Petra Diamonds Limited · LSE:PDL
Petra Diamonds — Shareholder Meeting (January 2012)
23 slides from Petra Diamonds's shareholder meeting presentation, Jan 27, 2012
Slide 1: AGM Presentation
AGM Presentation 27 January 2012
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 pure diamond mining group – ‘PDL’ • Provides direct exposure to the positive long term fundamentals of the diamond market • AIM has proved ideal growth market for Petra’s rapid development • Main Market is now appropriate platform for continued growt
Slide 4: 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 5: An Exceptional Growth Path
An Exceptional Growth Path July 2007 July 2008 November 2008 May 2010 September 2011 Koffiefontein Cullinan Williamson Kimberley UG Finsch 74% Petra 74% Petra 75% Petra 74% Petra 74% Petra 26% BEE Partners 26% BEE Partners 25% Government of 26% BEE Partners 26% BEE Partners Tanzania Front Cave Block
Slide 6: A Diversified Production Portfolio
A Diversified Production Portfolio Petra is focused on Africa – source of 60% of the world’s diamond production by value 6 * Petra mines – Petra’s portfolio includes five of the world’s most important kimberlite diamond mines
Slide 7: Diamond Market – Strong Fundamentals
Diamond Market – Strong Fundamentals • Many of the world’s major diamond mines are in decline and cannot maintain previous output • No new important discoveries since the finds in Canada in the early 1990’s • Strong demand drivers going forward, particularly from emerging markets • Anglo to buy Oppe
Slide 8: A Shift From West To East
A Shift From West To East World Diamond Jewellery Sales 2000 World Diamond Jewellery Sales 2010 World Diamond Jewellery Sales 2015E RoW 10% RoW 14% Other RoW 20% Italy 2% Asia 8% Hong Kong 2% US 35% India 0% US 38% Taiwan 2% Taiwan 2% US 48% Europe India 11% 16% India 10% Japan 9% Japan 11% Gulf 9%
Slide 9: An Emerging Market Of New Consumers
An Emerging Market Of New Consumers • Urbanisation trend – by 2025: 221 Chinese cities with +1m population (vs 107 cities in Europe, Japan, US combined) • The number of middle income consumers expected to increase by +800m by 2030 (half of these consumers will be in China / India) (World Bank projec
Slide 10: Current Market Conditions
Current Market Conditions Global economic uncertainty caused prices to fall from June ‘11 highs High End Sales Remain Strong • Diamantaires adopting a ‘wait and see’ approach due to current Positive high end sales from financial markets major auction houses • Rand weakness partially offsets lower pr
Slide 11: Focus & Strategy
Focus & Strategy Petra plans to produce +5 Mctpa through organic growth Steadily growing annual • Acquisition of Finsch mine production, with a target of over 5 million carats • Utilise resources available Increase by FY 2019 including tailings deposits output • Programmes to deepen underground mine
Slide 12: Production & Revenue – FY 2011 & Estimated FY 2019
Production & Revenue – FY 2011 & Estimated FY 2019 Gross Production Gross Revenue FY 2011: 1.1 million carats FY 2011: US$221 million 0.08 21.8 0.06 0.05 18.2 0.03 30.8 Cullinan Williamson 140.2 9.5 Koffiefontein 0.9 Kimberley Undergroud FY 2019: 5.4 million carats FY 2019: +US$1 billion* Fissure Mi
Slide 13: Admission & Outlook
Admission & Outlook Admission to trading on Main Market with a premium listing on 21 December 2011 • 7 March 2012: Subject to Index review, Petra should qualify for inclusion in the FTSE 250 • Premium listing and entry to FTSE 250 will raise Petra’s profile, further stimulating investment and liquid
Slide 14: Thank You
Finsch mine, South Africa Thank You
Slide 15: Capital Structure
Capital Structure High Quality Shareholder Base 25 Jan 2011 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% Scottish Widows Investment Partnership 6.4% T. Rowe
Slide 16: 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 17: Cullinan – Mining Overview
Cullinan – Mining Overview Expansion Plan – Key Components Cullinan Mining Schematic • South Decline to establish production at 830m and then on to the bottom of the new shaft at 930m – end FY 2012 Current Infrastructure (breakaway already Men & Material established at 830m) Shaft Planned Infrastruc
Slide 18: Finsch – Mining Overview
Finsch – Mining Overview Expansion Plan – Key Components Finsch Mining Schematic • Mining currently taking place in Block 4 at 630m – FY Vent Production 2012 Shaft Shaft • Treatment of Pre 1979 Tailings – until FY 2015 • Accessing and development Precursor of Precursor SLC at 630m – SLC Block 4 Rema
Slide 19: Williamson – Mining Overview
Williamson – Mining Overview Expansion Plan – Key Williamson Kimberlite Pipe Schematic Components • Stockpile (due to pit shaping activities) of ca. 1km 900,000 t (ca. 45,000 cts) N • Enhanced rebuild of existing plant (3 Mtpa) near completion – expected to be in LOM Pit Shell production Q3 FY 2012
Slide 20: Koffiefontein – Mining Overview
Koffiefontein – Mining Overview Expansion Plan – Key Koffiefontein Kimberlite Pipe Schematic Components • Installing new front cave at 590m Level – FY 2013 • Installing new block cave at 690m Level – FY 2016 • Tailings programme now ramped up with Petra processing +0.5 Mtpa 20
Slide 21: Kimberley Underground – Mining Overview
Kimberley Underground – Mining Overview Expansion Plan – Key Kimberley Underground Kimberlite Pipes Schematic Components • Bedding down Joint Shaft Plant after initial commissioning issues • Constructing and commissioning of mobile pan plant (40,000 tpm) at Wesselton – September 2011 • Constructing
Slide 22: 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 23: Petra Diamonds contact details
Petra Diamonds Cathy Malins cathym@petradiamonds.com +44 20 7318 0452 www.petradiamonds.com