Petra Diamonds Limited · LSE:PDL
Petra Diamonds — Technical Presentation (February 2018)
48 slides from Petra Diamonds's technical presentation, Feb 2, 2018
Slide 1: Cullinan Site Visit
Cullinan Site Visit 2 February 2018
Slide 2: Important Notice
Important Notice • These Presentation Materials are being supplied to you by Petra Diamonds Limited (the “Company”) solely for your information and use at this presentation. These Presentation Materials may contain information that is confidential, legally privileged or otherwise protected by law. T
Slide 3: Cullinan Site Visit Itinerary
Cullinan Site Visit Itinerary 09:30 Arrival at Cullinan Diamond Mine (“CDM”) 09:45 Overview briefing on Petra, Cullinan and Safety 11:15 Underground visit 13:15 Plant visit 14:30 Change house 15:00 Lunch 15:30 Expected time of departure 17:00 Arrive OR Tambo airport 17:00 Arrive Sandton (Radisson Bl
Slide 4: Petra Overview
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Slide 5: Discover Petra…
Discover Petra… …a leading independent diamond miner with a diversified portfolio and high quality team Petra expansion plans expected to: • Improve grades • Improve product mix • Improve operating costs Driving VALUE • Production growth to come mainly from higher value ROM carats • Adj. EBITDA marg
Slide 6: Moving to Undiluted Ore
Moving to Undiluted Ore • Caving is a safe and proven mechanised mining method • Allows for the bulk mining of large orebodies and enables a higher ore extraction percentage compared to other underground mining methods • A highly cost effective mining method once the capital to put the associated in
Slide 7: Cullinan Overview
Cullinan Overview
Slide 8: Location
Location Petra Diamonds Limited: Cullinan Site Visit - 2 February 2018 8
Slide 9: Safety Performance
Safety Performance 20 2.0 18 1.8 16 1.6 N 14 1.4 L U T M 12 1.2 I B 10 1.0 F E R R 8 0.8 6 0.6 4 0.4 2 0.2 0 0.0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Fatalities 0 0 0 2 0 0 0 0 1 0 0 0 0 0 1 0 1 2 0 LTI 8 19 13 15 14 11 8 3 2 2 5 5 5 7 7 11 1
Slide 10: Cullinan Overview
Cullinan Overview 1902 1903 1905 1930 1932 1945 1997 2008 2009 Cullinan Open pit mining Recovery of the De Beers Mine closed Mine reopened Premier Mine acquired Petra increased kimberlite pipe commenced at 3,106 carat acquired due to and pit (Transvaal) by Petra its interest to originally ‘Premier M
Slide 11: Iconic Diamonds of Cullinan
Iconic Diamonds of Cullinan • Cullinan has consistently produced world class white and coloured diamonds over its history Historic Recoveries pre-Petra Recoveries by Petra The Cullinan The Golden Jubilee The Cullinan Heritage The Cullinan Dream 3,106 ct rough 755.5 ct rough 507.55 ct rough 122.5 ct
Slide 12: Mining Overview
Mining Overview
Slide 13: Block Caving Schematic
Block Caving Schematic Undercut tunnel is made through the orebody and Undercut material is broken up Production level is created below; draw points are set Draw bells / Draw points up and a fan is drilled above each one; ore starts to ‘cave’ Production level under its own weight and is removed from
Slide 14: Cullinan – Development Programme
Cullinan – Development Programme Expansion Plan FY 2017 Development: Waste: 1,049 metres; Raiseboring: 673 metres; Kimberlite: 2,530 metres • Expansion plan: to take production to ca. 1.7 Mcts by FY 2019 (1.6 ROM & 0.1 tailings) based on Jan 2018 grade estimates • C-Cut Phase 1: New block cave being
Slide 15: Grade Variability across Orebody
Grade Variability across Orebody Orebody in plan view Petra Diamonds Limited: Cullinan Site Visit - 2 February 2018 15
Slide 16: ROM Grade Progression
ROM Grade Progression 45 42.0 40 39.9 - 39.1 37.0 38.4 35 36.6 34.5 33.3 33.8 30 30.7 30.3 27.8 Grade (cpht) 25 25.8 25.7 22.0 20 Declining ROM grade as result of maturing cave (waste ingress), Turnaround in ROM grade as a Lower grade exacerbated by high level of development waste in FY 2014 and FY
Slide 17: Transition Phase – ROM Tonnes per Area
Transition Phase – ROM Tonnes per Area Men & Material Shaft Rock Shaft Deepened 805m to 880m Deepened 580m to 930m FY 2017 18% 8% H1 FY 2018 H2 FY 2018 BA5: 645 Level FY 2019 10% 16% 3% 3% AUC: 717 Level 15% 9% 5% 2% AUC: 732 Level BB1E 747 Level 44% 54% 77% 80% CC1E: 763 Level C-Cut: 824 Level 12%
Slide 18: C-Cut Under Cut Level
C-Cut Under Cut Level Petra Diamonds Limited: Cullinan Site Visit - 2 February 2018 18
Slide 19: Footprint of C-Cut Phase 1 continuously expanding
Footprint of C-Cut Phase 1 continuously expanding Draw bells to date Planned 45 Completed 41 Out of total 110 planned Draw bells (3) developed and constructed Used as transfer pass Petra Diamonds Limited: Cullinan Site Visit - 2 February 2018 19
Slide 20: CC1 East
CC1 East Petra Diamonds Limited: Cullinan Site Visit - 2 February 2018 20
Slide 21: Engineering Infrastructure – Ground Handling 895L
Engineering Infrastructure – Ground Handling 895L Conveyors Conveyors Intersection Intersection Petra Diamonds Limited: Cullinan Site Visit - 2 February 2018 21
Slide 22: Engineering Infrastructure – Ground Handling Crusher and Tip
Engineering Infrastructure – Ground Handling Crusher and Tip Production Tip 1 Crusher Chamber Crusher Civil Construction Crusher South 1 Petra Diamonds Limited: Cullinan Site Visit - 2 February 2018 22
Slide 23: Engineering Infrastructure – Ground Handling Crusher and Tip
Engineering Infrastructure – Ground Handling Crusher and Tip Production Tip 1 Crusher Conveyor planning MCC (Motor Control Centre) Petra Diamonds Limited: Cullinan Site Visit - 2 February 2018 23
Slide 24: Plan View of Cullinan Mining Areas: Areas to Visit
Plan View of Cullinan Mining Areas: Areas to Visit CC1E CC1E 824 South C-Cut 839 North Intersection Top of Silo Crusher & Tip North Conveyor North Bottom of Silo View from North Loading Section Petra Diamonds Limited: Cullinan Site Visit - 2 February 2018 24
Slide 25: New Plant
New Plant
Slide 26: New Plant – Significantly Reduced Footprint
New Plant – Significantly Reduced Footprint COMPARISON – OLD vs NEW MILLING PLANT Old Plants New Milling Plant (Main, DTP & OSP) 6.0Mt ROM capacity 2.8 Mt ROM Initial feed: Throughput p.a. 2.5 Mt Tailings 4.0 Mt ROM 2.3 – 2.5 Mt Tailings Total footprint ca. 27 ha ca. 4 ha MAJOR EQUIPMENT INSTALLATIO
Slide 27: New Plant – Simplified Process Flow Diagram
New Plant – Simplified Process Flow Diagram -55m +12mm +9mm Key points 1) Maximum value extraction from ore ($/t) 2) Maximum $/hr revenue – -9mm Large stones & Type II 3) Reduced cost Key levers 1) Top cut-off size 2) Recirculating load 3) Bottom cut-off size 4) Discard size 5) Non aggressive millin
Slide 28: New Plant – Simplified Process Flow Diagram
New Plant – Simplified Process Flow Diagram 150 tph Jaw crusher XRL Fines Plant (+9mm) Recovery tails 20 tph 100 tph 250 tph 80 tph Tailings Dump Slimes Dam
Slide 29: Cullinan Diamond Mine - Mill Plant
Cullinan Diamond Mine - Mill Plant Cullinan Mill Plant Monthly Tons treated build up 450 000 Key points 1) Focussed on treating 400 000 ROM from U/G and U/G stockpile 2) 4mtpa = 0.333mtpm 350 000 3) Plant showed that it could treat more than 4mtpa ROM material 300 000 4) Flexible and robust design a
Slide 30: New Plant Designed to Match Cullinan’s Unique Characteristics
New Plant Designed to Match Cullinan’s Unique Characteristics • Each kimberlite orebody has its own unique fingerprint • Characteristics specific to the Cullinan ore: • Prevalence of large diamonds • Historically C-Cut area produced low-luominescent Type II diamonds, including high value blue diamon
Slide 31: Cullinan – Grade versus Value Analysis
Cullinan – Grade versus Value Analysis • Original steady state grade guidance of ca. 50 cpht at Cullinan based on actual mine production records – see Figure 1 • The new plant at Cullinan was commissioned in Q1 FY 2018 – initial indications are that it will not be cost effective to pursue similar di
Slide 32: Impact of New Cullinan Value and Grade Guidance
Impact of New Cullinan Value and Grade Guidance FY 2017 vs H1 FY 2018 - Cumulative US$/ct price comparison per size Stones with a weight of 100 cts or class more recovered during H1 FY 2018 Cumulative Cumulative % Weight Description Size Class US$/ct US$/ct Increase FY 2017 H1 FY 2018 574.15 Clivage
Slide 33: Impact of New Cullinan Value and Grade Guidance (ROM)
Impact of New Cullinan Value and Grade Guidance (ROM) Grade impact Value per tonne impact 60 70 cpht $/t 50 60 50 40 Size category +10.8 Ct 40 30 -10.8 Ct +5 Ct -5 Ct +2 Ct 30 3 - 6 Grainers 20 Melee 20 -9 10 10 0 0 Previous grade Current Previous grade Current guidance impact guidance guidance impa
Slide 34: Current Trading – H1 FY 2018 Results
Current Trading – H1 FY 2018 Results Unit H1 FY 2018 H1 FY 2017 Variance FY 2017 Sales Revenue US$m 61.4 25.0 +34% 91.3 Diamonds sold Carats 439,012 227,759 +21% 760,957 Average price per carat US$ 140 127 +10% 120 ROM Production Tonnes treated Tonnes 1,783,229 1,039,417 +72% 1,882,911 Diamonds prod
Slide 35: New Plant – Aerial Overview
New Plant – Aerial Overview 1. ROM Feed 9 2. ROM Silo and Return Silo 3. Mill Section 10 14 4. XRL Recovery 12 3 5. HPGR Crusher 11 6. DMS Plant 7. Final Recovery 6 8. Tailings Disposal 7 9. Slimes Disposal 8 5 2 13 4 10.New Eskom Substation 11.MV Substation 12.Re-mined Material 1 13.Pump Station 14
Slide 36: Outlook
Outlook
Slide 37: Cullinan Outlook
Cullinan Outlook • Transformation in production profile • Expanding mining footprint from new mining areas • Improving product mix – due to production from undiluted areas and higher proportion of ROM vs tailings • Higher incidence of large and special diamonds associated with the Western side of th
Slide 38: CSR
CSR
Slide 39: CDM: Mine Community Investment Areas – City of Tshwane
CDM: Mine Community Investment Areas – City of Tshwane City of Tshwane Region 5 City of Tshwane Region 7 39 Petra Diamonds Limited: Cullinan Site Visit - 2 February 2018
Slide 40: Social and Labour Plan (“SLP”)
Social and Labour Plan (“SLP”) An SLP is a five year plan submitted to the Regulator which is informed by the Mineral and Petroleum Resources Development Act, 2002 (Act 28 of 2002), its Regulations and the Broad Based Socio Economic Empowerment Charter for the Mining Industry (2010) SLP Objectives •
Slide 41: Mine Community Development Projects
Mine Community Development Projects • Background – Refilwe and Onverwacht areas are underprivileged and underdeveloped, with widespread drug abuse and unemployment. Therefore the local schools needed assistance to improve their facilities as they have the power to play a very important role in the l
Slide 42: Corporate Social Investment
Corporate Social Investment • CSI Objective • The main objective of CSI and Sponsorship is to build effective and enduring relationships with internal and external stakeholders through a process and outcomes approach that generates an everlasting positive reputation • Science Laboratory • The Scienc
Slide 43: Enterprise Development
Enterprise Development Entrepreneur Development/ Skills Development Assisting the development, sustainability and financial independence of Small Medium and Micro Enterprises and contributing to Broad Based Black Economic Empowerment Monitoring Mentoring and Procurement Evaluation Services Rendered
Slide 44: Education Initiatives
Education Initiatives • Technical skills – long-term strategy to address scarcity of skills in the industry • Supporting early learning – Cullinan transformed the Refilwe Early Learning Centre to ensure a conducive learning environment • Careers Day – Cullinan hosted a careers days for 13 schools in
Slide 45: Safety Briefing
SAFETY BRIEFING 45
Slide 46: General Risks
General Risks Track Bound & Trackless Machinery Moving Components - Point and Ask, Do Not Touch Uneven surfaces Stairs & Elevated Heights Noise & Dust – PPE Will Be Issued Explosives – No Smoking, Open Flames, No Mobile Phones If you should feel uncomfortable or claustrophobic at any time during the
Slide 47: Rescue Pack Induction
RESCUE PACK INDUCTION 46
Slide 48: Thank You
Thank You Further enquiries: Investor Relations investorrelations@petradiamonds.com +44 20 7494 8203 www.petradiamonds.com
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