Gem Diamonds Limited · LSE:GEMD
Gem Diamonds — Investor Presentation (February 2017)
21 slides from Gem Diamonds's investor presentation, February 2017
Slide 1: Investor Presentation
Investor Presentation February 2017
Slide 2: Disclaimer
Disclaimer The following presentations are confidential and are being made only to, and are only directed at, persons to whom such presentations may lawfully be communicated (“relevant persons”). Any person who is not a relevant person should not act or rely on these presentations or any of their co
Slide 3: Agenda
Agenda Gem Diamonds at a Glance Operational Overview Market and Pricing Financial Highlights HSSE Overview 3
Slide 4: Background
Background Gem Diamonds is a leading global producer of high value diamonds Gem Diamonds has a clear focus on creating value through optimising the Letšeng mine and reviewing the development of the Ghaghoo mine in line with market conditions Gem Diamonds seeks to maximise revenue through its i
Slide 5: Remarkable recoveries from Letšeng
Remarkable recoveries from Letšeng Letšeng Legacy Letšeng Star Letšeng Destiny 493ct 550ct 314ct 2007 2011 2015 2006 2008 2014 2015 Lesotho Promise Leseli La Letšeng Yellow Letšeng Dynasty 603ct 478ct 299ct 357ct 5
Slide 6: Operational Footprint
Operational Footprint Gem Diamonds Limited UK, BVI 2 employees Gem Diamonds Sales, Marketing and Manufacturing Belgium 8 employees Ghaghoo Mine Botswana 309 employees/contractors Letšeng Mine Gem Diamond Technical Services Lesotho South Africa 1 829 24 employees employees/contractors 6
Slide 7: Operations - Letšeng
Main pit at Letšeng open-pit mine Operations - Letšeng 7
Slide 8: 2016 Operational Performance
2016 Operational Performance Waste mined (tonnes millions) 29.8 Letšeng 24 19.1 19.9 Letšeng continues to implement an optimised life of mine plan to significantly enhance the mine’s net present value All Injury Frequency Rate (AIFR) at a historical low 2013 2014 2015 2016 Production targets and
Slide 9: Operations - Ghaghoo
Processing plant at Ghaghoo underground mine Operations - Ghaghoo 9
Slide 10: 2016 Operational Performance
2016 Operational Performance Ghaghoo Development of the mine under review due in light of current market conditions Block 2 development nearing completion Downsizing strategy complete • Production rate reduced to 300 000 tonnes per annum • Operating costs reduced sustainably Price weakness f
Slide 11: Diamond Market Sales, Marketing & Manufacturing
88.43 carat white Letšeng diamond sold for c.US$ 48 000 per carat in 2016 Diamond Market Sales, Marketing & Manufacturing 11
Slide 12: Diamond Market
Diamond Market Polished diamond demand by geography US Japan Gulf China India Rest of world SOURCE: DeBeers Diamonds Insight Report 2016 The US remains the most important market for diamonds (over 45% of demand) and growth outlook for 2017 is positive China has been a strong growth engine for di
Slide 13: Diamond Pricing
Diamond Pricing Letšeng Notwithstanding fewer large high quality diamonds being recovered in 2016 prices for these rough diamonds remained firm Ghaghoo • Continued weakness in prices for these diamonds • Market for Ghaghoo goods continues to be under pressure Letšeng 6 and 12 month rolling $ per c
Slide 14: Sales, Marketing and Manufacturing Overview
Sales, Marketing and Manufacturing Overview Sales and marketing Flexible sales strategy to capitalise on opportunities in both the rough and polished market Robust prices achieved for Letšeng's high quality production in challenging market conditions Letšeng sale highlights: • 34 rough diamond
Slide 15: Financial Highlights
CAT777 truck at Letšeng mine Financial Highlights 15
Slide 16: Financial Highlights
Financial Highlights * 2016 figures are due to be released on 15 March 2017. The 2016 figures below represent current market consensus Revenue EBITDA 271 106 249 104 202 213 79 USD Millions USD Millions 67 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 EPS Attributable profit (before exceptional
Slide 17: HSSE Overview
Fresh water dam at Ghaghoo mine HSSE Overview 17
Slide 18: 2016 HSSE Performance
2016 HSSE Performance Group – Five Lost Time Injuries Group – AIFR 1.83 (2015: AIFR 2.75) Zero stakeholder or environment incidents Continued implementation of international best practice in respect of environmental and social responsibility AIFR LTIFR 2.93 2.75 0.20 2.49 0.17 1.83 0.13 0.00
Slide 19: HSSE Overview - Group CSI initiatives
HSSE Overview - Group CSI initiatives Lesotho Local farmers at the Wool and Mohair project Butha Buthe Vegetable project Herd-boy participating in the Letšeng Community Grazing Initiative Botswana Lephepe Primary school Vegetable Garden project Lephepe landfill waste dumping site Kaudwane Primary sc
Slide 20: Thank you
GEM SAMONDS! Thank you
Slide 21: Annexure 1 - Gem Diamonds capital structure
Annexure 1 - Gem Diamonds capital structure Gem Diamonds share price performance since 1 January 2016 Gem Diamonds Limited is listed on the Main Board of the Share price (p) Volume (000's) London Stock Exchange LSE : GEMD 170 2,500 160 Daily average trading volume across all 150 2,000 platforms (las