Petra Diamonds Limited · LSE:PDL
Petra Diamonds — H1 FY2010 Earnings Presentation
21 slides from Petra Diamonds's earnings presentation, Feb 22, 2010
Slide 1: Interim Results 22 February 2010
Interim Results 22 February 2010
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 At A Glance
Petra At A Glance • The diamond producer that offers substantial growth: • FY2009 – 1.1m carats • FY2010 – on track for 1.2m carats • Firm plan in place to exceed 3m carats by FY2019 (all organic growth) • Resource of 262m carats (gross), 195m carats (attributable) • Strong management team and opera
Slide 4: Highlights
Highlights • Gross mine revenue up 32% to US$62.4 million (H1 2008: US$47.3 million) • Group attributable mine revenue up 43% to US$48.4 US$48 4 million (H1 2008: US$33 US$33.8 8 million) • Profit from mining activity (before depreciation): US$8.0 million (H1 2008: US$10.2 million) • EBITDA: US$38.1
Slide 5: Summary Results – Key Numbers
Summary Results – Key Numbers 6 months to 6 months to 12 months to 31 Dec 09 31 Dec 08 30 Jun 09 (US$m) (US$m) (US$m) Revenue* 48.4 33.8 69.3 Mining & processing costs (40.5) (23.5) (64.0) Profit from mining activity activity* 80 8.0 10 2 10.2 78 7.8 Other income 6.6 - 3.2 Exploration expense* (0.3)
Slide 6: Balance Sheet Snapshot
Balance Sheet Snapshot 31 Dec 2009 (US$m) Cash and cash equivalents: Bank 65.0 Diamond inventories 34.8 Total¹ 99.8 Loans borrowings and deferred consideration: Loans, Al Rajhi loan (coupon 8%) 50.7 Deferred consideration² (acquisition of 37% of Cullinan) (coupon 0%) 30.3 Other loans and borrowings
Slide 7: Carats Produced – Growth On Track
Growth On Track Petra on track for production of 1.2m carats in FY2010 (figures below are on a gross basis as announced in Petra’s Trading Update on 13 January 2010): Unit 6 months ended 31 6 months ended 12 months ended December 2009 31 December 2008 30 June 2009 Diamonds produced Carats 614 594 61
Slide 8: Cullinan
Cullinan Unit 6 months ended 6 months ended 12 months ended 31 December 2009 31 December 2008 30 June 2009 Production Production* Tonnes treated Tonnes 1,125,879 1,054,783 2,166,356 Diamonds produced Carats 473,406 455,597 888,595 G d Grade C ht Cpht 42 1 42.1 41 2 41.2 41 0 41.0 Sales* Revenue US$M
Slide 9: Koffiefontein
Koffiefontein Unit 6 months ended 6 months ended 12 months ended 31 December 2009 31 December 2008 30 June 2009 Production* Tonnes treated Tonnes 460,262 625,900 1,149,590 Diamonds produced Carats 31,015 37,800 52,089 Grade Cpht 6.0 7.7 6.6 Sales* Revenue US$M 9.4 10.7 18.3 Diamonds sold Carats 28,0
Slide 10: Williamson
Williamson Unit 6 months ended 6 months ended 12 months ended 31 December 2009 31 December 2008 30 June 2009** Production from bulk sampling activities* Tonnes treated Ton 1,142,392 338,912 1,495,035 Diamonds produced Carats 68,358 19,318 84,486 Grade Cpht 6.0 5.7 5.7 Sales* Revenue US$M 6.9 6 9 n/a
Slide 11: Kimberley Underground
Kimberley Underground • Acquisition yet to be finalised • Remaining conditions to be met: • The cession of the converted New Order Mining Right • The subsequent registration at the Mineral & Petroleum Titles Registration Office • Petra continues to build stockpile: • ~430,000 tonnes • ~75,000 carats
Slide 12: Petra – A Unique Diamond Investment
Petra – A Unique Diamond Investment Project risk Major diamond resource; diversified portfolio of mines; access to full diamond spectrum; minimal exposure to exploration spend Technical risk Strong track record and proven delivery on operational targets Financing risk US$120m fund-raising in Dec 200
Slide 13: Unique growth in a rising diamond market – Thank you
Unique growth in a rising diamond market Thank you
Slide 14: Diamond Market Review
Diamond Market Review Falling supply • Production for 2009 anticipated to be down to ~120 million carats • Most important diamond mines are past their peak • No new major discoveries for many years; no new major sources of production to come Source: RBC Capital Markets, Sep ‘09 Rising demand • Marke
Slide 15: The Petra Board
The Petra Board Adonis Pouroulis Johan Dippenaar David Abery Jim Davidson Chairman CEO Finance Director Technical Director Successful mining entrepreneur One of South Africa’s most Extensive experience as Chief Acknowledged world authority successful diamond Financial Officer in South on kimberlite
Slide 16: Reserves And Resources
Reserves And Resources A ib bl carat b Attributable base Total carat base Fissures - 4.5 Fissures - 4.7 Kimberley - 5.2 Kimberley - 6.9 69 Koffiefontein - 4.2 Koffiefontein - 5.9 Williamson a so - 30.0 Williamson - 40.1 Cullinan - 151.3 Cullinan - 204.6 195 million carats 262 million carats 16
Slide 17: Production Portfolio
Production Portfolio Williamson Production South Africa • Cullinan • Koffiefontein • Kimberley Underground* • Helam • Fissures • Sedibeng Geographically focused portfolio • Star in stable and low-risk low risk countries Tanzania • Williamson * Acquisition to complete soon 17
Slide 18: Fissures (Helam, Sedibeng, Star)
Fissures (Helam, Sedibeng, Star) Unit 6 months ended 6 months ended 12 months ended 31 December 2009 31 December 2008 30 June 2009 Production* ROM Tonnes treated Ton 88,939 94,246 176,538 Diamonds produced Carats 41,815 37,698 71,274 ROM Grade Cpht 44.7 39.7 37.7 Sales* Revenue US$M 5.8 9.5 15.3 Dia
Slide 19: CAPEX Profile
CAPEX Profile New capital lays foundation for growth FinancialYear 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Operation Area Cullinan BAW/BB1E/AUC GapFillers AUCSouth BAWPhase1 CCutPhase1 TotalTonnes(Mt) 2.200 2.400 2.400 2.400 2.426 2.680 2.845 3.145 3.150 4.000 TotalCarats(Mcts) 0.957 1.117
Slide 20: Capital Structure
Capital Structure November 2009 19 February 2010 Al R Rajhi jhi H Holdings ldi W W.W.L. WL 9 0% 9.0% 18 1% 18.1% Saad Investments Company Limited 44.0% 17.3% JP Morgan Asset Management (UK) Limited 9.6% 9.3% Scottish Widows Investment Partnership 0.0% 6.2% Capital Group International, Inc. 0.0% 6.2%
Slide 21: Petra Diamonds
Petra Diamonds Cathy Roberts cathyr@petradiamonds com cathyr@petradiamonds.com +44 20 7318 0452 www.petradiamonds.com