Half Year 2015 results 19 August 2015 Main pipe Satellite pipe The - PowerPoint PPT Presentation

Half Year 2015 results 19 August 2015 Main pipe Satellite pipe The Letšeng mine - Lesotho

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Agenda 3 Half Year 2015 highlights  Operations  HSSE  Sales, marketing and manufacturing  Financial results  Diamond market  Outlook 

Half Year 2015 highlights 4 REVENUE UNDERLYING EBITDA US$118 million US$46 million 80 200 63 149 60 150 122 USD Millions USD Millions 118 46 116 44 41 97 40 33 100 20 50 0 0 H1 2013 H2 2013 H1 2014 H2 2014 H1 2015 H1 2013 H2 2013 H1 2014 H2 2014 H1 2015 BASIC EPS CASH GENERATED BY OPERATIONS 10.69 US cents US$71 million 18 100 86 15.30 16 80 14 71 69 67 10.69 12 USD Millions 9.76 US Cents 9.15 60 10 46 8 6.23 40 6 4 20 2 0 0 H1 2013 H2 2013 H1 2014 H2 2014 H1 2015 H1 2013 H2 2013 H1 2014 H2 2014 H1 2015

Operations Alan Ashworth The Letšeng mine – Satellite and Main pipes The Ghaghoo mine – processing plant

Letšeng operational overview Alan Ashworth Letšeng’s new Coarse Recovery Plant

Letšeng operational overview 7 Waste tonnes mined Strong operational performance  15 (millions) 11.4 10.0 Production targets achieved 9.9 9.9  9.2 10 19 day shutdown for Plant 2 Phase 1 implementation*  5 Continual improvements : 0  H1 2013 H2 2013 H1 2014 H2 2014 H1 2015 Improved blasting technique  Ore treated (millions) 4.0 3.2 Larger mining fleet 3.2 3.1* 3.2  3.0 3.0 Cost efficiencies  2.0 Power back up capacity 1.0  0.0 H1 2013 H2 2013 H1 2014 H2 2014 H1 2015 Carats recovered '000s 55 60 54 53 50* 42 40 20 - H1 2013 H2 2013 H1 2014 H2 2014 H1 2015

Letšeng operational overview 8 Optimised Life of Mine plan  Increased Satellite contribution - (1.65 mt in 2015; 2.0 mt from 2020 to 2031)  Optimal waste profile – (peak of 36 mtpa in 2024)  Steeper slope angles (resulting in less waste)  Improved NPV  Optimised Life of Mine plan: Optimised Life of Mine plan: tonnes treated and carats recovered profile waste profile 8 120 40 Tonnes treated and waste mined - millions 7 35 100 Waste Tonnes mined - millions 6 Carats recovered ‘000s 30 80 5 25 4 60 20 3 15 40 2 10 20 1 5 0 0 0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 Main pit waste Satellite pit waste Satellite pipe Main pipe Carats recovered

Letšeng operational overview 9 Frequency of +100 carat recoveries  3 12 Letšeng +100 carat diamonds 10 2 8 +100 carats per tender +100 carats annually 6 1 4 2 0 0 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 2011 2012 2013 2014 2015 +100 ct diamonds per tender 12 month rolling frequency of +100cts

Letšeng project update 10 Coarse Recovery Plant Plant 2 Phase 1 upgrade Capital - Maloti 140.0m (US$11.7m) Capital - Maloti 50.0m (US$4.3m)   Optimising treatment of high value, coarse Additional capacity of 250ktpa   fraction Delivered on time and within budget  Commissioning commenced  Project payback c.13 months  First recovery – 52ct Type IIa  Security improvements; full body personnel X-ray  Delivered on time and within budget 

Ghaghoo operational overview Alan Ashworth Processing plant, sort house and tailings dump at Ghaghoo

Ghaghoo - Progress 12 35 283 carats recovered in H1 2015  132 125 ore tonnes treated in H1 2015  Average grade 29 cpht for May and June (above 27  cpht reserve grade) 5 production tunnels completed  Slot tunnel completed between Tunnels 1 and 5  allowing retreat stoping to commence 825 metres developed in H1 2015 out of a total of Processing plant at Ghaghoo  3 610 metres to date First sale of 10 096 carats, achieved US$210 per  carat Second sale of 29 891 carats sold in July for US$165  per carat 13 diamonds >10 carats each recovered, the largest  being a 48 carat diamond Underground operations at Ghaghoo

Ghaghoo - Grade 13 Proving up of grade achieved with potential upside Grade improved to 29 cpht, above reserve grade  of 27 cpht Mining mainly conducted in lower grade portion  of VKSE with dilution near margins – upside Ghaghoo Grade Performance Diluted marginal ore 40 35 30 Higher grade 25 ore 20 15 10 5 0 1-Feb-15 3-Mar-15 2-Apr-15 2-May-15 1-Jun-15 Actual Grade Expected Grade 30 day rolling average

Ghaghoo – Diamond price 14 Proving up diamond price Sale 1 achieved US$210 per carat  Sale 2 achieved US$165 per carat  Ghaghoo diamond prices Ghaghoo diamond size frequency Diamonds per category interval Price per category US$/carat +5 +7 +9 +11 3grn 4grn 5grn 6grn 8grn 10grn 3¢ 4¢ 5¢ 6¢ 7¢ 8¢ 9¢ 10¢ 10.8¢ +15¢ +20¢ +30¢ +45¢ +5 +7 +9 +11 3grn 4grn 5grn 6grn 8grn 10grn 3¢ 4¢ 5¢ 6¢ 7¢ 8¢ 9¢ 10¢ 10.8¢ +15¢ +20¢ +30¢ +45¢ Actual Price Curve Expected Price Curve Actual Size Frequency Expected Size Frequency

Ghaghoo – Milling technology 15 Ghaghoo ore suitable for milling  Successful liberation of fine diamonds  Mill product to DMS 25% of headfeed  Very low diamond damage  Ghaghoo’s autogenous mill Successful liberation of fine diamonds through the mill

Ghaghoo - Production ramping up 16 Ore tonnes treated 80 000 70 000 Tonnes per month 60 000 50 000 40 000 Actuals 30 000 Forecast 20 000 10 000 - Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Production ramping up  Challenging water and ground conditions  Development targeting flexibility and knowledge  Developing access to VK Main and CK kimberlite ore  -representative sampling required across phases

HSSE Alan Ashworth Re- vegetation rehabilitation trials at Letšeng