Full Y ear 2015 Results 15 March 2016 Disclaimer 2 The following - PowerPoint PPT Presentation

Full Y ear 2015 Results 15 March 2016

Disclaimer 2 The following present ations are confident ial and are being made only to, and are No st atement in this present ation is intended as a profit forecast or profit estimate only directed at , persons to whom such presentat ions may lawfully be and no statement in the present at ion should be int erpreted to mean that earning communicated (“ relevant persons” ). Any person who is not a relevant person per share for the current or future financial years would necessarily match or should not act or rely on these presentations or any of their contents. exceed the historical published earnings. The present ation also contains certain non-IFRS financial informat ion. The Group’ s management believes these measures Informat ion in the following present at ion relating to the price at which relevant provide valuable additional information in underst anding the performance of the investments have been bought or sold in the past or the yield on such invest ment s Group or the Group’ s businesses because they provide measures used by the Group cannot be relied upon as a guide to the fut ure performance of such invest ments. to assess performance. However, this addit ional information presented is not This present at ion does not constitut e an offering of securities or otherwise uniformly defined by all companies, including those in the Group’ s industry. const itute an invitation or inducement to any person to underwrit e, subscribe for Accordingly, it may not be comparable with similarly titled measures and or otherwise acquire securit ies in any company within the Group. Neither this disclosures by other companies. document at ion nor the fact of its distribution nor the making of t he presentat ion Additionally, although these measures are import ant in the management of t he const itutes a recommendation regarding any securities. This present ation if for business, they should not be viewed in isolation or as replacement s for or information purposes only. alternatives to, but rather as complement ary to, the comparable IFRS measures such as revenue and other items reported in the consolidated financial statements. The present at ion contains forward-looking st atement s which are subj ect to risk and uncert ainties because they relat e to future event s. These forward-looking The distribut ion of t his presentation or any informat ion contained in it may be stat ements include, without limit ation, st atement s in relation to the Group’ s restricted by law in certain j urisdictions, and any person into whose possession any proj ect ed growth opportunities. Some of t he factors which may cause act ual document cont aining this present at ion or any part of it comes should inform results to differ from these forward-looking statement s are discussed in cert ain themselves about, and observe such restrictions. slides of t he presentat ion and others can be found by referring to the information Information in this presentation is correct as at 14 March 2016 contained under the heading “ Principal risks and uncertainties” in “ The Strategic Report ” in our Annual Report for the year ended 2015. The Annual Report can be found on our website (www.gemdiamonds.com).

Agenda 3  Full year 2015 result s highlight s  Diamond market  Operat ional performance  HS S E  Let šeng  Ghaghoo  S ales, market ing and manufact uring  Group financial performance  Invest ment proposit ion

Full Y ear 2015 Results Highlights 4 REVENUE EBITDA US$249m US$104m 54% 400 200 60% 306 42% 50% EBITDA MARGIN 271 39% 300 150 37% 249 167 33% 40% 213 EBITDA 202 200 100 30% 106 104 20% 80 100 50 67 10% 0 0 0% 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 BASIC EPS (pre exceptional items) FREE CASH FLOW FROM OPERATIONS US cents 30 US$14m 100 77 60 61 49 50 50 21 14 40 30 0 24 30 17 20 13 -50 10 -51 0 -100 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015

Diamond Market Clifford Elphick Chief Execut ive Officer

Diamond Market 6 Diamond Price Indices  Diamond market for Letšeng’s high end 1.80 diamonds remained stable in an overall market subdued in 2015 1.60  Slow down in Chinese retail demand 1.40  Inventory and liquidity concerns  Medium to long term market outlook 1.20 remains strong 1.00  Reduced sales from De Beers and Alrosa leads to firmer prices 0.80  Improved outlook as 2016 starts to show green shoots 0.60 2010 2011 2012 2013 2014 2015 2016 WWW Large Index WWW Overall Index

Diamond Pricing 7 Letšeng 6 and 12 Month Rolling $/ carat Letšeng  Price levels maintained due to resilience in 6 month 12 month +10.8 carat Type II diamonds 3 000 2 500 Ghaghoo 2 000  Weaker market impacted Ghaghoo production 1 500  Third sale at $150 per carat, down from $210 1 000 (February 2015) and $165 (July 2015), dropping in line with WWW Overall index 500  First sale in 2016 achieved $160 per carat - up - FY 2014 Q1 Q2 Q3 FY 2015 6.7% from previous sale

Operational Performance Alan Ashwort h Chief Operat ing Officer

Group HSSE Performance 9  Zero fatalities and Lost Time Inj uries  Group LTIFR 0.00 (2014 LTIFR 0.20)  Group AIFR 2.87 (2014 AIFR 3.01)  Zero maj or or significant Group-wide stakeholder or environment incidents occurred  Letšeng maintained 5-star IRCA rating for a second year  Ghaghoo maintained 4-star IRCA rating for a second year  Group invested US $0.6m (2014 US $0.6m) in CS R initiatives  The Group continued implementing international best practice in respect of environmental and social responsibility LTIFR AIFR CSI 1.1 4.54 4.45 0.30 0.25 3.01 0.20 2.87 2.49 0.6 0.6 0.6 0.5 0.13 0.00 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015

10 Letšeng Operational Overview

Letšeng Operational Overview 11 Waste mined (tonnes millions)  S t rong end t o 2015 - product ion t arget s achieved 24.0 19.9 19.1 17.4  Waste mined –24.0 million tonnes  Ore treated – 6.7 million tonnes  1.9 million tonnes of S atellite pipe contribution 2012 2013 2014 2015 in 2015 Ore treated (tonnes millions)  Carats recovered – 108 579  Prices remain st able – FY 2015 US 6.7 $2 299 per carat 6.6 6.4  Plant 2 Phase 1 upgrade – additional 250 000 tonnes 6.3 p.a. being realised  Coarse Recovery Plant – addressing diamond damage 2012 2013 2014 2015 and enhanced security Carats recovered (000’s)  Cont inual improvement s:  Cost efficiencies 114 109 109 95  Power back up capacity  Improved blasting techniques 2012 2013 2014 2015

Letšeng Operational Overview 12  Optimised Life of Mine plan  Increased Satellite contribution (1.9 mt 2015)  Optimal waste profile – peak of 36 mtpa (2024)  Steeper slope angles (resulting in less waste)  Improved NPV Optimised Life of Mine plan : tonnes treated and Optimised Life of Mine plan : waste profile carats recovered profile S atellite pipe Main pipe Carats recovered Main pit waste S atellite pit wast e 8 120 40 7 35 100 Waste Tonnes mined - millions Tonnes treated - millions 6 30 80 5 Carats recovered ‘ 000s 25 4 60 20 3 15 40 2 10 20 1 5 0 0 0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037

Letšeng Operational Overview 13 Frequency of +100 carat recoveries 4 14 +100 cts per month Annual Frequency of +100cts 12 3 10 100 carats per month 100 carats annually 8 2 6 4 1 2 0 0 1 3 5 7 9 11 1 3 5 7 9 11 1 3 5 7 9 11 1 3 5 7 9 11 1 3 5 7 9 11 2011 2012 2013 2014 2015

Ghaghoo Operational Overview

Ghaghoo Operational Overview 15  Phase 1 obj ectives achieved  Grade remains steady and ahead of Reserve  Recovered grade of 28.0 cpht in 2015  Reserve grade of 27.8 cpht  Surge bin successfully commissioned in January 2016 – daily throughput of 2 000 tonnes achieved  Water fissure  Level 1 sealed and mined t hrough Processing plant at Ghaghoo  Level 2 sealed  Long t erm sust ainable solut ion in place  Premature caving and sand ingress  No inj uries or propert y damage  Long t erm plans in place t o minimise dilut ion  Three sales concluded  Average $ per carat for 2015 - US $162 Underground operations at Ghaghoo

Ghaghoo Outlook 16  Depressed diamond market impacted Ghaghoo type production  Prudent to downsize in current market conditions  Optimising production levels to:  Reduce cash burn  Targeting approx. 300 000 tonnes for 2016  Ghaghoo remains an important asset for the Group  Resource of 20m carats worth >US$4 billion in situ  Options being assessed to expand when diamond prices improve Parcel of Ghaghoo diamonds  First sale in 2016 achieved $160 per carat - up 6.7% from previous sale

S ales, Marketing and Manufacturing Clifford Elphick Chief Execut ive Officer