Slide 1: Company presentation – Indaba February 2024
creating abundance from rarity Company presentation Indaba February 2024
Slide 2: Disclaimer
Disclaimer BY ATTENDING THE MEETING WHERE THIS PRESENTATION IS MADE, OR BY READING THE PRESENTATION SLIDES, YOU ACKNOWLEDGE AND AGREE TO COMPLY WITH THE FOLLOWING RESTRICTIONS. This presentation (the "Presentation") has been prepared and issued by and is the sole responsibility of Petra Diamonds Ltd
Slide 3: Company overview
Company overview The Cullinan Mine
Slide 4: Petra is the leading independent natural diamond miner
Petra is the leading independent natural diamond miner We primarily supply the manufacturing industry with gem/near gem quality natural diamonds safely and to the highest ethical standards Our mines produce a range of diamonds, from very large, highest quality gemstones spanning Type II white to yel
Slide 5: Building business resilience
Building business resilience A diversified portfolio of Proactive approach to Embedding sustainability long-life assets managing price cycles ✓ Petra manages one of the world’s ✓ Flexible approach to extension ✓ Safety our Number 1 priority largest diamond resources projects at Cullinan Mine & Finsc
Slide 6: Safety - our number 1 priority
Safety - our number 1 priority Underground employees conducting mini risk assessment LTI and LTIFR1 1.00 40 35 0.75 30 LTIFR 25 0.50 20 LTI 15 0.25 10 5 0.00 0 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 H1 FY24 LTI's 27 27 32 35 25 16 19 25 15 17 5 LTIFR 0.32 0.29 0.29 0.27 0.23 0.21 0.29 0.4
Slide 7: H1 FY 2024 Operating and FY 2023 Financial Results
H1 FY 2024 Operating and FY 2023 Financial Results1,2 Total tonnes treated Diamonds produced Average price (US$/ct) Revenue3 (US$m) (Mt) (Mcts) Latest half year operating 1.39 1.43 results as 5.8 159 207 announced on 5.3 113 188 16 January 2024 H1 FY23 H1 FY24 H1 FY23 H1 FY24 H1 FY23 H1 FY24 H1 FY23
Slide 8: Implementing a well-structured Sustainability Framework
Implementing a well-structured Sustainability Framework Operationalisation of our Sustainability Framework underway Recent developments KPIs embedded into business objectives Valuing our • Increased focus on proactively identifying and mitigating safety risks PEOPLE • Co-creation and implementation
Slide 9: Diamond market update
Diamond market update The plant at Cullinan Mine
Slide 10: Petra's recent sales tender results
Petra’s recent sales tender results Rough diamond prices appear to be bottoming out1 Petra’s av. price split by run-of-mine (ROM) and Exceptional Stones (US$15 million or higher)1 250.0 180 US$/ct 160 Index (US$, rebased to 100) 200.0 140 120 155.6 100 150.0 80 60 100.0 40 20 50.0 - H1 FY21 H2 FY21
Slide 11: Market overview
Market overview Supply discipline coupled with steps taken by the mid-stream and better-than-expected festive period sales appear to have normalized inventory across the supply chain Producers working to manage supply and stimulate demand Indian exports monthly from Mar 2018 to Dec 20231 • De Beers
Slide 12: Natural diamond supply expected to halve by around 2045
Natural diamond supply expected to halve by around 20451 It is estimated that just 15 or so “primary” diamond mines will still be in production globally by 20451 Planned closures and new mines • Major mines accounting for 15% of Udachniy Jubilee Zarnitsa Komsomolsky supply (Ekati, Diavik, Nyurbinska
Slide 13: Product mix geared to supportive fundamentals
Product mix geared to supportive fundamentals Natural diamond supply has peaked1 (Mcts) Middle-class to increase by 700m people by 20302 160 4.5 40 150 4.0 35 140 3.5 30 US$ trillion 3.0 Spending (right) 130 Billion 25 2.5 120 20 2.0 110 15 1.5 10 100 1.0 0.5 Population (left) 5 90 0.0 0 80 2020 203
Slide 14: Provenance, traceability and future branding opportunities
Provenance, traceability and future branding opportunities G7 sanctions has accelerated the move towards provenance and Traceability enables the traceabilty unique ‘story’ of each • Sanctions introduced in phases, commencing 1 January 2024; natural diamond to be told2: • 1 September 2024 set as a de
Slide 15: Laboratory-grown gem diamonds diverge as a separate product category
Laboratory-grown gem diamonds continue to diverge as a separate product category with a lower price point LGDs and natural diamonds can together grow the overall diamond market, but Pricing divergence continues for larger categories of they are two distinct product categories polished goods1 100% •
Slide 16: Considerations beyond pricing and value
Considerations beyond pricing and value Laboratory-grown diamonds are manufactured within Natural diamonds were formed billions of years ago and each weeks one is unique and rare • Two manufacturing processes exist (‘Chemical Vapour • Diamond-bearing kimberlites are rare; of 6,800 sampled Deposition
Slide 17: Project update
Need to replace since employee has left Project update Employees at Cullinan Mine
Slide 18: Cullinan Mine
Cullinan Mine Resource supports significant opportunity to extend beyond current mine plans FY 2023 actual vs. FY 2024 guidance and price assumptions2 2030 2040 2050 FY 2023 FY 2024 Approved mine plan to Rough diamond price actual & assumed1 Cullinan Resource 2032 Future projects: C-Cut Centre / Min
Slide 19: Cullinan Mine, project update and future potential
Cullinan Mine, project update and future potential Dumps Plant Shaft DevelopmentExtension projects projects (underway) Current mining C-Cut extension (T46 & T50 and C-Cut Current mining Centre) C-Cut • On pause until end June 2024 • Block cave mining to continue • 2.3Mcts originally expected to unti
Slide 20: Finsch mine
Finsch mine Resource supports significant opportunity to extend beyond current mine plans FY 2023 actual vs. FY 2024 guidance and price assumptions2 2030 2040 2050 FY 2023 FY 2024 Approved mine plan to Future projects: Orebody Rough diamond price actual & assumed1 Finsch Resource 2031 Block 6 (92L,
Slide 21: Finsch: further extension opportunities
Finsch: further extension opportunities Plant Shaft Dumps Current Production Current mining 4-level Upper Block 5 SLC DevelopmentExtension projects projects (underway) Recent improvements to production Lower Block 5 3-Level SLC have resulted from: • On hold until end of June 2024 • Recruitment of pe
Slide 22: Williamson mine
Williamson mine Resource supports significant opportunity to extend beyond current mine plans FY 2023 actual vs. FY 2024 guidance and price assumptions1 2030 2040 2050 FY 2023 FY 2024 Williamson Resource Approved mine Future projects: Open pit Rough diamond price actual & assumed1 Orebody continues
Slide 23: Williamson: significant potential beyond 2030 mine plan
Williamson: significant potential beyond 2030 mine plan Current Production Current mining Dumps Plant Mine plan defined by special mining 37.4Mt 49.5Mt 48 licence (ends 2030) MtMt 66 • 37.4Mt containing 2.63Mcts in Crater ± 64Mt reserves Granite Breccia Diatreme ± 400Mt 600m (depth of resource) 680m
Slide 24: Financial overview
Financial overview A necklace from Boodles’ Peace of Mined collection which showcases stones exclusively sourced from Cullinan Mine
Slide 25: Recent actions taken to build resilience
Recent actions taken to build resilience Targeted reduction to capex programme Increasing headroom and financial flexibility • Aiming for up to US$65 million in development capital savings in • Conditional approval of c. US$43 million increase in Petra's First FY 2024 through slowing or pausing 3 ex
Slide 26: Balance sheet snapshot
Balance sheet snapshot US$m (unless otherwise stated) As at As at As at 31 Dec 2023 31 Dec 2022 30 June 2023 Cash at bank (including restricted amounts) 75.4 146.6 61.8 Diamond debtors 8.1 4.9 8.9 Diamond inventories1,2 (US$m) 53.5 59.9 65.9 (Carats) 483,142 540,153 715,222 Loan notes (issued March
Slide 27: Disciplined capital allocation
Disciplined capital allocation Priority 1 Priority 2 Operational and social license to operate Approved mine extension projects at Cullinan Mine and Finsch Optimum stay in business capital Service debt obligations Objective: Objective: Generate value through mine life extensions beyond current mine
Slide 28: FY 2024 Company outlook
FY 2024 Company outlook – interims on 20 Feb 2024 Ongoing stabilisation and optimisation of operations Cullinan Mine: stabilised; continue to develop CC1E 813 and 833 Levels to ensure higher grade ore is brought to production from end June FY24 Finsch: manage near term volatility; continue developme
Slide 29: Appendix
Appendix Tunnel in Cullinan Mine Indaba- Feb 2024
Slide 30: 15 years of progress on sustainability
15 years of progress on sustainability Since 2008, Petra has managed and disclosed its performance on the most material ESG issues The major milestones on our sustainability journey to date: 2008 2013 2017 2019 Download our most recent Petra produces its first Petra commences climate Petra’s Sustain
Slide 31: FY 2023 financial highlights
FY 2023 financial highlights US$m FY 2023 FY 2022 Revenue Restated2 • Revenue of US$325.3 million. YoY reduction mainly due to a 20% decrease in Revenue 325.3 563.7 diamonds recovered, deferral of sales to FY 2024 and no contribution from Contribution from Exceptional Stones3 - 40.2 Exceptional Ston
Slide 32: FY2023 on-mine costs in-line with expectations
FY2023 on-mine costs in-line with expectations Group Diamond technical, Adjusted Williamson inventory and support and mining and tailings facility – Total mining On-mine cash Diamond stockpile marketing processing remediation and processing costs1 royalties movement costs2 costs costs3 Depreciation4
Slide 33: Consolidated net debt movement (FY 2023)
Consolidated net debt movement (FY 2023) Operational FCF (US$66.5 million) Indaba- Feb 2024 33
Slide 34: Impact of ZAR/USD movement on Petra
Impact of ZAR/USD movement on Petra Exchange rate volatility: 80-90% of operating costs are ZAR denominated USD • ZAR weakness impacted by global sentiment and inflationary pressures USD • Q1 FY 2024 closing exchange rate as at 30 September 2023 US$1:ZAR18.92 (Q1 FY 2023 USD US$1:ZAR18.15) Increase
Slide 35: FY 2024 cost breakdown – fixed (77%) and variable (23%)
FY 2024 cost breakdown – fixed (77%) and variable (23%) Indaba- Feb 2024 35