Burgundy Diamond Mines Ltd · ASX:BDM
Burgundy Diamond Mines — Q3 2024 Earnings Presentation
33 slides from Burgundy Diamond Mines's earnings presentation, Oct 29, 2024
Slide 1: Q3-2024 Results Investor Presentation (ASX Announcement)
29 October 2024 ASX Announcement Q3-2024 Results Investor Presentation Calgary, Alberta – Burgundy Diamond Mines Limited (ASX:BDM) (Burgundy or the Company) has released an updated investor presentation for its third-quarter results conference call on the 29th October 2024. This announcement was aut
Slide 2: Q3-2024 Results
Q3-2024 RESULTS 29th October 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 Q3-2024 results Kim Truter Chief Executive Officer & Managing Director Brad Baylis Chief Financial Officer 4
Slide 6: Overview
OVERVIEW 01 Burgundy overview 02 Operational and financial performance 03 Growth 04 Diamond market 5 Ekati mining truck 5
Slide 7: Burgundy overview
@) 1 Burgundy overview
Slide 8: Ekati Diamond Mine Acquisition
EKATI DIAMOND MINE ACQUISITION Why diamonds and why Ekati? Countercyclical strategy Finding the right asset in the diamond industry Diamond mining “disinterest” has created a countercyclical investment Burgundy’s management team was looking for environment that has worked for other commodities (
Slide 9: 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$/sh 0.11 Well-known within the resources industry globally, with a wealth of successful mining M&A.
Slide 10: Company Strategic Objectives
COMPANY STRATEGIC OBJECTIVES Within 15 months, significant progress made on all fronts to solidify Burgundy’s future The Burgundy team has moved quickly to take full operational ownership of the Ekati mines, with key management and staff relocating in-country to manage the asset and implement impr
Slide 11: Q3-2024 Operational and financial performance
Q3-2024 02 Operational and financial performance 10
Slide 12: Operational Highlights
OPERATIONAL HIGHLIGHTS Q3-2024 Ore mined (Mwmt) Waste mined (Mwmt) Lower ore mined during the quarter, due to mining operations 8.00 transitioning from Sable mine to Point Lake open pit, and mine life extension drilling disruption. Carats recovered lower than the prior corresponding period due to sl
Slide 13: Sales and Financial Highlights
SALES AND FINANCIAL HIGHLIGHTS Q3-2024 Carats sold (Mcts) Revenue/ct sold (US$) Strong focus on multiple sales channel strategy and shortening the inventory pipeline. Accelerated sale led to 1.50 151 1.42 Mcts increased carats sold. Revenue per carat decreased due to 1.32 Mcts 133 soft diamond marke
Slide 14: 2024 Guidance
2024 GUIDANCE Operating and financial outlook Revised carats recovered and revenue guidance for 2024 due to soft market Waste tonnes mined impacted by slower than expected Point Lake dewatering and drilling vibration limitations which have since been resolved Operational guidance CY-2024 CY-2024
Slide 15: 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, As of September Time 2023 30, 2023 31, 2023 2024 2024 30, 2024 Priorities: Property, plant, equipment 277 205 239 224 232 264 (US$M) 1. 1 Funding cash-accretive mine life o
Slide 16: Cash Change Details
CASH CHANGE DETAILS June 30, 2024 to September 30, 2024 (US$M) Cash and cash equivalent balance of US$72.4M (up US$15.5M from the June quarter) The major cash movements included: Convertible Note debt repayment of US$23.2M US$36.5M capital expenditure - capitalised waste stripping at Point
Slide 17: Growth
@) 3 Growth
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 Indicated 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 Priority for mine plan optimisation Sable underground Evalua
Slide 20: Misery Underground Mine
MISERY UNDERGROUND MINE Active drilling targeting significant mine life extension Update on activities: Misery Main orebody drilling now completed, evaluation of results to follow Misery Main orebody larger than previously modelled1 Positive preliminary results from the Misery main ore body ex
Slide 21: Point Lake Open Pit Mine
POINT LAKE OPEN PIT MINE Ekati’s next mine in Q1-2025 Update on activities: Dewatering completed Waste rock storage area construction is 60% complete Open pit bench establishment well advanced Waste stripping underway Bulk sample mining planned for end Q4-2024, processing in Q1-2025 Firs
Slide 22: Mine Life Extension Schedule
MINE LIFE EXTENSION SCHEDULE What to expect over the next 6 months Misery Mine Southwest extension Misery Mine maiden Mineral Resource Misery Mine Southwest extension bulk sampling commences and Ore Reserve estimate Southwest extension drilling Misery Mine Main ore body updated Mineral Resource and
Slide 23: Exploration Potential
EXPLORATION POTENTIAL Large land package over the world’s greatest concentration of economical kimberlite deposits Burgundy has significant tenure over one of the most successful diamond fields in the world 125 kimberlites within the Ekati lease block; 10 mined to date Two untouched deposits (
Slide 24: Sales Strategies and Enhancements
SALES STRATEGIES AND ENHANCEMENTS Burgundy has added several value creating additional sales channels Shift from 100% auction process… to a network of additional sale channels that only natural diamonds - with high provenance - can serve Direct B2B Allocations Auction BDM Cut & Polish. facility + Br
Slide 25: Diamond market
04 Diamond market
Slide 26: Natural Diamond Outlook
NATURAL DIAMOND OUTLOOK Declining natural diamond production meets increasing demand Rough diamond mining production decline (US$Bn) 20 Boston Consulting Group has forecast strong demand with a 2-5% CAGR in rough diamond pricing Rough production (US$Bn) Decreasing supply forecast at -1% CAGR
Slide 27: Retailers Are Returning to Higher Margin, Natural Diamonds
RETAILERS ARE RETURNING TO HIGHER MARGIN, NATURAL DIAMONDS Significant decline in laboratory diamond profit margins For the first time since the advent of laboratory made diamonds, there is a Laboratory created diamonds are 100% distinguishable from natural major push by the miners, the midstrea
Slide 28: Natural Diamond Prices Rebound After a Crisis
NATURAL DIAMOND PRICES REBOUND AFTER A CRISIS Diamond prices are a function of macro economic factors Historic global polished diamond demand (2000 -2022) Economic crisis Health crisis 30 US$Bn, nominal 25 The diamond industry has gone through five challenging periods 20 since 2000, always bouncin
Slide 29: First Diamond Marketing Campaign Launch in Decades
FIRST DIAMOND MARKETING CAMPAIGN LAUNCH IN DECADES 100% success rate Every marketing campaign led by De Beers has seen significant demand growth Existing markets are being revived, and significant focus is expected in the emerging Indian market with a forecast 10% CAGR over the next 6 years for
Slide 30: ASX: BDM 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: Production Information (Slide 6)
PRODUCTION 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 Resource and
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