Petra Diamonds Limited · LSE:PDL
Petra Diamonds — Investor Presentation (June 2012)
25 slides from Petra Diamonds's investor presentation, June 2012
Slide 1: Delivering Growth in Diamonds
LISTED PREMIUM Delivering Growth in Diamonds June 2012 Construction underway of the new Cullinan modular tailings plant
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: Discover Petra Diamonds
Discover Petra Diamonds • London’s largest quoted diamond mining group (LSE: PDL) – member of the FTSE 250 • Major diamond resource of +300 million carats • Exceptional organic growth profile – on track to increase production to over 5 Mcts by 2019 • Brownfields expansion – proven operations with lo
Slide 4: Proven Track Record – Continuous Growth
Proven Track Record – Continuous Growth Gross Production Profile Gross Revenue Profile Strong US$ Finsch Mcts production million contribution growth due boosts 2.5 to Finsch revenue acquisition 350 * Recovery * 2.0 300 in rough diamond Major increase prices & due to higher 250 Decreased sale of 507
Slide 5: A Diversified Portfolio
A Diversified Portfolio • Focus on Africa – source of 60% of the world’s diamonds by value • Eight producing mines – provides flexibility in terms of portfolio performance LDD sampling campaign currently underway on KX36 5
Slide 6: Diamond Market – Key Demand Drivers
Diamond Market – Key Demand Drivers • Confidence in continued strong demand growth from China • 5 year economic plan seeks to boost China’s domestic consumption • Demand driven by urbanisation trend and growing middle class • Chow Tai Fook: “Demand for mid-quality…diamonds over the next three to fiv
Slide 7: Aim Of Expansion Programmes – Undiluted Ore
Aim Of Expansion Programmes – Undiluted Ore Block cave mining schematic • Current mining at underground pipe mines taking place in diluted mature caves and low grade remnants • Expansion programmes will open up fresh block caves, delivering access to undiluted ore in higher grade areas • Cullinan gr
Slide 8: Expansion Programmes – Key Milestones
Expansion Programmes – Key Milestones FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 PHASE ONE PHASE TWO Major underground development and infrastructure build Finalise ore-handing systems; Large percentage of production starts to come from higher grade areas once access gained to undiluted
Slide 9: Expansion Programmes – FY 2012: A Snapshot
Expansion Programmes – FY 2012: A Snapshot Cullinan: Underground development Finsch: Underground development Williamson: Rebuilt plant Koffiefontein: Underground development Kimberley UG: Plant construction 9
Slide 10: Robust Balance Sheet
Robust Balance Sheet 30 Apr 2012 31 Dec 2011 (US$m) (US$m) Cash and cash equivalents: Bank 17.5 45.1 Diamond inventories of 332,218 carats 34.7 38.1 (stated at the lower of cost or net realisable value) Total 52.2 83.2 Loans and borrowings: IFC / RMB Debt Facilities - ca. US$79m (US$40m IFC; R300m R
Slide 11: KX36 – New Kimberlite Discovery
KX36 – New Kimberlite Discovery • New discovery in Botswana • Homogeneous orebody • Core drilling and micro-diamond sampling campaign indicated: • Initial modelled (undiluted) diamond grade between 75-180 cpht • Indications of a reasonably coarse diamond size distribution from MiDA modelling • Poten
Slide 12: Production & Revenue Portfolio Split
Production & Revenue Portfolio Split Gross Production FY 2011: 1.1 million carats Q3 FY 2012: 622,508 carats FY 2019: 5.4 million carats Fissures 0.08 Kimberley 0.06 Cullinan 222,196 Finsch 1.9 Koffiefontein 0.05 Cullinan 2.4 Williamson 0.03 Cullinan 0.9 Finsch 343,051 Williamson 18,983 Fissures 0.1
Slide 13: Sustainability – At The Heart Of Petra
Sustainability – At The Heart Of Petra Health and Safety Health and safety of employees is top priority for management Formation of Board level HSSE Committee in FY 2012 Petra striving for zero harm across its operations Investing in education and communities Left: Petra’s LTIFR Rate Mwadui Primary
Slide 14: Focus & Strategy
Focus & Strategy Core objective to increase production fivefold to +5 Mctpa through organic growth • Expansion programmes to Steadily growing annual increase production at each production, with a target operation of over 5 million carats Increase by FY 2019 • Utilise resources available output inclu
Slide 15: Appendix
Appendix
Slide 16: Capital Structure
Capital Structure High Quality Shareholder Base 7 June 2012 Share Price Chart (1 year) Al Rajhi Holdings W.W.L. 13.3% Saad Investments Company Ltd/AWAL Bank 12.1% JP Morgan Asset Management Holdings Inc. 7.9% Capital Group International, Inc. 7.3% Prudential plc group of companies* 5.1% Scottish Wid
Slide 17: The Petra Board
The Petra Board Adonis Pouroulis (41) Johan Dippenaar (54) David Abery (49) Jim Davidson (67) Non-Executive Chairman CEO Finance Director Technical Director Successful mining entrepreneur One of South Africa’s most successful Extensive experience as Chief Financial Acknowledged world authority on Fo
Slide 18: An Exceptional Growth Path
An Exceptional Growth Path Petra has acquired the following five diamond mines from De Beers: July 2007 July 2008 November 2008 May 2010 September 2011 Koffiefontein Cullinan Williamson Kimberley UG Finsch Front Cave Block Cave Open Pit Block Cave Block Cave 14yr Mine Plan 16yr Mine Plan 17 yr Mine
Slide 19: Cullinan – Development Programme
Cullinan – Development Programme Expansion Plan – to take production from +895,000 Cullinan Mining Schematic ctpa to ca. 2.4 Mctpa by FY 2019 (2.0 Mctpa ROM & 0.4 Mctpa tailings) • South Decline to establish Current Infrastructure production at 830m and then on Men & Material to bottom of new shaft
Slide 20: Finsch – Development Programme
Finsch – Development Programme Expansion Plan – to take production from ~1.5 Mctpa to Finsch Mining Schematic just under 2 Mctpa by FY 2018 (1.6 Mctpa ROM & 0.3 Mctpa tailings) Vent Production • Current mining of Block 4 at Shaft Shaft 630m – FY 2012 to FY 2014 Precursor • Access to Sub Level Cave a
Slide 21: Williamson – Overview
Williamson – Overview Expansion Plan – Key Components Williamson Kimberlite Pipe Schematic • Stockpile (due to pit shaping activities) of ca. 900,000 t 1km (>50,000 cts) N • Enhanced rebuild of existing plant (3 Mtpa) completed and commissioned; production from main pit restarted – Q3 LOM Pit Shell
Slide 22: Koffiefontein – Overview
Koffiefontein – Overview Expansion Plan – to Koffiefontein Kimberlite Pipe Schematic take production to ca. 100,000 ctpa by FY 2017 (90,000 ctpa ROM & 10,000 ctpa tailings) • Lower than expected ROM production from planned areas supplemented by ore from Ebenhaezer open pit • Installing new sub-level
Slide 23: Kimberley Underground – Overview
Kimberley Underground – Overview Expansion Plan – to Kimberley Underground Kimberlite Pipes Schematic take production to ca. 120,000 ctpa by FY 2013 • Construction and commissioning of main plant (40,000 tpm) at Wesselton – Q4 FY 2012 • Underground development – FY 2012 onwards • Sampling programme
Slide 24: Capex Profile
Capex Profile Financial Year 2012 2013 2014 2015 2016 2017 2018 2019 Operation Area Finsch Existing Block 4 (630 meter Level) ‐ Block 4 pillars ‐ SLC Block 4 precursor ‐ SLC 770 meter Level ‐ Block 5 880 meter Level Development tonnes ROM Tonnes (Mt) 2.2 3.2 3.2 3.2 3.5 3.5 3.5 3.5 Tailings Tonnes (
Slide 25: Further enquiries: Petra Diamonds
Further enquiries: Petra Diamonds Cathy Malins cathym@petradiamonds.com +44 20 7318 0452 www.petradiamonds.com