Gem Diamonds Ltd (GEMD:LN)

Basic Materials/Diamonds and Gemstones Price: 61.40 GBX Report Date: September 24, 2021 Business Description and Key Statistics

Gem Diamonds is a global diamond producer engaged in the Current YTY % Chg exploration and development of diamond mines. Co. operates diamond mining operations in Lesotho and Botswana. Co.'s Revenue LFY (M) 139 0.8 geographical segments include Lesotho, which is involved in EPS Diluted LFY 0.07 416.1 diamond mining activities; Botswana, which is engaged in diamond mining activities; Belgium, which is involved in the sales, marketing Market Value (M) 88 and manufacturing of diamonds, and British Virgin Islands (BVI), Republic of South Africa (RSA) and the United Kingdom, which Shares Outstanding LFY (000) 139,612 provides technical and administrative services. Book Value Per Share 0.86 EBITDA Margin % 50.20

Net Margin % 7.2 Website: www.gemdiamonds.com Long-Term Debt / Capital % 0.7 ICB Industry: Basic Materials Dividends and Yield TTM 0.02 - 3.97% ICB Subsector: Diamonds and Gemstones Payout Ratio TTM % 0.0 Address: 2 Eaton Gate London 60-Day Average Volume (000) 83 GBR 52-Week High & Low 78.40 - 34.50 Employees: 1,702 Price / 52-Week High & Low 0.80 - 1.83

Price, Moving Averages & Volume

80.8 80.8 Gem Diamonds Ltd is currently trading at 61.40 which is 3.5% below its 50 day 74.2 74.2 moving average price of 63.63 and 0.2% above its 200 day 67.6 67.6 moving average price of 61.28. GEMD:LN is currently 21.7% 61.0 61.0 below its 52-week high price of 78.40 and is 78.0% above its 52-week low price of 34.50. 54.4 54.4 Over the past 52-weeks, GEMD:LN is up 60.3% while 47.8 47.8 on a calendar year-to-date basis it is up 49.8%.

41.2 41.2 The Relative Strength Index (RSI) indicator for GEMD:LN is currently 41.45. An RSI value 34.6 34.6 of 70 and above is considered overbought and 30 and below 28.0 28.0 oversold. 10/20 11/20 12/20 1/21 2/21 3/21 4/21 5/21 6/21 7/21 8/21 9/21 Volume (000) 2,624 2,624

1,968 1,968

1,312 1,312

656 656

Mean (171.75) 0 0 10/20 11/20 12/20 1/21 2/21 3/21 4/21 5/21 6/21 7/21 8/21 9/21

Price Price (50-Day Simple Moving Average) Price (200-Day Simple Moving Average)

Basic Materials/Diamonds and Gemstones Price: 61.40 GBX Report Date: September 24, 2021 Price Performance, Technical Indicators & Risk Metrics

Difference Price Performance % Change vs FTSE 350 Technical Indicators 1-Day % -4.95 -4.47 50-Day Average Price 63.63 1-Week % -2.54 -2.80 Price / 50-Day Average 0.96 4-Week % -3.15 -1.73 200-Day Average Price 61.28 52-Week % 60.31 35.96 Price / 200-Day Average 1.00 RSI - Relative Strength Index 41.45 Quarter-to-Date % -12.01 -13.14

Year-to-Date % 49.76 39.54 Risk Metrics Last Month % 4.84 2.92 Price Volatility 1.42 Last Quarter % 7.19 2.52 Sharpe Ratio -0.01 Last Calendar Year % -19.77 -6.78 Sortino Ratio -0.02

5-Year Price Performance vs. FTSE 350

Gem Diamonds Ltd Current: 0.51 CAGR: -12.7% Over the past five years, Gem FTSE 350 Index Current: 1.18 CAGR: 3.4% Diamonds Ltd's stock price is down 49.0% which is 67.4% 1.3 1.3 below the FTSE 350 Index performance of 18.4% over the same period. Gem Diamonds 1.2 1.2 Ltd's cumulative annualized ^NMX:LN growth rate (CAGR) over the 1.1 1.1 five year period has been -12.7% while that of the FTSE 350 Index has been 3.4%. 1.0 1.0 Over the past year, Gem Diamonds Ltd's stock price 0.9 0.9 performance of 60.3% has outperformed that of the FTSE 0.8 0.8 350 Index by 36.0%. On a year-to-date basis, Gem Diamonds Ltd's stock price 0.7 0.7 performance of 49.8% has outperformed the FTSE 350 0.6 0.6 Index by 39.5%. Over the past week, Gem 0.5 GEMD:LN 0.5 Diamonds Ltd's stock price performance of -2.5% has underperformed that of the 0.4 0.4 FTSE 350 Index by 2.8%.

0.3 0.3

0.2 0.2

0.1 0.1 2017 2018 2019 2020 2021 2022

Basic Materials/Diamonds and Gemstones Price: 61.40 GBX Report Date: September 24, 2021 Growth and Profitability Metrics

5-Year 10-Year Historical Growth 3-Year 5-Year 10-Year Profitability Current Average Average Revenues % -4.3 -3.8 -2.1 Gross Margin % 40.0 36.7 41.7 Revenues Per Share % -4.6 -4.1 -3.3 EBITDA Margin % 50.2 35.5 46.2 EBITDA % -5.2 -9.0 -0.1 Pre-Tax Margin % 20.2 4.3 17.3 EPS Diluted % 34.6 -22.5 -2.5 Net Margin % 7.2 -10.6 -5.2 Free Cash Flow % 5.3 7.5 19.2 Return on Equity % 8.2 -8.8 -3.1 Cash from Operations % -0.7 -2.6 1.5 Return on Capital % 5.3 -6.8 -2.4 Book Value % 0.4 -9.2 -7.5 Return on Assets % 3.2 -5.2 -1.9

Revenue (M) Gem Diamonds Ltd's cumulative annualized revenue Current: 138.97 Median: 154.30 High: 209.35 Low: 137.86 CAGR: -2.6% growth rate over the charted 223.6 223.6 209.4 period is -2.6%. This compares to cumulatative 193.9 193.9 annualized growth of -4.3% over the past 3 years. 158.7 164.1 154.3 164.1 137.9 139.0 134.3 134.3 2016 2017 2018 2019 2020 2021 Gem Diamonds Ltd's EPS Diluted cumulative annualized EPS Current: 0.07 Median: 0.03 High: 0.14 Low: -1.04 CAGR: 0.0% growth rate over the charted 0.38 0.38 period is 0.0%. This compares 0.14 0.03 0.01 0.07 to cumulatative annualized -0.12 -0.12 growth of 34.6% over the past 3 years. -0.61 -0.61 -0.93 -1.10 -1.10 2016 2017 2018 2019 2020 2021

Net Profit Margin % Gem Diamonds Ltd's net profit margin of 7.2% is 17.8% Current: 7.17 Median: 4.25 High: 9.69 Low: -84.61 CAGR: 1.6% above the period's mean net 14.4 14.4 margin of -10.6%. During the Mean (-10.59) charted period, the observed -20.2 -20.2 net profit margin high and low were 9.7% and -84.6% -54.7 -54.7 respectively.

-89.3 -89.3 2016 2017 2018 2019 2020 2021 Gem Diamonds Ltd's return on Return on Equity % equity of 8.2% is 17.0% above Current: 8.20 Median: 5.00 High: 16.80 Low: -75.60 CAGR: 1.9% the period's mean return on 21.4 21.4 equity of -8.8%. During the charted period, the observed Mean (-8.79) -12.5 -12.5 ROE high and low were 16.8% and -75.6% respectively. -46.3 -46.3

-80.2 -80.2 2016 2017 2018 2019 2020 2021

Basic Materials/Diamonds and Gemstones Price: 61.40 GBX Report Date: September 24, 2021 Valuation Metrics

5-Year 10-Year 5-Year 10-Year Current Median Median Current Median Median

Price / EPS TTM 9.0 12.8 14.0 Earnings Yield % 9.89 7.55 6.55

Price / Sales 0.6 0.7 1.0 Free Cash Flow Yield % 77.75 56.07 30.78

Price / Operating Cash Flow 1.8 1.9 3.4 Dividend Yield % 3.97 0.00

Price / Book Value 0.7 0.9 1.0 Enterprise Value / EBITDA 0.9 1.1 1.5

Price / EPS TTM Gem Diamonds Ltd is trading at 8.96 times its EPS Current: 8.96 Median: 12.78 High: 99.90 Low: 5.60 CAGR: -38.5% generated during the latest 104.6 104.6 fiscal year. This multiple is below the historically observed 70.0 70.0 median of 12.78, while high and low observations have been 99.90 and 5.60. 35.5 35.5 Median (12.78) 0.9 0.9 2016 2017 2018 2019 2020 2021 Price / Sales Gem Diamonds Ltd is trading at a Price to Sales ratio of 0.64 Current: 0.64 Median: 0.68 High: 1.12 Low: 0.24 CAGR: -9.8% based on sales generated 1.16 1.16 during the latest fiscal year. This ratio is below the 0.84 0.84 historically observed median Median (0.68) ratio of 0.68, while high and low observations have been 0.52 0.52 1.12 and 0.24.

0.20 0.20 2016 2017 2018 2019 2020 2021 Gem Diamonds Ltd is trading Price / Book Value at a Price to Book ratio of 0.74 Current: 0.74 Median: 0.89 High: 1.58 Low: 0.27 CAGR: -3.6% based on book value at the 1.6 1.6 latest fiscal year end. This ratio is below the historically observed median of 0.89, 1.2 1.2 while high and low Median (0.89) observations have been 1.58 0.7 0.7 and 0.27.

0.2 0.2 2016 2017 2018 2019 2020 2021 Gem Diamonds Ltd has a Free Free Cash Flow Yield % Cash Flow Yield of 77.75% Current: 77.75 Median: 56.07 High: 100.00 Low: 27.97 CAGR: 22.9% based on free cash flow 103.6 103.6 generated during the latest fiscal year. This value is above the historically observed 77.2 77.2 median yield of 56.07%, while Median (56.07) high and low observations 50.8 50.8 have been 100.00 and 27.97.

24.4 24.4 2016 2017 2018 2019 2020 2021

Basic Materials/Diamonds and Gemstones Price: 61.40 GBX Report Date: September 24, 2021 Dividends Data

Dividends Per Share TTM 0.02 Payout Ratio TTM % 0.00% Dividend Yield TTM % 3.97%

Rate Ex Date Record Date Payment Date Currency Note 0.025 13-05-2021 14-05-2021 15-06-2021 USD FINAL GROSS 0.050 12-05-2016 13-05-2016 14-06-2016 USD FINAL GROSS 0.035 12-05-2016 13-05-2016 14-06-2016 USD SPECIAL GROSS

Dividend Growth and Yield

Dividends Per Share TTM Gem Diamonds Ltd's trailing 12-month dividend per share Current: 0.02 Median: 0.00 High: 0.08 Low: 0.00 CAGR: -25.3% is 0.02 and its dividend has 0.084 0.084 grown at a cumulative annualized rate of -25.3% over 0.069 0.069 the charted period. This compares to dividend growth 0.055 0.055 of % over the past year and cumulative annualized growth of % over the past 3 years. 0.040 0.040

0.025 0.025

0.011 0.011

-0.004 -0.004 2016 2017 2018 2019 2020 2021

Dividend Yield TTM % Gem Diamonds Ltd's current dividend yield is 3.97% based Current: 3.97 Median: 0.00 High: 9.83 Low: 0.00 CAGR: -10.5% on trailing 12 month 10.32 10.32 dividends. The current yield is above the historically observed 8.52 8.52 median of 0.00% and, over the charted time period, the 6.72 6.72 observed high yield has been 9.83% and the observed low yield has been 0.00%. 4.92 4.92

3.11 3.11

1.31 1.31

-0.49 -0.49 2016 2017 2018 2019 2020 2021

Basic Materials/Diamonds and Gemstones Price: 61.40 GBX Report Date: September 24, 2021 ICB Subsector Peer Comparisons

Price Change Year to Date % Price Change Last Calendar Year % -72.4 -40.4 -8.4 23.6 55.6 -66.1 -23.8 18.4 60.7 103.0

Gem Diamonds Ltd 49.8 Karelian Diamond Resources PLC 95.3

Botswana Diamonds PLC 29.4 Botswana Diamonds PLC 36.0

Peer Group Average -1.4 Peer Group Average 16.8

BlueRock Diamonds PLC -28.8 Gem Diamonds Ltd -19.8

Karelian Diamond Resources PLC -56.0 BlueRock Diamonds PLC -44.4

-72.4 -40.4 -8.4 23.6 55.6 -66.1 -23.8 18.4 60.7 103.0

Price / EPS TTM Price / Book Value 0.0 26.1 52.2 78.3 104.4 0.0 0.3 0.6 0.9 1.2

Petra Diamonds Ltd 99.9 BlueRock Diamonds PLC 1.2

Botswana Diamonds PLC 99.9 Botswana Diamonds PLC 1.0

BlueRock Diamonds PLC 99.9 Gem Diamonds Ltd 0.7

Karelian Diamond Resources PLC 99.9 Peer Group Average 0.7

Peer Group Average 81.7 Petra Diamonds Ltd 0.6

Gem Diamonds Ltd 9.0 Karelian Diamond Resources PLC 0.2

0.0 26.1 52.2 78.3 104.4 0.0 0.3 0.6 0.9 1.2

EPS 5-Year Growth Rate % Revenue 5-Year Growth Rate % -128.2 -73.1 -18.0 37.1 92.2 -15.0 6.9 28.8 50.7 72.6

Botswana Diamonds PLC 82.2 BlueRock Diamonds PLC 68.6

BlueRock Diamonds PLC 51.1

Peer Group Average 20.8 Peer Group Average 1.7

Karelian Diamond Resources PLC -2.1 Petra Diamonds Ltd -2.3

Gem Diamonds Ltd -22.5

Gem Diamonds Ltd -3.8 Petra Diamonds Ltd -100.0

-128.2 -73.1 -18.0 37.1 92.2 -15.0 6.9 28.8 50.7 72.6

Basic Materials/Diamonds and Gemstones Price: 61.40 GBX Report Date: September 24, 2021 Abbreviations: CAGR - Cumulative annual growth rate. EBIT - Earnings before interest and taxes. EBITDA - Earnings before interest, taxes, depreciation & amortization. LFY - Last fiscal year M - Million LON - London Stock Exchange

Definitions: Market Value - Weekly Price times latest Shares Outstanding times any applicable ADR factor. Revenue - Sum of the last four quarters of Revenues. Revenue Per Share - Sum of the last four quarters of Total Revenue divided by Weighted Average Shares Outstanding. Operating EPS LFY - EPS excluding non-recurring, non-operating items, fiscal year aligned TTM value. 60-Day Average Volume (000) - The average of the last 60 daily volume values in thousands of shares. Price 52-Week High - The high closing price from the last 52 weeks of daily closing prices. Price 52-Week Low - The low closing price from the last 52 weeks of daily closing prices. Price / 52-Week High - Latest price divided by the high price from the past 52 weeks of daily closing prices. Price / 52-Week Low - Latest price divided by the low price from the past 52 weeks of daily closing prices. 50-Day Average Price - Mean of last 50 daily closing prices. 200-Day Average Price - Mean of last 200 daily closing prices. Price / 50-Day Average Price - Latest closing price divided by mean of last 50 daily closing prices, as a percentage. Price / 200-Day Average Price - Latest closing price divided by mean of last 200 daily closing prices, as a percentage. Relative Strength Index - Relative Strength Index or RSI measures the magnitude of gains over a given time period against the magnitude of losses over that period. The equation is RSI = 100 - 100 / (1 + RS) where RS = (total gains / n) / (total losses / n) and n = number of RSI periods. In this item, 14 days is used and one year of daily prices are considered. A value of 30 or below may imply oversold and 70 or above may imply overbought. Price Volatility - The standard deviation of the last 20 days of daily closing prices. Sharpe Ratio - The 5 year average of the excess monthly return over the risk - free rate(1 - month T - bill) over the 5 year standard deviation of the same series. Sortino Ratio - The same calculation as the Sharpe Ratio but with positive excess returns set to zero for the standard deviation denominator, so only negative volatility weighs in. Dividends Per Share TTM - Sum of the last four quarters of Dividends Per Share. Payout Ratio - Dividends Per Share TTM divided by Operating EPS TTM. Dividend Yield TTM % - Sum of the last four quarter of Dividends Per Share divided by Weekly Price. EBITDA - Sum of the last four quarters of EBITDA (Operating Income + Depreciation & Amortization). Free Cash Flow - Sum of the last four quarters Net Cash from Operations minus Capital Expenditures (Purchase of Property, Plant & Equipment), from the Cash Flow Statement. Book Value Per Share - Total Common Equity last quarter divided by Shares Outstanding last quarter. Gross Margin % - Sum of the last four quarters Gross Profit divided by the sum of the last four quarters Revenues. EBITDA Margin % - Sum of the last four quarters EBITDA divided by the sum of the last four quarters Revenues. Pre-Tax Margin % - Sum of the last four quarters of Earnings Before Taxes divided by sum of the last four quarters Revenues. Net Profit Margin % - Sum of the last four quarters of Operating EPS divided by sum of the last four quarters Revenues Per Share. Return on Equity % - Sum of the last four quarters of Operating EPS divided by the average of the last four quarters Book Value. Return on Capital % - Sum of the last four quarters of Operating EPS divided by the average of the last four quarters Total Capital Per Share. Return on Assets % - Sum of the last four quarters of Operating EPS divided by the average of the last four quarters Total Assets Per Share. Price / EPS TTM - Weekly Price divided by the sum of the last four quarters of Operating EPS (capped at 99.9). Price / Sales - Weekly Price divided by Revenues Per Share TTM. Price / Book Value - Weekly Price divided by Book Value Per Share last quarter. Book Value Per Share is Total Common Equity last quarter divided by Shares Outstanding last quarter (capped at 49.9). Free Cash Flow Yield % - Free Cash Flow Per Share TTM divided by Weekly Price. Enterprise Value - Market Value plus Total Debt last year plus Preferred Equity last year minus Cash & Cash Equivalents last year. Enterprise Value / Sales - Enterprise Value divided by the sum of the last four quarters of Revenue. Enterprise Value / EBITDA - Enterprise Value divided by EBITDA TTM. Enterprise Value / EBIT - Enterprise Value divided by trailing four quarters of Operating Income. Enterprise Value / Free Cash Flow- Enterprise Value divided by the sum of the last four quarters of Free Cash Flow. Russell 1000 Index - The largest 1,000 stocks by market cap, the index comprehensively covers the US large cap universe. EPS 5-Year Growth Rate % is capped at 999.9%. Revenue 5-Year Growth Rate % is capped at 999.9%.

Basic Materials/Diamonds and Gemstones Price: 61.40 GBX Report Date: September 24, 2021

Disclaimer:

© 2021 London Stock Exchange Group plc and its applicable group undertakings (the “LSE Group”). The LSE Group includes (1) FTSE International Limited (“FTSE”), (2) Frank Russell Company (“Russell”), (3) FTSE Global Debt Capital Markets Inc. and FTSE Global Debt Capital Markets Limited (together, “FTSE Canada”), (4) MTSNext Limited (“MTSNext”), (5) Mergent, Inc. (“Mergent”), (6) FTSE Fixed Income LLC (“FTSE FI”) and (7) The Yield Book Inc (“YB”). All rights reserved.

FTSE Russell® is a trading name of FTSE, Russell, FTSE Canada, MTSNext, Mergent, FTSE FI, YB. “FTSE®”, “Russell®”, “FTSE Russell®”, “MTS®”, “FTSE4Good®”, “ICB®”, “Mergent®”, “The Yield Book®” and all other trademarks and service marks used herein (whether registered or unregistered) are trademarks and/or service marks owned or licensed by the applicable member of the LSE Group or their respective licensors and are owned, or used under licence, by FTSE, Russell, MTSNext, FTSE Canada, Mergent, FTSE FI, YB. FTSE International Limited is authorised and regulated by the Financial Conduct Authority as a benchmark administrator.

All information is provided for information purposes only. All information and data contained in this publication is obtained by the LSE Group, from sources believed by it to be accurate and reliable. Because of the possibility of human and mechanical error as well as other factors, however, such information and data is provided "as is" without warranty of any kind. No member of the LSE Group nor their respective directors, officers, employees, partners or licensors make any claim, prediction, warranty or representation whatsoever, expressly or impliedly, either as to the accuracy, timeliness, completeness, merchantability of any information or of results to be obtained from the use of FTSE Russell indexes or data or the fitness or suitability of the FTSE Russell indexes or data for any particular purpose to which they might be put. Any representation of historical data accessible through FTSE Russell indexes or data is provided for information purposes only and is not a reliable indicator of future performance.

No responsibility or liability can be accepted by any member of the LSE Group nor their respective directors, officers, employees, partners or licensors for (a) any loss or damage in whole or in part caused by, resulting from, or relating to any error (negligent or otherwise) or other circumstance involved in procuring, collecting, compiling, interpreting, analysing, editing, transcribing, transmitting, communicating or delivering any such information or data or from use of this document or links to this document or (b) any direct, indirect, special, consequential or incidental damages whatsoever, even if any member of the LSE Group is advised in advance of the possibility of such damages, resulting from the use of, or inability to use, such information.

No member of the LSE Group nor their respective directors, officers, employees, partners or licensors provide investment advice and nothing contained in this document or accessible through FTSE Russell indexes or data, including statistical data and industry reports, should be taken as constituting financial or investment advice or a financial promotion.

No part of this information may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior written permission of the applicable member of the LSE Group. Use and distribution of the LSE Group data requires a licence from FTSE, Russell, FTSE Canada, MTSNext, Mergent, FTSE FI, YB, and/or their respective licensors.