Petra Diamonds Limited · LSE:PDL
Petra Diamonds — Shareholder Meeting (January 2008)
31 slides from Petra Diamonds's shareholder meeting presentation, Jan 24, 2008
Slide 1: Annual General Meeting 24 January 2008
Annual General Meeting 24 January 2008
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: Discover Petra
Discover Petra A diversified and integrated diamond group
Slide 4: Delivering on our Promises
Delivering on our Promises Objective achieved of becoming a true mid-tier diamond company in 2007 The addition of Cullinan and Even without addition of Cullinan Kimberley is set to make Petra and Kimberley, Kimberley Petra has grown one of the world’s largest to be AIM’s leading diamond diamond comp
Slide 5: 2007 – A Transformational Year
2007 – A Transformational Year Most gratifying year in company history – propelling Petra into league of world’s significant diamond producers Petra delivers three acquisitions of major producing assets – Cullinan, Koffiefontein and Kimberley Underground Acquisitions represent rare opportunity t
Slide 6: A Window to the Diamond Market
A Window to the Diamond Market Supply Demand in Carats Source: WWW International Diamond Consultants Ltd
Slide 7: Rising Demand
Rising Demand MATURE MARKETS Cornerstone US market continues to expand (6% in 2006; 7% in 2005) but its total market share is declining Global wealth creation driving demand Democratisation D ti ti off di diamondsd – no longer l jjustt for the wealthy; “aspirational commodity” New routes to
Slide 8: Petra Operations
Petra Operations PRODUCTION 2 @ South Africa - Cullinan - Koffiefontein - Kimberley Underground - Helam - Sedibeng ~ Star EXPLORATION & DEVELOPMENT ® Angola - Alto Cuilo - Luangue ® Sierra Leone - Kono Project @ Botswana - Kalahari Diamonds CUTTING & POLISHING @ South Africa - Calibrated Diamonds »
Slide 9: Production
Production
Slide 10: Key Developments 2007 – Production
Key Developments 2007 – Production Cullinan – Acquisition to complete 2008 Renowned as source of large, high-value diamonds & world’s only significant source of blue diamonds Major producer – produced 1.15m carats yr to Dec 06 World’s second largest diamond resource by in-situ value Koffiefont
Slide 11: Trading Update – Sales
Trading Update – Sales Sales for 6 months to December 2007 Revenue for the Period: US$31.7 million, a 286% increase on 6 months to 31 December 2006: US$8.2 million Substantial revenue growth mainly due to Koffiefontein mine coming on stream, supported by strong diamond prices at the fissure mine
Slide 12: Trading Update - Production
Trading Update - Production Production for 6 months to December 2007 Production of 101,213 carats, a 17% increase on 6 months to 31 December 2006: 86,396 Changes made Ch d by b Petra P t i the in th Koffiefontein K ffi f t i treatment t t t plant l t are yielding i ldi hi hl highly encouraging r
Slide 13: Expected Production Growth
Expected Production Growth 1,100 Carats per annum - ('000) 1,000 Group 900 800 700 600 South Africa 500 400 300 200 100 C 0 2005/6 2006/7 2007/8 2008/9 2009/2010 Management Expectations 13
Slide 14: Reserves & Resources
Reserves & Resources Total carat base increases 101% to 9.33 million carats attributable (May 2005: 4.64 million carats attributable) May 2005 + 101% November 2007 2.95m carats 1.77m carats 6.38m carats 2.86m carats Reserves Reserves Resources Resources = In-situ In situ value of US$1 US$1.5 5 billi
Slide 15: Exceptional Diamond Sales
Exceptional Diamond Sales Petra recorded a higher incidence of ‘exceptional’ diamonds during 2007: August: 60.25 carat diamond (Koffiefontein) reaches $736,000 September: 74.7 carat diamond (Koffiefontein) reaches $1,012,636 December: 51.88 carat diamond (Koffiefontein) reaches $780,580 Dece
Slide 16: Exploration & Development
Exploration p & Development p
Slide 17: Angola – Alto Cuilo
Angola – Alto Cuilo Alto Cuilo has the potential to host the world’s next major diamond mine Joint Venture – for spend of US$60 million, BHP Billiton earns a 75% share of Petra/BHPB 77 kimberlites identified from 99 targets drilled; surface area of kimberlites > 1,500 hectares; highly encouragin
Slide 18: AC63 NW-SE Section
AC63 NW-SE SECTION X2 Horizontal Exaggeration (Grades from MBS samples Indicated in black) MBS HOLES KALAHARI/CALONDA 0 CRATER FACIES RVK 35.5 CPHT Over 30m in RVK, or 19 CPHT Over 37m in RVK 22.7CPHT over 90m in RVK 100 CRATER FACIES RVK 200 Metres COUNTRY ROCK BRECCIA RVK KAROO 18
Slide 19: Angola – Project Luangue
Angola – Project Luangue Petra consolidates position in most prospective diamond belt of Angola Separate JV agreed with BHP Billiton buying into Luangue, neighbouring block to Alto Cuilo – expected to host similar kimberlite geology August ‘07 - Petra signs Luangue JVA with BHP Billiton; BHPB pay
Slide 20: Botswana – Sekaka Diamonds
Botswana – Sekaka Diamonds Petra has 52,000km2 of most prospective ground in Botswana 34 known kimberlites in licence areas and other highly g yp prospective p anomalies for further investigation 2 licences granted near Jwaneng mine, holding diamondiferous kimberlites DK4 and DK6 New generat
Slide 21: Sekaka Licences
Sekaka Licences ANGOLA ZIMBABWE ORAPA NAMIBIA Y X GOPE KUKAMA SOUTH AFRICA Y X JWANENG DK4 DK6 Other diamond licenses Sekaka licenses 21
Slide 22: Sierra Leone – Kono Project
Sierra Leone – Kono Project Kono project in the world renowned Koidu diamond field – historically in excess of 30 million carats produced 970ct ‘Star of Sierra Leone’ discovered in region – world’s 3rd largest gem diamond Trial mining at Kono currently underway; grades of 50 – 80 cpht reported
Slide 23: Sierra Leone - Kono Project
Sierra Leone - Kono Project 23
Slide 24: Cutting & Polishing
Cutting g & Polishing g
Slide 25: Calibrated Diamonds
Calibrated Diamonds Calibrated proprietary laser technology – produces ‘brilliant’ cut diamonds of a very high and consistent standard Significant value (approx. 50%) is added to rough production through the polishing process Calibrated has the potential to significantly enhance Petra’s revenu
Slide 26: Corporate
4 PetraDiamonds Corporate ne ae
Slide 27: The Petra Board
The Petra Board Adonis Pouroulis Johan Dippenaar David Abery Jim Davidson Chairman CEO Finance Director Technical Director • Successful mining • 19 years experience • Extensive • >20 years experience entrepreneur; in the diamond experience as Chief in mine management; expertise lies in the mining in
Slide 28: Corporate Profile
Corporate Profile Major Shareholders Listing AIM: PDL % Offices Corporate - Jersey - Saad 29.1 Corporate - Johannesburg - JP Morgan 9.97 Representative - London - Al Rajhi 7.6 Shares in Issue 184 million - Management 6.1 Fully diluted shares in issue 203 million - BHP Billiton 2.2 12 month high/low
Slide 29: The Petra Advantage
The Petra Advantage Cutting & Polishing Division » Major reserves & resources PetraDiamonds
Slide 30: Our responsibility to diamonds
Our responsibility to diamonds Petra only operates in countries which adhere to and abide by the Kimberley Process Operations adhere to environmental best practice: Detailed studies assess possible environmental impact, including plans for impact mitigation and land rehabilitation Commitment t
Slide 31: Dedicated to the Future of Diamonds
Dedicated to the Future of Diamonds Further Enquiries: Cathy Malins; cathym@petradiamonds.com; +44 20 7493 7671 www.petradiamonds.com