Petra Diamonds Limited · LSE:PDL
Petra Diamonds — Barclays ESG EM Corporate Day 2022
36 slides from Petra Diamonds's conference presentation, Jun 22, 2022
Slide 1: Barclays ESG EM Corporate Day
Barclays ESG EM Corporate Day 22 June 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: Petra is a mid-tier, multi-asset diamond producer with strong sustainability credentials
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 4: Petra's transformation underpins sustainable growth
Petra’s transformation underpins sustainable growth New operating model focused on cash generation Embedding sustainability • Proven leadership team • Group sustainability framework being operationalised in • Maximising value from existing operations 2022 • Stable operations benefitting from upswing
Slide 5: Operating in a sustainable and well-regulated industry
Operating in a sustainable and well-regulated industry Consumers of diamonds are assured of the highest ethical standards and benefits of mining The Kimberley Process Certification Examples of Petra’s stakeholder beneficiaries1 Scheme (KPCS) 63% 4,895 3 of our 4 14% • Requires its members to certify
Slide 6: Diamond mining – a relatively small environmental footprint
Diamond mining – a relatively small environmental footprint One of the smallest environmental footprints in the minerals sector The relatively small environmental footprint of Petra’s mines Case study - Rehabilitation at Finsch Mine • A relatively small GHG footprint with >90% due to imported electr
Slide 7: Petra's Sustainability Framework
Petra’s Sustainability Framework Group-wide sustainability
Slide 8: Committed to transparent engagement and disclosures on our sustainability journey
Petra is committed to transparent engagement and disclosures as we continue on our sustainability journey Our sustainability disclosure journey: 2008 2013 2017 2019 Key sustainability engagements Petra produces its first Petra commences climate Petra’s Sustainability Report Petra commences standalon
Slide 9: Sustainability Framework underpinned by four pillars
Sustainability Framework underpinned by four pillars This will inform balanced day-to-day decision making, while ensuring a sustainable long-term future for Petra Instilling an Inspirational Culture and embedding a to ensure delivery of continuous business our business objectives improvement mind-se
Slide 10: Sustainability Framework development timeline
Sustainability Framework development timeline Step 3 Identify Pillars, Aspects, Focus Areas and set targets March 2022 – May 2022 Step 4 Finalise framework and Step 2 implement Finalise framework approach June 2022 – August 2022 November 2021 – February 2022 Step 5 Step 1 Reporting & Disclosures Def
Slide 11: We are establishing a well-structured Sustainability Framework
We are establishing a well-structured Sustainability Framework Sustainability pillars are the main drivers for the Company to create shared value and PILLARS ensure a sustainable business model Aspects are the main elements in each pillar the Company has to manage and focus on to provide ASPECTS res
Slide 12: 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 13: Petra's human capital and social performance FY21
Petra’s human capital and social performance FY 21 Women in the workforce Staff turnover Training spend 83% Leadership development 20% 9.6% $5.8m candidates are HDSA² 9.5 20.0 10.8 9.6 8.5 33% 9.3 19.0 19.0 8.1 8.1 6.6 Leadership development 5.8 5.8 candidates are female 18.0 17.0 $1m Social investm
Slide 14: Safety remains our number one priority
Safety remains our number one priority Fatal Accidents FY 2010 – H1 FY 2022 10 4.5 years fatality free NUMBER OF FATAL INJURIES 9 8 7 6 6 5 4 3 2 1 1 1 1 1 1 0 0 0 0 0 0 0 0 0 Lost Time Injury Frequency Rate FY 2010 – H1 FY 2022 LTIs down 57% in H1 FY 2022 vs 2 H1 FY 2021 LTIFR PER 200,000 MANHOURS
Slide 15: Governance - universe and framework
Governance - universe and framework Purpose, Strategy and Values Board governance Financial governance - Board structure - Planning and budget - Memorandum of incorporation and Bye-Laws - Operational performance - Board Evaluation - Asset reliability - Succession planning and rotation - Internal Con
Slide 16: Governance - Board of Directors
Governance - Board of Directors A relatively new Board reflecting the reset of Petra’s business Board Stats as at 1 June 2022 40% Peter Hill Richard Duffy Jacques Breytenbach Varda Shine Bernard Pryor Female Non-Executive Chairman Chief Executive Finance Director Senior Independent NED Independent N
Slide 17: Governance - new management structure
Governance - new management structure Optimised for business efficiency, improved shareholder returns and improved governance, risk & assurance Chief Executive Officer Denotes: Group EXCO Richard Duffy Williamson Board * Post GOT FWA & Caspian MOU Chief Operating Officer Chief Technical Officer Chie
Slide 18: Risk governance – five lines of defense model
Risk governance – five lines of defense model • Approves Enterprise Risk Management (ERM) Framework Fifth line Board and sub-committees • Establishes risk appetite/tolerance and strategy (perform oversight and set tone) • Leverages risk information into decision making • Evaluates the strategy and b
Slide 19: Case Study: Responsible mining at Cullinan Mine
Case Study: Responsible mining at Cullinan Mine Refilwe Mafiri was appointed as Petra’s first female Mining Manager in June 2021
Slide 20: 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 21: 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 22: Carbon footprint
Carbon footprint Energy use Carbon emissions at Cullinan Mine • CDM contributes 52% to Petra’s overall • Diamond mining is less energy intensive than many other carbon footprint types – electricity represented 15% of on-mine cash costs in FY 2021 • CDM captures carbon through its indigenous vegetate
Slide 23: Water use
Water use Water management FY22 objectives achieved • Materiality: Water demand and conservation management has been identified as the most significant environmental risk to our operations, • Maintain water efficiency below 0.118 m3/t including Cullinan Mine, exacerbated by climate change • Maintain
Slide 24: Cullinan Mine Pit Wall Scaling
Cullinan Mine 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 i
Slide 25: 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 26: 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 27: Group overview
Group overview 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 $40.4 million in November 2020
Slide 28: H1 FY 2022 - strong improving trajectory
H1 FY 2022 - strong improving trajectory Tonnes US$m Mcts Key 3.7 1.46 1.50 228.8 H2 5.6 4.4 1.74 1.77 264.7 H1 178.1 FY21 H1 FY22 FY21 H1 FY22 FY21 H1 FY22 Ore processed up 27% Production up 2% Revenue up 64% US$m US$m 8.7 49.4 66.1 150.9 122.4 80.8 1.8 54 1.0 FY21 H1 FY22 FY21 H1 FY22 31-Dec-20 30
Slide 29: 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 30: 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
Slide 31: Cullinan Mine
Cullinan Mine 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 Mine is one of the world’s most It is renowned as a source of very rare and highly celebrated diamond mines. It is the source of valuabl
Slide 32: Finsch
Finsch 1.4m 49.3 cpht $105 $65.7m 37.7 H1FY22 $/ct H1FY22 ROM Tonnes H1FY22 ROM Grade H1FY22 Revenue Gross Resource (Mcts) $97 incl low value goods 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 a
Slide 33: Williamson
Williamson 1.4m 6.1 cpht $241 $20.2m 37.9 H1FY22 $/ct H1FY22 ROM Tonnes H1FY22 ROM Grade H1FY22 Revenue Gross Resource (Mcts) $760 incl Exceptionals The Williamson mine was discovered in 1940 Williamson is renowned for ‘bubblegum’ pink and is based on the Mwadui kimberlite. At diamonds, including th
Slide 34: Ongoing remediation following allegations of human rights abuses at Williamson Mine
Ongoing remediation following allegations of human rights abuses at Williamson Mine The background Restorative Justice Projects (RJPs) Purpose of RJPs is to provide sustainable benefits to local communities • 2020: Leigh Day brought claims before English High Court and RAID published a report allegi
Slide 35: Koffiefontein
Koffiefontein 0.3m 7.1 cpht $538 $11.1m 5.2 H1FY22 ROM Tonnes H1FY22 ROM Grade H1FY22 $/ct H1FY22 Revenue Gross Resource (Mcts) The Koffiefontein kimberlite was first It is a low grade mine, but the average value of its discovered in 1870, with diggings on diamond production is very high. The mine p
Slide 36: 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