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BUILDING QUÉBEC’S FIRST DIAMOND MINEPDAC, March 8th, 2016
Matt MansonPresident & CEO
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Forward-Looking Information
This presentation contains "forward-looking information" within the meaning of Canadian securities legislation. This information and these statements, referred to herein as “forward-looking statements”, are made as of the date of this presentation and the Corporation does not intend, and does not assume any obligation, to update these forward-looking statements, except as required by law. These forward-looking statements include, among others, statements with respect to our beliefs, plans, objectives, expectations, anticipations, estimates and intentions. Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.
Forward-looking statements relate to future events or future performance and reflect current expectations or beliefs regarding future events and include, but are not limited to, statements with respect to: (i) the amount of Mineral Resources and exploration targets; (ii) the amount of future production over any period; (iii) assumptions relating to recovered grade, average ore recovery, internal dilution, mining dilution and other mining parameters set out in the 2011 Feasibility Study or the Optimization Study; (iv) assumptions relating to gross revenues, operating cash flow and other revenue metrics set out in the 2011 Feasibility Study or the Optimization Study; (v) mine expansion potential and expected mine life; and (vi) future exploration plans. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “expects”, “anticipates”, “plans”, “projects”, “estimates”, “assumes”, “intends”, “strategy”, “goals”, “objectives”, “schedule” or variations thereof or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking statements.
Forward-looking statements are made based upon certain assumptions by Stornoway or its consultants and other important factors that, if untrue, could cause the actual results, performances or achievements of Stornoway to be materially different from future results, performances or achievements expressed or implied by such statements. Such statements and information are based on numerous assumptions regarding present and future business prospects and strategies and the environment in which Stornoway will operate in the future, including the price of diamonds, anticipated costs and Stornoway’s ability to achieve its goals, regulatory developments, development plans, exploration, development and mining activities and commitments. Although management considers its assumptions on such matters to be reasonable based on information currently available to it, they may prove to be incorrect. Certain important assumptions by Stornoway or its consultants in making forward-looking statements include, but are not limited to: (i) anticipated geological formations; (ii) Stornoway’s interpretation of the geological drill data collected and its potential impact on stated Mineral Resources and mine life; (iii) future exploration plans and objectives. Additional risks are described in Stornoway's most recently filed Annual Information Form, annual and interim MD&A, and other disclosure documents available under the Corporation’s profile at: www.sedar.com. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that estimates, forecasts, projections and other forward-looking statements will not be achieved or that assumptions do not reflect future experience. We caution readers not to place undue reliance on these forward- looking statements as a number of important risk factors could cause the actual outcomes to differ materially from the beliefs, plans, objectives, expectations, anticipations, estimates, assumptions and intentions expressed in such forward-looking statements. These risk factors may be generally stated as the risk that the assumptions and estimates expressed above do not occur, including the assumption in many forward-looking statements that other forward-looking statements will be correct, but specifically include, without limitation: (i) risks relating to variations in the grade, kimberlite lithologies and country rock content within the material identified as Mineral Resources from that predicted; (ii) variations in rates of recovery and breakage; (iii) the uncertainty as to whether further exploration of exploration targets will result in the targets being delineated as Mineral Resources; (iv) uncertainty of results of exploration in areas of potential expansion of resources; (v) changes in development or mining plans due to changes in other factors or exploration results; and (vi) the additional risks described in Stornoway's most recently filed Annual Information Form, annual and interim MD&A and Stornoway's anticipation of and success in managing the foregoing risks. Stornoway cautions that the foregoing list of factors that may affect future results is not exhaustive, and new, unforeseeable risks may arise from time to time.
3
Forward-Looking Information (continued)
Readers are referred to the technical report dated as of February 28th, 2013 entitled “The Renard Diamond Project, Québec, Canada, Feasibility Study Update, NI 43-101 Technical Report, February 28, 2013” in respect of the January 2013 Optimization Study, and the press release dated September 24, 2015 in respect of the September 2015 Mineral Resource estimate for further details and assumptions relating to the project.
The Qualified Persons that prepared the technical reports and press releases that form the basis for the presentation are listed in the Company’s AIF dated July 27, 2015. Disclosure of a scientific or technical nature in this presentation was prepared under the supervision of Patrick Godin, P.Eng. (Québec), Chief Operating Officer and Robin Hopkins, P.Geol. (NT/NU), Vice President, Exploration, both “qualified persons” under NI 43-101. Darrell Farrow, PrSciNat, P.Geo.(BC), Ordre des geologues du Quebec (Special Authorisation # 332) of GeoStrat Consulting Services Inc. is the independent Qualified Person responsible for preparation of the mineral resource estimate for the Renard Diamond Project. GeoStrat Consulting Services Inc, a mineral resources consultancy, focuses on client interaction and involvement in developing resource models, and has experience in exploration, geological modeling, resource evaluation, production, resource reconciliation and accounting of diamond deposits around the globe. GeoStrat has verified the results disclosed herein with respect to the mineral resources, and has conducted appropriate verification on the underlying data, including visitations to the Renard site and the primary process laboratories.
The Renard Diamond Project, December 23, 2015
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Stornoway Diamond Corporation TSX:SWY
Construction Proceeding Ahead of Base Schedule and Below BudgetConstruction 63.3% complete compared to 59.6% planned by end December 2015.
Forecast cost to complete now C$775m, below original budget of C$811m. First ore delivery to plant scheduled by end September, 2016 and commercial production by Dec. 31, 2016,
5 months ahead of original schedule.
100% Ownership in Renard, Québec’s First Diamond MineRoad Accessible; Strong Social License; Fully Financed; Fully Permitted; Under Construction
The Renard Diamond Project, December 23, 2015
5The Renard Diamond ProjectQuébec’s First Diamond Mine
Chibougamau
Montréal
Toronto
800km
360km
Renard
1996: Start of initial regional exploration by Ashton & SOQUEM
2001: First kimberlite discovery
2001-08: Drilling, “mini-bulk” sampling, bulk sampling
2008-10: First NI 43-101 Resource and PEA
November 2011: Feasibility Study issued. First mineral reserve
December 2012: ESIA filed
February 2012: Road construction commences under Plan Nord
March 2012: “Mecheshoo Agreement” executed
Nov.-Dec.2012: Mining Lease and Québec Authorizations issued
January 2013: Optimization Study issued
July 2013: Federal Canadian Authorizations Issued
September 2013: Road opens
April-July 2014: $C946m financing completed. Construction commences
Dec 31 2016: Scheduled Commercial Production
2001: First Kimberlite Discovery
+7-9 Years: First NI 43-101 Resource and PEA
+12 Years: Final Authorizations Issued
+16 Years: Commercial Production
6
800m
900m
1100m
1200m
1000m
Renard Mine Plan and Key Operating AssumptionsA Combined Open Pit and Underground Operation
Notes1. Key Assumptions:C$1=US$1, Oil US$95/barrel, 2.5% real terms diamond price
growth, 82.9% ore recovery, 23.8% mining and internal dilution, 0cpht dilution grade.
2. Expressed in May 2011 terms. Average price US$190/carat in March 2014 terms.
3. Expressed in October 2012 terms, as adjusted in October 2013 LNG FS. Includes C$754m of costs and contingencies and C$57m of escalation allowance.
4. Expressed in October 2012 terms. Operating costs C$54/tonne in October 2013 LNG FS terms. Excludes capitalized preproduction costs.
5. Before stream
Reserve and Resource categories are compliant with the "CIM Definition Standards on Mineral Resources and Reserves". Mineral resources that are not mineral reserves do not have demonstrated economic viability. The potential quantity and grade of any Exploration Target is conceptual in nature, and it is uncertain if further exploration will result in the target being delineated as a mineral resource .
Reserve Based Mine Plan1
(Jan 2013 FS Optimization and October 2013 LNG Option FS)
Mine Life 11 yearsMineral Reserve 17.9 mcaratsAve. Diamond Price2 $180/caratProduction Rate 2.2 mtonnes/yrAve. Diamond Production 1.6 mcarats/yrGross Revenue (C$M)2 $4,268Initial Capital Costs3 $811mOperating Cost4 $58/t ($76/carat)Operating Margin5 67%Payback 4.8 years
0m
100m
200m
400m
600m
700m
500m
300m
Renard 4
Renard 9
Renard 65Renard 2 Renard 3
Mineral Resource Estimate Effective September 24, 2015 (NI 43-101)
13 mcarats Inferred Mineral Resources33 to 71 mcarats TFFE
30 mcarats Indicated Mineral Resources
An Updated Renard Mine Plan, scheduled for Q2 2016, is expected to include additional mine production from new Indicated Mineral Resources in Renard 2 and Renard 65, deepening of the Renard 2-3 open pit, extension of the underground mine infrastructure to 700m, and an optimized schedule for plant commissioning and ramp-up.
7Renard Diamond Project NI 43-101 Mineral Resource EstimateEffective September 24 2015. Changes to Previous Estimate Shown in Italics
Notes1 Resource categories were completed in accordance with the "CIM Definition Standards on Mineral Resources and Reserves". Mineral resources that are not mineral reserves do not have demonstrated economic viability. 2 Totals may not add due to rounding.3 Carats per hundred tonnes. Estimated at a +1 DTC sieve size cut-off.4 Diamond valuation data utilized for the test of prospects of reasonable economic extraction are derived from a diamond valuation exercise undertaken in March 2014 (see Stornoway Annual Information Form dated July 2015).
Indicated Mineral Resources(1,2,4)
Contained Carats (millions) Tonnes (millions) Grade (cpht)(3)
Renard 2, All Units 21.58 +15.6% 25.70 +38.3% 84 -16.4%Renard 2, w/o CRB-2A, CRB 20.39 +11.0% 20.52 +15.9% 99 -4.3%
CRB-2A 0.29 +2.6% 0.90 +2.6% 32 --CRB 0.90 n/a 4.28 n/a 21 n/a
Renard 3 1.86 +2.3% 1.82 +3.4% 102 -1.0%Renard 4 4.44 +3.0% 7.25 -- 61 +3.0%Renard 65 2.30 -- 7.87 -- 29 --
Total Indicated Mineral Resources 30.17 +11.4% 42.63 +20.2% 71 -7.4%
Inferred Mineral Resources(1,2)
Contained Carats (millions) Tonnes (millions) Grade (cpht)(3)
Renard 2, All Units 3.88 -48.0% 6.59 -44.0% 59 -7.2%Renard 2, w/o CRB 3.36 -46.1% 4.08 -22.0% 82 -30.9%CRB 0.53 -57.6% 2.51 -61.6% 21 +10.5%
Renard 3 0.61 -- 0.54 -- 112 --Renard 4 2.46 +3.5% 4.75 -- 52 +3.5%Renard 65 1.18 -- 4.93 -- 24 --Renard 9 3.04 -- 5.70 -- 53 --Lynx 1.92 -- 1.80 -- 107 --Hibou 0.26 -- 0.18 -- 144 --
Total Inferred Mineral Resources 13.35 -20.8% 24.49 -17.5% 54 -4.0%
Inferred Mineral Resources
Indicated Mineral Resources
High Range TFFE
Renard 65775m depth
Renard 4775m depth Renard 9
775m depth
Renard 21,250m depth Renard 3
1,250m depth
North East View
8Renard Diamond Project Exploration PotentialEffective September 24 2015. Changes to Previous Potential Shown in Italics
Notes1 Target for Further Exploration: represents potential upside that can be reasonably assumed given the nature and grade of material within the current 2015 Mineral Resource. The Renard 2 shape has been projected 250m below the deepest kimberlite intersection at 1,000m depth. Tonnage and grade ranges are not directly applicable to potential total carats.The potential quantity and grade of any Exploration Target is conceptual in nature, there has been insufficient information to define a mineral resource, and it is uncertain if further exploration will result in the target being delineated as a mineral resource. 2 Carats per hundred tonnes. Potential at a +1 DTC sieve size cut-off.
NotesResource categories were completed in accordance with the "CIM Definition Standards on Mineral Resources and Reserves". Mineral resources that are not mineral reserves do not have demonstrated economic viability.
Area indicated in yellow represents a gap in drill coverage that may represent additional exploration potential outside of the current Mineral Resource Estimate and not included in the current Targets for Further Exploration.
Renard 65775m depth
Renard 4775m depth Renard 9
775m depth
Renard 21,250m depth Renard 3
1,250m depth
Inferred Mineral Resources
Indicated Mineral Resources
High Range TFFE
North East View
Targets for Further Exploration(1)
Contained Carats (millions)
Tonnes (millions) Grade (cpht)(2)
Renard 1 1.7 to 3.9 8.6 to 13.0 20 to 30
Renard 2, All Units 3.7 to 15.5 6.1 to 15.5 60 to 100
Renard 3 3.6 to 6.3 3.4 to 3.8 105 to 168
Renard 4 5.6 to 11.8 11.1 to 15.4 50 to 77
Renard 65 7.3 to 13.5 29.0 to 40.9 25 to 33
Renard 7 1.9 to 3.8 6.3 to 9.4 30 to 40
Renard 9 2.0 to 4.3 3.9 to 6.3 52 to 68
Renard 10 0.7 to 2.1 1.2 to 1.7 60 to 120
Lynx 3.0 to 3.8 3.1 to 3.2 96 to 120
Hibou 3.6 to 6.1 3.5 to 4.0 104 to 151
Total TFFE 33.0+28% to 71.1
+40%76.2
+49% to 113.2+51%
R10 R7 R1 R65
R4 R9
R2R3
NW 4 km SE
9Renard 2 Mineral Resource UpdateEffective September 24 2015. Changes to Previous Estimate Shown in Italics
Pipe shape at surface (1.89ha)
High TFFE at 1,250m (1.38ha)
Notes1 Reserve and Resource categories were completed in accordance with the "CIM Definition Standards on Mineral Resources and Reserves". Mineral resources that are not mineral reserves do not have demonstrated economic viability. 2 Totals may not add due to rounding.3 Carats per hundred tonnes. Estimated at a +1 DTC sieve size cut-off.4 Diamond valuation data utilized for the test of prospects of reasonable economic extraction are derived from a diamond valuation exercise undertaken in March 2014 (see Stornoway Annual Information Form dated July 2015).
0m
700m
850m
1250m
INDICATED
INFERRED
TFFE
600m: Base of Previous Indicated Mineral Resources
Depth Below
SurfaceKimberlite
outlineat surface (0.75ha)
Low TFFE at 1,250m (0.62ha)
Base of New Indicated
Resources (1.55ha)
Indicated Mineral Resources(1,2,4)
Contained Carats (millions) Tonnes (millions) Grade (cpht)(3)
Renard 2, All Units 21.58 +15.6% 25.70 +38.3% 84 -16.4%Renard 2, w/o CRB-2A, CRB 20.39 +11.0% 20.52 +15.9% 99 -4.3%
CRB-2A 0.29 +2.6% 0.90 +2.6% 32 --CRB 0.90 n/a 4.28 n/a 21 n/a
Inferred Mineral Resources(1,2)
Contained Carats (millions) Tonnes (millions) Grade (cpht)(3)
Renard 2, All Units 3.88 -48.0% 6.59 -44.0% 59 -7.2%Renard 2, w/o CRB 3.36 -46.1% 4.08 -22.0% 82 -30.9%CRB 0.53 -57.6% 2.51 -61.6% 21 +10.5%
Target for Further Exploration(1)
Contained Carats (millions)
Tonnes (millions) Grade (cpht)(2)
Renard 2, All Units 3.7 to 15.5 6.1 to 15.5 60 to 100
North View Renard 2 NI 43-101 Mineral Resource Estimate
Renard 2 Targets for Further Exploration
Notes1 Represents potential upside that can be reasonably assumed given the nature and grade of material within the current 2015 Mineral Resource. The potential quantity and grade of any Exploration Target is conceptual in nature, there has been insufficient information to define a mineral resource, and it is uncertain if further exploration will result in the target being delineated as a mineral resource. 2 Carats per hundred tonnes. Potential at a +1 DTC sieve size cut-off.
Pinch in model in area lacking drill
coverage
10Renard 2 Geological Model and Unit GradesEffective September 24 2015. Changes to Previous Estimate Shown in Italics
Within the Indicated Mineral Resources Average Grade
(cpht)(1)Average Dilution
(%)(2)
Kimb 2a (“Blue”) 76 +3.0% 52 -0.9%Kimb 2b (“Brown”) 145 +1.0% 30 -0.9%Kimb 2c (HK)3 229 +0.5% 12 -3.1%CRB-2a 32 -- 93 --CRB 21 n/a 96 n/a
Within the Inferred Mineral Resources Average Grade
(cpht)(1)Average Dilution
(%)(2)
Kimb 2a (“Blue”) 67 -2.4% 65 +9.2%Kimb 2b (“Brown”) 145 +0.3% 30 +1.5%Kimb 2c (HK)3 229 +0.5% 12 -3.1%CRB 21 +10.5% 96 --
Notes1 Carats per hundred tonnes. Estimated at a +1 DTC sieve size cut-off.2 Represents the average amount of non-diamond bearing country rock estimated within each geological unit. 3 The Kimb 2c (Hypabyssal Kimberlite, or “HK”) unit is a constituent component of each of the Kimb2a, Kimb2b, CRB and CRB-2a units.
Renard 2 Average Mineral Resource Grades, by Geological Unit
Kimb2b (“Brown”)
Kimb2a (“Blue”) CRB CRB-2a Kimb2c (HK)
West View
Contact
Pinch in model in area lacking drill coverage
0m
700m
850m
1250m
INDICATED
INFERRED
TFFE
600m: Base of Previous Indicated Mineral Resources
Depth Below
Surface
North View
Photographs of geological units from
the 2007 Renard underground bulk sample program
11Renard 2 Geological Model and Renard 2-Renard 3 ConvergenceEffective September 24 2015
Pipe shape at surface (1.89ha)
Kimberlite outlineat surface (0.75ha)
Kimb2b (“Brown”)
Kimb2a (“Blue”)
CRBCRB-2a
Surface View, Looking Down
Surface View, Looking Down
0m
700m
850m
1250m
R2 INDICATED
R2 INFERRED
R2 TFFE
Depth Below
Surface
R3 INDICATED
R3 INFERRED
R3 TFFE
North East View
Resource categories were completed in accordance with the "CIM Definition Standards on Mineral Resources and Reserves". Mineral resources that are not mineral reserves do not have demonstrated economic viability. The potential quantity and grade of any Exploration Target is conceptual in nature, there has been insufficient information to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource.
Renard 2 Renard 3
Renard 2
Renard 3
126.6m R3 intersection in DDH R2-81J (in red) starting 942.2m downhole: 47m true width.
R3 TFFE: >500m potential between drill intersections
12
R2-R3
R65
Site ProgressSite Overview Dec 23, 2015
Admin
Process Plant
Accommodation
Maintenance Shop
R2-R3 PitR65 Pit
UG Mine Portal
Crusher
Power Plant
13Access Infrastructure In PlaceThe 240km long Route 167 Extension and the Clarence and Abel Swallow Airport
Eastmain River Bridge March 2015
September 2015July 2014
November 2015
Airport Naming Ceremony, March 2015
14Site ProgressMajor Facilities Well Advanced by end February 2016
Maintenance Facility completed September 2015Process Plant, Primary Crusher, and PK load-out, February 2016
Process plant rotary scrubber installation February 9th, 2016LNG Storage Vessels on Route 167, November 2015
LNG Power Plant, February 2016
Process Plant interior, February 2016 Renard 2-Renard 3 open pit, January 2016
15
6,000tpd (2.2Mt/a) nameplate capacity, expandable to 7,000tpd (2.6Mt/a)
Detailed engineering by DRA Americas Inc.
Flow sheet:• Primary jaw crushing to < 230mm• Twin DMS circuits at +1mm -19mm• LDR circuit at +19mm -45mm,
scalable to -60mm• Oversize +45mm to secondary cone
crusher• LDR and DMS tails +6mm -19mm to
tertiary High Pressure Grinding Rolls
Thickening and centrifugal treatment of fines and tails to create a truckable product for dry-stack disposal.
Diamond Processing PlantRepresents Single Largest Cap-ex Item and Critical Path for Overall Construction
16
The Renard Diamond Process Plant will be the first plant in the world to have LDR capacity in the primary flow sheet.Large Diamond Recovery (“LDR”) through TOMRA XRT.
Base Case Diamond Valuation Estimates Using on Best Practice MethodologyAverage diamond price estimate in March 2014 for the Mineral Reserves at US$190/ct (un-escalated).
High Quality Production with Large Stone PotentialDistribution in Renard 2 predicts three to six 50-100ct stones and one to two +100ct stones every 100,000 carats.
Substantial revenue potential from large diamonds not accounted for in the base case cash-flow model.
Diamond Processing PlantRepresents Single Largest Cap-ex Item and Critical Path for Overall Construction
Three Renard 65 diamonds: 9.78ct and 6.41ct diamonds recovered from bulk sampling and a 4 carat stone discovered in drillcore in 2003
Process Plant, Primary Crusher, and PK load-out, February 2016
Process plant rotary scrubber installation February 9th, 2016
17Open Pit MiningRenard 2 – Renard 3 Pit Pre-stripping Commenced March 2015
R2-R3
R65
Portal
Mining Progress as of October 31 2015 4,819,672 tonnes extracted from R2/R3 and R65 pits vs
plan of 5,210,884 (92%)
R2-R3 Pit October 30, 2015
18
Jumbo in Decline, May 25, 2015 Decline Ventilation, Sept 25, 2015
R2-R3
R65
Portal
Decline Progress as of October 31, 2015
837m against plan of 916m (91%)
Underground Mining
19Project ScheduleConstruction Mobilization July 10th 2014; Commercial Production Forecast Dec 31st 2016.
Feasibility Study (Complete)
ESIA (Complete)
Public Hearings (Complete)
Reg. Authorizations (Complete)
Specific Operating Permits (50)
Road Construction (Complete)
Project Financing (Complete)
Detailed Engineering
Site Construction
Commissioning and Ramp-up
Commercial Production
2012
2H 2H 2H 2H2H 1H 1H 1H1H
2013 2014 2015 2016
2H1H
2017
Revised Renard Construction Schedule has Plant Commissioning Planned for September 30, 2016 and Commercial Production by December 31, 2016.
Mar 2016
First Vehicle Access
Completion Status
Construction (to Dec 31): 63.3% (planned 59.6%)
Engineering (to Dec 31): 99.0% (planned 99.9%)
20
ShareholdingShare Price (TSX-SWY):Mar 7, 2016 C$ $1.03
52 week High-Low C$ $0.54–$1.05
Average Daily Volume:Last 12 Months 349,567
Market Capitalization: C$ 755 million
Total Shares Outstanding: 733 million
Total Options & Warrants Outstanding:(28.8m Options $0.51-$2.50; 123.3m warrants $0.90-$1.21)
152 million
Consolidated Cash1: (as of October 31, 2015) C$ 290 million
Consolidated Debt1: (as of October 31, 2015) C$ 219 million
Undrawn Financing Commitments2: (Subject to Financing Agreement CPs) C$ 214 million
Balance Sheet
Balance Sheet and Capital Structure
Notes1. Unaudited2. Assuming a C$:US$ conversion rate of C$1.10. Does not include $48 million in Cost Overrun Facilities
Investissement Québec 28.7% 22.5%
Orion Mine Finance 19.5% 17.5%
CDPQ 6.1% 6.2%
Float 45.7% 53.8%
DilutedBasic
21Publicly Listed Diamond Producers, Developers and ExplorersConsensus Analyst Views on Value
Ticker Price(3/7/16)
Shares O/S
(mm)
Market Cap
($mm)NAV/sh(1) Current
P/NAV(1) Target (1) % Return to Target
AnnualDividend
Diamond ProducersALROSA ALRS:M ₽72.95 7,365.0 ₽537,274 (n/a) (n/a) ₽74.26 4% ₽1.47/sh
Dominion Diamonds DDC:T $16.46 85.1 $1,401.3 $27.28 0.6x $21.95 37% US$0.40/sh
Gem GEMD:LN £1.11 138.3 £149.3 £2.00 0.5x £1.66 57% US$0.05/sh
Lucara LUC:T $2.49 380.1 $946.5 $2.90 0.9x $2.96 21% $0.06/sh
Petra PDL:LN £1.18 512.1 £604.3 £1.57 0.8x £1.33 14% £0.02/sh
Diamond DevelopersFirestone FDI:LN £0.20 309.0 £61.4 £0.50 0.4x £0.41 105% (n/a)
Mountain Province MPV:T $5.16 159.7 $823.9 $6.16 0.8x $5.83 13% (n/a)
Stornoway SWY:T $1.03 732.6 $754.5 $1.49 0.7x $1.21 18% (n/a)
Diamond ExplorersKennady Diamonds KDI:V $2.99 46.3 $138.8 (n/a) (n/a) (n/a) (n/a) (n/a)
North Arrow Minerals NAR:V $0.24 54.0 $11.3 (n/a) (n/a) (n/a) (n/a) (n/a)
Peregrine Diamonds PGD:T $0.135 339.1 $45.8 (n/a) (n/a) (n/a) (n/a) (n/a)
Shore Gold SGF:T $0.195 248.7 $49.7 (n/a) (n/a) (n/a) (n/a) (n/a)
Notes:
1. Bloomberg and Thomson One Analyst Consensus
All Currencies in C$ unless specified
22Sources and Uses of Funds to October 31, 2015On Current C$:US$ Exchange Rates, Unless Noted. Unaudited
(all amounts in millions of C$) AssumedActual use
of Proceeds to Oct 31,
2015
Renard Diamond Project
Capital Expenditures 811 421
Route 167 Extension (1) 70 70
Financing Costs, Interest during Construction, Loan Repayments 58 27
Mine Closure Guarantee 16 3
Pre-production Net Revenue (26) -
Total Project Costs 929 521
General Corporate Purposes
Equity fees and transaction costs 18 27
General working capital, administrative and salary expenses 14 6
Total Uses 961 554
Costs
Notes1. The total amount borrowed pursuant to the Renard Mine Road loan was $77 million, of which $70 million was used for construction of the Renard Mine Road and
$7 million was used for civil works related to the airstrip. Costs related to the airstrip were included in the $811 million capital expenditures line in the table above.2. Assuming a C$:US$ conversion rate of C$1.253. Cost Overrun Facility includes the $20 million Senior Loan Facility, Tranche B and the $28 million Cost Overrun Facility with the CDPQ4. This forecast assumes a project cost of $811 million (which includes assumed levels of escalation and contingencies), the satisfaction of all covenants and
conditions precedent for future funding, and a CAD$:US$ exchange rate of $1.25 for unfunded US dollar denominated financing commitments. As construction of the Renard Diamond Project progresses, this forecast is expected to change quarter to quarter based on the timing of expenditures and receipts, volatility in the CAD$:US$ exchange rate, and any change to the forecast cost of the project..
(all amounts in millions of C$)
Sources of Funds
Stream Deposits not yet received (2) 113
Senior Loan Facility, Tranche A 100
Cost Overrun Facility(3) 48
Equipment Financing Facility(2) 17
Undrawn Sources of Funds
As of October 31, 2015, Stornoway forecasts excess financing capacity available to complete the project of approximately $100 million comprised of $52 million of cash, receivables and expected mine tax credits and $48 million of undrawn cost overrun facilities(4).
23
Stornoway Diamond Corporation TSX:SWY
Head Office:1111 Rue St. Charles Ouest,
Longueuil, Québec J4K 4G4
Tel: +1 (450) 616-5555
IR Contact:
Orin Baranowsky, CFA, Director IR
Tel: +1 (416) 304-1026 x2103
www.stornowaydiamonds.com
[email protected] us at Booth #2938 and in the Core Shack
