Gem Diamonds Limited · LSE:GEMD
Gem Diamonds — Investor Presentation (January 2017)
15 slides from Gem Diamonds's investor presentation, January 2017
Slide 1: January 2017
January 2017
Slide 2: Disclaimer
Disclaimer The following presentations are confidential and are being made only to, and are No statement in this presentation is intended as a profit forecast or profit estimate only directed at, persons to whom such presentations may lawfully be and no statement in the presentation should be interp
Slide 3: Gem Diamonds - a leading global producer of high value diamonds
Gem Diamonds - a leading global producer of high value diamonds • Clear focus on delivering value through optimising the Letšeng mine in Lesotho o Highest average dollar per carat kimberlite in the world o Famous for large, top colour, exceptional white diamonds • Ghaghoo mine in Botswana o Ramping
Slide 4: Major recoveries from Letšeng
Major recoveries from Letšeng 4
Slide 5: Operational Footprint
Operational Footprint Gem Diamonds Limited UK, BVI 2 employees Gem Diamonds Sales, Marketing and Manufacturing Belgium 16 employees 100% Gem Diamonds Limited 21 year mining license from 2011 Ghaghoo Mine 70% 30% Gem Diamonds Government of Botswana Limited Lesotho 250 employees/contractors 21 year Li
Slide 6: Large Diamond Market
Large Diamond Market
Slide 7: The Market – demand for Letšeng diamonds remains strong
The Market – demand for Letšeng diamonds remains strong Letšeng Letšeng 6 and 12 Month Rolling $/carat Prices achieved for high value large Type II 6 month 12 month diamonds have remained resilient throughout 2016 3 000 Prices achieved H1 2016 - US$ 1 899* per carat 2 500 2 113 12 month rollin
Slide 8: Rough Diamond Price Variance
Rough Diamond Price Variance Average Rough Price by Mine/Pipe 2015 US$/ct. US$2 299/ct Source: Gemdax 8
Slide 9: Price Trends Across Rough Diamond Categories
Price Trends Across Rough Diamond Categories Major Producers Rough Price Indices Letšeng US Dollar per carat 2012 – 2016 *Includes carats extracted at rough value for polishing. (Est.2012 – 2016) 2012 2013 2014 2015 H1 2016 1 932 2 043 2 540 2 299 1 899 Source: Gemdax 9
Slide 10: Sales, Marketing & Manufacturing
Sales, Marketing & Manufacturing
Slide 11: Sales, Marketing and Manufacturing
Sales, Marketing and Manufacturing Sales and Marketing Flexible sales strategy 20 rough diamonds achieved a value of greater than US$ 1.0 million each 11.8 carat pink diamond (pictured) achieved the third 11.8 carat pink diamond from Letšeng highest price per carat for a single Letšeng diamond
Slide 12: Investment Proposition
Investment Proposition A leading global producer of high value diamonds A unique set of diamond assets and a strong balance sheet Long term fundamentals for large, high quality diamonds remain strong Calibre of leadership team with track record of value creation Letšeng is a world class diamond mine
Slide 13: Thank you
Thank you www.gemdiamonds.com
Slide 14: Annexure - Gem Diamonds capital structure
Annexure 1 - Gem Diamonds capital structure Gem Diamonds share price performance 1 January 2016 – 31 December 2016 Major shareholders as at 170 2 500 30 November 2016 Share Price Volume 160 Graff Diamonds International Ltd 15.11% 150 2 000 140 Lansdowne Partners Ltd 14.98% 1 500 130 Gem Diamonds H
Slide 15: Annexure - Half Year 2016 Results Highlights
Annexure 2 - Half Year 2016 Results Highlights REVENUE EBITDA and EBITDA margin US$109m US$44m 200 80 42% 44% 50% 39% 40% 149 34% 40% 150 122 131 60 118 109 63 58 30% 100 40 46 41 44 20% 50 20 10% 0% H1 2014 H2 2014 H1 2015 H2 2015 H1 2016 H1 2014 H2 2014 H1 2015 H2 2015 H1 2016 BASIC EPS (pre excep