Gem Diamonds Limited · LSE:GEMD
Gem Diamonds — FY2023 Earnings Presentation
27 slides from Gem Diamonds's earnings presentation, Mar 14, 2024
Slide 1: Annual Report and Accounts 2023
GEM ove # ANNUAL REPORT AND ACCOUNTS AOS 14 March 2024
Slide 2: Disclaimer
DISCLAIMER This presentation is confidential and is being made only to, and is only directed at, persons to whom this presentation may lawfully be communicated (“relevant persons”). Any person who is not a relevant person should not act or rely on this presentation or any of its contents. Informatio
Slide 3: 2023 in Review
2023 IN REVIEW Carats recovered US$ per carat achieved Revenue 109 656 US$1 334 US$140.3 million EBITDA Basic loss per share Net debt US$15.2 million 1.5 US cents US$21.3 million Lowest All injury frequency Decarbonisation target rate to date (30% by 2030) Available undrawn facilities 0.67 26% achie
Slide 4: Diamond Market
DIAMOND MARKET CHALLENGING MACRO ECONOMIC CONDITIONS IMPACTED NEGATIVELY ON THE DIAMOND MARKET IN 2023 GEM DIAMONDS’ GLOBAL ECONOMIC BACKDROP DIAMOND MARKET MARKET POSITION • Global economic growth of • Pressure on rough and • Highest US$ per carat c.2.9% in 2023 polished diamond prices kimberlite p
Slide 5: Gem Diamonds Limited Full Year Results 2023
Gem Diamonds Limited Full Year Results 2023 5
Slide 6: Zero Harm is a Priority
ZERO HARM IS A PRIORITY • Safety culture maturity programme completed, yielding positive results in 2023: – Zero fatalities – Two LTIs (2022: three) – AIFR: 0.67 (our lowest on record) • No major or significant environmental incidents • No major or significant social incidents All injury frequency r
Slide 7: Climate Change
CLIMATE CHANGE • Adopted a decarbonisation target of 30% by 2030 against a 2021 baseline • 26% reduction in Scope 1 and 2 carbon emissions (against a 2021 baseline) • Completed final phase of our three-year TCFD adoption roadmap • Focused on: – Implementing reduced energy consumption initiatives ◦ r
Slide 8: Sustainability
SUSTAINABILITY • Our CSI projects focused on education, infrastructure and SME development: – Tertiary scholarships – Classrooms constructed / renovated at four schools – Development and support of egg and dairy farm projects • Employment opportunities for our PACs • 300 kl bioremediation plant cons
Slide 9: Gem Diamonds Limited Full Year Results 2023
Gem Diamonds Limited Full Year Results 2023 9
Slide 10: Operations Review
OPERATIONS REVIEW • Focus on operational efficiencies and cost containment Waste tonnes mined (millions) – right-sizing at Letšeng completed in June – insourcing of mining activities 24.0 18.7 • Reduced waste tonnes: 15.6 – in line with optimised mine plan (MC4W) 10.2 – aligned 2023 waste stripping
Slide 11: Operations Review
OPERATIONS REVIEW Carats recovered (thousands) • Carats recovered higher than expected grade – H1 2023 grade: 2.05 cpht 114 115 107 110 101 – H2 2023 grade: 2.48 cpht • Five >100 carat diamonds and thirteen 60-100 carat diamonds recovered is below long-term average 2019 2020 2021 2022 2023 • 3 >100
Slide 12: Letšeng's 2024 Resource & Reserve
LETŠENG'S 2024 RESOURCE & RESERVE • Completed an extensive 8-year resource development programme at Letšeng, including: – Three phases of diamond core drilling: ◦ 2017-2020 (31 drillholes, 8 386 metres) ◦ 2021-2022 (24 drillholes, 8 640 metres) ◦ 2022-2023 (8 drillholes, 2 235 metres) – Petrographic
Slide 13: Letšeng's 2024 Resource & Reserve
LETŠENG'S 2024 RESOURCE & RESERVE • On a like-for-like basis the 2015 probable reserve would have been c.82Mt (post 55Mt depletion): – Main Pipe = c.71Mt – Satellite Pipe = c.11Mt • Probable reserve reduced from 2015 due to change in economic inputs and resource classification • The current Main pit
Slide 14: Long-Term Mine Plan
LONG-TERM MINE PLAN • Long-term mine plan revised (based on 2024 Resource & Reserve Statement) – SC5W extraction reduced to 2.0m tonnes pa in 2024 (previously 3.0m tonnes pa) – Waste stripping for SC6W moved out to Q3 2025 • Optimisation – Satellite pipe underground study and trade-off with open-pit
Slide 15: Sales and Marketing
SALES AND MARKETING • Achieved US$1 334 per carat • Sold 5 diamonds greater than 100 carats • Sold 22 diamonds for more than US$1.0 million • Sold 51 diamonds for more than US$20 000 per carat • >10.8 carat diamonds contributed 69% of revenue • Targeted supply to premium, luxury brands resulting in
Slide 16: Significant Diamond Recoveries in 2023
SIGNIFICANT DIAMOND RECOVERIES IN 2023 120 CARAT WHITE DIAMOND 117 CARAT WHITE DIAMOND 112 CARAT WHITE DIAMOND 58 CARAT WHITE DIAMOND 74 CARAT WHITE DIAMOND 7 CARAT PINK DIAMOND (HIGHEST WHITE $/CT) (HIGHEST $/CT) Gem Diamonds Limited Full Year Results 2023 16
Slide 17: Gem Diamonds Limited Full Year Results 2023
Gem Diamonds Limited Full Year Results 2023 17
Slide 18: Income Statement
INCOME STATEMENT US$ million 2023 2022 % Variance Revenue from contracts with customers 140.3 188.9 (26) Royalties and selling costs (15.3) (20.3) Cost of sales (102.1) (116.3) Corporate expenses (excluding depreciation) (7.7) (8.6) Underlying EBITDA 15.2 43.7 (65) Depreciation and mining asset amor
Slide 19: Letšeng Unit Cost Analysis
LETŠENG UNIT COST ANALYSIS % 2023 2022 Variance Ore tonnes treated (millions) 5.0 5.5 (9) Direct cash costs¹ 288.54 252.50 Operating Costs Plant 3 operator costs – 10.57 Total direct cash operating costs per ore tonne treated - LSL 288.54 263.07 10 Non-cash accounting charges² 85.87 82.02 Total oper
Slide 20: Financial Position
FINANCIAL POSITION US$ million 2023 2022 % Variance Non-current assets 317.6 313.6 IFRS 16 Right of use assets 4.7 6.3 Current assets 41.3 35.2 Income tax receivable 3.7 2.3 Cash 16.5 8.7 Total assets 383.8 366.2 5 Equity attributable to the parent company 138.9 152.6 Non-controlling interest 79.2 8
Slide 21: Cash Management
CASH MANAGEMENT • Group cash of US$16.5 million Corporate costs (excl depreciation) (US$ millions) • Net debt of US$21.3 million 9.1 8.6 • Available undrawn facilities at year end - 8.4 7.7 7.5 US$45.9 million 2019 2020 2021 2022 2023 Gem Diamonds Limited Full Year Results 2023 21
Slide 22: Letšeng 2024 Guidance
LETŠENG 2024 GUIDANCE 2024 Guidance Waste stripped (Mt) 6–7 Ore treated (Mt) 4.9 – 5.1 Satellite pipe ore contribution¹ (Mt) 1.8 – 2.0 Carats recovered (Kct) 88 – 92 Carats sold (Kct) 91 – 95 Direct cash costs (before waste) per tonne treated² (Maloti) 245 – 260 Operating costs per tonne treated³ (M
Slide 23: Gem Diamonds Limited Full Year Results 2023
Gem Diamonds Limited Full Year Results 2023 23
Slide 24: 2024 Focus Areas
2024 FOCUS AREAS WORKING RESPONSIBLY AND EXTRACTING MAXIMUM VALUE MAINTAINING OUR SOCIAL PREPARING FOR OUR FUTURE FROM OUR OPERATIONS LICENCE • Optimise short-term mine • 5-year CSI investment • Renewal of Group's revolving planning strategy delivery credit facilities • Review all operational – educ
Slide 25: Contact Us
CONTACT US Gem Diamonds Limited Kiki Constantopoulos, Company Secretary [email protected] Celicourt Communications Mark Antelme / Felicity Winkles T: +44 (0)207 777 6424 Gem Diamonds Limited Full Year Results 2023 25
Slide 26: Appendix A: Market Information
APPENDIX A: MARKET INFORMATION 2023 Share price movement 40.00 1.50 Gem Diamonds Limited is listed on the Main Board of the London Stock Exchange LSE: GEMD 32.00 Daily average trading volume across 119k 1.00 all platforms in 2023 Shares in issue (excl. treasury shares) 139 690 012 24.00 Free float (
Slide 27: Gem Diamonds Limited
GEM aVENES 2nd Floor, Coastal Building, Wickham’s Cay II, PO Box 2221, Road Town, Tortola, British Virgin Islands, Registration number: 669758 GEM DIAMONDS LIMITED www.gemdiamonds.com