targets Strong Q3-2024 vs Q2-2024 expected due to higher carat recovery from Misery Forecast CY-20232 CY-2024 low CY-2024 high H1-2024 Status Waste tonnes mined 16.6 10.5 11.0 2.9 On trac
Slide 17: Growth projects
@) 3 Growth projects
Slide 18: Mine Life Objectives
MINE LIFE OBJECTIVES Prudent, low-cost capital development options are key to reaching Burgundy’s goal In order to publish an extended, JORC compliant mine plan, Burgundy must complete evaluation work (drilling, technical and economic studies) before publishing new Mineral Resources and Ore Reserv
Slide 19: Ekati Has a Wealth of Options
EKATI HAS A WEALTH OF OPTIONS 140 Mcts of Mineral Resources to draw on Sable office Sable open pit Mining rate ~60,000 tonnes per day Fox high value stockpile Active mine 970K cts (Inf)1 Already mined, but unprocessed Preliminary test work has indicated the ability to increase the grade by
Slide 20: Misery Underground Mine
MISERY UNDERGROUND MINE Active drilling targeting significant mine life extension Highly profitable operation (approximately US$235M annual production value)1 Approximately 18 months of mining left in the current mine plan, however early indications suggest extension potential as the ore body ap
Slide 21: Sable Underground
SABLE UNDERGROUND A new mining project rapidly advancing Permit in hand for the commencement of underground construction (portal + first production level) Permits for full development and mining are anticipated in Q1-2025 High wall rock scaling complete on time for underground portal developme
Slide 22: Point Lake Open Pit Mine
POINT LAKE OPEN PIT MINE Ekati’s next mine in early 2025 10th project to enter production at Ekati Ongoing work in preparation for open pit mining - Phase two dewatering complete; final dewatering underway - Open pit mining approval received - Waste Rock Storage Area construction and blasting
Slide 23: ESG
04 ESG 22
Slide 24: Diamond Mining in the Canadian North
DIAMOND MINING IN THE CANADIAN NORTH A key driver of socio-economic benefits In the last ~30 years, diamond mining in the North has contributed billions of dollars to the Northwest Territories’ economy The population of Yellowknife has grown considerably, largely due to the opportunities diamond
Slide 25: 25 Years of Contribution
25 YEARS OF CONTRIBUTION Community support and employment For the last 25 years, Ekati has made approximately ~C$5M per year in Employment community contributions 1,217-person workforce (41% contractor) In 2023, Burgundy contributed approximately C$5.2M1 across the North through: Opportunity
Slide 26: Industry overview
05 Industry overview 25
Slide 27: Supply Tightening
SUPPLY TIGHTENING Bullish diamond market forecast 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
Slide 28: First Diamond Marketing Campaign Launch in 30 Years
FIRST DIAMOND MARKETING CAMPAIGN LAUNCH IN 30 YEARS 100% success rate Every marketing campaign led by De Beers has seen significant demand growth Shares of brides receiving diamond engagement rings 100% 75% USA 50% China Japan 25% 0% 1939 1965 1994 2024 Frist bridal ads Frist bridal ads Frist brid
Slide 29: Demand Outlook Is Strong
DEMAND OUTLOOK IS STRONG The global luxury goods market for 2023E was a ~US$395-billion-dollar industry, Laboratory diamonds have limited to no place in the luxury increasing to ~US$632 billion by 202301 diamond market Luxury brands are looking for natural, and ethical supply (conflict free)
Slide 30: Investor enquiries
ASX: BDM ABN: 33 160 017 390 www.burgundydiamonds.com Investor enquiries investor@burgundydiamonds.com Media enquiries communications@burgundydiamonds.com 29
Slide 31: Appendix
AP Appendix 30
Slide 32: Mineral Resource and Ore Reserve – Burgundy Diamond Mines
MINERAL RESOURCE AND ORE RESERVE – BURGUNDY DIAMOND MINES As of 31st December 2023 Kimberlite pipes Measured Resources Indicated Resources Inferred Resources Pipe Name Type Mt Ct/t Mcts Mt Ct/t Mcts Mt Ct/t Mcts Sable OP - - - 7.1 0.9 6.8 0.3 1.0 0.3 Point Lake OP - - - 31.7 0.8 24.0 9.6 0.8 7.3 Pho
Slide 33: Peer Comparison Information
PEER COMPARISON INFORMATION (SLIDE 5) 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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