Petra Diamonds Limited · LSE:PDL
Petra Diamonds — Technical Presentation (February 2023)
61 slides from Petra Diamonds's technical presentation, Feb 3, 2023
Slide 1: Finsch site visit
Finsch site visit 3-4 February 2023
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: Welcome
” Petra Welcome Richard Duffy
Slide 4: Finsch site visit
Finsch site visit Friday 3rd February: 09:30 Induction (incl. Res-Q-Pack Training), Production Update and Mine Overview 10:30 To Change House for Personal Protective Equipment (PPE) 11:00 Group 1: Underground visit; Group 2: Plant, Sort House visit Richard Duffy Jacques Breytenbach 13:30 Light Lunch
Slide 5: Our purpose: creating abundance from rarity
Our purpose: creating abundance from rarity We believe that Earth’s rare and precious legacy can, through responsible mining, create abundant outcomes for our people, communities, investors, customers and all other stakeholders, giving expression to life’s special moments Abundance for our people in
Slide 6: Diamond mining and sustainability
Diamond mining and sustainability Diamonds are a consumer product and Petra recognises its ethical and social responsibilities Examples of Petra’s stakeholder beneficiaries 59% 5,265 3 of our 4 14% Of procurement spend Petra employees Mines are the primary SA mines owned by historically with local s
Slide 7: Group Sustainability Framework aspects and focus areas
Group Sustainability Framework aspects and focus areas Valuing our Respecting our Driving shared value Delivering reliable PEOPLE PLANET PARTNERSHIPS PRODUCTION • Safety • Climate change • Stakeholder engagement • Mineral resources management • Health, hygiene & wellness • Water Management • Communi
Slide 8: Finsch is an important contributor to Petra's portfolio
Finsch is an important contributor to Petra’s portfolio Contributions in FY 22 Cullinan Mine Finsch Williamson Koffiefontein1 Produces large, high quality Regularly produces highly Regularly produces high- Renowned for beautifully white and very rare blue commercial goods of over five quality white
Slide 9: Induction and orientation
Induction and orientation Tribe Bhengu
Slide 10: Finsch Diamond Mine management team
Finsch Diamond Mine management team Tribe Bhengu Andy Douglas Pieter Botes Ike Ntshabele Lesego Mphahlele General Manager Manager: HSEQ Manager: Mining Manager: Projects Manager: Plant André De Goede Kopano Maisela Tendani Lukhaimane Teddy Rifles Anton Bezuidenhout Manager: Finance Manager: Technica
Slide 11: Surface infrastructure overview
Surface infrastructure overview Bulk Sampling Open Pit Admin Conf Change Sort house Plant (BSP) Lookout Point Room house Main Plant Area Lamproom & Shaft Control Room 11
Slide 12: Mine site layout
Mine site layout REFERENCE 1. Underground 2. Bulk Sampling Plant 8 3. Post-79 Tailings Storage Facility 9 7 4. Red Dump Deposit 5 5. Britz Fine Residues 2 Disposal (FRD) 4 1 6. FRDs 1, 2 and 3 & Infill Dam 7. 5 Mission 3 Residential area 8. Norfin Residential 6 area 12
Slide 13: Finsch
Finsch 2.7m 46.7 cpht $118/ct $165.7m 36.4 FY22 ROM Tonnes FY22 ROM Grade FY22 Av. price FY22 Revenue Gross Resource (Mcts) The Finsch kimberlite was originally discovered Finsch is known for highly commercial goods of +5 in 1960 and the mine was opened in 1967. Open carats and is rich in gem qualit
Slide 14: Safety performance at Finsch – continuous improvement
Safety performance at Finsch – continuous improvement H1 2023 LTIFR at Finsch improved YTD 1.8 12 1.6 10 1.4 1.2 8 1 LTIFR 6 LTI 0.8 0.6 4 0.4 2 0.2 0 0 H1 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 LTI's 2 4 1 6 5 2 3 10 10 9 9 11 10 10 3 LTIFR 0.14 0.32 0.13 1.58 0.
Slide 15: Finsch - diamond profile
Finsch - diamond profile Rich in gem quality smaller diamonds Highly commercial goods of +5 carats Produces a number of +50 carat stones pa – both white and yellow diamonds Selection from tender 36cts & 43cts 53cts 43cts 2 classic models of 6-7.5cts 15
Slide 16: Typical production layout
Typical production layout 5-10 carat 2-2.5 carat +11/+9 carat -9/+5 carat 16
Slide 17: Reserves and resources
Reserves and resources Gross resources containing 36 million carats allows for potential mine life extensions Gross as at 30 June 2022 Category Tonnes (millions) Grade (cpht) Contained diamonds (Mcts) Reserves Proved - - - Probable 24.3 55.1 13.42 Sub-total 24.3 55.1 13.42 Resources Measured - - - I
Slide 18: Operations
ep) Cc O ~ © — o QO O Tribe Bhengu
Slide 19: Video showing mining method transition: block to sub-level caving
Video showing mining method transition: block to sub-level caving 19
Slide 20: Mining and processing flow
Mining and processing flow 20
Slide 21: Finsch ore supplied from 4-level Upper Block 5 SLC
Finsch ore supplied from 4-level Upper Block 5 SLC Production from 4-level Upper Block 5 SLC; steady state since FY 2019 1961 - 1990 Open pit to 423m below surface H1 FY 23 operations negatively impacted production against mine plan due to impact from low machinery availability and critical labour r
Slide 22: Finsch – Operating results H1 FY 2023
Finsch – Operating results H1 FY 2023 H1 FY 2023 H1 FY 2022 Variance Q2 Q1 Total Q2 Q1 Total Sales Revenue (US$m) 32.0 23.4 55.4 46.4 19.3 65.7 -16% Diamonds sold (Carats) 283,833 177,285 461,118 474,643 201,652 676,295 -32% Average price per carat (US$) 113 132 120 98 96 97 +24% ROM Production Tonn
Slide 23: A focus on mitigating risks for improved production in H2 FY 23
A focus on mitigating risks for improved production in H2 FY 23 Tunnel, fleet availability & vacant key positions hampered H1 FY 2023 performance Key focus areas: # Challenges Mitigation actions • Implementation of a draw control strategy • Extra focus on improving drill & blast 1 Tunnel availabilit
Slide 24: Expansion projects
Expansion projects Ike Ntshabele Finsch team with newly commissioned Epiroc Simba U/G
Slide 25: 78L phase 2 and Lower Block 5 3 level SLC underway
78L phase 2 and Lower Block 5 3 level SLC Plant Shaft Dumps underway 61 Level - Undercut Block 4 (block cave) 63 Level – Extraction Level 4 Level SLC 1.1Ha (Phase I) 70 - 78 Level SLC 150 m SWPC 3.65 Ha Phase II (scope change) 1.34 Ha 70 Level 73 Level Block 5 75 Level 82 Level Expansion Projects on
Slide 26: 78 Level phase 2
78 Level phase 2 Performance update FAP Development The project achieved 322m of horizontal development up to end Dec’22 IAP • 3 of 7 blue tunnels development commenced • First production expected August 2023 Next Milestones: 1. Effecting through ventilation 78Lvl Phase 2 2. Increase electrical capa
Slide 27: Lower Block 5 3-level sub level cave (SLC)
Lower Block 5 3-level sub level cave (SLC) TMM Performance update Workshop Development The 3L SLC 90L project achieved 186m of horizontal development up to end Dec’22 Next Milestones: 1. TMM workshop excavation development 2. Rehabilitation of 88 West Rim Tunnel Constraints 1. Challenging ground con
Slide 28: Finsch presents life extension opportunities
Finsch presents life extension opportunities Finsch presents opportunities for mine plan extensions Finsch presentsbeyond 2031 (circa opportunities 24 for mine Mt toextensions plan 100 level) beyond 2030 (circa 24 Mt to 100 level) •• Mining Mining of of area area below below lower lower block block
Slide 29: Operating costs
Operating costs Andre De Goede
Slide 30: Benefiting from an improved cost base and other initiatives
Benefiting from an improved cost base and other initiatives • Continuous improvement culture embedded • Managing costs in relation to production profile • Business Re-engineering projects implemented, including: o Reducing procurement costs through target sourcing and rate negotiation initiatives o
Slide 31: Operating cost history and make-up
Operating cost history and make-up Operating cost history and make-up Focus areas: 600 4 Million tonnes treated 3 • The impact of emerging Eskom challenges 500 R/t treated 400 3 300 2 on production performance. 2 200 1 100 1 • Anticipation of commissioning new assets 0 0 FY '19a FY '20a FY '21a FY '
Slide 32: Cost breakdown – fixed (75%) and variable (25%)
Cost breakdown – fixed (75%) and variable (25%) Cash on-mine cost contribution per department Based on FY 23 operating cost budget 32
Slide 33: Finsch - FY 2023-25 detailed analyst guidance
Finsch - FY 2023-25 detailed analyst guidance Description Unit FY 2023E FY 2024E FY 2025E ROM tonnes Treated (Mt) 2.55 - 2.65 2.9 - 3.0 3.0 - 3.1 Guidance notes ROM Grade (cpht) 43.6 - 46.0 43.4 - 45.6 43.0 - 45.2 1. Real amounts stated in FY 2022 money terms ROM Carats (Kcts) 1 140 - 1 235 1 260 -
Slide 34: Outlook
Outlook Tribe Bhengu Zz = a
Slide 35: Outlook
Outlook Production expected to improve in H2 FY 2023 • Mitigation of waste ingress through implementation of enhanced drill, blast and draw controls, as well as certain changes made in the treatment plant. • Tunnel availability on 73 and 75 levels resolved with tonnage expected to return to planned
Slide 36: Plant overview
Plant overview Lesego Mphahlele Presentation to be provided during the plant tour
Slide 37: Plant overview
Plant overview Ore Reception Ore Preparation Concentration Mine Residue Disposal Recovery BSP 37
Slide 38: Simplified process flow
Simplified process flow Shaft -300mm Primary Gyratory Crusher -150mm Buffer Stockpile Secondary & Tertiary Crushing High Pressure Rolls Crushing Coarse DMS Overspill +22mm -22mm Bin -150mm Primary Scrubbing & -22+ 1mm Feed Separation & -22+8mm Final Recovery Screening Secondary Scrubbing -1mm -8+1mm
Slide 39: Responsible mining at Finsch
Responsible mining at Finsch Visit to Danielskuil, 4 February 2023 Rehabilitated “old paddocks”, previously a fine residue facility
Slide 40: Energy use and approach
Energy use and approach Petra’s CO2-e emissions by operation in FY 221 Diamond mining is less energy intensive than many other types – electricity 10% represented 15% of on-mine cash costs in FY 2022 12% Carbon emissions at Finsch 46% • Finsch contributes 32% to Petra’s overall carbon footprint • 96
Slide 41: Water use and approach
Water use and approach Water use metrics at Finsch Materiality: Water demand and conservation management has been identified as the most significant environmental risk to our operations, FY Total water use (m3) Efficiency (m3/t) % Recycled including Finsch 2020 3 211 824 1.124 33.83 Diamond mining i
Slide 42: Finsch development programmes
Finsch development programmes Northern Cape Municipalities Materiality: Finsch is located in the town of Lime Acres, Kgatelopele Local Municipality in the Northern Cape province. Kgatelopele Local Municipality forms part of the ZF Mgcawu District Municipality, it consists of six (6)wards. It is a re
Slide 43: Finsch development programmes - continued
Finsch development programmes - continued Community fund and Enterprise Development programmes Petra Diamonds Community Fund • In 2015 Petra Diamonds established a Community fund to provide access to Training Statistics finance and market to local SMME. Individual people trained 69 • The main aim wa
Slide 44: Enterprise development programme (EDP)
Enterprise development programme (EDP) Non financial assistance Financial assistance FDM offered accredited training to local SMMEs with the Finsch ESD Community Fund has provided1: aim of developing both the entrepreneurial capabilities of 41 loans approved (32 project loans; 9 term loans) to a val
Slide 45: Local economic development project (LED)
Local economic development project (LED) Waste management project • Kgatelopele Local municipality (KLM) proposes to close their existing, unpermitted landfill site and find a suitable site for the establishment of a new landfill site at Daniëlskuil Advantages of the new site • More suitable locatio
Slide 46: Local economic development project - continued
Local economic development project - continued Waste management project • The project started in 01 July 2022 and its completion is envisaged on 30 June 2023 PROJECT COST BREAKDOWN • Both Finsch and KLM have signed an MOU to support the Total spent to date FDM contribution Total project project • Th
Slide 47: Education, Training and Development
Education, Training and Development The most important contribution we can make to Scholarships and school support socio-economic development • Funds nine (9) Grade 8 to 12 annually through the Petra Diamonds Scholarship programme. The participating schools include Daniëlskuil High and Kuilsville Hi
Slide 48: Corporate Social Investment (CSI) in our communities
Corporate Social Investment (CSI) in our communities Dental wellness supervised toothbrushing Health and wellbeing: programme Dental wellness supervised toothbrushing programme • In July 2022 Finsch launched a Dental Wellness Supervised Tooth Brushing Programme in partnership with the Dental Wellnes
Slide 49: Appendix
Appendix The Finsch mine in South Africa
Slide 50: Cost breakdown – fixed (77%) and variable (23%) (Group)
Cost breakdown – fixed (77%) and variable (23%) (Group) 50
Slide 51: Binding term sheet to refinance its 1L debt facility at more favourable terms
Binding term sheet to refinance its 1L debt facility at more favourable terms Terms Facility R1000m RCF Maturity Date December 2025 Lenders Absa Margin JIBAR + 415 bps Commitment Fee 125 bps per annum Notes Repayment / Up to US$25m allowed per year (in aggregate with amounts allowed under Clause Red
Slide 52: Cullinan Mine operations
Cullinan Mine operations 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 Mine
Slide 53: Block caving & convergence
Block caving & convergence Underground kimberlite mining Block caving schematic Draw-bells Production level is created below; draw points are set up and a fan is drilled above each one. Ore starts to ‘cave’ under its own weight and is removed from draw points with loaders The background to tunnel co
Slide 54: C-Cut at Cullinan Mine
C-Cut at Cullinan Mine Annual C-Cut ROM tonnes1 C-Cut block cave extraction level plan 5.0 NE Corner 4.5 4.0 3.5 3.0 2.5 Mt 2.0 1.5 1.0 0.5 0.0 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 Note 1: Forecast as guided Geotechnical risk & mitigation C-Cut infrastructure • T32 c
Slide 55: C-Cut cave maturity
C-Cut cave maturity Simulated waste ingress with progressive draw point extraction • Mixing of material in the draw column occurs as material is (maturity) extracted from the draw point • In general, finer material migrates down the draw column faster than coarse, in situ boulders. Fragmentation ove
Slide 56: Cullinan Mine expansion projects
Cullinan Mine expansion projects Tumelo Matoba Cullinan Mine mine in South Africa
Slide 57: CC1 East expansion project overview
CC1 East expansion project overview #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 57
Slide 58: CC1 East expansion project - progress
CC1 East expansion project - progress • 3,743 m total horizontal development completed to date. • Next Milestone - Ventilation pass (RB15) to be established by end FY’23 Q3 • Production start-up (1st Slot) schedule on track. CC1 East development plans CC1 East horizontal development (actual vs forec
Slide 59: Tunnels 46 & 50 (C-Cut extension)
Tunnels 46 & 50 (C-Cut extension) Plan View: C-Cut 839L • The C-Cut Extension will potentially add roughly 6.7 Mt to Perspective View: the C-Cut production, significantly relieving pressure from C-Cut Extension the mature part of the block. Columns • Total development required: ~3,000 m • Production
Slide 60: ROM grade progression – potential contribution of C-Cut extension
ROM grade progression – potential contribution of C-Cut extension LOM grade and tonnage profile – base case LOM grade and tonnage profile – including C-Cut extension 5 100 5 100 Millions 90 90 4 80 4 80 Tonnes Treated (Mt) Tonnes Treated 70 Grade (cpht) 70 Grade (cpht) 3 60 3 60 50 50 2 40 2 40 30 3
Slide 61: Long term opportunities at Cullinan Mine
Long term opportunities at Cullinan Mine Dumps Plant Shaft Cullinan Mine 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 C
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