Petra Diamonds Limited · LSE:PDL
Petra Diamonds — Investor Presentation (May 2019)
22 slides from Petra Diamonds's investor presentation, May 2019
Slide 1: Investor Presentation May 2019
Investor Presentation May 2019
Slide 2: Important Notice
Important Notice • These Presentation Materials are being supplied to you by Petra Diamonds Limited (the “Company”) solely for your information and use at this presentation. These Presentation Materials may contain information that is confidential, legally privileged or otherwise protected by law. T
Slide 3: Safety is Our Number One Priority
Safety is Our Number One Priority Zero harm remains our goal • The health and safety of our workforce is our top priority • Our mines are certified OHSAS 18001:2007, the international safety management framework • Continuous risk assessment and management; all staff are trained in safety and undergo
Slide 4: Focused on Delivery from Petra's Diversified Portfolio of Assets
Focused on Delivery from Petra’s Diversified Portfolio of Assets Stabilising our operations • Increasing access across the full footprint of sub-level and block caves • Five consecutive quarters of consistent production • FY 2019 production guidance of 3.8 – 4.0 million carats maintained Focus on fr
Slide 5: FY 2019 YTD (nine months to 31 March 2019)
FY 2019 YTD (nine months to 31 March 2019) Full Year SAFETY PRODUCTION REVENUE Guidance LTIFR Million carats c.3.8 – 4.0 US$ (million) 0.20 3.0 400 300 2.0 0.10 0.19 2.8 2.9 200 0.18 337.4 342.4 1.0 100 0.00 0.0 0 9M 2018 9M 2019 9M 2018 9M 2019 9M 2018 9M 2019 • Group LTIFR for the nine • Productio
Slide 6: FY 2019 YTD (nine months to 31 March 2019) – KPIs
FY 2019 YTD (nine months to 31 March 2019) – KPIs ROM PRODUCTION TAILINGS PRODUCTION • FY 2019 YTD ROM carats Million tonnes production up 6% to 2,845,234 Million tonnes carats • Q3 ROM carats production of 10 1.5 898,517 carats 8 • Q3 ROM carat production at 6 1 Cullinan, Koffiefontein and 9.1 9.8
Slide 7: Cullinan - Recovery of Type II Diamonds
Cullinan - Recovery of Type II Diamonds • FY 2018 – recovery of 40.5 carat Type II blue stone sold for US$24 million • Q3 FY 2019 YTD – recovery of a number of Type II blue stones varying from two to ten carats per stone, including a 6.1 carat stone recovered 8 March 2019 • FY 2019 YTD – recovery of
Slide 8: Financial Position
Financial Position Unit 31 Mar 2019 31 Dec 2018 30 Jun 2018 Closing exchange rate used for conversion R14.48:US$1 R14.35:US$1 R13.73:US$1 Cash at bank US$m 96.9 90.7 236.0 Diamond inventories US$m 64.9 76.3 54.0 Carats 674,632 811,718 529,054 Diamond debtors US$m 46.4 4.4 75.0 US$650 million loan no
Slide 9: Bank Debt Facilities – Covenants
Bank Debt Facilities – Covenants Bank debt facilities undrawn and available to the Group as at 31 March 2019 of R1.5 billion (ca. $103.6 million), in addition to cash at bank of $96.9 million Maintenance Covenants Distribution Covenants 12 months to 12 months to 12 months to 12 months to 31 12 month
Slide 10: Diamond Market and Prices
Diamond Market and Prices Petra Sales Timing FY 2019 Market Performance • Signs of stabilisation in the diamond market in Q3 FY 2019 with steady demand across all size categories • Overall rough diamond prices on a like for like basis • Petra holds seven tenders during the calendar year were up ca.1
Slide 11: Diamond Market Fundamentals
Diamond Market Fundamentals Supply Demand • Supply constraints: Global rough diamond production • Global market: rose 2% to record high of $82bn in 2017 increased 19% to 150.9 Mcts in 2017 • Demand growth expected to be driven by: • Continuing overall declining trend: Increase in • Growth in major U
Slide 12: DPA Total Clarity Report – May 2019
DPA Total Clarity Report – May 2019 • The Diamond Producers Association whose members represent 75% of the world’s diamond production, has released its first independent research report on its members' impact on local communities, employees and the environment • Written by Trucost and titled ‘The So
Slide 13: Total Clarity Report Highlights
Total Clarity Report Highlights 13 Petra Diamonds Limited: Investor Presentation
Slide 14: Appendix
V4 Appendix
Slide 15: Petra Board of Directors
Petra Board of Directors Adonis Pouroulis Richard Duffy Jacques Breytenbach Tony Lowrie Dr Patrick Bartlett Non-Executive Chairman Finance Director Senior Independent Non- Independent Non-Executive CEO, effective 1 April 2019 Executive Director Director Mining entrepreneur whose Assumed role in Febr
Slide 16: Capital Structure
Capital Structure Share Price (1 year to 8 May 2019) As at 25 April 2019 % voting rights Standard Life Aberdeen plc 15.2% Prudential plc (incorporating M&G Group Ltd) 5.3% T. Rowe Price Associates Inc. 5.0% Cobas Asset Management 5.0% Lazard Asset Management 4.9% Directors 3.8% Listing LSE: PDL Aver
Slide 17: C-Cut Progression Over the Footprint
C-Cut Progression Over the Footprint • Historical records and focused sampling compiled over the mine’s +100 year history indicate that high-value Type II 16ha at 830mL white & blue stones occur in the western part of the orebody (C-Cut phase 1) 81 draw bells completed out of 110 in total • Draw-bel
Slide 18: Mine Operational Results
Mine Operational Results Nine Months to 31 March 2019 vs Nine Months to 31 March 2018 Finsch Cullinan Koffiefontein Williamson 9m to 9m to 9m to 9m to 9m to 9m to 9m to 9m to Unit 31/3/19 31/3/18 31/3/19 31/3/18 31/3/19 31/3/18 31/3/19 31/3/18 ROM PRODUCTION Tonnes treated Tonnes 2,261,337 2,400,863
Slide 19: Debt Facilities
Debt Facilities Bank debt facilities undrawn and available to the Group as at 31 March 2019 of R1.5 billion (ca. $103.6 million), in addition to cash at bank of $96.9 million Size Utilised at Commitment Size Interest Rate fee on Lender Type US$M1 31 Mar 2019 Repayment ZARM undrawn US$M facilities ZA
Slide 20: Impact of ZAR/USD Movement on Petra
Impact of ZAR/USD Movement on Petra • US$1:ZAR14.45 on 7 May 2019 • Increase / decrease of ZAR1 equates to: • ca. US$20m on EBITDA USD • ca. US$35m on FCF • Short term hedging strategy to manage volatility 70-80% • Collar style hedges on USD revenue converted to ZAR ZAR covering up to 50% of FY 2019
Slide 21: Tailings Residue Deposit Management
Tailings Residue Deposit Management • In South Africa risk-based mandatory Codes of Practices (“COP”)1 are available for all residue deposits at our mines as required by, and according to set guidelines from the Department of Mineral Resources (DMR), Mine Health and Safety Inspectorate. All COP docu
Slide 22: Thank You
Thank You Further enquiries: Petra Diamonds investorrelations@petradiamonds.com +44 20 74948203 www.petradiamonds.com