Interim Results Presentation For the period ended 30 September 2016 - - PowerPoint PPT Presentation

Interim Results Presentation

For the period ended 30 September 2016

Trans Hex Group Interim Results Presentation 2016

CONTENTS

• Financial overview
• South African operations
• West Coast Resources operations
• Angolan operations
• Conclusion

Divider Financial overview

Trans Hex Group Interim Results Presentation 2016

FINANCIAL OVERVIEW

Sept 2016 Sept 2015 Rand revenue (Rm) 275,3 268,7 Cost of goods sold (Rm) (261,4) (299,4) Share of results of associated companies (Rm) 25,2 (1,7) Profit/(loss) from continuing operations (Rm) 8,9 (43,7) Profit from discontinued operations (Rm) 23,6 11,2 Profit/(loss)/profit for the period (Rm) 32,5 (32,5) HEPS (cents) 31,4 (30,3) Cash position (Rm) 322,4 347,5 Net asset value per share (cents) 540 575

Trans Hex Group Interim Results Presentation 2016

GROUP PROFIT/LOSS AFTER TAX

H1 2013 H2 2013 H1 2014 H2 2014 H1 2015 H2 2015 H1 2016 H2 2016 H1 2017 R million 33 52

• 54

77 36 155

• 33
• 68

33

• 110
• 80
• 50
• 20

10 40 70 100 130 160 190 220

Divider South African operations

Trans Hex Group Interim Results Presentation 2016

SA PRODUCTION

H1 2013 H2 2013 H1 2014 H2 2014 H1 2015 H2 2015 H1 2016 H2 2016 H1 2017 Carats 35 865 31 250 21 849 30 232 32 450 29 238 23 940 24 495 18 997 10 000 20 000 30 000 40 000 50 000

Production decreased in line with a new operating model introduced at the Lower Orange River operations in February 2016 in order to extend the viable life-of-mine of these operations for as long as possible.

Trans Hex Group Interim Results Presentation 2016

LOWER ORANGE RIVER – AVERAGE GRADE

H1 2013 H2 2013 H1 2014 H2 2014 H1 2015 H2 2015 H1 2016 H2 2016 H1 2017 Average grade 1.20 0.92 0.78 1.07 1.31 1.27 1.07 1.42 1.80 0.00 0.50 1.00 1.50 2.00 2.50

The increase in average grade is mainly due to the re-evaluation of ore accounting policies which have resulted in positive grade adjustments.

Trans Hex Group Interim Results Presentation 2016

SA DIAMOND PRICES

H1 2013 H2 2013 H1 2014 H2 2014 H1 2015 H2 2015 H1 2016 H2 2016 H1 2017 Price/carat $1 205 $1 467 $1 028 $1 427 $1 557 $1 218 $931 $1 023 $1 028 $0 $200 $400 $600 $800 $1 000 $1 200 $1 400 $1 600

Trans Hex Group Interim Results Presentation 2016

SA OUTLOOK

• Stripping operations in the Baken central channel will continue

until the economically viable gravel in the main channel has been exhausted, which is expected to be towards the end of the 2018 financial year.

• Performance at Bloeddrif Mine is expected to improve with the

mining of higher grade gravel from the exposed basal gravel.

• South African production for the 2017 financial year is expected

to be in the order of 41 000 carats, compared to 2016 actual production of 48 435 carats.

• Rough demand is expected to remain firm during the remainder of

the financial year.

West Coast Resources operations

Trans Hex Group Interim Results Presentation 2016

WEST COAST RESOURCES OPERATIONS

• Plant construction and improvements are continuing in order to

further expand the operational footprint.

• During the period, mining activities produced 36 003 carats at an

average grade of 33,48 carats/100 m3. In addition, the final recovery plant treated final recovery tailings and produced 1 150 carats (September 2015: 4 821 carats).

• Ongoing drilling and prospecting will continue to target high priority

areas that may identify additional resources for mining.

• Stripping operations have commenced in the Langklip area, which is

projected to yield gravel by November 2016. Mining activities will remain focused here, as well as on other sections of the Koingnaas area.

• Production for the 2017 financial year is expected to be in the
• rder of 80 000 carats, compared to 2016 actual production of

24 930 carats.

Divider Angolan operations

Trans Hex Group Interim Results Presentation 2016

SOMILUANA PRODUCTION

H1 2013 H2 2013 H1 2014 H2 2014 H1 2015 H2 2015 H1 2016 H2 2016 H1 2017 Carats 22 600 18 713 35 779 36 262 44 400 50 083 67 981 31 591 91 033 10 000 20 000 30 000 40 000 50 000 60 000 70 000 80 000 90 000 100 000

Trans Hex Group Interim Results Presentation 2016

SOMILUANA AVERAGE GRADE

H1 2013 H2 2013 H1 2014 H2 2014 H1 2015 H2 2015 H1 2016 H2 2016 H1 2017 Average grade 18.04 15.13 21.37 27.18 29.94 26.46 38.26 23.60 57.50 5 10 15 20 25 30 35 40 45 50 55 60

Trans Hex Group Interim Results Presentation 2016

SOMILUANA DIAMOND PRICES

H1 2013 H2 2013 H1 2014 H2 2014 H1 2015 H2 2015 H1 2016 H2 2016 H1 2017 Price/carat $337 $371 $484 $472 $513 $415 $300 $464 $477 $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 $550

Trans Hex Group Interim Results Presentation 2016

ANGOLAN OUTLOOK

• Mining operations at Somiluana Mine will continue on the east bank
• f the Luana River and prospecting activities will remain focused on

new areas to the north-east, directing operations to areas of interest.

• Self-funded new equipment purchases are planned in order to

increase the Mine’s production footprint. The equipment will enable the economical mining of lower grade areas.

• Production results and geological work through drilling and bulk

sampling indicate that carat production for the 2017 financial year will surpass the 99 500 carats achieved in 2016.

Divider Conclusion

Trans Hex Group Interim Results Presentation 2016

CONCLUSION

• South African production for 2017 is expected to be in the order of

41 000 carats.

• At West Coast Resources plant construction and improvements are

continuing in order to further expand the operational footprint. Production for the 2017 financial year is expected to be in the order

• f 80 000 carats.
• Somiluana Mine continues to grow and production for 2017 is

expected to surpass 99 500 carats.

• Tight controls over cash and costs will continue to be exercised in all

areas of the Group’s business.

• In respect of new business opportunities, the Group continues to

evaluate potential new ventures on an ongoing basis.

www.transhex.co.za

Trans Hex Group Interim Results Presentation 2016

Disclaimer: This presentation contains forward-looking statements about the Company’s operations, exploration activities and financial conditions. They are based on Trans Hex Group’s best estimates and information at the time of

• writing. They are nonetheless subject to significant uncertainties and contingencies, many of which are beyond the

control of the Company. Unanticipated events will occur and actual future events may differ materially from current expectations due to explorations results, new business opportunities, changes in priorities by the Company or its joint ventures, as well as other factors. Any of these factors may materially affect the Company’s future business activities and its ongoing financial results.