Annual Results Presentation For the year ended 31 March 2016 - PowerPoint PPT Presentation

Annual Results Presentation For the year ended 31 March 2016

CONTENTS • Financial overview • South African operations • West Coast Resources operations • Angolan operations • Conclusion Trans Hex Group Annual Results Presentation 2016

Financial overview Divider

FINANCIAL OVERVIEW March 2016 March 2015 939,7 Rand revenue (Rm) 671,4 Cost of goods sold* (Rm) (678,2) (788,8) Impairments # (Rm) (55,1) (86,2) (Loss)/profit from continuing operations (Rm) (124,8) 169,1 Profit from discontinued operations (Rm) 24,0 21,5 (Loss)/profit for the year (Rm) (100,8) 190,6 78,6 HEPS (cents) (56,9) Cash position (Rm) 353,5 407,2 Net asset value per share (cents) 506 630 * Cost of goods sold included retrenchment costs at the Lower Orange River operations of R46,6 million. # Impairment tests on the Group’s assets resulted in the ageing Baken mine being impaired to the value of R55,1 million. Trans Hex Group Annual Results Presentation 2016

GROUP PROFIT/LOSS AFTER TAX 220 190 160 130 100 70 40 10 -20 -50 -80 -110 2012 2013 2014 2015 2016 R million 208 85 23 191 -101 2016: Loss includes retrenchment costs of R46,6 million and impairment costs of R55,1 million. Trans Hex Group Annual Results Presentation 2016

South African operations Divider

SA PRODUCTION 100 000 90 000 80 000 70 000 60 000 50 000 40 000 30 000 20 000 10 000 0 2012 2013 2014 2015 2016 Carats 84 409 67 115 52 081 61 688 48 435 Trans Hex Group Annual Results Presentation 2016

LOWER ORANGE RIVER – AVERAGE GRADE 2.50 2.00 1.50 1.00 0.50 0.00 2012 2013 2014 2015 2016 Average grade 1.57 1.05 0.92 1.29 1.22 Trans Hex Group Annual Results Presentation 2016

SA DIAMOND PRICES $1 400 $1 200 $1 000 $800 $600 $400 $200 $0 2012 2013 2014 2015 2016 Price/carat $1 200 $1 334 $1 238 $1 353 $981 Trans Hex Group Annual Results Presentation 2016

SA UNIT COST 170 6 000 150 5 000 Gravel treated m3 ('000) 130 4 000 Unit cost Rand/m3 110 3 000 90 2 000 70 1 000 50 0 2012 2013 2014 2015 2016 Unit cost Gravel The LOR operations unit cost of production for current operations increased by 18,8% due to a reduction in volumes treated and an 8,4% increase in operating costs. Trans Hex Group Annual 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 basal gravel. • At the LOR operations, 22% of the workforce accepted voluntary retrenchment packages and a new shift system was introduced. Production estimates have been adjusted accordingly and production for 2017 is expected to be in the order of 41 000 carats. • Post year-end, the diamond market is enjoying a relatively stable period, improving the confidence of traders and dealers. Trans Hex Group Annual Results Presentation 2016

West Coast Resources operations

WEST COAST RESOURCES OPERATIONS • Construction of the Michells Bay production plant was completed towards the end of the 2015 calendar year. • Mining operations commenced in December 2015 in the Langklip area and produced 16 517 carats at an average grade of 37,40 carats/100 m 3 . • During the year the final recovery plant at Kleinzee treated final recovery tailings and produced 8 413 carats. • Total production amounted to 24 930 carats and sales amounted to R49,4 million at an average price of US$208 per carat. Trans Hex Group Annual Results Presentation 2016

WEST COAST RESOURCES OPERATIONS (cont.) • Mining activities will remain focused on the Langklip area and on other sections of the Koingnaas area. • On-going drilling and prospecting will continue to target high-priority areas that may identify additional resources for mining. • Production for the 2017 financial year is expected to be in the order of 123 000 carats. Trans Hex Group Annual Results Presentation 2016

Angolan operations Divider

SOMILUANA PRODUCTION 100 000 90 000 80 000 70 000 60 000 50 000 40 000 30 000 20 000 10 000 0 2012 2013 2014 2015 2016 Carats 45 869 41 313 72 041 94 483 99 572 Trans Hex Group Annual Results Presentation 2016

SOMILUANA AVERAGE GRADE 35 30 25 20 15 10 5 0 2012 2013 2014 2015 2016 Average grade 19.16 16.60 23.95 27.99 31.96 Trans Hex Group Annual Results Presentation 2016

SOMILUANA DIAMOND PRICES $500 $450 $400 $350 $300 $250 $200 $150 $100 $50 $0 2012 2013 2014 2015 2016 Price/carat $446 $352 $478 $458 $351 Trans Hex Group Annual Results Presentation 2016

ANGOLAN OUTLOOK • In February 2016, mining operations were moved to a new part of the concession, also located on the east bank of the Luana River. Mining operations and prospecting activities will remain focused here to direct operations to areas of interest. • External funding is being sought in order to speed up the expansion of the production footprint. • 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. Trans Hex Group Annual Results Presentation 2016

Conclusion Divider

CONCLUSION • South African production for 2017 is expected to be in the order of 41 000 carats. • Mining operations at West Coast Resources have commenced. Production for the 2017 financial year is expected to be in the order of 123 000 carats. • Somiluana 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. Trans Hex Group Annual Results Presentation 2016

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 2016