Petra Diamonds Limited · LSE:PDL
Petra Diamonds — H1 FY2011 Earnings Presentation
32 slides from Petra Diamonds's earnings presentation, Feb 21, 2011
Slide 1: Interim Results (6 Months to 31 December 2010)
Interim Results (6 Months to 31 December 2010) 21 February 2011
Slide 2: Important Notice
Important Notice These Presentation Materials do not constitute or form part of any invitation, offer for sale or subscription or any solicitation for any offer to buy or subscribe for any securities in the Company nor shall they or any part of them form the basis of or be relied upon in any manner
Slide 3: Interim Highlights
Interim Highlights FINANCIAL HIGHLIGHTS • Group mine revenue: US$90 US$90.0m 0m (H1 FY 2010: US$48 US$48.4m) 4m) • Profit from mining activity: US$24.5m (H1 FY 2010: US$8.0m) • Operating cashflow: US$11.9m (H1 FY 2010: US$4.8 million outflow) • G Group EBITDA US$20.2m EBITDA: US$20 2 (FY 2010 2010:
Slide 4: Interims Highlights Cont.
Interims Highlights Cont. CORPORATE HIGHLIGHTS • ca. US$83m debt facilities in place with IFC and RMB ca • Repayment of Al Rajhi loan (US$30.7m) and accrued interest • Effective interest in Koffiefontein mine increased from 70% to 74% • BEE partner t iintroduced t d d att Helam H l mine; i allll SA
Slide 5: Summary Results – Key Numbers
Summary Results – Key Numbers 6 months to 6 months to 12 months to 31 Dec 10 31 Dec 09 30 Jun 10 (US$m) (US$m) (US$m) R Revenue* * 90 0 90.0 48 4 48.4 163 7 163.7 Mining & processing costs (66.8) (40.5) (98.9) Profit from mining activity* 24.5 8.0 67.2 Other operating income - 6.7 5.4 Exploration ex
Slide 6: Balance Sheet Snapshot
Balance Sheet Snapshot 31 Dec 2010 31 Dec 2009 (US$m) (US$m) Cash and cash equivalents: Bank 20.8 65.0 Diamond inventories 20.2 34.8 Total¹ 41.0 99.8 Loans, borrowings and deferred consideration: IFC / RMB Debt Facilities (ca. US$83m in total) 54.1 (gross) n/a Al Rajhi loan n/a 50.7 Deferred Cullina
Slide 7: Diamond Market Performance - 2010
Diamond Market Performance - 2010 • Diamond market rebounded fully from Breakdown of global diamond downturn & prices continued to strengthen consumer demand in 2010 throughout g yyear • Continued rising trend witnessed in Petra’s February 2011 tender (prices up 6 – 8%) • Market underpinned by retai
Slide 8: Mine Revenue / Volume Split
Mine Revenue / Volume Split Diamonds Sold Gross Revenue 584,234 carats US$90 million 7% 9% 1% 2% 3% 6% 6% Cullinan Koffiefontein Kimberley Williamson Fissures 64% 19% 83% 8
Slide 9: Cullinan (South Africa)
Cullinan (South Africa) Ownership 74% Petra; 26% Unit 6 months ended 31 6 months ended 31 BEE December 2010 December 2009 Sales Revenue US$M 57.8 40.2 Diamonds sold Carats 481,049 461,365 Average price per carat US$ 120 87 Total Production (ROM & Tailings) • Source of world’s Tonnes treated Tonnes 1
Slide 10: Koffiefontein (South Africa)
Koffiefontein (South Africa) Ownership: 74% effective Unit 6 months ended 31 6 months ended 31 interest; 26% BEE December 2010 December 2009 Sales Revenue US$M 17.2 9.4 Diamonds sold Carats 36,669 28,008 Average price per carat US$ 470 337 Total Production (ROM & Tailings) Tonnes treated Tonnes 802
Slide 11: Kimberley Underground (South Africa)
Kimberley Underground (South Africa) Ownership 74% Petra; 26% Unit 6 months ended 31 6 months ended 31 BEE December 2010 December 2009 Sales Revenue US$M 4.9 n/a Diamonds sold Carats 17,271 n/a Average price per carat US$ $ 285 n/a Total Production (all ROM) Tonnes treated Tonnes 176,527 n/a • Poten
Slide 12: Williamson (Tanzania)
Williamson (Tanzania) Ownership 75% Petra; 25% Unit 6 months ended 31 6 months ended 31 Government of United December 2010 December 2009 Republic of Tanzania Sales S l Revenue US$M 2.0 6.9 Diamonds sold Carats 7,722 48,883 Average g pprice p per carat US$ $ 264 141 Total Production (Alluvial only) T
Slide 13: Finsch – A New Flagship Asset
Finsch – A New Flagship Asset • South Africa’s second largest diamond mine by production • State-of-the-art infrastructure & modern plant • (Shaft 4.6 Mtpa; Plant 7.2 Mtpa) • Resource of 48 Mcts, incl. 26.6 Mcts reserves & 4.7 Mcts tailings • Av. p production of ca. 2 Mcts p pa over last 5 yyrs • Pe
Slide 14: Petra Diamonds – An Exceptional Growth Profile
Petra Diamonds – An Exceptional Growth Profile 6 800 700 5 600 4 500 Expected Gross Expected Carats 3 400 Revenue (Millions) (US$ m) 300 2 200 1 100 0 - FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 (Actual) Cullinan Koffiefontein Kimberley U/G Williamson Fissures F
Slide 15: Balanced Production & Revenue
Balanced Production & Revenue Gross Production FY 2012 (1)(2) Gross Revenue FY 2012 (1)(2) 3.1 Million Carats US$444 million $105 1.0 Cullinan Williamson $178 Koffiefontein 1.5 Kimberley $40 Fissure Mines 0.2 Finsch $36 0.1 0.2 $30 $55 0.1 Mcts US$m Gross Production FY 2019 (1) Gross Revenue FY 2019
Slide 16: Appendices
\Y PetraDiamonds Appendices
Slide 17: Capital Structure
Capital Structure High Quality Shareholder Base 18 Feb 11 Share Price Chart Al Rajhi Holdings W.W.L. 13.4% Saad Investments Company Ltd/AWAL Bank 12.3% JP Morgan Asset Management (UK) Ltd 8.7% Capital p Group p International,, Inc. 7.4% Scottish Widows Investment Partnership 5.6% BlackRock Investmen
Slide 18: Exposure To Strong Diamond Market
Exposure To Strong Diamond Market • Diamond supply constraints - world’s largest diamond mines are past their peak • Only around 30 diamond mines of significance globally • Significant supply / demand deficit expected to emerge in 3 years • Strong demand growth continues from China & India – urbanis
Slide 19: The Petra Board
The Petra Board Adonis Pouroulis Johan Dippenaar David Abery Jim Davidson Chairman CEO Finance Director Technical Director S Successful f l mining i i entrepreneur t One off South O S th Africa’s Af i ’ mostt Extensive E t i experience i as Chi Chieff Acknowledged A k l d d worldld authority th it s
Slide 20: A Diversified Production Portfolio
A Diversified Production Portfolio Limpopo Helam Cullinan Mpumalanga Williamson NorthWest Province Johannesburg Gauteng KwaZulu Sedibeng Star Natal Finsch FreeState Kimberley NorthernCape Koffiefontein Production Durban SouthAfrica South Africa • Cullinan EasternCape • Koffiefontein • Kimberley Unde
Slide 21: Building A Leading Diamond Producer
Building A Leading Diamond Producer Q4 FY2011 July 2007 July 2008 November 2008 May 2010 (Pending) Koffiefontein Cullinan Williamson KimberleyUG Finsch 74% Petra 74% Petra 75% Petra 74% Petra 74% Petra 26% Re-Teng 14% Thembinkosi / 25% Government of 26% Sedibeng Mining 26% BEE Partners Diamonds 12%
Slide 22: Group Gross Resources
Group Gross Resources G Gross C Caratt B Base G Gross I it Value In-situ V l 309.1 Mcts US$38.0 billion 48.1 $5.7 4.6 $0.7 7.5 Cullinan $1.4 5.7 57 Williamson Koffiefontein $2.2 Mcts Kimberley US$bn 40.0 $20.8 Fissures Finsch 203.3 $7.2 22
Slide 23: Growth Profile – Historic
Growth Profile – Historic million Gross Production Gross Revenue Recovery in carats Major US$ million rough diamond increase due prices & sale of 1.4 to higher volume 200 Cullinan H it Heritage Cullinan mine 180 1.2 Acquisitions 160 of Cullinan and Willi Williamson 1.0 140 120 0.8 Acquisition of 100
Slide 24: Key Economics
Key Economics Finsch Cullinan Williamson Koffiefontein Kimberley U/G Current production rate (Mtpa) 3.2 2.3 2.1 0.9 0.6 35 3.5 40 4.0 10 0 10.0 12 1.2 10 1.0 Expansion tonnes (Mtpa) (FY2018) (FY2019) (FY2014) (FY2017) (FY2012) ROM US$ / carat (1) 135 105 200 480 250 ( ht) (1) G d (cpht) Grade 47 0 4
Slide 25: Petra Expansion Profile (incl. Finsch)
Petra Expansion Profile (incl. Finsch) Financial Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 Operation Area Finsch Existing Block 4 (630 meter Level) - Block 4 pillars - SLC Block 4 precursor - SLC S C 770 meter Level - Block 5 880 meter Level Development tonnes ROM Tonnes (Mt) 0.8 3.2 3.2 3.2
Slide 26: Block Caving – Aim Of Expansion Programmes
Block Caving – Aim Of Expansion Programmes VIRGIN KIMBERLITE PIPE DRAWPOINTS UNDILUTED ORE UNDERCUT LEVEL PRODUCTION LEVEL LOADERS HAULAGE 26
Slide 27: Cullinan Orebody
Cullinan Orebody CurrentInfrastructure CurrentShaftBottom 580Level PlannedInfrastructure BA5 AUCSouthand 630mLevel BAWPhase1 BB1E CCUT 732mLevel Phase2 830m Level 830mLevel 763mLoadingLevel 950mShaftBottom KimberliteFootprint Kimberlite Footprint CCUT 16Ha@830Level CurrentextentofSouthDecline 1073mB
Slide 28: Koffiefontein Orebody
Koffiefontein Orebody Current Infrastructure Planned Infrastructure West Cave 52b Recovery New Front Cave New Block Cave dd ? PetraDiamonds 490m Level 520m Level 690m Level
Slide 29: Kimberley Underground Orebodies
Kimberley Underground Orebodies 29
Slide 30: Williamson Orebody
Williamson Orebody Y PetraDiamonds 3 year pit shell Ramp Current Pit Bottom Final Pit Bottom (205m)
Slide 31: Finsch Orebody
Finsch Orebody Footprintat800mLevel Mainpipe:4.4ha Precursor:1.6ha 31
Slide 32: Thank You
\Y PetraDiamonds Thank You