Petra Diamonds Limited · LSE:PDL
Petra Diamonds — Technical Presentation (January 2014)
34 slides from Petra Diamonds's technical presentation, Jan 29, 2014
Slide 1: Cullinan – The World's Most Celebrated Diamond Mine
Cullinan – The World’s Most Celebrated Diamond Mine 29 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: 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 4: Focus on Africa
Focus on Africa • Africa produces ca. 60% of the world’s diamonds by value • Multi-mine portfolio provides flexibility in terms of operational performance Focus on kimberlite KX36 discovery & surrounding area 4
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: Cullinan Overview
CULLINAN OVERVIEW 6
Slide 7: A Unique Heritage
A Unique Heritage • Source of many of the most famous diamonds • Source of “the Cullinan”, the world’s largest gem diamond (3,106 carats) • Has produced a quarter of all the world’s diamonds of +400 carats; >130 stones of +200 carats; 775 stones of +100 carats • World’s most important source of trul
Slide 8: Cullinan – Writing the History of Diamonds
Cullinan – Writing the History of Diamonds The Cullinan – 3,106 carats rough Largest gem diamond ever discovered Also source of the largest polished diamonds in the world, incl. The Great Star of Africa (530 carats) 8
Slide 9: Cullinan – Iconic Gems
Cullinan – Iconic Gems The Golden Jubilee The Niarchos 755.50ct rough, 426.50ct rough 545.65ct polished 128.25ct polished 1986 1954 The Cullinan Heritage The Centenary 507.55 carats rough The Premier Rose 599.10ct rough, 2009 353.90 ct rough 273.85ct polished 137.02 polished 1986 1978 The Safia The
Slide 10: World-class Diamonds Recovered by Petra
World-class Diamonds Recovered by Petra • The 507.5 carat Cullinan Heritage – sold for US$35.5m (highest price on record for a rough stone) in February 2009 • An outstanding vivid blue stone of 29.6 carats – recovered January 2014 • A 25.5 carat exceptional blue recovered in April and sold in May 20
Slide 11: SHE Overview
SHE Overview Serious accidents and LTIFR history LTIFR target = 0.24 *LTIFR = Nr of lost time injuries x 200,000 hrs / hrs worked • Cullinan maintains the highest standards and is: • ISO14001 certified • OHSAS18001 certified • ISO9001 certified
Slide 12: Corporate Social Investment (CSI)
Corporate Social Investment (CSI) Cullinan plays an active and supportive role in the local community Social labour plan (SLP) projects • Renovation and equipping of technical workshop and classrooms at Chipa Tabane High School in Refilwe Support of local NGO’s • Cullinan contributes to a number of
Slide 13: Corporate Social Investment
Corporate Social Investment Bursaries • Bursaries are provided for two students and one academic, with the sponsorship covering the tuition fees • Candidates must be from Cullinan’s local communities and with an interest in mining careers • Two matric students studying Mining Engineering in 2014 • O
Slide 14: Mining Overview
MINING OVERVIEW 14
Slide 15: Major Diamond Resource
Major Diamond Resource Gross (Jun 2013) Contained Tonnes Grade Diamonds Category (millions) (cpht) (Mcts) Reserves Proved - - - Probable 63.2 41.8 26.4 Sub-total 63.2 41.8 26.4 Resources Measured - - - Indicated 260.3 70.6 183.7 Inferred 170.0 10.0 17.1 Sub-total 430.2 46.7 200.8 • Resource bottom c
Slide 16: 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 17: Expansion Plan – Overview
Expansion Plan – Overview Expansion Plan – to take Cullinan Mine Schematic production to c. 2.2 Mctpa by FY 2019 (2.0 Mctpa ROM & 0.2 Mctpa tailings) Current Infrastructure • Commenced rehabilitation of Men & Material BA5 areas at 645m to create Shaft Rock Shaft Planned Infrastructure access to undi
Slide 18: Expansion Plan – Current Status
Expansion Plan – Current Status • South Decline completed to 930mL shaft bottom • Shaft deepening (and related infrastructure) to 930m in progress using contractor Murray & Roberts • Development of waste tunnels in progress and over 7,418 metres developed to date • Refinements to allow for increased
Slide 19: Expansion Plan – Current Status
Expansion Plan – Current Status 26 Pass Under Cut North – T21 Extraction North – Break Away South Decline 19
Slide 20: Plant Overview
PLANT OVERVIEW 20
Slide 21: An Aerial Perspective
An Aerial Perspective • Existing plant footprint ca. 27ha, including 13.5km of conveyor belts • Ongoing objective to simplify and streamline processing route 21
Slide 22: Treatment Plant Flow Diagram
Treatment Plant Flow Diagram STOCKPILE Mixed Feed RECRUSH CRUSHERS +75mm Mixed Feed CRUSHING CIRCUIT SHAFT -12mm COARSE DMS - -35mm -35+6mm 75+35mm RETREAT DMS WASHING PLANT -35mm RECOVERY & SORTHOUSE PREPARATION PLANT -1.2mm -75+35mm -1.2mm -6+1mm FINES DMS LARGE DIAMOND RECOVERY PLANT 22 SLIMES DA
Slide 23: Consistent Production of Large Diamonds
23 Date of acquisition 2013 2011 2009 2007 2005 2003 2001 1999 1997 1995 1993 1991 1989 +100 and +200 carat stones recovered at Cullinan 1987 1985 Consistent Production of Large Diamonds 1983 1981 1979 1977 1975 1973 1971 +200 1968 1966 +100 1964 1962 1960 1958 1956 1954 1952 1950 1931 1929 1927 192
Slide 24: Major Tailings Project
Major Tailings Project Resource of 165 Mt (17.1 million carats) • Construction and commissioning of new tailings treatment facility has been completed • Re-crush module is under construction – will assist in increasing the liberation efficiency and hence the recovered grade • Tailings treatment to i
Slide 25: Outlook
OUTLOOK 25
Slide 26: H1 FY 2014 Results
H1 FY 2014 Results Unit H1 FY 2014 H1 FY 2013 Variance FY 2013 Sales Revenue US$M 61.3 48.7 +26% 133.0 Diamonds sold Carats 409,117 363,833 +12% 816,611 Average price per carat US$ 150 134 +12% 163 ROM Production Tonnes treated Tonnes 1,291,208 1,282,009 +1% 2,595,004 Diamonds produced Carats 399,81
Slide 27: Production Forecast
Production Forecast Targeting 2.2 million carats by FY 2019 Carats (Mct) ROM Tonnes (Mt) 2.5 4.5 4.0 2.0 3.5 3.0 1.5 2.5 2.0 1.0 1.5 0.5 1.0 0.5 0.0 0.0 FY2012A FY2013A FY2014F FY2015F FY2016F FY2017F FY2018F FY2019F FY2012A FY2013A FY2014F FY2015F FY2016F FY2017F FY2018F FY2019F ROM OSP and DMS tai
Slide 28: Operating Cost History and Make-up
Operating Cost History and Make-up 200 On-mine cash cost per tonne treated 4.5 R/t treated Mt 180 4.0 160 3.5 140 3.0 120 2.5 • Risk of rising electricity costs 100 2.0 managed through efficient design of 80 1.5 new infrastructure 60 40 1.0 • Maintenance and management of 20 0.5 new and old infrastr
Slide 29: Cullinan Outlook
Cullinan Outlook • Spectacular diamonds – regular production of ‘specials’ • Major resource – world’s second largest indicated resource by in-situ value • Improving recoveries – ongoing plant changes • Improving grades – grade to rise from ca. 31 cpht to ca. 50 cpht when new mining block established
Slide 30: Appendix
P PetraDiamonds Appendix
Slide 31: Ownership Structure
Ownership Structure Note: Petra has an interest in Sedibeng Mining (Pty) Ltd – refer document ‘Effective Interest in Mines: www.petradiamonds.com/investors/analysts/analyst- guidance 31
Slide 32: The History Of Cullinan
The History Of Cullinan 1902 Cullinan kimberlite pipe originally discovered by Sir Thomas Cullinan - at 32ha surface area, largest diamondiferous kimberlite ever found in SA 1903 Open pit mining commenced at ‘Premier Mine’ - at time of outbreak of WW1 14,000 were employed at mine 1930 De Beers acqui
Slide 33: Capex Profile
Capex Profile Financial Year 2013A 2014F 2015F 2016F 2017F 2018F 2019F Operation Finsch ROM tonnes treated (Mt) 2.6 2.8 2.9 3.2 3.2 3.2 3.2 Tailings tonnes treated (Mt) 2.6 2.6 3.0 3.0 3.0 3.0 3.0 Expansion Capex (ZARm) 296.1 512.3 422.2 346.9 467.9 403.0 354.3 Sustaining Capex (ZARm) 93.7 132.7 115
Slide 34: Further enquiries: Petra Diamonds
Further enquiries: Petra Diamonds Cathy Malins cathym@petradiamonds.com +44 20 7494 8202 www.petradiamonds.com
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