Petra Diamonds Limited · LSE:PDL
Petra Diamonds — Technical Presentation (November 2011)
25 slides from Petra Diamonds's technical presentation, Nov 1, 2011
Slide 1: Finsch – A Major Diamond Producer
Finsch – A Major Diamond Producer 1 November 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: Petra - A Diversified Production Portfolio
Petra - A Diversified Production Portfolio Limpopo Helam Cullinan Mpumalanga Williamson North West Province Johannesburg Gauteng KwaZulu‐ Sedibeng Star Natal Finsch Free State Kimberley Northern Cape Koffiefontein Production Durban South Africa South Africa • Cullinan Eastern Cape • Koffiefontein •
Slide 4: Finsch Overview
FINSCH OVERVIEW 4
Slide 5: Overview Of Finsch
Overview Of Finsch • South Africa’s second largest diamond mine by production • World-class operation with best-in-class infrastructure and modern plant • Block cave mining (high volume, low cost) • Major resource of 43.7 Mcts, including 25.8 Mcts in reserves and 2.5 Mcts of tailings • Average produ
Slide 6: Finsch – History Of Specials
Finsch – History Of Specials • Finsch has produced a number of large, special diamonds in its history • Recovery of significant large, high-value stones will substantially increase the total value of production in any one year 204.7 carats (2003) • Potential for upside to valuation of US$180 per ROM
Slide 7: World-class Infrastructure
World-class Infrastructure • State-of-the-art, modern mining infrastructure • Shaft capacity 4.6 mtpa • Plant capacity 7.2 mtpa • 2007 – Finsch Mine Treatment Plant Upgrade • Incorporates latest diamond extraction methods developed by De Beers • Allows Finsch to re-treat the Pre-79 TMR on a viable b
Slide 8: Treatment Plant Flow Sheet
Treatment Plant Flow Sheet ey vom # PetraDiamonds iss -14 PRE-79 TAILINGS WET IN-FIELD SCREENING
Slide 9: Tailings
Tailings Pre-1979 Tailings • Finsch currently treating Pre-1979 Tailings at grade of ~18 cpht • Pre-1979 tailings expected to be treated at a rate of ~3.5 Mtpa until depleted in FY 2015 • Post-1979 Tailings to be treated thereafter, at lower grade of ~10 cpht Post-1979 Tailings • Tailings production
Slide 10: SHE Overview
SHE Overview 1.6 Finsch Mine LTIFR (1984 - 2011) 1.5 1.4 1.3 1.2 1.1 1 LTIFR 0.9 0.8 0.7 0.6 LTIFR 2011 YTD: 0.19 0.5 0.4 0.3 0.2 0.1 0 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 YEAR • Impressive safety
Slide 11: A Successful Takeover
A Successful Takeover • Acquisition completed 14 September 2011 • Strong core management team retained • No takeover issues or unexpected complications • Underground ROM and tailings production throughput above initial expectations • Combined grade running above expectations • Programme to increase
Slide 12: Mining Overview
MINING OVERVIEW 12
Slide 13: Geological Footprint
Geological Footprint • Finsch kimberlite pipe is a near vertical intrusion; surface area of 17.9ha; elliptical in outline • A Group II kimberlite pipe with an age of 118Ma • Pipe emplaced through thick sequence of Transvaal Supergroup sedimentary rocks comprising dolomites, banded iron formation and
Slide 14: Significant Diamond Resource
Significant Diamond Resource Gross Net attributable Contained Contained Tonnes Grade Diamonds Tonnes Grade Diamonds Category (millions) (cpht) (Mcts) (millions) (cpht) (Mcts) Reserves Proven - - - - - - Probable 58.598 43.99 25.779 43.362 43.99 19.076 Sub-total 58.598 43.99 25.779 43.362 43.99 19.07
Slide 15: Finsch – Underground Schematic
Finsch – Underground Schematic Footprint at 800m Level Main pipe: 4.4 ha Precursor: 1.6 ha 15
Slide 16: Finsch Mine Plan
Finsch Mine Plan Objective: initial production of ~1.5 Mctpa (~900,000 ROM carats + ~600,000 tailings carats), increasing with commencement of Block 5 to steady state production of nearly 2 Mctpa Life of mine plan of 18 years (orebody remains open-ended at depth) • Petra currently mining Block 4 at
Slide 17: Financials and Guidance
FINANCIALS AND GUIDANCE 17
Slide 18: Production Forecast
Production Forecast Will take production to 1.9 million carats by 2017 Carats (Mct) ROM Tonnes (Mt) 2.5 4.0 3.5 2.0 3.0 1.5 Millions 2.5 Millions 2.0 1.0 1.5 1.0 0.5 0.5 - - 2012 2013 2014 2015 2016 2017 2018 2019 2012 2013 2014 2015 2016 2017 2018 2019 ROM Tailings ROM 18
Slide 19: Finsch Guidance
Finsch Guidance • Finsch LOM: current plant up to 2028; residual Block 6 resource to possibly extending LOM beyond this period • Ownership: 74% • LOM environmental closure liability: R200 million • FY 2011 tax shield estimated: R800 million (due to acquisition of assets) • Group management fees: R36
Slide 20: Cost Make-up And Challenges
Cost Make-up And Challenges Ongoing issues being addressed: • The rising cost of electricity through effective design, 19% maintenance and Labour management of new and old 46% Stores 12% infrastructure Power Other • Designs to cater for 23% appropriate levels of automation • Advancement of a group p
Slide 21: Outlook
Outlook • First Finsch tender being held now – high quality production • Adds ~125,000 carats per month to Petra production profile • Combined production running ahead of schedule • Increases Petra’s critical mass in terms of personnel and procurement • Continuing Petra’s strategy to build a world-c
Slide 22: Thank You
? PetraDiamonds Thank You
Slide 23: Finsch BEE Structure
Finsch BEE Structure • BEE structure similar to that at Cullinan The Petra Lexshell 846 Petra Diamonds Diamonds • BEE partners in Lexshell 846 are Sedibeng Investments (Pty) Limited Employee Ltd Mining, Umnotho Wesizwe newco and Share Trust Namoise (women’s group) (commercial BEE companies) 74% 5% 2
Slide 24: The History Of Finsch
The History Of Finsch 1961 Finsch Diamonds founded by Fincham & Schwabel 1964 All shares and rights of Finsch Diamonds acquired by DBCM 1967 Official opening of Finsch & establishment of original plant 1978 First stage of underground mining with start of decline and construction of shaft 1980 Extens
Slide 25: Further enquiries: Petra Diamonds
Further enquiries: Petra Diamonds Cathy Malins cathym@petradiamonds.com +44 20 7318 0452 www.petradiamonds.com
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