Burgundy Diamond Mines : Investor Presentation

ersonal use only

Investor Presentation

May 2022

Burgundy Diamond Mines Limited

ASX: BDM

Managing Director: Peter Ravenscroft

Developing The World's Leading End-To-End Diamond Company | Burgundy-diamonds.com

ersonal use only

Disclaimer

This presentation has been prepared by Burgundy Diamond Mines Limited (Company). By reading this disclaimer you agree to be bound by it.
Not an offer or financial product advice
The Presentation does not constitute an offer, invitation or solicitation with respect to the purchase or sale of any security in the Company nor does it constitute financial product advice. The Presentation
is not a prospectus, product disclosure statement, pathfinder for the purposes of the Corporations Act 2001 (Cth) or other offer document under any law. The Presentation has not been filed, registered or
approved by regulatory authorities in any jurisdiction. The distribution of this document outside Australia may be restricted by law. Any recipient of this document outside Australia must seek advice on
and observe any such restrictions. Any non compliance with these restrictions may contravene applicable securities laws.
The Presentation is not intended to be relied upon as advice or a recommendation to investors and does not take into account the investment objectives, financial situation, taxation situation or needs of
any particular investor. An investor must make its own assessment of the Company and conduct its own investigations and analysis. Investors should assess their own individual financial circumstances
and consider talking to a financial adviser, professional adviser or consultant before making any investment decision.
Information purposes only
The Presentation is for information purposes only. It provides an overview of the Company but may not contain all information necessary to make an investment decision. The Presentation is of a
general nature and does not purport to be complete or verified by the Company or any other person. Neither the Company nor the Lead Managers have any responsibility or obligation to inform you of
any matter arising or coming to their notice, after the date of the Presentation, which may affect any matter referred to in the Presentation. The information in the Presentation is subject to change
without notice. The information in this presentation is, or is based upon, information that has been released to the Australian Securities Exchange (ASX). This Presentation should be read in conjunction
with BDM's other periodic and continuous disclosure announcements lodged with ASX, which are available at www.asx.com.au.
No guarantee, representation or warranty
While reasonable care has been taken in relation to the preparation of the Presentation, neither the Company or their respective directors, officers, employees, the Lead Managers, contractors, agents, or
advisers nor any other person (Limited Party) guarantees or makes any representations or warranties, express or implied, as to or takes responsibility for, the accuracy, reliability, completeness or
fairness of the information, opinions, forecasts, reports, estimates and conclusions contained in the Presentation. No Limited Party represents or warrants that the Presentation is complete or that it
contains all information about the Company that a prospective investor or purchaser may require.
To the maximum extent permitted by law, each Limited Party expressly disclaims any and all liability, including, without limitation, any liability arising out of fault or negligence, for any loss arising from
the use of or reliance on information contained in the Presentation including representations or warranties or in relation to the accuracy or completeness of the information, statements, opinions,
forecasts, reports or other matters, express or implied, contained in, arising out or derived from, or for omissions from the Presentation including, without limitation, any financial information, any
estimates or projections and any other financial information derived therefrom.
Forward-looking statements
The Presentation includes forward-looking statements and comments about future events, including the Company's expectations about the performance of its businesses. Forward-looking words such
as "expect", "should", "could", "may", "predict", "plan", "will", "believe", "forecast", "estimate", "target" or other similar expressions are intended to identify forward-looking statements. Such statements
involve known and unknown risks, uncertainties, assumptions and other important factors, many of which are beyond the control of the Company and which may cause actual results, performance or
achievements to differ materially from those expressed or implied by such statements. Forward-looking statements are provided as a general guide only, and should not be relied on as an indication or
guarantee of future performance. Given these uncertainties, recipients are cautioned to not place undue reliance on any forward-looking statement. Subject to any continuing obligations under
applicable law, the Company disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements in the Presentation to reflect any change in
expectations in relation to any forward-looking statements or any change in events, conditions or circumstances on which any such statement is based.
No Limited Party or any other person makes any representation, or gives any assurance or guarantee that the occurrence of the events expressed or implied in any forward-looking statements in the
Presentation will occur.
Past performance
Past performance is not indicative of future performance and no guarantee of future returns is implied or given.	2
Developing The World's Leading End-To-End Diamond Company

ersonal use only

Outline

01.

Corporate

Snapshot

04.

Sales &

Marketing

Cutting &

Polishing

02.	03.
Capturing	Company
margins across	Strategy
the full value
chain	06.
05.
Update on	Outlook
Exploration &
Development
Projects

ersonal use only

Corporate Snapshot

Strong established base in ASX listing

	ASX:BDM			Developing The World's Leading End-To-End Diamond Company
	Issued Shares1	342m	•	An emerging, fast-growing diamond company with an innovative strategy
							• World-class management team and board
	Options Unlisted1	23m
	•	Focus on Fancy Colour diamonds
	Market Capitalisation	A$60m	•	Building an end-to-endbusiness from exploration through to polished
								diamond production and sales
	Convertible notes	A$35m
	•	Operational diamond production by end of 2022
	Cash at hand	>A$25m	•	In-house cutting and polishing by world-leadingcraftsmen
							• Sales via collaborative agreements with high-end international jewellers
	Management & Director Ownership	13%
		• About to launch unique ultra-luxury brand
	Numbers as of May 26, 2022
	1. 5m issued shares and 2.5m options subject to Escrow
	Key People:			Michael O'Keeffe		Kim Truter	Peter Ravenscroft
	A world-class leadership			 Exceptional record of recent		 Wide experience in diamond		One of leading experts on
			success.		operations, marketing and sales.		diamond project evaluation.
	group			 Executive chairman Champion		 Ex CEO De Beers Canada, COO Rio		40 years' diamond industry
	•	Great track record.			Iron.		Tinto Diamonds, MD Argyle		experience in Africa, Canada,
	•	Deep diamond			 Previously Riversdale, ex MD		Diamonds, President Diavik		Australia.
				Diamonds.		Ex MD Technical Evaluation in
		experience.			Glencore.		 Focus on operational delivery of	
		Extensive diamond			 Focus on pricing upside for rapid			Rio Tinto, global experience on
	•				innovative projects.		capital projects.
		networks.			growth opportunities in niche				Wide diamond network.
				markets.			
									4
								Developing The World's Leading End-To-End Diamond Company

Capturing margins across the full value chain

use only

Revenue from Value Chain Sectors

49%

32% 11% 7%

Retail sales	Jewellery	Cutting and	Rough diamond
	manufacturing	polishing	sales

Why extend the focus downstream?

• Typically, diamond miners extract only a small part of revenue/margin from the ultimate value of a polished stone or jewellery piece
• The bulk of the margin comes from cutting/polishing and sales of jewellery
• Burgundy to capture up to 100% of this value, delivering superior investor returns

Burgundy is positioning itself as the world's leading end-to-endproducer of polished Fancy Colour diamonds, also participating in jewellery profits.

Rough diamonds will be produced from Burgundy mines augmented by purchase of third-party rough from select producers.

ersonal

A Fully	Exploration & project	Purchase & Production
Integrated	development	of Rough
Diamond	•	Unique model,	•	Focus on high-value
Business		breakthrough		> 1 carat diamonds.
focused on		strategy.	•	Niche operations,
Fancy	•	Potential success		small footprint,
Diamonds		already evident.		advanced

technology.

Cutting & Polishing

• Specialised expertise and facilities in Western Australia.
• Processing of select third-party rough diamonds as well as own production.

Sales & Marketing	Encapsulated
•	Sale of polished	in a world-
leading Fancy
	Fancy Colour
	diamonds.	Diamond
•	Branding and	ultra-luxury
brand
	certification.

• Profit-sharingon finished jewellery.

Developing The World's Leading End-To-End Diamond Company

5