PowerPoint-Präsentation · 5/23/2018 · Pallinghurst Resources Limited t/a Gemfields Group 4 75%...

G EMF I ELDS 1

Investor update

May 2018

Pallinghurst Resources Limited t/a Gemfields Group

2

IMPORTANT NOTICE & DISCLAIMER

This document, which has been compiled by Pallinghurst Resources Limited (the “Company”), comprises the written materials/slides for a presentation

concerning the Company, including its business, results of operations and prospects. This document does not constitute or form part of any offer or invitation to

sell or issue, or any solicitation of any offer to purchase or subscribe for, any shares in the Company, its shareholders or affiliates, in the United Kingdom, the

United States nor any other country, nor may it or any part of it nor the fact of its distribution form the basis of, or be relied on in connection with, any contract

or investment decision in relation thereto, nor does it constitute a recommendation regarding the shares of any Group member

No reliance may be placed for any purposes whatsoever on the information contained in this document or on its completeness, or lack thereof. In particular, any

data or figures presented in this document may not have been audited and should therefore be treated with due caution. No representation or warranty, express

or implied, is given by or on behalf of the Company, the Group their respective advisors or representatives as to the accuracy or completeness of the information

or opinions contained in this presentation. None of the Company, the Group, their advisors or representatives shall have any liability whatsoever (in negligence

or otherwise) for any loss whatsoever arising from any use of this document, or its contents, or otherwise arising in connection with this document. This

document and its contents are confidential and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or published, in

whole or in part, for any purpose.

Certain statements in this presentation, or given in response to questions, may constitute forward-looking statements. These statements relate to future events or

future performance and reflect the Company’s assumptions regarding the growth, results of operations, performance and business prospects and opportunities of

the Company. In particular, statements regarding the Company’s objectives, plans and goals involve forward-looking statements. We caution you that any

forward-looking statements are just estimates. They are not guarantees of future performance and involve manifold risks and uncertainties. A number of factors

could cause actual events, performance or results to differ materially from what is indicated in the forward-looking statements. There can be no assurance that

actual events, performance or results will be consistent with these forward-looking statements, and the Company’s assumptions may prove to be incorrect. The

Company does not intend, and, subject to any legal or regulatory requirements, does not assume any obligation, to update or revise forward-looking statements to

reflect new events or circumstances.


3

The Transition From Pallinghurst Resources Limited To The New ‘Gemfields Group’ Structure


4

75%

FABERGÉ

Kagem Mining

Ltd

(EMERALD)

ZAMBIA

Montepuez Ruby

Mining Lda

(RUBY)

MOZAMBIQUE

Other Gem

Licences for

Exploration &

Development

75-100%75%75%

GEMFIELDS The world’s leading miner of responsibly sourced precious coloured gemstones.

Africa-focussed, with three principal activities: mining, grading and marketing.

100% owned by Pallinghurst Resources Ltd (JSE:PGL)

Web Gemstone

Mining plc

(EMERALD)

ETHIOPIA

100%Megaruma Mining

Lda

(RUBY)

MOZAMBIQUE

75%

• World’s largest

emerald mine.

• Acquired by

Gemfields in 2008.

• Zambian

Government, a 25%

shareholder, has

received more than

USD 100 million

since 2008.

• >USD 3 million

invested at 31

December 2017.

• Initial exploration

(pits, trenches and

drilling) completed.

• Bulk sampling

commenced August

2017.

• Key infrastructure in

place.

• World’s largest ruby

mine.

• Licence granted

2012. First ruby

auction June 2014.

• Mozambican

Government’s

royalties and

corporation tax

exceed USD 80

million to 31

December 2017

• Bulk sampling to

commence calendar

Q2 2018.

• USD 4 million

invested to 31

December 2017.

• Adjacent to

Montepuez Ruby

Mining Licences.

• Exploration licences

in Madagascar,

Mozambique and

Zambia.

• World-famous brand

first founded in 1842.

• Promotes the

positioning and

perception of

precious coloured

gemstones by

producing jewellery,

timepieces and

objects.

Pallinghurst Resources Limited t/a Gemfields GroupG E M F I E L D S / P A L L I N G H U R S T S H A R E P R I C E P E R F O R M A N C E

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Reb

ase

d t

o 1

00 a

t 1

Jun

e 2

014

Pallinghurst Resources Limited Share Price vs Gemfields Share Price

Pallinghurst Resources Limited Gemfields plc

Gemfields delisted from AIM 28 July

Pallinghurst Resources Limited t/a Gemfields GroupG E M F I E L D S / P A L L I N G H U R S T S H A R E P R I C E P E R F O R M A N C E

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US

D c

en

ts

Pallinghurst Resources Limited Share Price vs Gemfields Share Price (converted to USD cents at 30 April 18)

Pallinghurst Resources Limited Gemfields plc

Gemfields delisted from AIM 28 July

2017

Pallinghurst Resources Limited t/a Gemfields GroupC O N S O L I D A T E D I N C O M E S T A T E M E N T F O R T H E Y E A R E N D E D 3 1 D e c e m b e r 2 0 1 7

7


G EMF I ELDS 8

G R O U P F R E E C A S H F L O W P E R F O R M A N C E

Free Cashflow is calculated as cashflows from operations less taxation, capital expenditure, stripping activity costs and includes proceeds from share-buys and disposals at Pallinghurst level. December

2017 includes $5.0m contribution from the Jupiter buy-back programme.

14,243

18,494 19,641

(13,969)

(44,621)

8,591

25,786

4,340

(29,340)

(4,590)

23,182

(34,199)

(21,326)

3,640

(50,000)

(40,000)

(30,000)

(20,000)

(10,000)

-

10,000

20,000

30,000

40,000

50,000

Jun-11 Dec-11 Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Jun-15 Dec-15 Jun-16 Dec-16 Jun-17 Dec-17

USD

('0

00)

Group Free Cashflow

Pallinghurst Resources Limited t/a Gemfields Group G R O S S D E B T A N A L Y S I S

9

Dec-10 Jun-11 Dec-11 Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Jun-15 Dec-15 Jun-16 Dec-16 Jun-17 Dec-17

Barclays - Kagem 3,506 2,917 7,870 11,595 8,881 6,762 15,256 20,000 30,000 25,000 30,000 35,000 35,000

Pallinghurst - Limited 9,936 15,000 10,000 6,662 4,916

Macquarie - Limited 24,699 14,702 19,812 10,002

Gordon Brothers - Faberge 19,788 17,977

BCI Leasing - MRM 4,103 12,483 10,493

BCI overdraft - MRM 7,038

Barclays overdraft - MRM 2,229

Total 3,506 2,917 7,870 11,595 8,881 16,698 30,256 44,699 54,702 51,474 58,288 67,271 63,470

3,506 2,917

7,870

11,595

8,881

6,762

15,256 20,000

30,000

25,000

30,000

35,000 35,000

9,936

15,000

10,000

6,662

4,916 24,699

14,702

19,812 10,002

19,788 17,977

4,103

12,483

10,493

7,038

2,229

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

Dec-10 Jun-11 Dec-11 Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Jun-15 Dec-15 Jun-16 Dec-16 Jun-17 Dec-17

Gemfields Group - Gross Debt Analysis to 31 December 2017

Barclays - Kagem Pallinghurst - Limited Macquarie - Limited Gordon Brothers - Faberge BCI Leasing - MRM BCI overdraft - MRM Barclays overdraft - MRM


10

K A G E M E M E R A L D P E R F O R M A N C E

5.9 5.6

7.5

19.6

31.6

26.2 26.8

31.5

36.5 34.9 34.7

33.1

22.3 21.5

7.2

10.0 11.0

9.0

15.2 16.4

15.5 14.5

19.2

14.3

10.7

14.5

-

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

Kagem Rough Emerald and Beryl Total Auction Sales (USD million)

High Grade Low Grade


11


0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

Jul 08

Oct

08

Jan

09

Ap

r 09

Jul 09

Oct

09

Jan

10

Ap

r 10

Jul 10

Oct

10

Jan

11

Ap

r 11

Jul 11

Oct

11

Jan

12

Ap

r 12

Jul 12

Oct

12

Jan

13

Ap

r 13

Jul 13

Oct

13

Jan

14

Ap

r 14

Jul 14

Oct

14

Jan

15

Ap

r 15

Jul 15

Oct

15

Jan

16

Ap

r 16

Jul 16

Oct

16

Jan

17

Ap

r 17

Jul 17

Oct

17

Kagem Unit Operating Costs (Actual Cash Cost Basis)USD/carat (Emerald+Beryl)


12


0

5000

10000

15000

20000

25000

30000

35000

40000

Th

ou

san

ds

Kagem 12 Month Rolling Gemstone Production – Emerald and Beryl (carats)

Beryl Emerald Premium Emerald


13

M O N T E P U E Z R U B Y P E R F O R M A N C E

33.5

44.3

30.5

54.8 55.0

43.3

29.3 28.8

15.9

0

10

20

30

40

50

60

Montepuez Rough Ruby Total Auction Sales (USD million)

Mixed Quality Higher Quality Commercial Quality


14


0

5

10

15

20

25

30

Montepuez Monthly Unit Operating Costs (Actual Cash Cost Basis)USD/carat (Total production)


15


0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

Th

ou

san

ds

Montepuez Rolling 12 Month Overall Gemstone Production (carats)a. Production for Nov '12 through Apr '13 is spread evenly across the 6 months

b. "Sapphire" and "-4.6mm" were only introduced in July '13 and "Low Sapphire" was introduced in June '16

Mixed Low Sapphire Sapphire Corundum -4.6mm Low Ruby Ruby Premium ruby


16

F A B E R G E P E R F O R M A N C E

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

Sep

-10

No

v-1

0

Jan

-11

Mar

-11

May

-11

Jul-

11

Sep

-11

No

v-1

1

Jan

-12

Mar

-12

May

-12

Jul-

12

Sep

-12

No

v-1

2

Jan

-13

Mar

-13

May

-13

Jul-

13

Sep

-13

No

v-1

3

Jan

-14

Mar

-14

May

-14

Jul-

14

Sep

-14

No

v-1

4

Jan

-15

Mar

-15

May

-15

Jul-

15

Sep

-15

No

v-1

5

Jan

-16

Mar

-16

May

-16

Jul-

16

Sep

-16

No

v-1

6

Jan

-17

Mar

-17

May

-17

Jul-

17

Sep

-17

No

v-1

7

12 month rolling Sales Orders Agreed(USD, post any discounts, ALL CHANNELS)

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

18,000,000

20,000,000

Sep

-10

No

v-1

0

Jan

-11

Mar

-11

May

-11

Jul-

11

Sep

-11

No

v-1

1

Jan

-12

Mar

-12

May

-12

Jul-

12

Sep

-12

No

v-1

2

Jan

-13

Mar

-13

May

-13

Jul-

13

Sep

-13

No

v-1

3

Jan

-14

Mar

-14

May

-14

Jul-

14

Sep

-14

No

v-1

4

Jan

-15

Mar

-15

May

-15

Jul-

15

Sep

-15

No

v-1

5

Jan

-16

Mar

-16

May

-16

Jul-

16

Sep

-16

No

v-1

6

Jan

-17

Mar

-17

May

-17

Jul-

17

Sep

-17

No

v-1

7

12 month rolling Operating Costs(USD million)

1 N E W B U R L I N G T O N P L A C E

L O N D O N , W 1 S 2 H R

U N I T E D K I N G D O M

T : + 4 4 ( 0 ) 2 0 7 5 1 8 7 2 8 0

M : + 4 4 ( 0 ) 7 8 8 7 4 2 6 7 9 4

17

PowerPoint-Präsentation · 5/23/2018 · Pallinghurst Resources Limited t/a Gemfields Group 4 75%...

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