Petra Diamonds Limited · LSE:PDL
Petra Diamonds — Technical Presentation (January 2013)
47 slides from Petra Diamonds's technical presentation, Jan 30, 2013
Slide 1: Finsch Mine Welcomes You
Finsch Mine Welcomes You 30 January 2013
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: Finsch Site Visit Itinerary
Finsch Site Visit Itinerary • 11:15 Finsch mine presentation • 12:30 Underground visit • 14:00 Surface and overview of Central Control Room • 14:30 Lunch • 15:10 Plant and pit visit • 16:00 Diamond viewing • 17:00 CSR presentation and closing discussions • 17:45 Group 1 departs for Lime Acres airstr
Slide 4: Petra Diamonds
Petra Diamonds • Exceptional growth profile to 5 million carats pa • Diversified portfolio of producing mines & exploration • Major, long life resource base of +300 million carats • High quality assets & management team • Sustainability at heart of Petra • Pure play exposure to diamond market (LSE:P
Slide 5: An Exceptional Growth Path
An Exceptional Growth Path Petra has acquired five non-core diamond mines from De Beers: July 2007 July 2008 November 2008 May 2010 September 2011 Koffiefontein Cullinan Williamson Kimberley UG Finsch 74% Petra; 26% BEE 74% Petra; 26% BEE 75% Petra; 25% 76% Petra; 24% BEE 76% Petra; 24% BEE Governme
Slide 6: Proven Track Record – Continuous Growth
Proven Track Record – Continuous Growth - CAGR of 82% - CAGR of 41% US$ Mcts Finsch million contribution 2.65 Mcts* boosts EST ca. US$380m* revenue EST US$316.9m 2.2 Mcts +98% +44% Recovery in rough diamond Major increase prices & due to higher Decreased sale of 507 volume Cullinan revenue ct Cullin
Slide 7: Focus on Africa - source of ~60% of world’s diamonds by value
Focus on Africa - source of ~60% of world’s diamonds by value • Multi-mine portfolio provides flexibility in terms of operational performance • Disposal process underway for non-core Fissure Mines (Helam, Sedibeng, Star) Focus on kimberlite KX36 discovery & surrounding area 7
Slide 8: Objective – Accessing Undiluted Ore
Objective – Accessing Undiluted Ore • Current underground mining taking place in diluted mature caves nearing end of lives Still need to amend word ‘depleted’ to • Expansion programmes to take next ‘cut’ by ‘mature’ below deepening and establishing new block caves in undiluted kimberlite • Grades to
Slide 9: Finsch Overview
FINSCH OVERVIEW 9
Slide 10: Finsch At A Glance
Finsch At A Glance 1961 1963 1978 1980 1990 2002 2008 2011 14 Sep 2011 Established Finsch Diamonds Full mining rights First stage underground Upgrade of treatment plant Open pit operation ceased Development of Block 4 Second upgrade of treatment Change of ownership & start mining started plant of Bl
Slide 11: A Sustainable Future
A Sustainable Future Before – facing closure: (Tonnes) 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Block 4 After – Petra mine plan of +18 years: (Tonnes) 4,000,000 3,500,000 Resid
Slide 12: Mine Site Layout
Mine Site Layout 9 2 6 5 4 8 1 3 7 1 Underground 3 Post-79 TD 5 Waste rock dump 7 FRD’s 1,2 and 3 and Infill Dam 2 Pre-79 TMR 4 Overburden Deposit 6 Britz FRD 8 Old Paddocks 12
Slide 13: Mining Overview
MINING OVERVIEW 13
Slide 14: Geology
Geology • The Main Pipe is roughly circular and intrudes into Karoo and Griqualand West Group Rocks • A Group II kimberlite pipe with an age of 118Ma • 17.9ha on surface • Tapers to 3ha at 1,000m • Truncates earlier Precursors • Total of 8 different kimberlite facies each with unique characteristics
Slide 15: Block 4 Block Cave
Block 4 Block Cave Develop tunnels Create Undercut slot 61L 61L 15 63L 63L
Slide 16: Block 4 Block Cave
Block 4 Block Cave Develop tunnels Create Undercut slot Drill Undercut rings Blast Undercut rings Create Troughs 61L 61L 16 63L 63L
Slide 17: Block 4 Block Cave
Block 4 Block Cave Reach hydraulic radius 61L 61L 17 63L 63L
Slide 18: Block 4 Block Cave
Block 4 Block Cave Reach hydraulic radius Development complete Undercut complete 61L 61L 18 63L 63L
Slide 19: Block 4 Block Cave
Block 4 Block Cave Break through into pit 61L 61L 19 63L 63L
Slide 20: Block 4 Block Cave
Block 4 Block Cave 51L 51L Sidewall collapse 53L Draw cave down 53L 61L 61L 20 63L 63L
Slide 21: Block 4 Block Cave Draw Control
Block 4 Block Cave 51L 51L 53L 53L Draw Control 61L 61L 21 63L 63L
Slide 22: Mining Overview
Mining Overview 4 PetraDiamonds RETURN AIR PASS ORE PASSES VENT PASSES \ a EAST + WEST VENT PASS SURFACE VTO 29 LEVEL om) A \ \ 000000 SIZERS +t BLOCK 5 BLOCK 5 RAMP BLOCK 6 MAIN SHAFT BLOCK 4 —— 771LVL —— 82.5 SHAFT BOTTOM SCHEMATIC LAYOUT o 50 100 200 METRES.
Slide 23: Block 4 – 63 Level Layout
Block 4 – 63 Level Layout Haulage Loop Dump trucks : TORO T50 Bucket load : 50 tonnes Truck loop 23
Slide 24: Development Programme
DEVELOPMENT PROGRAMME 24
Slide 25: Expansion Plan – Key Deliverables
Expansion Plan – Key Deliverables Expansion Plan – to take ROM production from 2.8Mtpa to 3.5Mtpa • Mining currently taking place in Block 4 at 630m – FY 2013 Current Mining Area Block 4 Pillars Change in scope for FY 2013 to 670m FY 2016: • SW Precursor removed from 710m mine plan Block 5 Sub-Level
Slide 26: Expansion Plan – Underground Overview
Expansion Plan – Underground Overview Raiseboring Sub Level Cave Proposed Rail Veyor route SLC Rim Interception Block Cave 70 Level – Sep 2013 73 Level - Aug 2013 75 Level - May 2013 78 Level - April 2013 Ground handling decline to Crusher Excavation Bottom Access Sep 2013 Shaft Deepening 26
Slide 27: Cost Make-up And Challenges
Cost Make-up And Challenges • Manage rising energy costs through effective design, maintenance and management of 19% new and old infrastructure Labour 46% Stores • Designs to cater for appropriate 12% Power levels of automation Other • Advancement of Group 23% procurement strategy to yield benefits
Slide 28: H1 FY 2013 Trading Update Results
H1 FY 2013 Trading Update Results Unit H1 FY 2013 H1 FY 2012¹ Variance FY 2012 Sales Revenue US$M 65.9 28.3 +133% 136.9 Diamonds sold Carats 540,728 219,408 +146% 989,101 Average price per carat US$ 122 129 -5% 138 ROM Production Tonnes treated Tonnes 1,387,067 790,715 +75% 2,260,842 Diamonds produc
Slide 29: Plant Overview
PLANT OVERVIEW 29
Slide 30: Plant Infrastructure
Plant Infrastructure Pre upgrade: • Original plant built – 1964 • First upgrade completed – 1980 • Underground operation commence – 1990 • Introduce Pre-79 dump retreatment – 2003 • Full contops since 2005 @ capacity of 5.7 Mtpa Post upgrade: • Finsch Mine Treatment Plant Upgrade – predominantly the
Slide 31: Plant Overview
Plant Overview Ore Reception Ore Preparation Concentration Mine Residue Disposal Recovery WIFS 31
Slide 32: Simplified Process Flow
Simplified Process Flow Shaft -300mm Primary Gyratory Crusher -150mm Buffer Stockpile Secondary & Tertiary Crushing High Pressure Rolls Crushing Coarse DMS -22mm Overspill Bin +22mm -150mm -22+ 1mm Feed Separation & -22+8mm Final Recovery Primary Scrubbing & Secondary Screening Scrubbing -1mm -8+1mm
Slide 33: Tailings
Tailings • Throughput of ca. 2.8 Mtpa in FY 2013, ramping up to 3.5 Mtpa by FY 2014 • Phase 1: Treat Pre-1979 Tailings (ca. 18 cpht) until depleted in FY 2015 • Phase 2: Treat Post-1979 Tailings (ca. 10 cpht) • Tailings production expected to cease in FY 2020 Pre-1979 Tailings Post-1979 Tailings 33
Slide 34: Finsch – Special Recoveries
Finsch – Special Recoveries • Regular production of large, special diamonds & fancy colours • Selection of specials recovered by Petra (except 204.7ct to left) 204.7cts (2003) 2 classic models of 6-7.5cts (2012) 88cts (Oct 2011) 52.2cts (Dec 2011) 57.4cts (Jan 2012) 32.1cts (Feb 2012) 52.3cts (May 2
Slide 35: Production Plan
Production Plan Taking production to 1.9 million carats by FY 2017 ROM Tonnes (Mt) Carats (Mcts) 4.0 2.5 3.5 2.0 3.0 2.5 1.5 2.0 1.5 1.0 1.0 0.5 0.5 0.0 0.0 2012 2013 2014 2015 2016 2017 2018 2019 2012 2013 2014 2015 2016 2017 2018 2019 Total ROM ROM Carats Tailings Carats 35
Slide 36: Sustainability
SUSTAINABILITY 36
Slide 37: Safety, Health And Environmental
Safety, Health And Environmental 14 2.0 1.8 12 1.6 10 1.4 No. of Injuries 1.2 8 LTIFR 1.0 6 0.8 4 0.6 H1 0.4 2 0.2 0 2002FY 2003FY 2004FY 2005FY 2006FY 2007FY 2008FY 2009FY 2010FY 2011FY 2012FY 2013FY 0.0 Fatals 0 0 0 0 0 0 0 1 0 0 0 0 LTI 11 8 10 8 12 4 3 2 2 5 6 2 LTIFR 0.47 0.27 0.29 0.19 0.39 0.
Slide 38: Safety, Health And Environmental
Safety, Health And Environmental Achieved 1,000,000 Fatality Free Shifts (25 June 2012) ISO14001:2004 OHSAS18001:2007 re-certification re-certification 38
Slide 39: Corporate Social Investment (CSI)
Corporate Social Investment (CSI) • Finsch Diamond Mine plays an active and supportive role in the local community • The mine contributes to a wide number of community projects – below are just a few examples: 1. Social labour plan projects - Replacement of water supply pipes - Upgrade of electrical
Slide 40: Conclusion
Conclusion • A major producer with a sustainable future • Initial mine plan of 18 years, but orebody is open ended • State-of-the-art, modern mining infrastructure • Shaft capacity 4.6 mtpa • Plant capacity 7.2 mtpa • Margins to increase significantly once expansion plan accesses undiluted ore • Gra
Slide 41: Finsch Contribution To Petra Group
Finsch Contribution To Petra Group 41
Slide 42: Appendix
P PetraDiamonds Appendix
Slide 43: Finsch BEE Structure
Finsch BEE Structure • Petra has strong relationships with its BEE The Petra Senakha Diamonds partners Petra Diamonds Diamonds Investments (Pty) Limited Employee Ltd Trust • Senakha Diamonds is a consortium comprising: 5% 21% • Sedibeng Mining (Pty) Ltd 74% • Lexshell 844 Investments (Pty) Ltd Finsc
Slide 44: Resource Statement (as at 30 June 2012)
Resource Statement (as at 30 June 2012) Category Gross Net attributable Tonnes Grade Contained Tonnes Grade Contained (millions) (cpht) Diamonds (millions) (cpht) Diamonds (Mcts) (Mcts) Reserves Proved - - - - - - Probable 56.763 42.16 23.930 42.005 42.16 17.708 Sub-total 56.763 42.16 23.930 42.005
Slide 45: Group Capex Profile
Group Capex Profile Financial Year 2013 2014 2015 2016 2017 2018 2019 Operation Finsch ROM tonnes treated 2.8 2.8 3.2 3.5 3.5 3.5 3.5 Tailings tonnes treated 2.8 3.5 3.5 3.5 3.0 3.0 3.0 Expansion Capex (ZARm) 449.8 665.7 377.8 221.9 321.1 168.2 93.0 Sustaining Capex (ZARm) 93.6 78.7 71.7 71.0 68.7 6
Slide 46: Diamond Recovery
Diamond Recovery • Hardness (Liberation) • Diamond - Mohs Scale = 10, Tensile Strength = 2400 Mpa • Kimberlite - Mohs Scale = 6, Tensile Strength = 10 Mpa • Density (Dense medium separation) • Diamond - S.G. = 3.52 • Kimberlite - S.G. = 2.65 • Hydrophobic & Oleophyilic (Grease recovery) • Colour (tr
Slide 47: Thank You
ro, va Cc eo) = a0) Petra Thank You
Petra Diamonds — Technical Presentation (January 2013) on 6ix