Half Year 2015 results
19 August 2015 Satellite pipe Main pipe The Letšeng mine - Lesotho
Half Year 2015 results 19 August 2015 Main pipe Satellite pipe The - - PowerPoint PPT Presentation
Half Year 2015 results 19 August 2015 Main pipe Satellite pipe The Leteng mine - Lesotho Disclaimer 2 No statement in this presentation is intended as a profit forecast or profit The following presentations are confidential and are being
19 August 2015 Satellite pipe Main pipe The Letšeng mine - Lesotho
The following presentations are confidential and are being made only to, and are
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 contents. Information in the following presentations relating to the price at which relevant investments have been bought or sold in the past or the yield on such investments cannot be relied upon as a guide to the future performance of such
subscribe for or otherwise acquire securities in any company within the Group. Neither this documentation nor the fact of its distribution nor the making of the presentation constitutes a recommendation regarding any securities. This presentation if for information purposes only. The presentations contain forward-looking statements which are subject to risk and uncertainties because they relate to future events. These forward-looking statements include, without limitation, statements in relation to the Group’s projected growth opportunities. Some of the factors which may cause actual results to differ from these forward-looking statements are discussed in certain slides of the presentation and others can be found by referring to the information contained under the heading “Principle risks and uncertainties” in “The Strategic Report” in our Annual Report for the year ended 2014. The Annual Report can be found on our website (www.gemdiamonds.com). No statement in this presentation is intended as a profit forecast or profit estimate and no statement in the presentation should be interpreted to mean that earning per share for the current or future financial years would necessarily match
non-IFRS financial information. The Group’s management believes these measures provide valuable additional information in understanding the performance of the Group or the Group’s businesses because they provide measures used by the Group to assess performance. However, this additional information presented is not uniformly defined by all companies, including those in the Group’s industry. Accordingly, it may not be comparable with similarly titled measures and disclosures by other companies. Additionally, although these measures are important in the management of the business, they should not be viewed in isolation or as replacements for or alternatives to, but rather as complementary to, the comparable IFRS measures such as revenue and
items reported in the consolidated financial statements. The distribution of this presentation or any information contained in it may be restricted by law in certain jurisdictions, and any person into whose possession any document containing this presentation or any part of it comes should inform themselves about, and observe such restrictions. Information in this presentation is correct as at 18 August 2015 2
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REVENUE
UNDERLYING EBITDA
BASIC EPS
CASH GENERATED BY OPERATIONS
97 116 149 122 118 50 100 150 200 H1 2013 H2 2013 H1 2014 H2 2014 H1 2015 USD Millions 33 44 63 41 46 20 40 60 80 H1 2013 H2 2013 H1 2014 H2 2014 H1 2015 USD Millions 46 69 86 67 71 20 40 60 80 100 H1 2013 H2 2013 H1 2014 H2 2014 H1 2015 USD Millions 6.23 9.15 15.30 9.76 10.69 2 4 6 8 10 12 14 16 18 H1 2013 H2 2013 H1 2014 H2 2014 H1 2015 US Cents
Alan Ashworth
The Ghaghoo mine – processing plant The Letšeng mine – Satellite and Main pipes
Letšeng’s new Coarse Recovery Plant
7 9.9 9.2 10.0 9.9 11.4
5 10 15
H1 2013 H2 2013 H1 2014 H2 2014 H1 2015
3.0 3.2 3.2 3.2 3.1* 0.0 1.0 2.0 3.0 4.0 H1 2013 H2 2013 H1 2014 H2 2014 H1 2015
42 53 55 54 50*
40 60 H1 2013 H2 2013 H1 2014 H2 2014 H1 2015
8 20 40 60 80 100 120 1 2 3 4 5 6 7 8 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 Carats recovered ‘000s Tonnes treated and waste mined - millions
Optimised Life of Mine plan: tonnes treated and carats recovered profile
Satellite pipe Main pipe Carats recovered 5 10 15 20 25 30 35 40 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 Waste Tonnes mined - millions
Optimised Life of Mine plan: waste profile
Main pit waste Satellite pit waste
9 2 4 6 8 10 12 1 2 3 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 2011 2012 2013 2014 2015 +100 carats annually +100 carats per tender +100 ct diamonds per tender 12 month rolling frequency of +100cts
10
Alan Ashworth
Processing plant, sort house and tailings dump at Ghaghoo
12 Underground operations at Ghaghoo Processing plant at Ghaghoo
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Diluted marginal
Higher grade
5 10 15 20 25 30 35 40 1-Feb-15 3-Mar-15 2-Apr-15 2-May-15 1-Jun-15
Actual Grade Expected Grade 30 day rolling average
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+45¢ +30¢ +20¢ +15¢ 10.8¢ 10¢ 9¢ 8¢ 7¢ 6¢ 5¢ 4¢ 3¢ 10grn 8grn 6grn 5grn 4grn 3grn +11 +9 +7 +5 Diamonds per category interval
Actual Size Frequency Expected Size Frequency +45¢ +30¢ +20¢ +15¢ 10.8¢ 10¢ 9¢ 8¢ 7¢ 6¢ 5¢ 4¢ 3¢ 10grn 8grn 6grn 5grn 4grn 3grn +11 +9 +7 +5 Price per category US$/carat
Actual Price Curve Expected Price Curve
15 Ghaghoo’s autogenous mill Successful liberation of fine diamonds through the mill
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20 000 30 000 40 000 50 000 60 000 70 000 80 000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Tonnes per month
Actuals Forecast
Alan Ashworth
Re-vegetation rehabilitation trials at Letšeng
18 0.00 0.00 0.05 0.10 0.15 0.20 0.25 0.30 0.35 2011 2012 2013 2014 H1 2015
3.26
1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 5.00 2011 2012 2013 2014 H1 2015
0.4
0.4 0.6 0.8 1.0 1.2 2011 2012 2013 2014 H1 2015 USD Millions
19 Classrooms and office donated to Pae la itlhatsoa School in Lesotho Lesotho community health workers Educational School tours at Ghaghoo New Xade Primary School donation ceremony in Botswana Kaudwane Primary school adopted by Ghaghoo Butha Buthe vegetable project in Lesotho
357ct Type IIa white diamond recovered in July 2015
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314ct Type IIa white diamond recovered in May and sold into a partnership arrangement in June 2015
Michael Michael
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US$ millions H1 2015 H2 2014 % Variance (H1 2015 vs H2 2014) H1 2014 % Variance (H1 2015 vs H1 2014)
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H1 2015 H2 2014 % Variance (H1 2015 vs H2 2014) H1 2014 % Variance (H1 2015 vs H1 2014)
H1 2015 H2 2014 % Variance (H1 2015 vs H2 2014) H1 2014 % Variance (H1 2015 vs H1 2014)
H1 2015 H2 2014 % Variance (H1 2015 vs H2 2014) H1 2014 % Variance (H1 2015 vs H1 2014)
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US$ millions H1 2015 H2 2014 % Variance (H1 2015 vs H2 2014) H1 2014 % Variance (H1 2015 vs H1 2014)
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184 98 91 84 111 74 28 23 15 11 6 2 7 7 41
40 60 80 100 120 140 160 180 200 Cash December 2014 Letšeng cash generated Subtotal Waste costs capitalised Tax paid Investment Ghaghoo Investment in PPE Corporate costs Financial liabilities repaid Subtotal Investment in polished inventory Subtotal Dividends paid Cash June 2015 (including available facilities) US$ millions
A sample of Ghaghoo white diamonds
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2 264 2 304 1 500 1 900 2 300 2 700
29 0.6 0.7 0.8 0.9 1 1.1 1.2 1.3 1.4 1.5 1.6 2011 2011.5 2012 2012.5 2013 2013.5 2014 2014.5 2015 2015.5 2016
WWW Large Index WWW Overall Index
The access decline at Ghaghoo
31
32
200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 2,200 2,400 20 40 60 80 100 120 140 160 180 200 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15
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Volume (‘000) Price (GBp)
Source: FactSet as of 17 August 2015