Petra Diamonds Limited · LSE:PDL
Petra Diamonds — Technical Presentation (February 2019)
46 slides from Petra Diamonds's technical presentation, February 2019
Slide 1: Finsch Site Visit
Finsch Site Visit 2 February 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: Finsch Site Visit Itinerary
Finsch Site Visit Itinerary • 09:30 Visitors Induction (including Res-Q-Pack Training) and Overview of Visit • 10:00 To Change House for Personal Protective Equipment (PPE) • 11:00 Underground Visit • 12:30 Light Lunch/Corporate Social Responsibility Overview • 13:00 Control Room Overview • 13:30 Pl
Slide 4: Finsch Diamond Mine Orientation
Finsch Diamond Mine Orientation • Visitors Induction (including Res-Q-Pack Training) • Visit Orientation 4
Slide 5: Visit Orientation – Surface
Visit Orientation – Surface Open Pit Admin Conf Changehouse Sorthouse Lookout Point Room Lamproom & Shaft Control Room 5
Slide 6: Visit Orientation – Underground
Visit Orientation – Underground 6
Slide 7: H1 FY 2019 Trading Update
V4 H1 FY 2019 Trading Update
Slide 8: Current Trading in H1 FY 2019
Current Trading in H1 FY 2019 LTIFR improved to 0.16 in H1 FY 2019 (from 0.24) On track to meet guidance of 3.8 – 4.0 Mcts for FY 2019 • 2,019,147 carats produced in H1 FY 2019 (up 10% vs. H1 FY 2018) • H1 revenue up 8% to US$207.1 million • Diamonds sold increased 15% to 1,736,357 carats • Capex of
Slide 9: H1 FY 2019 (six months to December 2018)
H1 FY 2019 (six months to 31 December 2018) H1 FY 2019 H1 FY 2018 Variance FY 2018¹ Sales Diamonds sold Carats 1,736,357 1,510,361 +8% 3,793,799 Revenue US$m 207.1 191.7 +15% 495.3 Production ROM tonnes Mt 6.4 6.0 +7% 12.1 Tailings & other2 tonnes Mt 1.0 0.7 +43% 1.6 Total tonnes treated Mt 7.4 6.8
Slide 10: About Finsch
ea eS aS - ” About Finsch
Slide 11: Location within Petra Portfolio
Location within Petra Portfolio 11
Slide 12: Finsch Overview
Finsch Overview Fincham & Schwabel established Finsch Diamonds Extensive modifications treatment plant 1961 1963 1978 1980 1990 2002 2008 2011 1961 1980 14 Sep 2011 Established Finsch 1963rights Full mining 1978 First stage Upgrade of treatment Open 1990 pit operation Development of Second upgrade o
Slide 13: The Petra Story Commences for Finsch – Oct 2011
The Petra Story Commences for Finsch – Oct 2011 The first single boom Sandvik drill rig arrives at Finsch Mine 13
Slide 14: Mine Site Layout
Mine Site Layout 9 2 6 4 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 14
Slide 15: Diamond Profile
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 2.9cts 2 classic models of 6-7.5cts 15
Slide 16: Safety Performance
Safety Performance Highest LTIFR (Petra) = 2012FY: 0.58 2008 = Lowest LTIFR in Finsch Mine history = 0.08 (De Beers) 2019FY YTD = Second lowest LTIFR in Finsch Mine history = 0.09 (Petra) Lowest LTIFR (Petra) = 2019FY YTD: 0.09 2014 = Third lowest LTIFR in Finsch Mine history = 0.10 (Petra) *LTIFR =
Slide 17: SHE Achievements
SHE Achievements Finsch was third place in the Northern Cape Mine Managers’ Association (NCMMA) Awards, for the underground mines safety category – November 2018 ISO14001:2015 OHSAS18001:2007 certification re-certification February 2018 February 2018 Achieved 1,000,000 Fatality Free Shifts - 21 July
Slide 18: Finsch – H1 FY 2019 Trading Results
Finsch – H1 FY 2019 Trading Results Unit H1 FY 2019 H1 FY 2018 Variance FY 2018 Sales Revenue US$m 87.0 100.8 -14% 231.9 Diamonds sold Carats 829 530 970 446 -15% 2 152 786 Average price per carat US$ 105 104 1% 108 ROM Production Tonnes treated Tonnes 1 503 335 1 559 280 -4% 3 084 395 Diamonds prod
Slide 19: Block 5 SLC Mining and Development Programme
Block 5 SLC Mining and Development Programme
Slide 20: Geology
Geology • Finsch pipe is hosted by banded ironstones at surface and thereafter dolomites of the Griqualand West Sequence of the Transvaal Supergroup • A Group II kimberlite pipe with an age of 118Ma • 17.9ha on surface • Main pipe tapers to 3.7ha and Precursor to 1.5ha at 880m • Truncates earlier Pr
Slide 21: Finsch – Development Programme
Finsch – Development Programme Highlights • SLC ramp up: • FY 2017 – 0.75 Mt • FY 2018 – 1.65 Mt • FY 2019 – 2.7 Mt • Total ROM throughput (from SLC and overburden) of 3.2 Mt – FY 2019 • Pre 79 Tailings treated – end FY 2019 21
Slide 22: Underground Development
Underground Development SLC rim intersection 63 Pillars SWPC 70, 73, 75 & 78 level rim drives complete SLC Phase 1 SLC Phase 2 BC Ground BC Sections 2,3 & 4 of Handling SLC ground handling tunnels complete 22
Slide 23: Sub-level Caving
Sub-level Caving • A cave where most of the recovered rock is drilled, charged and blasted • The face must continuously advance: • To disturb the column above • To manage the damaged brows • Performance is highly dependent on: • Extraction sequencing and disciplined following of it • Drill and blast
Slide 24: Block 5 Sub-level Cave
Block 5 Sub-level Cave Cycles of Mining the SLC Long hole drilling Charging & Blasting Loading & Tipping 24
Slide 25: Finsch South-West Pre-Cursor
Finsch South-West Pre-Cursor CAVED ORE 25
Slide 26: Crushing & Conveyance
Crushing & Conveyance Complete In Progress final commissioning January 2019 26
Slide 27: Production Ramp-up
Production Ramp-up Industrial Action Forecast 27
Slide 28: Plant Overview
” Plant Overview
Slide 29: Plant Infrastructure
Plant Infrastructure Pre upgrade: • Original plant built – 1964 • First upgrade completed – 1980 • Underground operation commence – 1990 • Introduced Pre-79 dump retreatment – 2003 • Full contops since 2005 – capacity of 5.7 Mtpa Post upgrade: • Treatment plant upgrade – predominantly the DMS, recov
Slide 30: Plant Overview
Plant Overview Ore Reception Ore Preparation Concentration Mine Residue Disposal Recovery WIFS 30
Slide 31: 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 32: Treatment Profile
Treatment Profile Industrial Forecast Action 32
Slide 33: Typical Production Layout
Typical Production Layout 33
Slide 34: Operating Costs
” Operating Costs
Slide 35: Operating Cost History and Make-up
Operating Cost History and Make-up On-mine cash cost per tonne treated 450 6 400 • Risk of rising 5 electricity/potable water costs Million tonnes treated 350 300 4 managed through efficient R/t treated 250 design of new infrastructure 3 200 150 2 • Maintenance and 100 management of infrastructure 1
Slide 36: Labour Relations – Risk Mitigation
Labour Relations – Risk Mitigation • Labour relations at Petra’s South African operations were stable for the three year period up to the negotiation of a new three year deal in 2017 • September 2017: Finsch, Koffiefontein and KEM JV experienced labour disruption (contained to less than two weeks),
Slide 37: Finsch Outlook
Finsch Outlook • Transformation in production profile • Depletion of lower value Pre-79 tailings resource planned during H2 FY 2019 , with final cleanup in H1 FY 2020 • Ramp up of undiluted ore from new mining areas to contribute ca. 2.7 Mt in FY 2019 • Expected to lead to improving average product
Slide 38: CSR
CSR
Slide 39: Northern Cape District Municipalities
Northern Cape District Municipalities Finsch Diamond Mine falls within the Kgatelopele local Municipality (8) which includes the towns of Danielskuil and Lime Acres 39
Slide 40: Corporate Social Responsibility Objectives
Corporate Social Responsibility Objectives • Our objectives are: • Comply with legislation o 2018 Mining Charter of South Africa o S100 (2) (a) MPRDA as prescribed by the Department of Mineral Resources • To continue building effective relationships with employees, stakeholders and the community at
Slide 41: Sustainability Focus Areas
Sustainability Focus Areas • Infrastructure • Health Care Services • Community Development and Support • Education and Training: - Early Childhood Development (ECD) - Maths & Science - Outreach programmes • Sports, Arts and Culture 41
Slide 42: Sustainability Focus Areas – Safety
Sustainability Focus Areas – Safety Finsch wins safety awards Finsch employees take initiative to improve safety In 2018, for the third consecutive year, Employees from the Concentration section of the Finsch plant Finsch won the ‘National Winner of the took the initiative to implement several impro
Slide 43: Sustainability Focus Areas – Health Care
Sustainability Focus Areas – Health Care Partnership with the Department of Health (“DOH”) One of the issues identified with regards to health management within our workforce was access to practical healthcare for employees at Finsch. With the mine being located ca. 30km from the nearest town, many
Slide 44: Sustainability Focus Areas – Education
Sustainability Focus Areas – Education Finsch Mine’s Techno Girls Finsch, in partnership with the local government, hosts the ‘Techno Girls’ initiative twice a year. The objective of the initiative is to reverse the growing skills shortage in science, technology, engineering and mathematics in South
Slide 45: Community Development and Support
Community Development and Support Finsch provides support to community members seeking employment in order to contribute to alleviating poverty and unemployment in the community Services Provided • Computer and internet access • Business advice • Entrepreneurial training and business mentoring • Ass
Slide 46: Thank You
Thank You Further enquiries: Investor Relations investorrelations@petradiamonds.com +44 20 7494 8203 www.petradiamonds.com
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