Slide 1: Cullinan site visit
Cullinan site visit 07 May 2022
Slide 2: Disclaimer
Disclaimer • This presentation contains certain forward-looking statements, which are subject to the risk factors and uncertainties associated with the diamond mining industry. • Whilst Petra believes the expectations set out in this presentation are reasonable in light of the information currently
Slide 3: The visit and the speakers
The visit and the speakers 09:45 Presentation by Petra team 11.00 Safety training Jacques Richard Duffy Thashmi Breytenbach Greg Stephenson 11:15 Change for underground visit Chief Executive Doorasamy Sales and Marketing Chief Financial Officer Human Resources & Officer Executive Public Affairs 11:4
Slide 4: Petra overview
Petra overview Richard Duffy The 39.34 carat blue diamond from the Cullinan mine sold for $40.2m ($1m per carat) in July 2021 – believed to be the highest price per carat on record for a rough diamond
Slide 5: Petra is a mid-tier, multi-asset diamond producer
Petra is a mid-tier, multi-asset diamond producer with strong sustainability credentials in a transformative phase 3.4 Mcts $528.1m $200.3m $107.0m LTM to 31 Mar 2022 LTM to 31 Mar 2022 LTM to 31 Dec 2021 as at 31 Mar 2022 Production Revenue Adjusted EBITDA Consolidated net debt LTM – Last 12 months
Slide 6: 9M FY 2022 highlights – strong operating performance and sales
9M FY 2022 highlights – strong operating performance and sales Production Mt; Mcts LTIFR 0.47 8.6 0.44 8.1 6.1 3.24 0.18 2.61 2.44 9M FY 2022 9M FY 2021 FY 2021 9M FY 2022 9M FY 2021 FY 2021 Ore processed Diamonds recovered Revenue Total injuries incl. LTIs $m 42 405.4 406.9 30 284.2 24 9M FY 2022 9
Slide 7: Revenue contribution from Exceptional Stones
Revenue contribution from Exceptional Stones • Some of the rarest diamonds in the world • Validation of Cullinan investment in C-Cut to support Exceptional Stone output • Williamson is the world’s most important source of large pink diamonds 39 carat blue sold for 299 carat white sold for $40.2m ($1
Slide 8: Value proposition
Value proposition Robust operations and growth potential Strengthened financial platform • Best-in-class safety performance • Strong cash generation through 3-year Project 2022 • New sustainability framework • Net free cash flow to exceed $200 million by FY 2022 • Third largest global diamond resour
Slide 9: Cullinan overview
Cullinan overview Jaison Rajan At 25.75cts, this stone is the largest of the Letlapa Tala Collection of five blue diamonds from the Cullinan mine, that sold as a collective for $40.4 million in November 2020
Slide 10: Cullinan
Cullinan 2.3m 36.5 cpht $119 $167.7m 149.8 H1FY22 $/ct H1FY22 ROM Tonnes H1FY22 ROM Grade H1FY22 Revenue Gross Resource (Mcts) $192 incl Exceptionals Cullinan is one of the world’s most celebrated It is renowned as a source of very rare and highly diamond mines. It is the source of the 3,106ct valua
Slide 11: Cullinan - a world class diamond resource
Cullinan - a world class diamond resource Indicated Resource of 224 million tonnes containing 133 million carats allows for considerable potential mine life extension Gross as at 30 June 2021 Contained Tonnes Grade Diamonds Category (millions) (cpht) (Mcts) Reserves: - Proved - - - Probable 38.56 38
Slide 12: Safety performance
Safety performance LTI & LTIFR COMPARISON (CDM) 20 0.90 18 0.80 16 0.70 14 NUMBER 0.60 12 0.50 LTIFR 10 0.40 8 0.30 6 4 0.20 2 0.10 0 9m- 0.00 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Fatalities 0 0 0 2 0 0 0 0 1 0 0 0 0 0 1 0
Slide 13: Safety performance achievement - 365 days lost time injury free
Safety performance achievement- 365 days lost time injury free CDM Lost time injury free days - Historic statistics (2015-2022) 2022 365 2021 101 2020 211 2019 115 Year 2018 84 2017 95 2016 122 2015 133 0 50 100 150 200 250 300 350 400 2015 2016 2017 2018 2019 2020 2021 2022 CDM 133 122 95 84 115 21
Slide 14: Cullinan operations
Cullinan operations Cyril Dakada A Load Haul Dumper preparing to offload ore into the ore pass feeding the primary crusher on 839L production level in the C-Cut Block Cave at Cullinan
Slide 15: Cullinan stabilised and optimised
Cullinan stabilised and optimised Dumps Plant Shaft C-Cut Block (western side) • Sole source of Cullinan tonnes until CC1E contributes from FY 2024 Open pit to 189 metres below surface • Known to contain high value Type II 1903-1932 stones • Convergence in southern part of Tunnel 41 in September 202
Slide 16: C-Cut Production
C-Cut Production NC2 C-Cut Infrastructure T32 T36 T41 • 8 Extraction tunnels • 107 Draw Bells NC1 • 175 Active Draw Points T27 • 4 Double-Pass Tips • 4 Crushers (2 x North, 2 x South) T22 NE Corner • 10 x C1600 LHD T18 • Capacity circa 4.2 Mtpa T14 Geotechnical Risk • Tunnel convergence 2018-2019 •
Slide 17: Plant design exploits Cullinan's unique characteristics
Plant design exploits Cullinan's unique characteristics Characteristics specific to the Cullinan ore • Combination of harder and softer material - ideal for milling • Relatively high DMS yield calls for sensor based sorting for larger particles • Sorting process to distinguish between diamonds and o
Slide 18: Cullinan plant – process flow
Cullinan plant – process flow • TOMRA XRT modular plant added to flow chart as BI Trial in 2021; • XRT plant made 10 recoveries; • XRT plant validates existing process flow scheme and recovery efficiencies in this high value stream Draw Point Height of Draw Cullinan site visit 18
Slide 19: ROM grade progression
ROM grade progression Annual UG Production (excl. development waste) 5,000 Forecast as guided 50 • C-Cut achieved and Thousands 4,500 Mill Plant 45 is maintaining full Commissioned production output 4,000 40 capacity Recovered ROM Grade (cpht) 3,500 35 • Grade performance 3,000 30 stabilised and in
Slide 20: Cullinan expansion
Cullinan expansion Tumelo Matoba Cullinan mine in South Africa
Slide 21: CC1 East expansion project commenced
CC1 East expansion project commenced #1 Rock Shaft Development Started January 2022 1st Ring Blast FY 2024 895 lev RAW 3 Level SLC Design C-Cut Production from FY 24 – FY 31 CC1E Tonnes 10.7 Mt View From South View From Southeast C-Cut CC1E CC1E C-Cut 824L 813L 839L 833L 855L 895L 895L 21
Slide 22: Cullinan presents long term opportunities
Cullinan presents long term opportunities Dumps Plant Shaft Cullinan presents significant opportunities for mine plan extensions beyond 2031 (c.70 Mt to 1093m Level) • Add additional tunnels to the east of T41 in the C-Cut block • Mine the C-Cut centre block between New Shaft the C-Cut and the CC1E
Slide 23: Optimising group operations
Optimising group operations Juan Kemp A Load Haul Dumper preparing to offload ore into the ore pass feeding the primary crusher on 839L production level in the C-Cut Block Cave at Cullinan
Slide 24: Embedding Project 2022 achievements
Embedding Project 2022 achievements The opportunity Rewiring • Now expect to deliver >$200m net free cash flow over • Results Action Review (RAR) meetings held between CEO and direct reports and cascaded through the business the three year project period (having targeted $100- 150m) • Ongoing identi
Slide 25: Responsible mining at Cullinan
Responsible mining at Cullinan Thashmi Doorasamy Refilwe Mafiri was appointed as Petra’s first female Mining Manager in June 2021
Slide 26: Group Sustainability Framework
Group Sustainability Framework Valuing our Respecting our Driving shared value Delivering reliable PEOPLE PLANET PARTNERSHIPS PRODUCTION • Safety • Climate change • Stakeholder relations • Mining to plan • Health, hygiene & wellness • Water Management • Community and social • Processing to plan inve
Slide 27: Enterprise and Supplier Development (ESD) programme
Enterprise and Supplier Development (ESD) programme Assisting local businesses to create sustainable economic growth in our communities Dedicated ESD centres at each operation support local businesses • Business advisory services • Readiness assessments – business and technical • Generic business tr
Slide 28: Carbon footprint
Carbon footprint Energy use Carbon emissions at Cullinan • CDM contributes 52% to Petra’s overall • Diamond mining is less energy intensive compared to most carbon footprint other commodities; electricity represented 15% of on-mine cash costs in FY 2021 • CDM captures carbon through its indigenous v
Slide 29: Water use
Water use Water management FY22 objectives achieved • Materiality: Water demand and conservation management has • Maintain water efficiency below 0.118 m3/t been identified as the most significant environmental risk to our operations, including Cullinan, exacerbated by climate change • Maintain wate
Slide 30: Cullinan Pit Wall Scaling
Cullinan Pit Wall Scaling Stakeholder engagement Comprehensive stakeholder engagement plan • Ad hoc, incident-based engagement on pit scaling with community since early 2015, especially closure and detour of R513 road section • Identification and rating of stakeholders • Pit scaling incidents in 201
Slide 31: Education, Training and Development
Education, Training and Development The most important contribution we can make to socio-economic development • Efforts start at grassroots level – improving education standards in local schools • Bursaries, scholarships and training offered to community members • Numerous Company programmes to deve
Slide 32: Corporate Social Investment (CSI) in our communities
Corporate Social Investment (CSI) in our communities Petra Diamonds launched the 2022 Scholarship Petra’s investment and support to local schools and In 2022, CDM hosted the 2021 Matric Awards ceremony, Programme in partnership with “Boodles” in April community health centres continues to have high
Slide 33: Diamond Market & Sales
Diamond Market & Sales Greg Stephenson A typical layout of Finsch production
Slide 34: Current macro forces
Current macro forces • Supply/demand balance • Strong jewellery demand USA • Global economic pressures • Covid 19 China • Russia/Alrosa Structural supply deficit supports the diamond price outlook Cullinan site visit 34
Slide 35: Sales tenders
Sales tenders Approach to sales Tender process • In-house sales Johannesburg and Antwerp • During the pandemic, South African sales were moved to Antwerp to • Competitive tender process – “price takers” allow us to achieve the optimise client attendance, but resumed in Johannesburg in February best
Slide 36: Financial overview
Financial overview Jacques Breytenbach Marketing Manager Greg Stephenson examining the Letlapa Tala Collection in Antwerp
Slide 37: Realised prices supported by strong market fundamentals
Realised prices supported by strong market fundamentals Tender 5 ROM prices maintained the upward Petra Diamonds average price per carat trend, although down on Tender 4 - reflecting the $ 200 seasonally quieter period and continued $ 180 Russia/Ukraine crisis-related uncertainties $ 160 Tender 4 RO
Slide 38: Guidance summary reiterated
Guidance summary reiterated $m FY22E FY23E FY24E FY25E Total carats recovered 3.3 – 3.6 3.3 – 3.6 3.3 – 3.6 3.6 – 3.9 Cash on-mine costs and G&A, $ 300 - 310 300 – 320 300 – 320 300 – 320 Expansion capex, $ 47 – 50 105 – 115 125 – 135 115 – 120 Sustaining capex, $ 28 – 30 30 – 32 30 – 32 26 – 28 Not
Slide 39: Petra has been right-sizing its balance sheet
Petra has been right-sizing its balance sheet Capital structure evolution Pre-Restructuring September 2021 December 2021 March 2022 (Dec. 2020) Total cash balance: Total cash balance: Total cash balance: Reduction in gross debt $106m $204m $272m due to re-financing of 1L debt and settlement of Chart
Slide 40: Strengthening of the capital structure
Strengthening of the capital structure • Current capex projects to be internally funded • Committed to further reduction in gross debt levels • Opportunities to improve on our 2L debt structure • Maintain leverage below 1.5x • Disciplined capital allocation to maximise value generation • Generate su
Slide 41: Pursuing a value driven growth strategy
Pursuing a value driven growth strategy 1 2 3 BROWNFIELD INORGANIC AND CURRENT ORGANIC CORPORATE OPPORTUNITIES OPERATIONS EXPANSION PROJECTS • Maximise value from • Develop further expansion • Assess orebodies either in existing operations projects to extend life of or near production including capi