Petra Diamonds Limited · LSE:PDL
Petra Diamonds — Investor Presentation (May 2011)
22 slides from Petra Diamonds's investor presentation, May 25, 2011
Slide 1: Expanding Production In A Rising Diamond Market
Expanding Production In A Rising Diamond Market 25 May 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: Building A Leading Diamond Producer
Building A Leading Diamond Producer Petra’s acquisition trail since 2005 – 4 major diamond mines acquired from De Beers July 2007 July 2008 November 2008 May 2010 Koffiefontein Cullinan Williamson Kimberley UG 74% Petra 74% Petra 75% Petra 74% Petra 26% Re-Teng 14% Thembinkosi / 25% Government of 26
Slide 4: Finsch – A New Flagship Asset
Finsch – A New Flagship Asset • South Africa’s second largest diamond mine by production • State-of-the-art infrastructure & modern plant • Resource of 48 Mcts, incl. 26.6 Mcts reserves & 4.7 Mcts tailings • Petra to operate Finsch at ~1.5Mcts pa initially, rising to ~2Mcts pa • Potential for ‘speci
Slide 5: Aim Of Expansion Programmes – Undiluted Ore
Aim Of Expansion Programmes – Undiluted Ore Schematic - block cave mining method Virgin kimberlite ore • 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 undiluted ore in higher grad
Slide 6: Major Underground Projects
Major Underground Projects Cullinan Orebody Finsch Orebody Current Infrastructure Current Shaft Bottom 580 Level Planned Infrastructure BA5 AUC South and 630m Level BAW Phase 1 BB1E C‐CUT 732m Level Phase 2 830m Level 763m Loading Level 950m Shaft Bottom Kimberlite Footprint C‐CUT 16 Ha @830 Level C
Slide 7: Major Opencast Project
Major Opencast Project Williamson Orebody 1km N LOM Pit Shell 205m Geology Granite Breccia RVK Bouma Shale Island BVK PK Schematic showing cut-away geology and planned open pit 7
Slide 8: Exceptional Organic Growth Profile
Exceptional Organic Growth Profile 6 900 5 750 4 600 Gross Carats 3 450 Revenue (millions) (US$m) 2 300 1 150 0 - FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 (Actual) Diamond Production (cts) Revenue (US$) 8 Future production now has potential to rise from 1+ Mcts
Slide 9: Petra – Investment Case
Petra – Investment Case • Mid tier producer offering exceptional growth Gross Carat Base – 309.1Mcts AIM: PDL (plan to move to Main Board of LSE) 48.1 4.6 • Production focused Cullinan 7.5 Williamson 203.3 8 producing kimberlite mines in expansion mode 5.7 Koffiefontein (incl. Finsch) Kimberley 40.0
Slide 10: Appendices
\Y PetraDiamonds Appendices
Slide 11: Capital Structure
Capital Structure High Quality Shareholder Base 20 May 11 Share Price Chart Al Rajhi Holdings W.W.L. 13.4% Saad Investments Company Ltd/AWAL Bank 12.2% JP Morgan Asset Management (UK) Ltd 8.7% Capital Group International, Inc. 7.4% Scottish Widows Investment Partnership 6.5% BlackRock Investment (UK
Slide 12: 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 13: A Diversified Production Portfolio
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 • Kimberle
Slide 14: Finsch – A New Flagship Asset
Finsch – A New Flagship Asset • New acquisition – expected to complete soon • Acquisition cost of R1,425m (~US$210m) • South Africa’s 2nd largest diamond mine by production • State-of-the-art infrastructure & modern plant Kimberlite Footprint @800m Level: • Petra to operate at 1.5 Main pipe: 4.4ha M
Slide 15: Cullinan
Cullinan Current Infrastructure Current Shaft Bottom 580 Level Planned Infrastructure BA5 AUC South and 630m Level BAW Phase 1 BB1E C‐CUT 732m Level • Source of world’s Phase 2 largest gem diamond ever – 3,106 carats 830m Level 763m Loading Level • Produced over 300 diamonds of over 100 carats and a
Slide 16: Williamson
Williamson 1km N LOM Pit Shell 205m • Renowned for high value and pink Geology diamonds Granite Breccia • 146 hectare (360 acre) RVK open pit, continuously Bouma mined for 70 years Shale Island • Major expansion BVK programme underway PK to reshape pit , Schematic showing cut-away geology refurbish
Slide 17: Koffiefontein
Koffiefontein • One of the world’s top kimberlite mines by average value per carat • Renowned for high value white diamonds and a regular producer of coveted pink diamonds • 5 hectare orebody at 690m Level • Expansion programme underway to access fresh blocks of ore 17
Slide 18: Kimberley Underground
Kimberley Underground 3.5 ha @ • Potential for large and 995m Level fancy yellow diamonds • Produced the Kimberley Octahedral – at 616ct currently the largest uncut diamond in the 4.5 ha @ 0.5 ha @ world 870m Level 845m Level • Petra expects to establish new resources below the current production le
Slide 19: Key Economics
Key Economics Finsch Cullinan Williamson Koffiefontein Kimberley U/G Current production rate (Mtpa) 3.2 2.3 2.1 0.9 0.6 3.5 4.0 10.0 1.2 1.0 Expansion tonnes (Mtpa) (FY2018) (FY2019) (FY2014) (FY2017) (FY2013) ROM US$ / carat (1) 135 120 200 480 285 Grade (cpht) (1) 47.0 50.0 6.0 8.7 16.7 Cash unit
Slide 20: Balanced Production & Revenue
Balanced Production & Revenue Gross Production FY 2019 (1) Gross Revenue FY 2019 (1) 5.4 Million Carats US$761 million $239 2.0 Cullinan $267 Williamson 2.4 Koffiefontein Kimberley Fissure Mines Finsch $34 0.2 $48 0.2 0.1 $120 0.6 $53 Mcts US$m (1) Management forecasts (at 2010 money) 20
Slide 21: Petra Expansion Profile (incl. Finsch)
Petra Expansion Profile (incl. Finsch) 21
Slide 22: Thank You
\Y PetraDiamonds Thank You