Petra Diamonds Limited · LSE:PDL
Petra Diamonds — Technical Presentation (October 2013)
35 slides from Petra Diamonds's technical presentation, Oct 15, 2013
Slide 1: Cullinan – The World’s Most Celebrated Diamond Mine
Cullinan – The World’s Most Celebrated Diamond Mine 15 October 2013
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 Diamonds
Petra Diamonds • Mid-tier diamond producer (LSE:PDL; FTSE 250) • Quality management team delivering strong growth • Major resource base of +300m carats • Diversified portfolio of producing mines & exploration • On track for 5 Mctpa* / c.US$1bn* revenue by FY 2019 • Sustainability at heart of Petra •
Slide 4: An Exceptional Growth Path
An Exceptional Growth Path Petra has acquired five non-core diamond mines from De Beers: July 2007 July 2008 February 2009 May 2010 September 2011 Koffiefontein Cullinan Williamson Kimberley UG Finsch 70% Petra¹,²; 30% BEE 74% Petra¹; 26% BEE 75% Petra; 25% 76% Petra¹; 24% BEE 76% Petra¹; 24% BEE Go
Slide 5: Focus on Africa
Focus on Africa • Africa produces ca. 60% of the world’s diamonds by value • Multi-mine portfolio provides flexibility in terms of operational performance Focus on kimberlite KX36 discovery & surrounding area 5
Slide 6: Cullinan Overview
CULLINAN OVERVIEW 6
Slide 7: A Unique Heritage
A Unique Heritage • Source of many of the most famous diamonds • Source of “the Cullinan”, the world’s largest gem diamond (3,106 carats) • Has produced a quarter of all the world’s diamonds of +400 carats; >125 stones of +200 carats; 745 stones of +100 carats • World’s most important source of trul
Slide 8: 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) 8
Slide 9: 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 507.55 carats rough The Premier Rose 599.10ct rough, 2009 353.90 ct rough 273.85ct polished 137.02 polished 1986 1978 The Safia The
Slide 10: World-class Diamonds Recovered by Petra
World-class Diamonds Recovered by Petra • The 507.5 carat Cullinan Heritage – sold for US$35.5m (highest price on record for a rough stone) in February 2009 • A 25.5 carat exceptional blue recovered in April and sold in May 2013 for US$16.9m (US$663k per carat) (could be world record per carat value
Slide 11: SHE Overview
SHE Overview • Cullinan maintains the highest standards and is: • ISO14001 certified • OHSAS18001 certified • ISO9001 certified
Slide 12: Corporate Social Investment
Corporate Social Investment • 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 Ikwezi Agricultural Hub Cullinan Sports Centre Imfundiso Jewellery Schoo
Slide 13: Mining Overview
MINING OVERVIEW 13
Slide 14: Grade Distribution & Underground Schematic
Grade Distribution & Underground Schematic Kimberlite in-situ grade (cpht) distribution Schematic showing Cullinan mine blocks AUC & BB1E 130 120 110 100 90 80 70 60 BA5 & 50 BAW 40 Petra is currently mining the BB1E, BA5 and AUC 30 blocks – development work moving into the higher 20 grade BAW and A
Slide 15: Major Diamond Resource
Major Diamond Resource Gross Contained Category Tonnes (millions) Grade (cpht) Diamonds (Mcts) Reserves Proved - - - Probable 63.2 41.8 26.4 Sub-total 63.2 41.8 26.4 Resources Measured - - - Indicated 260.3 70.6 183.7 Inferred 170.0 10.0 17.1 Sub-total 430.2 46.7 200.8 • Resource bottom cut-off: 1mm
Slide 16: Block Caving Schematic
Block Caving Schematic 16
Slide 17: Moving into Undiluted Ore
Moving into Undiluted Ore • Caving is a safe and proven mechanised mining method; provides access to higher volumes of ore than other methods • Current underground mining taking place in diluted, mature caves nearing end of lives • Expansion programmes to take next ‘cut’ by deepening and establishin
Slide 18: Expansion Plan – Overview
Expansion Plan – Overview Expansion Plan – to take Cullinan Mine Schematic production to c. 2.2 Mctpa by FY 2019 (2.0 Mctpa ROM & 0.2 Mctpa tailings) • Commenced rehabilitation of Current Infrastructure Men & Material BA5 areas at 645m to create Shaft Planned Infrastructure access to undiluted ore –
Slide 19: Expansion Plan – Current Status
Expansion Plan – Current Status • Decline to access new production level has passed 839m level; breakaway for 830m undercut level has been established • Shaft deepening (and related infrastructure) to 930m in progress using contractor Murray & Roberts • Development of waste tunnels in progress and o
Slide 20: Expansion Plan – Current Status
Expansion Plan – Current Status 20
Slide 21: Plant Overview
PLANT OVERVIEW 21
Slide 22: An Aerial Perspective
An Aerial Perspective • Existing plant footprint ca. 27ha, including 13.5km of conveyor belts • Ongoing objective to simplify and streamline processing route 22
Slide 23: 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 -75+35mm -1.2mm -6+1mm FINES DMS LARGE DIAMOND RECOVERY PLANT 23 SLIMES DA
Slide 24: Consistent Production Of Specials
0 2 4 6 8 10 12 14 16 18 20 1903 1905 1907 1909 +200 carats +100 carats 1911 1913 1915 1917 1919 1921 1923 1925 1927 1929 1931 1947 1949 1951 1953 1955 1957 1959 1961 1963 1965 1967 1969 Consistent Production Of Specials 1971 1973 1975 1977 1979 1981 1983 1985 1987 +100 +200 carat stones recovered a
Slide 25: Major Tailings Project
Major Tailings Project Resource of 165 Mt (17.0 million carats) • Construction and commissioning of the new tailings treatment facility has been completed • The re-crush extension is under construction; this will serve to liberate the last diamonds from the tailings oversize material • Tailings trea
Slide 26: Outlook
OUTLOOK 26
Slide 27: FY 2013 Results
FY 2013 Results Unit FY 2013 A FY 2012 A ROM Production Tonnes treated Tonnes 2,595,004 2,504,137 Diamonds produced Carats 795,370 833,285 Grade Cpht 30.7 33.3 Tailings Production Tonnes treated Tonnes 1,485,889 668,534 Diamonds produced Carats 73,605 34,495 Grade Cpht 5.0 5.2 Total Production Tonne
Slide 28: Cost Make-up And Objectives
Cost Make-up And Objectives Other 7% • Risk of rising electricity costs managed through efficient design of Power new infrastructure 15% • Maintenance and management of Labour new and old infrastructure 43% • New designs cater for high degree of automation Stores • Advancement of a Group 35% procure
Slide 29: Production Forecast
Production Forecast Targeting 2.2 million carats by FY 2019 Carats (Mct) ROM Tonnes (Mt) 2.5 4.5 4.0 2.0 3.5 3.0 1.5 2.5 2.0 1.0 1.5 0.5 1.0 0.5 0.0 0.0 FY2012A FY2013A FY2014F FY2015F FY2016F FY2017F FY2018F FY2019F FY2012A FY2013A FY2014F FY2015F FY2016F FY2017F FY2018F FY2019F ROM OSP and DMS tai
Slide 30: 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 ca. 36 cpht to ca. 50 cpht when new mining block established
Slide 31: Appendix
P PetraDiamonds Appendix
Slide 32: Ownership Structure
Ownership Structure Note: Petra has an interest in Sedibeng Mining (Pty) Ltd – refer document ‘Effective Interest in Mines: www.petradiamonds.com/investors/analysts/analyst- guidance 32
Slide 33: 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 34: Capex Profile
Capex Profile 1. All Capex numbers are stated in FY 2014 money terms (except for FY 2013 actuals). 2. Depreciation on mining assets for FY 2014 guided at ca. US$45 million. 3. As in prior guidance, capital estimates above do not include any capitalised borrowing costs. Guidance is to assume 95% of b
Slide 35: Further enquiries
Further enquiries: Petra Diamonds Cathy Malins cathym@petradiamonds.com +44 20 7494 8202 www.petradiamonds.com
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