Dominion Diamond Corporation

Dominion
Diamond
Corporation
Investor Presentation
December 2013
Forward Looking Information
Caution Regarding Forward Looking Information
Certain information included in this presentation constitutes forward-looking information within the meaning of Canadian and United States securities laws.
Forward-looking information relates to management’s future outlook and anticipated events or results, and can include statements or information regarding
plans for mining, development, production and exploration activities at the Company’s mineral properties, sales estimates, expected sales, and expected
operating costs. Forward-looking information included in this presentation includes the current production forecast and operating cost estimates for the Diavik
Diamond Mine and the Ekati Diamond Mine, and current sales estimates for the Company.
Forward-looking information is based on certain factors and assumptions, including, among other things, the current mine plans for each of the Diavik Diamond
Mine and the Ekati Diamond Mine; construction and exploration activities at the Company’s mineral properties; currency exchange rates; and world and US
economic conditions. While the Company considers these assumptions to be reasonable based on the information currently available to it, they may prove to be
incorrect. Forward-looking information is subject to certain factors, including risks and uncertainties, which could cause actual results to differ materially from
what the Company currently expects. These factors include, among other things, the uncertain nature of mining activities, including risks associated with
underground construction and mining operations, risks associated with joint venture operations, including risks associated with the inability to control the timing
and scope of future capital expenditures, the risk that the operator of the Diavik Diamond Mine may make changes to the mine plan and other risks arising
because of the nature of joint venture activities, risks associated with the remote location of and harsh climate at the Company’s mineral property sites, risks
resulting from the Eurozone financial crisis, risks associated with regulatory requirements, the risk of fluctuations in diamond prices and changes in US and
world economic conditions, the risk of fluctuations in the Canadian/US dollar exchange rate, and cash flow and liquidity risks. Please see the Company’s most
recently filed Management’s Discussion and Analysis, as well as the Company’s current Annual Information Form, both available at www.sedar.com and
www.sec.gov, respectively, for a discussion of these and other risks and uncertainties involved in the Company’s operations. Actual results may vary from the
forward-looking information.
Readers are cautioned not to place undue importance on forward-looking information, which speaks only as of the date of this presentation, and should not rely
upon this information as of any other date. Due to assumptions, risks and uncertainties, including the assumptions, risks and uncertainties identified above,
actual events may differ materially from current expectations. While the Company may elect to, it is under no obligation and does not undertake to update or
revise any forward-looking information, whether as a result of new information, future events or otherwise at any particular time, except as required by law.
Technical Information
Mineral reserve and resource information relating to the Diavik Diamond Mine was prepared by Diavik Diamond Mines Inc., operator of the Diavik Diamond
Mine, under the supervision of Calvin Yip, P. Eng., Principal Advisor, Strategic Planning of Diavik Diamond Mines Inc., and a Qualified Person within the
meaning of National Instrument 43-101 of the Canadian Securities Administrators, and is given as of December 31, 2012.
Mineral reserve and resource information relating to the Ekati Diamond Mine was prepared under the supervision of Mats Heimersson, P. Eng., an employee of
the Company and a Qualified Person within the meaning of National Instrument 43-101 of the Canadian Securities Administrators, and is given as of December
31, 2012.
2
Dominion Diamond
Corporation
Dominion Diamond Corporation is a
Canadian diamond mining company
with ownership interests in two of
the world’s most valuable diamond
mines.
the
Both mines are located in
stable
fiscal
and
political
environment of northern Canada
•
Ekati Diamond Mine - 80%
ownership of the Core Zone
and 58.8% of the Buffer Zone
•
Diavik Diamond Mine – 40%
ownership
3
Location of Mines – Canada’s Northwest Territories
Ekati
Diavik
4
The Assets (100% basis)
Diavik
Ekati
Reserves1
52.5 mct
19.6 mct
Resources: Measured and Indicated1
11.0 mct
127.52 mct
Resources: Inferred1
9.0 mct
19.1 mct
Annual Process Plant Capacity
2.3 mt
4.5 mt
Estimated Operating Cost FY 20143
$423M
$374M
Fully underground
production
Open pit and
underground production
Mining Method
1 As of December 31, 2012 on a 100% basis
2 Ekati Resources are inclusive of Reserves
3 Based on the current mine plans for each of Diavik and Ekati. See the Company’s published cash flow models for both Diavik and Ekati. Diavik FY14 ends December 31.
Ekati FY14 ends June 30.
5
Management Team
Bob Gannicott – Chairman & CEO
Bob Gannicott has been a director of Dominion Diamond Corporation since the Company’s inception in 1992. He was
appointed President and CEO in September 1999, and Chairman and CEO in July 2004. A geologist, Mr. Gannicott has worked
extensively in the Northwest Territories and Greenland.
Brendan Bell – President, Dominion Diamond Holdings Ltd.
Brendan Bell joined the Company in July 2013 and is responsible for External Affairs and Human Resources. Prior to joining
the Company, Mr. Bell served eight years in the Northwest Territories Legislative Assembly including terms as Minister
Responsible for Energy and Mines, Minister Responsible for the Environment and Minister of Justice and Attorney General in
the Government of the Northwest Territories.
Wendy Kei – Chief Financial Officer
Wendy Kei joined the Company in February 2004 as Corporate Controller. She was appointed Chief Financial Officer for the
Mining Division in 2011. Prior to joining the Company, she held various senior management roles with
PricewaterhouseCoopers LLP and Sunoco Inc. Ms. Kei is a Chartered Accountant and a Certified Public Accountant
(Delaware).
Chantal Lavoie – President & COO, Dominion Diamond Ekati Corporation
Chantal Lavoie joined the Company in July 2013. Mr. Lavoie is a mining engineer with more than 25 years of experience in
open pit and underground mining including permitting, construction, operation and senior management. He has a deep
understanding of remote, northern operating conditions and their inherent physical and social challenges.
Jim Pounds – President, Dominion Diamond Marketing Corporation
Jim Pounds joined the Company in August 2002. Prior to joining the Company, he was Project Manager, De Beers Group
following his position as Managing Director, Diamdel Israel, which is De Beers’ direct trading arm in Israel.
6
Northern Canadian Heritage and Credibility
•
Dominion Diamonds’ roots reach back to
the original discovery of Canadian
diamonds in the 1990’s
•
Well-established relationships with local
communities and regional aboriginal
organizations
•
Diamonds are the largest component of
the NWT economy
•
The Company supports Aboriginal
communities and Northern development
• Northern Aboriginal training and
employment
• Student scholarships
• Community Development Programs
7
Ekati Diamond Mine
8
Ekati Diamond Mine (80% Core Zone, 58.8% Buffer Zone ownership)
•
Completed purchase of Ekati mine on April
10, 2013 for a total of US$553M
•
Located in the Northwest Territories – 220
KM south of the Arctic Circle
•
Mineral Resources currently estimated for 8
kimberlite pipes
•
Mineral Reserves currently estimated for 5
pipes – 4 of which are in operation
•
Current production to 2019 supported by
reserves
•
Important development assets - Jay, Pigeon
and Sable pipes
•
Potential to significantly extend mine life if
some or all mineralization is promoted to
reserve status
9
Ekati Pipes with Mineral Resources
Underground in production
Open Pit in production
Scheduled Open Pit
Other Pipes w/ resources
Note: Beartooth pit used for fine tailings disposal
and not reported as a mineral resource
10
Koala Underground
1
•
Currently in production. Currently
scheduled to finish in 2019
•
Sublevel / Incline cave underground
operation
•
Approximate price per carat of US$3451
for Phase 5 and US$3951 for Phase 6
Based on prices from the Company’s rough diamond sales during September/October 2013
11
Koala North
1
•
Currently in production. Scheduled to
finish in 2014
•
Sublevel retreat underground operation
•
Approximate price per carat of US$4101
Based on prices from the Company’s rough diamond sales during September/October 2013
12
Ekati - Underground
13
Misery Main Pipe
1
•
Misery open pit
operation commenced
in 2002 and completed
in 2006
•
Pre-stripping at Misery
for push-back pit began
in 2011 and is currently
in progress
•
Second phase of the
Misery Main pipe
production expected to
begin in Dec 2015 and
finish in 2018
•
Approximate price per
carat of US$1121
Diamond Value assumptions as at Dec 31, 2012
14
Misery - South & South West
•
Misery satellite pipes (South
& South West) are
exploration targets that will be
mined during pre-stripping
operations for the main
Misery pipe. Pre-stripping
currently in progress
•
Misery South & South West
not included in current
resources
•
Recovered diamonds display
similar characteristics to the
Misery main pipe
•
Tonnage range is estimated
to be between 2.7Mt and
4.5Mt
•
Grade range is estimated to
be between 1.0Cpt to 1.7Cpt
•
Diamond values range
between US$80 and US$100
per carat1
1 Based on the Company’s September/October 2013 modeled rough diamond sales prices and the current recovery profile at the Ekati processing plant
The Company cautions that the potential quantity and grade of exploration targets is conceptual in nature. There has been insufficient exploration and/or study to define
the explorations targets as mineral reserves and it is uncertain if additional exploration will result in the exploration targets being delineated as mineral resources.
15
Reserves Only Plan does not keep plant fully fed
16
Additional tonnage is available within the current
scope of mine life and capital spend
Pipe
Grade
Tonnes (Millions) (Cts / Tonne)
Price1
Carats (Millions) (US$ per Carat)
Inferred Resource
Koala
0.23
1.00
0.23
$
415
Koala North
0.20
0.60
0.12
$
435
Fox
0.58
0.30
0.17
$
312
Misery Main
0.80
2.90
2.32
$
112
Pigeon
0.51
0.50
0.25
$
217
Exploration Targets
Misery South & South
West
2.7-4.5
1.0-1.7
2.7-7.6
$
90-140
Coarse Rejects
3.5-4.5
0.2-0.6
0.7-2.7
$
80-140
1
Diamond Value assumptions as at Dec 31, 2012.
The Company cautions that the potential quantity and grade of exploration targets is conceptual in nature. There has been insufficient exploration and/or study to define the explorations targets as
mineral reserves and it is uncertain if additional exploration will result in the exploration targets being delineated as mineral resources. Mineral resources that are not mineral reserves do not have
demonstrated economic viability. Inferred mineral resources are considered too speculative geologically to have the economic considerations applied to them that would enable them to be
categorized as mineral reserves.
17
Future development could potentially support a long mine life
Average Price stated in US$ per carat as of 31 December 2012.
Mineral resources that are not mineral reserves do not have demonstrated economic viability.
18
Pigeon, Lynx, Sable Pipes
•
•
•
•
•
•
1
Pigeon - located 5km northwest of Koala
with a surface area of 3.5 hectares
Indicated mineral resource of 10.6 million
tonnes at a grade of 0.5 carats per tonne
and price estimates in the $195 to $217
range per carat1
Lynx – relatively small at 1 hectare
surface area but high value pipe 3km
away from Misery in the Buffer Zone
Indicated mineral reserve of 1.3 million
tonnes at a grade of 0.8 carats a tonne
and $257 per carat1
Sable – is located 6km northeast of
process plant. 2 hectares in surface area.
Indicated mineral resource of 15.4 million
tonnes at a grade of 0.9 carats a tonne
and $140 per carat1
Diamond Value assumptions as at Dec 31, 2012.
Mineral resources that are not mineral reserves do not have demonstrated economic viability
19
The Jay Pipe
1
•
Jay pipe (Buffer Zone) is considered the
most significant prospect and represents
upside potential for the operation
•
Largest resource of diamonds in North
America known to date
•
Indicated Mineral Resources at over 36M
tonnes and 78M carats would represent
approximately 10 years of added mine life
at current production rates
•
Approximate price per carat of US$741
Diamond Value assumptions as at Dec 31, 2012.
Mineral resources that are not mineral reserves do not have demonstrated economic viability
20
Projected Jay Pipe Project Timeline
21
DDC Mine Footprints & Kimberlite Pipes
2013
22
Access Roads Constructed
2016
23
JP1 and JP4 Dikes Constructed
2017
24
Dike Cross – Section
2017
Dike
Centreline
Upstream
20 mm minus crush
Fine Rockfill
Lake EL 416 masl
Run of Mine
Rockfill
Downstream
200 mm minus crush
Run of Mine
Rockfill
Lakebed
Sediments
Till
Bedrock
25
JP2 Dike Constructed
2018
26
Pumping Stations Constructed
2018
27
Lac du Sauvage After Drawdown
2019
28
Jay and Cardinal Pit Shells
2020
29
Potential Underground Mine
2030+
30
Diavik Diamond Mine
31
Diavik Diamond Mine (40% ownership)
•
Located in the Northwest Territories – 220
KM south of the Arctic Circle
•
Mine includes 4 kimberlite pipes – 3 of which
are in operation
•
Over 52 million carats1 of diamond reserves
in the current kimberlite pipes being mined
with an additional 0.9M in stockpile
•
All major capital expenditure projects
completed for existing mine reserves
including underground operation
•
Strong free-cash flow generation
•
Average price of diamond reserves is
approximately US$133 per carat2
•
The current mine plan is expected to take the
mine’s production to at least 2022
1 32.9 million carats of proven reserves and 19.6 million carats of probable reserves as at December 2012 for over 52 million of total proven and probable reserves.
(Reserves are 100% of Diavik Mine, in which the Company has a 40% interest.)
2 Based on the Company’s September/October 2013 modeled rough diamond sales prices and the current recovery profile at the Diavik processing plant
32
Diavik – Kimberlite Pipes
33
Exploration Potential
•
More than 240,000
hectares (2,400
square kilometers)
on the remaining
Diavik Joint Venture
holdings
•
Dominion Diamond
has staked 226,000
acres (915 square
kilometers)
southwest of the
existing Diavik mine
site
34
Financial Results
35
Fiscal Year 2014 Third Quarter and Year to Date Results –
Consolidated
For the three and nine months ending October 31
(in millions of United States dollars) (unaudited)
FISCAL
PERIOD
Q3
2013
Q3
2014
YOY
Change
YTD
2013
YTD
2014
YOY
Change
Sales1
$85
$152
+79%
$235
$522
+122%
Operating Profit
$6
$11
+91%
$27
$33
+26%
EBITDA2
$26
$43
+63%
$83
$118
+43%
1
Sales from Continuing Operations relate solely to the Company’s mining operations which include the production, sorting and sale of rough diamonds
2
EBITDA is a non-IFRS measure. See Appendix, which sets out the Company’s computation of EBITDA as operating profit before depreciation and amortization
36
Fiscal Year 2014 Third Quarter – Ekati Mine
For the three and nine months ending October 31
(in millions of United States dollars except carat amounts which are in millions of carats) (unaudited)
Q3
2013
Q3
2014
YTD1
2014
Sales2
--
$99
$289
Gross Margin
--
$5
$10
Gross Margin %
--
5.2%
3.4%
Operating Profit
--
$5
$8
EBITDA3
--
$24
$38
Carats Sold
--
0.4M
1.0M
FISCAL PERIOD
1
2
3
Represents the period from April 10th to Oct 31, 2013.
Represents 100% share of the Ekati Production on a fiscal period basis
EBITDA is a non-IFRS measure. See Appendix, which sets out the Company’s computation of EBITDA as operating profit before depreciation and amortization
37
Fiscal Year 2014 Third Quarter – Diavik Mine
For the three and nine months ending October 31
(in millions of United States dollars except carat amounts which are in millions of carats) (unaudited)
1
2
FISCAL PERIOD
Q3
2013
Q3
2014
YOY
Change
YTD
2013
YTD
2014
YOY
Change
Sales
$85
$53
- 38%
$235
$233
-1%
Gross Margin
$13
$13
-2%
$47
$63
+34%
Gross Margin %
15.5%
24.4%
+890bp
19.9%
27.0%
+710bp
Operating Profit
$12
$12
-1%
$43
$59
+36%
EBITDA1
$32
$24
-25%
$98
$113
+15%
Carats Recovered2
0.8M
0.7M
-13%
2.1M
2.1M
-3%
Carats Sold
0.9M
0.4M
-49%
2.3M
1.9M
-17%
EBITDA is a non-IFRS measure. See Appendix, which sets out the Company’s computation of EBITDA as operating profit before depreciation and amortization
Represents 40% share of the Diavik Production on a calendar quarter basis
38
Fiscal Year 2014 Production and Sales Guidance
(In United States Dollars)
Diavik Diamond Mine
•
Diavik Mine production (100% basis) forecast for calendar year 2013 is expected to be
approximately 7.1M carats from the mining of approximately 1.9M tonnes of ore and
processing of approximately 2.2M tonnes from mining and stockpiles
•
Given the decision to hold back some inventory from sale in the third quarter, the
Company currently expects rough diamond sales for FY14 to be in the range of $320 to
$365 million
Ekati Diamond Mine
•
Ekati Mine production (100% basis) forecast from April 10, 2013 to calendar 2013 yearend remains at approximately 1M carats from mining 4.2M tonnes from mineral reserve,
and processing of 3.3M tonnes with some material being made up of diamond bearing
kimberlite sourced from a satellite body in the Misery open pit that is being excavated as
part of the waste stripping as the pit profile is advanced
•
Given the decision to hold back some inventory from sale in the third quarter, the
Company currently expects rough diamond sales for FY14 to be in the range of $385 to
$455 million (on a 100% basis)
39
Summary
•
The Ekati and Diavik Diamond Mines are amongst the world’s richest
diamond mines
•
Diversified production assets (Diavik and Ekati)
•
Important development assets (Jay, Pigeon, Sable)
•
Potential Upside with large scale exploration programme
•
Assets located in the politically and financially safe environment of Canada
•
Experience and understanding of the operating environment; it has wellestablished relationships with local communities and regional aboriginal
organizations
40
Market Summary
Analyst Coverage
Capital Structure
Shares Outstanding
85,124,4801
BMO Capital Markets
Ed Sterck
Citi Group
Fully Diluted
87,562,4801
Goldman Sachs
Share Price Range2
TSX C$17.43 – C$12.31
Fletcher Tully
Nomura
Tyler Broda
Paradigm
Jeff Woolley
RBC Capital Markets
Des Kilalea
Scotia Capital
NYSE $17.02 – $11.94
Market Capitalization1
Oliver Chen
Tanya Jakusconek
UBS
US$1.1B
Brian MacArthur
Major Shareholders4
Director and
M&G (UK)
Executive Officer Ownership3 1.3%(aggregate)
Blackrock (UK)
Oberndorf Enterprises (US) 5
Steinberg Asset Mgmt (US)
Connor, Clark & Lunn (CAN)
1
2
3
4
5
As at November 30, 2013
Previous 52 weeks as of November 30, 2013
As at April 26, 2013
As at Sept 30, 2013
As at May 9, 2013
41
Appendix
42
Ekati Diamond Mine Reserve Statement
As of December 31, 2012 (100% basis)
Tonnes
Grade
Carats
(millions)
(cpt)
(millions)
Koala UG
5.8
0.6
3.6
Koala N UG
0.3
0.6
0.2
Fox OP
4.7
0.2
1.1
Misery OP
3.0
4.0
12.2
Pigeon OP
6.7
0.4
2.6
Stockpiles
0.1
0.5
0.04
20.6
1.0
19.6
Classification
Joint Venture
Agreement Area
Kimberlite Pipe
Probable
Core Zone
Total Probable
No Proven Mineral Reserves have been declared
Note: Totals may not add up due to rounding
The above mineral reserve statement was prepared under the supervision of Mats Heimersson, P. Eng., an employee of the Company and a Qualified Person within the meaning of National Instrument 43-101 of the Canadian
Securities Administrators. For further details and information concerning Dominion Diamond Corporation's Mineral Reserves and Resources, readers should reference Dominion Diamond Corporation's Annual Information Form
available through www.sedar.com and www.ddcorp.ca
43
Ekati Diamond Mine Resource Statement
As of December 31, 2012 (100% basis). Ekati resources are inclusive of reserves
Classification
Joint Venture
Agreement Area
Kimberlite Pipe
Tonnes
Grade
Core Zone
Koala UG
Koala N UG
Fox OP (+140 RL)
Fox UG (-140 RL)
Misery
Pigeon
Sable
Stockpiles
(millions)
7.4
0.3
10.3
20.2
3.7
10.6
15.4
0.1
(cpt)
Indicated
Subtotal Indicated
Carats
0.6
0.6
0.2
0.3
4.5
0.5
0.9
0.6
(millions)
4.5
0.2
2.5
6.1
16.8
4.9
13.3
0.05
68.2
0.7
48.4
(Core Zone only)
Subtotal Indicated
(Buffer Zone only)
Inferred
Buffer Zone
Jay
Lynx
36.2
1.3
37.5
2.2
0.8
2.1
78.1
1.0
79.1
Core Zone
Koala UG
Koala N UG
Fox OP (+140 RL)
Fox UG (-140 RL)
Misery
Pigeon
Sable
Stockpiles
0.3
0.2
1.1
5.6
0.8
0.8
6.6
15.3
1.0
0.6
0.3
0.3
2.9
0.5
0.2
0.4
0.3
0.1
0.3
1.7
2.3
0.4
1.0
6.1
Buffer Zone
Jay
Lynx
9.5
0.1
9.6
1.4
0.8
1.3
12.9
0.1
13.0
Subtotal Inferred
(Core Zone)
Subtotal Inferred
(Buffer Zone)
Note: Totals may not add up due to rounding
The above mineral resource statement was prepared under the supervision of Mats Heimersson, P. Eng., an employee of the Company and a Qualified Person within the meaning of National Instrument 43-101 of the Canadian
Securities Administrators. For further details and information concerning Dominion Diamond Corporation's Mineral Reserves and Resources, readers should reference Dominion Diamond Corporation's Annual Information Form
available through www.sedar.com and www.ddcorp.ca
44
Diavik Diamond Mine Reserve & Resource Statement
As of December 31, 2012 (100% basis).
Kimberlite Pipe
Proven Reserves
Mt
Probable Reserves
ct/t
M ct
Mt
ct/t
Proven and Probable
M ct
Mt
ct/t
M ct
A154 S
1.2
4.2
5.2
1.4
3.4
4.9
2.7
3.8
10.1
A154 N
4.1
2.1
8.4
4.1
2.1
8.4
8.1
2.1
16.8
A418
5.1
3.8
19.3
2.2
2.9
6.4
7.2
3.5
25.6
--
--
--
--
--
--
Total
Open Pit
Underground
Stockpile
Total Reserves
--
10.3
3.2
32.9
7.7
2.6
0.3
2.9
0.9
--
--
10.7
3.2
33.8
7.7
2.6
Measured Resources
Kimberlite Pipe
18.0
2.9
52.5
--
0.3
2.9
0.9
19.6
18.3
2.9
53.5
Indicated Resources
ct/t
M ct
Mt
ct/t
M ct
A154S
--
--
--
--
--
A154N
--
--
--
--
A418
--
--
--
3.6
2.8
3.6
2.8
Total Resources
--
19.6
Mt
A21
--
Inferred Resources
Mt
ct/t
M ct
--
0.04
3.6
0.2
--
--
2.3
2.6
5.9
--
--
--
0.3
2.4
0.7
10.0
0.4
2.6
1.0
0.8
3.0
2.3
10.0
0.4
2.6
1.0
3.4
2.7
9.0
Note: Totals may not add up due to rounding. The values shown are for 100% of the Diavik Mine.
The above mineral reserve and mineral resource statement was prepared by Diavik Diamond Mines Inc., operator of the Diavik Diamond Mine, under the supervision of Calvin Yip, P. Eng., Principal Advisor, Strategic Planning of
Diavik Diamond Mines Inc., and a Qualified Person within the meaning of National Instrument 43-101 of the Canadian Securities Administrators. For further details and information concerning Dominion Diamond Corporation's
Mineral Reserves and Resources, readers should reference Dominion Diamond Corporation's Annual Information Form available through www.sedar.com and www.ddcorp.ca
45
EBITDA – Non-IFRS Measure
•
The term EBITDA (earnings before interest, taxes, depreciation and amortization) does not have a standardized meaning according to International
Financial Reporting Standards (“IFRS”). The Company defines EBITDA as sales minus cost of sales and selling, general and administrative expenses,
meaning it represents operating profit before depreciation and amortization.
•
EBITDA is a measure commonly reported and widely used by investors and analysts as an indicator of the Company’s operating performance and ability to
incur and service debt and as a valuation metric. EBITDA margin is defined as the ratio obtained by dividing EBITDA by sales.
CONSOLIDATED
(expressed in thousands of United States dollars)
(unaudited)
2014
2014
Q3
Operating profit (loss) from continuing
operations
$
12,375
31,978
32,644
$ 42,632
$ 45,019
Depreciation and amortization
EBITDA from continuing operations
Q2
10,654 $
$
2014
2013
Q1
Q4
10,459 $ 20,987
20,211
2013
2013
Q3
$
5,574
$
2013
Q2
Q1
8,939
$ 12,171
24,346
20,588
13,160
22,172
$ 30,670 $ 45,333
$ 26,162
$ 22,099
$ 34,343
Nine
months
ended
October
31,
2012
Q4
$
23,985
2013
$
24,284
$
48,269
Nine
months
ended
October
31,
33,489
2012
$
84,833
$
118,322
26,684
55,921
$
82,605
CORPORATE
(expressed in thousands of United States dollars)
(unaudited)
Operating loss
$
Depreciation and amortization
EBITDA
2014
2014
2014
2013
2013
2013
2013
2012
Nine
months
ended
October
31,
Q3
Q2
Q1
Q4
Q3
Q2
Q1
Q4
2013
$ (15,213) $ (8,227)
$ (6,302)
$ (4,700)
$ (5,767)
(5,924) $ (12,971)
378
$
363
305
304
(5,546) $ (12,608) $ (14,908) $ (7,923)
306
$ (5,996)
286
$ (4,414)
$
296
$ (5,471)
(4,153)
$
434
$
(3,719)
2012
(34,107) $ (16,769)
1,046
$
Nine
months
ended
October
31,
888
(33,061) $ (15,881)
46
EBITDA – Non-IFRS Measure
DIAVIK DIAMOND MINE SEGMENT
(expressed in thousands of United States dollars)
(unaudited)
Operating profit
$
Depreciation and amortization
EBITDA
$
2014
2014
2014
2013
2013
2013
2013
2012
Nine
months
ended
October
31,
Q3
Q2
Q1
Q4
Q3
Q2
Q1
Q4
2013
25,918 $
29,213
$ 11,876
$ 13,639
$ 17,938
11,765 $
21,530
12,434
21,768
19,906
24,042
20,283
12,874
21,876
24,199 $
43,298 $
45,824 $ 53,255
$ 32,159
$ 26,513
$ 39,814
$
$
28,141
$
23,849
$
51,990
59,214
$
54,108
$
113,322
Nine
months
ended
October
31,
2012
43,453
55,033
$
98,486
EKATI DIAMOND MINE SEGMENT
(expressed in thousands of United States dollars)
(unaudited)
Operating profit (loss)
$
Depreciation and amortization
EBITDA
$
2014
2014
2014
2013
2013
2013
2013
2012
Nine
months
ended
October
31,
Q3
Q2
Q1
Q4
Q3
Q2
Q1
Q4
2013
4,813 $
3,816 $
(246) $
–
–
–
(246) $
–
19,166
10,513
23,979 $
14,329 $
$
–
$
–
$
–
–
$
–
$
–
–
$
–
$
–
–
$
–
$
–
$
8,383 $
Nine
months
ended
October
31,
2012
–
29,679
–
38,062 $
–
47
On a US$ Per Tonne, Canada’s Mines are Amongst the
“Super” Mines of the World
Global Diamond Mines Estimated US$ 2012 Revenue per Tonne
+ International Mine an anomaly at +$2000 p/t
Source: Public Company Reports, Analyst Reports, Industry Sources, RBC, and DDC estimates
48
The Pricing of Polished Diamonds
Source: DeBeers, RBC, US Department of Labour and Industry Sources
49
Global Demand 2012
Sources: RBC
50
Attractive Industry Supply/Demand Fundamentals
A Structural Supply deficit should continue to provide the industry with price upside
Source: De Beers Diamond Briefing 2012
51
Exposure to potential increasing rough diamond prices
Sources: Rough Diamond Prices - Dominion Diamond rough sales indexed to January 2008. Polished Diamond Prices – Rapaport Price List.
52
Dominion
Diamond
Corporation
Investor Presentation
December 2013