Petra Diamonds Limited · LSE:PDL
Petra Diamonds — FY2010 Earnings Presentation
23 slides from Petra Diamonds's earnings presentation, Jul 20, 2010
Slide 1: Trading Update (Year to 30 June 2010)
The 507 carat Cullinan Heritage – sold for US$35 US$35.3m 3m Trading Update (Year to 30 June 2010) 20 July 2010
Slide 2: Important Notice
Important Notice These Presentation Materials do not constitute or form part of any invitation, offer for sale or subscription or any solicitation for any offer to buy or subscribe for any securities in the Company nor shall they or any part of them form the basis of or be relied upon in any manner
Slide 3: Petra At A Glance
Petra At A Glance • Substantial growth profile: • Production to treble to +3m carats by FY2019 (all organic growth) • One of world’s largest diamond resources: • 262m carats (gross), 195m carats (attributable) • g diamond mines: Seven producing • All kimberlite deposits • Strong management team: • P
Slide 4: A Unique Growth Profile In Diamonds
A Unique Growth Profile In Diamonds Gross Production Gross Revenue (carats) ((US$m)) 177.7 1,164,856 1,099,367 +88% +6% +449% 94.4 77.3 +22% 200,287 FY 2008 FY 2009 FY 2010 FY 2008 FY 2009 FY 2010 4
Slide 5: Diamond Market Update
Diamond Market Update • Diamond supply constraints - world’s largest diamond mines are past their peak • Strong demand drivers going forward, particularly from emerging markets (China & India) • China diamond market forecast to equal US within a decade • Diamond prices virtually recovered to pre-dow
Slide 6: FY 2010: Corporate Highlights
FY 2010: Corporate Highlights • Increased ownership of Cullinan mine to 74%: • Doubled Cullinan’s attributable production • Increased Petra’s attributable resource base from all operations to 195 million carats (gross: 262 million carats) • C Completion l ti off Ki Kimberley b l U Underground d d ac
Slide 7: FY 2010: Production & Sales
FY 2010: Production & Sales Unit Year ended 30 June Year ended 30 June Variance 2010 2009 Production Gross production Carats 1,164,856 1,099,367 +6% Sales Gross diamonds sold Carats 1,125,098 1,011,707 +11% Gross revenue US$M 177.7 94.4 +88% Group revenue US$M 163.3 69.1 +136% Strong revenue growth
Slide 8: Production & Revenue Split
Production & Revenue Split Gross Production Gross Revenue 1,164,856 carats US$177.7m Fissure Mines Williamson Williamson (74 232) (74,232) Fissure Fi ( (14.4) ) (101,071) Mines (13.5) Kimberley Underground Kimberley (1,362) Underground K ffi f t i Koffiefontein (0) (60,260) Koffiefontein (22.8) Cull
Slide 9: Cullinan Heritage
Cullinan Heritage • Cullinan Heritage sold for US$35.3m • Highest price on record for a rough diamond • Purchased by Chow Tai Fook, a leading Chinese jeweller Other notable specials • 168 carat white diamond (Cullinan): US$6.3m • 64 carat white diamond ((Cullinan): ) US$3.7m $ • Two +50 carat white
Slide 10: Cullinan – South Africa
Cullinan – South Africa Unit Year ended 30 June Year ended 30 June Variance 2010 2009 Production* Diamonds produced Carats 927,931 888,595 +4% Grade Cpht 38.5 41.0 -6% Sales* Revenue US$M 127.0 51.2 +148% Diamonds sold Carats 903,861 780,663 +16% Average price per carat US$ 141 66 +114% * All figure
Slide 11: Koffiefontein – South Africa
Koffiefontein – South Africa Unit Year ended 30 June Year ended 30 June Variance 2010 2009 Production* Diamonds produced Carats 60 260 60,260 52 089 52,089 +16% Grade Cpht 6.0 6.6 -9% Sales* Revenue US$M 22.8 18.3 +25% Diamonds sold Carats 56,707 72,809 -22% Average price per carat US$ 402 252 +60%
Slide 12: Kimberley Underground – South Africa
Kimberley Underground – South Africa Unit Year ended 30 June Year ended 30 June Variance 2010 2009 Production* Diamonds produced Carats 1,362 n/a n/a Grade Cpht 14.9 n/a n/a Sales* Revenue US$M n/a n/a n/a Diamonds sold Carats n/a n/a n/a Average price per carat US$ n/a n/a n/a * All figures given g
Slide 13: Williamson – Tanzania
Williamson – Tanzania Unit Year ended 30 June Year ended 30 June Variance 2010 2009 Production* Diamonds produced Carats 101,071 84,486 +20% Grade Cpht 5.8 5.7 +2% Sales* Revenue US$M 14.4 9.4 +53% Diamonds sold Carats 91,901 75,045 +22% Average price per carat US$ 157 126 +25% * All figures given g
Slide 14: Fissure Mines – South Africa
Fissure Mines – South Africa Unit Year ended 30 June Year ended 30 June Variance 2010 2009 Production* Diamonds produced Carats 74,232 71,274 +4% Grade Cpht 37.2 37.7 -1% Sales* Revenue US$M 13.5 15.3 -12% Diamonds sold Carats 72,629 82,126 -12% Average price per carat US$ 185 186 -1% * All figures
Slide 15: Production Growth Profile (Gross)
Production Growth Profile (Gross) 4,000.0 3,500.0 3,000.0 2,500.0 Fissures Williamson 2,000.0 Kimberley Underground Koffiefontein 1,500.0 Cullinan 1,000.0 , 500.0 - FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 15
Slide 16: Petra – A Unique Diamond Investment
Petra – A Unique Diamond Investment Substantial Already 1 million+ carat pa producer; minimal exposure to exploration spend Producer Diversified 7 producing kimberlite mines – open cast, underground pipes & fissures Portfolio Track Broad technical expertise and proven delivery on operational targets
Slide 17: Unique Growth In A Rising Diamond Market
The 507 carat Cullinan Heritage – sold for US$35 US$35.3m 3m Unique q Growth In A Rising g Diamond Market Thank You
Slide 18: 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 19: Diversified Production Portfolio
Diversified Production Portfolio Williamson Production South Africa • Cullinan • Koffiefontein • Kimberley Underground • Helam • Fissures • Sedibeng Geographically focused portfolio • Star i stable in t bl and d llow-risk i k countries ti Tanzania • Williamson 19
Slide 20: World’s Third Largest Diamond Resource
World’s Third Largest Diamond Resource Attributable carat base Total carat base Fissures - 4.5 Fissures - 4.7 47 Kimberley - 5.2 Kimberley - 6.9 Koffiefontein - 42 4.2 Koffiefontein - 5.9 59 Williamson - 30.0 Williamson - 40.1 Cullinan - 151.3 Cullinan - 204.6 204 6 195 million carats 262 million ca
Slide 21: Strong Capital Structure
Strong Capital Structure High Quality Shareholder Base 19 July 2010 Share Price Chart Al Rajhi Holdings W.W.L. 18.1% Saad Investments Company Limited 17.3% JP Morgan Asset Management (UK) Limited 9.3% Scottish Widows Investment Partnership 6.2% Capital Group International, Inc. 6.2% BlackRock Invest
Slide 22: CAPEX Profile
CAPEX Profile Financial Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Operation Area Cullinan BAW/BB1E/AUC Gap Fillers AUC South BAW Phase 1 C‐Cut Phase 1 Total Tonnes (Mt) 2.200 2.400 2.400 2.400 2.426 2.680 2.845 3.145 3.150 4.000 Total Carats (Mcts) 0.957 1.117 1.239 1.314 1.520 1.649 1.
Slide 23: Petra Diamonds contact
The 507 carat Cullinan Heritage – sold for US$35 US$35.3m 3m Petra Diamonds Cathy Roberts cathyr@petradiamonds.com +44 20 7318 0452 www.petradiamonds.com