Petra Diamonds Limited · LSE:PDL
Petra Diamonds — Technical Presentation (October 2011)
32 slides from Petra Diamonds's technical presentation, Oct 31, 2011
Slide 1: Cullinan – The World's Most Celebrated Diamond Mine
Cullinan – The World’s Most Celebrated Diamond Mine 31 October 2011
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 - A Diversified Production Portfolio
Petra - A Diversified Production Portfolio Limpopo Helam Cullinan Mpumalanga Williamson North West Province Johannesburg Gauteng KwaZulu‐ Sedibeng Star Natal Finsch Free State Kimberley Northern Cape Koffiefontein Production Durban South Africa South Africa • Cullinan Eastern Cape • Koffiefontein •
Slide 4: Building A Leading Diamond Producer
Building A Leading Diamond Producer Petra’s growth path – establishing a reserves and resources base of +300 Mcts July 2007 July 2008 November 2008 May 2010 September 2011 Koffiefontein Cullinan Williamson Kimberley UG Finsch 74% Petra 74% Petra 75% Petra 74% Petra 74% Petra 26% BEE Partners 26% BEE
Slide 5: Cullinan Overview
CULLINAN OVERVIEW 5
Slide 6: An Introduction To Cullinan
An Introduction To Cullinan • One of the most celebrated diamond mines in history • One of the world’s largest diamond resources by in-situ value • Source of “The Cullinan”, the world’s largest diamond ever (3,106 carats) • Only significant source of truly rare and highly prized blue diamonds • Has
Slide 7: 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) 7
Slide 8: 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 carats rough The Premier Rose 599.10ct rough, 2009 353.90 ct rough 273.85ct polished 137.02 polished 1986 1978 The Safia The Tay
Slide 9: 'Specials' Recovered By Petra
‘Specials’ Recovered By Petra • The Cullinan Heritage (507 carat white diamond pictured) – sold as a rough stone on tender in February 2010; achieved world record US$35.5m; sold to Chow Tai Fook • 26 carat rough blue diamond – cut and polished to 7 carats (pictured) – sold for US$9.4m (US$1.349m per
Slide 10: An Aerial Perspective
An Aerial Perspective • Existing plant footprint ~ 27 hectares, including 13.5km of conveyor belts • Ongoing objective to simplify and streamline processing route 10
Slide 11: 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 -1.2mm -75+35mm -6+1mm FINES DMS LARGE DIAMOND RECOVERY PLANT 11 SLIMES DA
Slide 12: Cullinan – Consistent Production Of Specials
0 2 4 6 8 10 12 14 16 18 20 1903 1905 1907 1909 1911 1913 +200 carats +100 carats 1915 1917 1919 1921 1923 1925 1927 1929 1931 1950 1952 1954 1956 1958 1960 1962 1964 1966 1968 1971 1973 1975 1977 1979 1981 1983 1985 Cullinan – Consistent Production Of Specials 1987 1989 +100 & +200 carat stones rec
Slide 13: Major Tailings Project
Major Tailings Project Resource of 165 Mt (16.9 million carats) • Design work for new tailings treatment facility completed; construction progressing well West Dump North • Facility will treat 1Mt (100,000 carats) Dump in FY 2012, ramping up to 4Mt (400,000 carats) from FY 2014 • Resources sufficien
Slide 14: SHE Overview (July to June)
SHE Overview (July to June) Cullinan Diamond Mine maintains the highest standards, and is; • ISO 14 001 Certified • OHSAS 18 001 Certified • ISO 9001 Certified
Slide 15: Corporate Social Investment (CSI)
Corporate Social Investment (CSI) • Cullinan plays an active and supportive role in the local community • The mine contributes to a wide number of community projects – below are just a few examples: SMME Support and Skills Department Cullinan Sports Centre Imfundiso Jewellery School Refilwe Orphan C
Slide 16: Mining Overview
MINING OVERVIEW 16
Slide 17: Grade Distribution And Underground Schematic
Grade Distribution And Underground Schematic AUC & BB1E BA5 & Petra is currently mining the BB1E, BA5 and BAW AUC blocks – development work moving into the higher grade BAW and AUC South areas BB1E 17
Slide 18: Major Diamond Resource – 30 June 2011
Major Diamond Resource – 30 June 2011 Gross Net attributable Contained Contained Tonnes Grade Diamonds Tonnes Grade Diamonds Category (millions) (cpht) (Mcts) (millions) (cpht) (Mcts) Reserves Proven - - - - - - Probable 14.051 36.89 5.183 10.397 36.89 3.836 Sub-total 14.051 36.89 5.183 10.397 36.89
Slide 19: Block Caving Schematic
Block Caving Schematic 19
Slide 20: C-Cut Expansion Programme
C-Cut Expansion Programme Objective: develop new block cave on Western side of orebody; access higher grade BAW & AUC South areas; produce at a rate of 2 Mctpa for ~16 years (supplemented by 0.4 Mctpa of tailings production) 20
Slide 21: C-Cut Expansion Programme
C-Cut Expansion Programme Phase one: establish new tunnels on 747, 732 and in the BA5 at 630 levels to ensure that underground production is maintained at current levels Phase two: ramp up production to ~3 Mtpa (~1 Mctpa) by FY 2015, then to ~4 Mtpa (~2 Mctpa) by FY 2019 • Upgrade material handling
Slide 22: C-Cut Expansion Plan – Current Status
C-Cut Expansion Plan – Current Status • Decline to access new production level has passed 839m level; breakaway for 830m undercut level has been established • Tenders received for shaft deepening (and related infrastructure) to 930m; award of this contract is imminent • New drawpoints established in
Slide 23: Financials And Guidance
FINANCIALS AND GUIDANCE 23
Slide 24: Production Forecast
Production Forecast Will take production to 2.4 million carats by 2019 Carats (Mct) ROM Tonnes (Mt) 3.0 4.5 4.0 2.5 3.5 2.0 3.0 2.5 1.5 2.0 1.0 1.5 1.0 0.5 0.5 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 ROM OSP & DM
Slide 25: Analyst Guidance
Analyst Guidance • Cullinan LOM: Plan up to 2027; residual C-Cut resource extends LOM + 30yrs • Ownership: 74% • LOM environmental closure liability: R130 million • FY 2011 tax shield estimated: R700 million • Group management fees: R36 million pa • BEE loans due: US$56 million ROM tonnes (Mt) To re
Slide 26: Cost Make-up And Challenges
Cost Make-up And Challenges • ROM mining and treatment costs contained below R200/t since take-over Ongoing issues being addressed: • Rising cost of electricity through effective design, maintenance and management of new and old infrastructure • New designs to cater for high degree of automation • A
Slide 27: Cullinan Outlook
Cullinan Outlook • Spectacular diamonds – regular production of ‘specials’ • Major resource – world’s second largest indicated resource by in-situ value • Improving recoveries – ongoing plant changes • Improving grades – grade to rise from ~36 cpht to ~50 cpht when new mining block established • Ver
Slide 28: Appendix
\Y PetraDiamonds Appendix
Slide 29: Ownership Structure
Ownership Structure P PetraDiamonds Petra Diamonds Namoise Mining Sedibeng Mining Umnotho weSezwe Limited (Pty) Ltd (Pty) Ltd Group (Pty) Ltd 20% 44% 36% (effective 2.8%) (effective 6.16%) (effective 5.04%) Cullinan Investment Employee Share Trust Thembinkosi Minin Holding Limited (EST) Investments
Slide 30: The History Of Cullinan
The History Of Cullinan 1902 Cullinan kimberlite pipe originally discovered by Sir Thomas Cullinan - at 32ha surface area, largest diamondiferous kimberlite ever found in SA 1903 Open pit mining commenced at ‘Premier Mine’ - at time of outbreak of WW1 14,000 were employed at mine 1930 De Beers acqui
Slide 31: Cullinan – FY 2011
Cullinan – FY 2011 Unit Year ended Year ended Variance 30 June 2011 30 June 2010 Sales Revenue US$M 140.2 127.0¹ +10% Diamonds sold Carats 944,405 903,861 +4% Average price per carat US$ 148 141¹ +5%² ROM Production Tonnes treated Tonnes 2,323,403 2,160,907 +8% Diamonds produced Carats 850,633 841,2
Slide 32: Further enquiries: Petra Diamonds
Further enquiries: Petra Diamonds Cathy Malins cathym@petradiamonds.com +44 20 7318 0452 www.petradiamonds.com
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