ANNUAL RESULTS PRESENTATION For the year ended 31 March 2015 - PowerPoint PPT Presentation

ANNUAL RESULTS PRESENTATION For the year ended 31 March 2015

CONTENT • Financial overview • South African operations • Angolan operations • West Coast Resources • Conclusion Trans Hex Group Annual Results Presentation 2015

CONTENT • Financial overview • South African operations • Angolan operations • West Coast Resources • Conclusion FINANCIAL OVERVIEW Trans Hex Group Annual Results Presentation 2015

FINANCIAL OVERVIEW March 2015 March 2014 695,7 Rand revenue (Rm) 939,7 Cost of goods sold (Rm) (788,8) (653,7) Profit/(loss) from continuing operations* (Rm) 169,1 (5,1) Profit from discontinued operations (Rm) 21,5 27,8 Profit for the year (Rm) 190,6 22,7 HEPS (cents) 78,6 9,8 Cash position (Rm) 407,2 397,6 Net asset value per share (cents) 630 521 *Profit reflects a share of results of associated companies of R136,0 million and impairments of R86,2 million. During the period, impairment tests on the Group’s assets resulted in the ageing Baken and Reuning projects being impaired to the value of R71,0 million and R15,2 million respectively. Trans Hex Group Annual Results Presentation 2015

GROUP PROFIT/LOSS AFTER TAX 240 210 180 150 120 90 60 30 0 -30 -60 2011 2012 2013 2014 2015 R million -45 208 85 23 191 Trans Hex Group Annual Results Presentation 2015

SOUTH AFRICAN OPERATIONS

SA PRODUCTION 100 000 90 000 80 000 70 000 60 000 50 000 40 000 30 000 20 000 10 000 0 2011 2012 2013 2014 2015 Carats 69 508 84 409 67 115 52 081 61 688 Note : SA production in 2015 amounted to 61 688 carats, of which Remhoogte contributed 4 241 carats. The Remhoogte mining right was sold during the period under review. Trans Hex Group Annual Results Presentation 2015

LOWER ORANGE RIVER – AVERAGE GRADE 2.50 2.00 1.50 1.00 0.50 0.00 2011 2012 2013 2014 2015 Average grade 1.27 1.57 1.05 0.92 1.29 Trans Hex Group Annual Results Presentation 2015

SA DIAMOND PRICES $1 400 $1 200 $1 000 $800 $600 $400 $200 $0 2011 2012 2013 2014 2015 Price/carat $1 162 $1 200 $1 334 $1 238 $1 353 Note: The average price per carat for 2015 excluding Remhoogte was $1 287 per carat. The Remhoogte mining right was sold during the period under review. Trans Hex Group Annual Results Presentation 2015

SA UNIT COST 140 6 000 130 5 000 120 Gravel treated m 3 ('000) 110 4 000 Unit cost Rand/m 3 100 3 000 90 80 2 000 70 1 000 60 50 0 2011 2012 2013 2014 2015 Unit cost Gravel LOR unit cost increased by 23,6% due to a 16,6% decrease in volumes treated and an increase in operating costs. Trans Hex Group Annual Results Presentation 2015

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 2016 financial year. Thereafter mining activities will focus on shallow deposits and lower grade stockpiles. • Steady performance at Bloeddrif Mine is expected to continue. • South African production for the 2016 financial year is expected to be in the order of 53 000 carats, compared to 2015 actual production of 61 688 carats. • With diamond fundamentals remaining strong, diamond prices are set to recover in the year ahead. Demand for Trans Hex production is anticipated to increase towards the end of the calendar year in line with expected market trends. Trans Hex Group Annual Results Presentation 2015

ANGOLAN OPERATIONS

SOMILUANA PRODUCTION 100 000 90 000 80 000 70 000 60 000 50 000 40 000 30 000 20 000 10 000 0 2011 2012 2013 2014 2015 Carats 27 662 45 869 41 313 72 041 94 483 Trans Hex Group Annual Results Presentation 2015

SOMILUANA AVERAGE GRADE 30 25 20 15 10 5 0 2011 2012 2013 2014 2015 Average grade 18.36 19.16 16.60 23.95 27.99 Trans Hex Group Annual Results Presentation 2015

SOMILUANA DIAMOND PRICES $500 $450 $400 $350 $300 $250 $200 $150 $100 $50 $0 2011 2012 2013 2014 2015 Price/carat $351 $446 $352 $478 $458 Trans Hex Group Annual Results Presentation 2015

ANGOLAN OUTLOOK • Somiluana Mine continues to increase its production capacity through the reinvestment of surplus internal cash flows. • Due to the encouraging results and in order to speed up the expansion of the production footprint, external funding is being considered. • Production results and geological work through drilling and bulk testing indicate that carat production for the 2016 financial year will surpass the 94 000 carats achieved in 2015. • During the 2015 financial year, cumulative profits since the exploration phase exceeded the exploration costs previously expensed and a R12,7 million profit was recognised. This does not represent a full year’s profit and an increase in the profit from this project for 2016 is therefore expected. Trans Hex Group Annual Results Presentation 2015

WEST COAST RESOURCES WEST COAST RESOURCES

WEST COAST RESOURCES • The acquisition of assets and liabilities relating to Namaqualand Mines became effective on 28 October 2014. • Emerald Panther Investments 78 (Pty) Ltd, in which Trans Hex holds a 40% interest, changed its name to West Coast Resources (Pty) Ltd with effect 21 January 2015. • Operations in Namaqualand commenced in December 2014 with the construction of a final recovery plant at Kleinzee. The plant was commissioned during March 2015 and is currently treating final recovery tailings. Trans Hex Group Annual Results Presentation 2015

WEST COAST RESOURCES (cont.) • At Mitchell’s Bay, exploration drilling is underway and the construction of a production treatment plant is due to be completed towards the end of the calendar year. • A bulk sampling plant at Koingnaas will be sampling ahead of production. • Net revenue from the treatment of the small remaining tonnages of final recovery tailings is not expected to cover project operational expenditure during the 2016 financial year. As this project is still in a start-up phase, a loss is expected for the 2016 financial year. Trans Hex Group Annual Results Presentation 2015

CONCLUSION

CONCLUSION • Existing SA assets are nearing end of life in their current form. • Somiluana continues to grow and production for 2016 is expected to surpass 94 000 carats. Profit is also expected to increase. • Operations at West Coast Resources are underway at Kleinzee and Koingnaas and a production treatment plant at Mitchell’s Bay is scheduled to be completed towards the end of the calendar year. As this project is still in a start-up phase, a loss is expected in 2016. • 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. Trans Hex Group Annual Results Presentation 2015

www.transhex.co.za 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. Trans Hex Group Annual Results Presentation 2015