Our strategy

HOW WE CREATE VALUE

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Mining

Letšeng

Letšeng, our core diamond mine, is the highest achieving average US$ per carat kimberlite mine in the world. The operation is an open pit diamond mine with two kimberlite pipes, the Main pipe and the Satellite pipe which are 17.0 and 5.2 hectares respectively.

Processing

At Letšeng, ore is processed through three treatment plants with an annual throughput of 6.4 million to 6.6 million tonnes. Although Letšeng’s grade recovery is low (averaging just under two carats per hundred tonnes) it is famous for producing large, high-value diamonds.

Sales,
marketing and
manufacturing

Our diamonds produced are predominantly sold through a tender process by our sales and marketing operation in Antwerp, Belgium. Through mapping and analysis, the value of the Letšeng high-quality diamonds is determined and used to achieve the highest rough value through multiple selling channels. A selection of high-value diamonds are manufactured to capture additional value through polished sales.


Our strategy is underpinned by three key priorities which we believe will deliver maximum value for all stakeholders through our business cycle.


1.
Extracting
Maximum Value
from
Operations

Driving business optimisation

Building balance sheet strength

Exploring new sales avenues to maximise value

Record recovery of 15 diamonds > 100 carats including 910 ct Lesotho Legend
Record number of carats recovered in a single calendar year
Business Transformation (BT) target of US$100 million by 2021 on track – implemented initiatives contributing US$64 million over the four year target
Commenced mining with the aim of reducing waste stripping to significantly increase Letšeng's net present value (NPV)
Increased net cash position1 of US$1.4 million in December 2017 to US$17.5 million in December 2018
Increased customer base by 10% through additional tender viewings in Tel Aviv

  • Underlying EBITDA
  • Return on average capital employed
  • Basic earnings per share
  • Cash generated from operating activities
  • Ore tonnes treated
  • Carats recovered
  • Delivery of BT target
2.
Working
Responsibly
and Maintaining
Social
Licence

Promoting a culture of zero harm and responsible care

Delivering sustainable returns for our investors while optimising the benefit for our communities and minimising our impact on the environment

Building long-term, transparent and mutually beneficial relationships with all stakeholders


Fatality-free year
Group-wide AIFR reached historical low of 1.45
Zero major or significant community or environmental incidents
Zero major or significant incidents of health, safety and environmental legal non-compliance
CSI expenditure of US$0.8 million
Follow up organisational health index (OHI) survey conducted in Q4 2018 and the Group successfully reached its improvement target

  • LTIFR
  • AIFR
  • Fatalities

 

 


3.
Preparing
for Our
Future

Advancement of innovative technologies focusing on reducing diamond damage

Renewal of the mining lease at Letšeng

Assessing external growth opportunities

Installation of prototype high-voltage pulse generator at Letšeng which allows non-mechanical means of breaking kimberlite rock to liberate diamonds using high-voltage pulse power
Proof of concept validated for detecting diamonds within kimberlite host rock. Commenced construction of a pilot plant at Letšeng incorporating proof of concept.
Progress made on the statutory renewal process after the Prime Minister announced his Government's intention to renew the lease in April.
Progressed construction of tailings storage facility extension at Letšeng

  • Capital expenditure
  • Waste tonnes mined
  • Mining in accordance with life of mine plan