Petra Diamonds Limited · LSE:PDL
Petra Diamonds — Corporate Update (January 2014)
46 slides from Petra Diamonds's corporate update, Jan 28, 2014
Slide 1: Finsch Diamond Mine
Finsch Diamond Mine Investor & Analyst Visit – 28 January 2014
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 08:00 Finsch mine overview 10:00 Underground visit 12:00 Surface and overview of Central Control Room 12:30 Plant and open pit visit and diamond display in recovery 14:00 Lunch 15:00 Group departs Finsch mine 17:00 Group arrives Kimberley airport 18:00 Group departs Kimbe
Slide 4: Petra Diamonds
Petra Diamonds • Mid-tier diamond producer (LSE:PDL; FTSE 250) • Quality management team delivering strong growth • World-class resource base of +300m carats • Diversified portfolio of producing mines and exploration • On track for 5 Mctpa / ca. US$1bn¹ revenue by FY 2019 • Sustainability at heart o
Slide 5: An Exceptional Growth Path
An Exceptional Growth Path Petra has acquired five non-core diamond mines from De Beers: July 2007 July 2008 November 2008 May 2010 September 2011 Koffiefontein Cullinan Williamson Kimberley UG Finsch 74% Petra; 26% BEE 74% Petra; 26% BEE 75% Petra; 25% 74% Petra; 26% BEE 74% Petra; 26% BEE Governme
Slide 6: Proven Track Record – Continuous Growth
Proven Track Record – Continuous Growth US$ Mcts million Finsch contribution boosts ca. US$450m* * revenue EST 2.67 Mcts US$402.7m H1 2014 * FY 2014 production and revenue are management estimates only 6
Slide 7: Moving into Undiluted Ore
Moving into Undiluted Ore • Caving is a safe and proven mechanised mining method; provides access to higher volumes of ore than other methods • Current underground mining taking place in diluted, mature caves nearing end of lives • Expansion programmes to take next ‘cut’ by deepening and establishin
Slide 8: Finsch Overview
FINSCH OVERVIEW 8
Slide 9: 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 10: A Sustainable Future
A Sustainable Future Before – facing closure: 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 +17 years: 4,000,000 3,500,000 Residual 3,000,000 reso
Slide 11: 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 11
Slide 12: Safety, Health and Environmental
SAFETY, HEALTH AND ENVIRONMENTAL 12
Slide 13: Long Term Safety Statistics
Long Term Safety Statistics 14 2.0 1.8 12 1.6 10 1.4 1.2 No. of Injuries 8 1.0 LTIFR 6 0.8 4 0.6 0.4 H1 2 YTD 0.2 0 2002FY 2003FY 2004FY 2005FY 2006FY 2007FY 2008FY 2009FY 2010FY 2011FY 2012FY 2013FY 2014FY 0.0 Fatals 0 0 0 0 0 0 0 1 0 0 0 0 0 LTI 11 8 10 8 12 4 3 2 2 5 6 4 1 LTIFR 0.47 0.27 0.29 0.
Slide 14: SHE Achievements
SHE Achievements Achieved 1,000,000 Fatality Free Shifts (25 June 2012) ISO14001:2004 OHSAS18001:2007 re-certification re-certification Finsch was awarded “Best in Class” Award, for category “Base Metals / Diamond Mining Industry on 24 Oct 2013 14
Slide 15: Mining Overview
MINING OVERVIEW 15
Slide 16: 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 17: Block 4 Block Cave
Block 4 Block Cave Develop tunnels Create Undercut slot 61L 61L 17 63L 63L
Slide 18: Block 4 Block Cave
Block 4 Block Cave Develop tunnels Create Undercut slot Drill Undercut rings Blast Undercut rings Create Troughs 61L 61L 18 63L 63L
Slide 19: Block 4 Block Cave
Block 4 Block Cave Reach hydraulic radius 61L 61L 19 63L 63L
Slide 20: Block 4 Block Cave
Block 4 Block Cave Reach hydraulic radius Development complete Undercut complete 61L 61L 20 63L 63L
Slide 21: Block 4 Block Cave
Block 4 Block Cave Break through into pit 61L 61L 21 63L 63L
Slide 22: Block 4 Block Cave
Block 4 Block Cave 51L 51L Sidewall collapse 53L Draw cave down 53L 61L 61L 22 63L 63L
Slide 23: Block 4 Block Cave Draw Control
Block 4 Block Cave 51L 51L 53L 53L Draw Control 61L 61L 23 63L 63L
Slide 24: Mining Overview
Mining Overview ” PetraDiamonds RETURN AIR PASS ORE PASSES VENT PASSES \ o_ ‘4 EAST + WEST VENT PASS SURFACE VTO 29 LEVEL / ml LItOo0 Loo Et i BLOCK 5 BLOCK 5 RAMP BLOCK 6 MAIN SHAFT BLOCK 4 —— 771LVL —— 82.5 SHAFT BOTTOM SCHEMATIC LAYOUT o 50 100 200 METRES.
Slide 25: Block 4 – 63 Level Layout
Block 4 – 63 Level Layout Haulage Loop Dump trucks : TORO T50 Bucket load : 50 tonnes Truck loop 25
Slide 26: Plant Overview
PLANT OVERVIEW 26
Slide 27: 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 28: Plant Overview
Plant Overview Ore Reception Ore Preparation Concentration Mine Residue Disposal Recovery WIFS 28
Slide 29: 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 30: Increase in Fine Diamond Production
Increase in Fine Diamond Production 40 25% Pre Transfer period 2012 FY 2013 FY 2014 FY 35 20% 30 25 15% Grade 20 10% 15 10 5% 5 0 0% Mar May Jun Jul Nov Mar May Jun Mar Jul Nov May Jun Jul Nov Mar May Jun Oct Oct Oct Jan Feb Apr Aug Sep Dec Jan Feb Apr Aug Sep Dec Jan Feb Apr Aug Sep Dec Jan Feb Apr
Slide 31: Tailings
Tailings • Throughput of ca. 2.8 Mtpa in FY 2014, ramping up to 3.0 Mtpa from FY 2015 onwards • Phase 1: Treat Pre-1979 Tailings (ca. 22 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 Ta
Slide 32: Finsch – Special Recoveries
Finsch – Special Recoveries • Regular production of large, special diamonds & fancy colours • Selection of specials recovered by Petra 2 classic models of 6-7.5cts (2012) 88cts (Oct 2011) 52cts (Dec 2011) 57cts (Jan 2012) 32cts (Feb 2012) 52cts (May 2012) 2.9cts (Jun 2012) 94cts (Jun 2012) 103cts (A
Slide 33: Development Programme
DEVELOPMENT PROGRAMME 33
Slide 34: Expansion Plan – Key Deliverables
Expansion Plan – Key Deliverables Expansion Plan – to take production to c.1.8 Mctpa by FY 2,311 development metres and 165 raiseboring metres in FY 2013 2016 and c.2.0 Mctpa from FY 2017 Dedicated conveyor ore-handling system • Mining currently taking place in Block 4 at 630m – FY 2014 Current Mini
Slide 35: Expansion Plan – Underground Overview
Expansion Plan – Underground Overview Ground Handling Sub Level Cave SLC Rim Intersection 70 Level – On rim 73 Level – Jan 2014 75 Level – On rim 78 Level – On rim Raiseboring Block Cave Ground Handling Block Cave 35
Slide 36: Production Plan
Production Plan Taking production to ca. 1.8 million carats by FY 2016 and ca. 2.0 million carats from FY 2017 ROM tonnes (Mt) Carat production 4,000,000 2,500,000 3,500,000 2,000,000 3,000,000 2,500,000 1,500,000 2,000,000 1,500,000 1,000,000 1,000,000 500,000 500,000 0 2013 2014 2015 2016 2017 201
Slide 37: Financial
FINANCIAL 37
Slide 38: Cost of Production
Cost of Production Operating cost break down 100% 90% 25% 25% 27% 80% 70% 60% 23% 24% 24% 50% 13% 14% 15% • Manage rising energy costs through 40% effective design, maintenance and 30% management of new and old 20% 37% 37% 36% 10% infrastructure 0% FY 2012 FY 2013 H1 2014 • Designs to cater for appr
Slide 39: H1 FY 2014 Trading Update Results
H1 FY 2014 Trading Update Results Unit H1 FY 2014 H1 FY 2013 Variance FY 2013 Sales Revenue US$M 83.2 65.9 +26% 160.6 Diamonds sold Carats 863,319 540,728 +60% 1,336,418 Average price per carat US$ 96 122 -21% 120 ROM Production Tonnes treated Tonnes 1,505,356 1,387,067 +9% 2,609,935 Diamonds produc
Slide 40: Social Responsibility
SOCIAL RESPONSIBILITY 40
Slide 41: 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 42: SLP LED Projects
SLP LED Projects Learnerships Sanitation Electricity Upgrades Small Business Hub Water Reticulation Replacement / Upgrades
Slide 43: School Support
School Support Opening day of the Maths, Science and Technology Centre at Danielskuil and Kuilsville High School Scholar orientation work experience
Slide 44: Rally to Read
Rally to Read | é i Ht y } LEES IS N FEES LEES IS COOL, !!
Slide 45: Conclusion
Conclusion • A major producer with a sustainable future • Initial mine plan of 17 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 46: Thank You
i PetraDiamonds mes Thank You