Gem Diamonds Limited

Good morning ladies and gentlemen and welcome to GenDiamonds' half year results presentation for the six months ended 30 June 2026. This record is being recorded and will be available on our website later today. Our presenters today are Clifford Alsick, CEO of GenDiamonds, Michael Michael CFO and Brandon the Brain COO. Please use the Q&A function on your screen to send any questions. All questions will be answered at the end of the presentation. I'll now hand over to Clifford.

Welcome, everybody, and thank you for your attendance. We are addressing our half-year results, and if you could go to the next slide, please, Janine. A disclaimer, I'm sure all of you are very familiar with this, so we can move past this. You're going to be hearing from me, Michael and Brandon covering operations, finance and sales and marketing and then of course at the end we're happy to take questions. So the half year in review, relatively good year, good half year. Skipping across the top row, carrots recovered 41.5 million, carrots three greater than 100 carats in the first half of the year. That's slightly behind or below par, but I'm happy to say that in short order we've recovered a couple more, so we are cracking our long-term average now. Top right-hand corner, average dollar per carat achieved. This shows At the beginnings of an improvement, it started January, February and has continued. We'll need a few more sales and then we'll be able to determine if the trend is now firmly in place, but certainly that is my feeling. Big demand for our goods. Lots of people chasing after them, and it's resulted in price increases. That gave us a revenue of close to $60 million and an EBITDA of $8.6 million. And, of course, that translates into the earnings per share. Pleasingly, if you're looking at the bottom left-hand block, the net debt position has reduced substantially, and we are almost on a positive track. I can talk to the diamond market. Because of the massive drop in supply, mine numbers are a peak supply of some 172 million rough carats per year and that has now dropped to approximately 90 million carats so not quite half but almost half and I think actually it may well be that the number is a little bit less because apart from the well-known mines which have closed or gone into care and maintenance, some closed for good, others into care and maintenance for a period of time, such as big mines, such as Venetia. But I think that there's a myriad of small mines, smaller producers, I'm talking the likes of the alluvial diggers, but who are substantial, in total, substantial producers along the rivers in South Africa and elsewhere. Many of those two have closed, and of course their data is not that accurately reflected overall. But I think with supply having almost halved and demand now settling, as the understanding of what lab-grown or synthetic diamonds, as it's more accurately called now, the role it's going to play is It is a case that the diamond market is resetting. I think on the macro front, unfortunately, the conflict in the Ukraine, in particular dragging on the Middle East too, doesn't seem to come to an end. And on top of that, China doesn't seem to be able to pick itself up and get out of... The deflation and the difficulties that its economy is experiencing. However, down in the bottom row, Gem Diamonds is well positioned. We really have gone after our costs in a major, major way to meet the prices which we were achieving earlier. last year and at the back end of last year. And the result has been that our business resilience program has right-sized our cost base for those prices, and now as prices are increasing, we are starting to reap the benefits of that. So the diamond market certainly has... I wouldn't say a huge spring in its step, but it seems to me that if you look across the size categories, across the quality spectrum, things are improving. You may have seen even at the very bottom end, there have been some price improvements. Not huge, but nevertheless, it sort of has the feel that the bottom of the market may well have been found. So that really has translated well as far as we are concerned at the very top end of quality and size, and we see that in the result that we're able to deliver. I'll hand over to Brandon to deal with these matters, please.

Thank you, Kevin, and good morning, everyone. As Cliff had mentioned, our first of the year, we've seen a very positive and pleasing performance, both through our sustainability and operations. But starting with sustainability and our first priority, safety, again, we've maintained a very solid safety performance in H1. We had one unfortunate LTI of one of our contractors slipping on a pipe near the pump house and sustaining a fracture to his arm. But other than that, you know, we've maintained a very good safety record for the half year. Our all injury frequency rate is at 0.5, which compares to H1 last year, 0.51, which is very pleasing to see. And we obviously work hard to maintain that. The last time injury frequency rate, you can see, is at 0.17. We had no LTIs last year. and unfortunately the one LTI has pushed that up for the first half. Environmentally and socially we've had no major or significant incidents and we remain committed to our decarbonisation objectives. You will note from our report for last year we reached our 30% target to reduce our carbon emissions as compared to our 2021 baseline. We're looking at maintaining that and currently we're training to be about that for 2026. Our training facilities are obviously a priority in terms of our management and care for them. They are being well managed and we've aligned our processes and procedures and systems to the GISDM. Moving on to our operations. We've seen a good productive six months in H1. Our production volumes have remained in line with our planned output for the year and also in terms of our long-term mine plan. It's worth noting that we have found the 5 West cutback in the satellite pipe and therefore the satellite contribution for the first half of the year is 16% as we now move into main pipe. and prepare for the next cutback in satellite starting in 2027. Our business resilience program has really delivered and continues delivering. It was well managed and executed by the teams at the operation, and we are seeing meaningful cost efficiencies coming through, and Michael will lead to that at the in the financial report. Our waste mining, you can see on the graph on the right, approximately 300,000 tons, so a significant reduction in waste mining, which is in line with our optimized mine plan. And while reducing immediate cash spend, which was our target in our business resilience program that we initiated in July last year, we've also been able to maintain our old treatment throughput at approximately 5 million tons per annum. So the waste deferral is not impacted on that, and we're confident that going ahead in the years to come, we are able to maintain our ore production at 5 million tonnes, given that we threw the waste cutting in our large cutback in the main part. As Rupert mentioned, we recovered 3 plus 100 carat in H1, a very nice 347 carat, which is... appropriately being named the Lesotho Jubilee to celebrate Lesotho City's anniversary of its independence. This diamond is up for sale in our tender in September. Two additional 100 carats, 109 carats white and 104 carats yellow have been found post the period end. And if we just have a look at the table below, we can see that We currently in H1 had 3 plus 100 characters and our 2008 to 2025 average is 8 per annum. So currently year to date we're sitting on 5, so tracking well there. We have seen a slight decrease in the other size fractions, the 60 to 100, 30 to 60 and 20 to 30. and it changed to 20s, but that's in line with our resource and reserve statement and what we expect to get out of the resource as we move more into main pipe and out of satellite pipe, which typically gives us a higher grade, so therefore more carrots and also larger diamonds from that pipe. If I can hand back to you, Clifford, on the sales marketing.