Petra Diamonds Limited · LSE:PDL
Petra Diamonds — Technical Presentation (February 2020)
52 slides from Petra Diamonds's technical presentation, Feb 1, 2020
Slide 1: Cullinan Site Visit
Cullinan Site Visit Petra Diamonds Limited 1 February 2020
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. The
Slide 3: Cullinan Site Visit Programme and Hosts
Cullinan Site Visit Programme and Hosts • 09:45 Overview of Petra, briefing on the Cullinan mine, safety training CEO CFO Chief Technical Corporate Cullinan GM Finance • 11:00 Change for Richard Duffy Jacques Officer underground visit Breytenbach Juan Kemp Jaison Rajan Andre Pienaar • 11:30 Undergro
Slide 4: Petra Overview
Y PetraDiamonds Petra Overview
Slide 5: Portfolio of Producing Mines
Portfolio of Producing Mines Petra Diamonds Limited: Cullinan Site Visit 5
Slide 6: One of the World's Top Independent Diamond Producers
One of the World’s Top 5 Independent Diamond Producers Assets moving to steady Company entering phase of state production FCF generation Cullinan Finsch 74% Petra; 26% BEE 74% Petra; 26% BEE Block cave / Sub-level cave Sub-level cave / Block cave Mine Plan to 2030 Mine Plan to 2030 Williamson Koffie
Slide 7: 10 year capital investment programme and 3 year outlook
Completion of Heavy Capital Intensive Phase 10 year capital investment programme and 3 year outlook US$ 350 300 250 200 150 100 50 0 2013 2018 2010 2011 2012 2014 2015 2016 2017 2019 2020 2021 2022 • Petra has completed major capital expansion programmes across each of its assets and is now bedding
Slide 8: Generation of Free Cash Flow to reduce Leverage
Generation of Free Cash Flow to reduce Leverage Project 2022 expected to start delivering benefits from H2 FY 2020 • Initial target of $150-200 million¹ free cash flow over three year period² • Implementation underway at all mines and at Group level; the majority of the value driver ideas generated
Slide 9: Cullinan Contribution Split
Cullinan Contribution Split Cullinan became key revenue contributor to Group in H1 FY 2020 Production by mine Revenue by mine 2% 11% 20% 32% H1 FY 2020 H1 FY 2020¹ 44% 2.1 million carats $193.9 million 8% 43% Finsch 42% Cullinan Koffiefontein Williamson 2% 10% 20% FY 2019 FY 2019 37% 45% 3.9 million
Slide 10: Cullinan Overview
Wz PetraDiamonds Cullinan Overview
Slide 11: Cullinan History
Cullinan History Petra Initial 3.6 Mt Deposit Recovery of Mine closed Premier increased its production produced from discovery the 3,106ct due to great (Transvaal) stake to 74% from new C- the C-Cut Cullinan depression Diamond Company by buying out Cut cave Diamond Al Rajhi’s amalgamated into DBCM i
Slide 12: Cullinan Ownership Structure
Cullinan Ownership Structure Fully empowered, with employee ownership of 12% Petra Diamonds Limited 100% Itumeleng Petra Kago Diamonds Petra Diamonds Diamonds Employee Holdings SA (Pty) Ltd Trust 74% 14% 74% 12% 14% Cullinan Diamond Mine Petra Diamonds Limited: Cullinan Site Visit 12
Slide 13: Safety Performance
Safety Performance 2001 = Previous time of underground development 2010 = Petra development projects commence 2018 = Projects start winding down; lower employee and contractor number *LTIFR = Nr of lost time injuries x 200,000 hrs / hrs worked Petra Diamonds Limited: Cullinan Site Visit 13
Slide 14: Cullinan FY 2019 Vital Statistics
Cullinan FY 2019 Vital Statistics Responsible development is integral to our mining approach Safety Revenue Carbon emissions Water source LTIFR: -5% to 0.20 Carats: +21% to 1.65Mcts tCO2-e/ct: -13% to 0.13 Surface water: 1.0% LTI: -17% to 5 Revenue: +3% $171.4m tCO2-e/t: -20% to 0.04 Ground water: 0
Slide 15: Iconic Diamonds
Iconic Diamonds Consistent producer of world-class diamonds with exceptional heritage The Cullinan The Star of Josephine The Cullinan Heritage The Blue Moon of Josephine 3,106 ct rough 26.6ct rough, 7.0ct polished 507.5ct rough, 104ct polished 29.6ct rough, 12.0ct polished Largest gem diamond ever s
Slide 16: A Tier Diamond Resource
A Tier 1 Diamond Resource Indicated Resource of 234 million tonnes containing 138 million carats allows for potentially considerable mine life extension Gross Tonnes Grade Contained Diamonds Category (millions) (cpht) (Mcts) Reserves Proved - - - Probable 45.0 39.2 17.67 Sub-total 45.0 39.2 17.67 Re
Slide 17: Production ramp-up and Operating Costs
Production ramp-up and Operating Costs Tonnes treated (million) Production ramp-up 6.0 1.8 Carats recovered (million) 5.0 1.5 4.0 1.2 3.0 0.9 2.0 0.6 1.0 0.3 0.0 0.0 FY 2017 FY 2018 FY 2019 FY 2020 (ACTUAL) (ACTUAL) (ACTUAL) (FORECAST) C-Cut Ph1 ROMt Other ROMt Tailings Total carats recovered (RHS)
Slide 18: Mining Operations
Y PetraDiamonds Mining Operations
Slide 19: Block Caving Simplified
Block Caving Simplified Petra has transitioned from old mining areas to new ‘undiluted’ blocks Draw bells Production level is created below; draw points are set up and a fan is drilled above each one; ore starts to ‘cave’ under its own weight and is removed from draw points with loaders Petra Diamon
Slide 20: Cullinan
Cullinan Steady state production from C-Cut Phase 1 and CC1E to be reached in FY 2020 • Undercut ring blasting commenced FY 2015 • Production levels established at 839m and shaft to 934m commissioned – FY 2016 • New plant with throughput capacity of 4.0 Mt ROM and 2.0 Mt tailings – commissioned in Q
Slide 21: C-Cut Progression
Cullinan C-Cut Progression C-Cut CC1E 16 ha at 839 mL The last 3 draw-bells of 107 planned were slotted in December 2019 • Draw-bell installation scheduled to be completed at the end of January 2020 with a total of 107 draw- bells • Cave maturity will follow the draw-bell opening sequence with draw-
Slide 22: ROM Grade Progression
ROM Grade Progression H1 FY 2020 ROM grade marginally below guidance of 38-42 cpht 45 38 - 42 40 39.9 39.3 39.1 38.4 37.8 37.9 37.3 35 36.6 34.5 33.3 33.8 30 30.7 30.3 27.8 Grade (cpht) 25 25.8 25.7 Lower grade 22.0 due to new 20 Cullinan plant Turnaround in ROM grade as a Declining ROM grade as res
Slide 23: Processing operations
7 PetraDiamonds Processing operations
Slide 24: Cullinan Plant
Cullinan Plant Plant designed to match Cullinan’s Unique Characteristics Characteristics specific to the Cullinan ore: • Combination of harder and softer material: ideal for milling • Relatively high DMS yield calls for sensor based sorting for larger particles • Luminescent waste particles requires
Slide 25: Cullinan Plant – Process Flow Diagram
Cullinan Plant Cullinan Plant – Process Flow Diagram Petra Diamonds Limited: Cullinan Site Visit 25
Slide 26: Project 2022 Overview
Y PetraDiamonds Project 2022 Overview
Slide 27: Project 2022 in Action
Project 2022 in Action Project 2022 Initiatives aimed at increasing production The ore is Simplified Cullinan process flow diagram 5 milled to liberate the 6 Rough diamonds diamonds are separated out from the ore 1 4 Draw point from the The ore is block cave hoisted to the surface 3 Crushed ore is t
Slide 28: Improvements are mainly focused on addressing the bottlenecks on site
Project 2022 in Action Improvements are mainly focused on addressing the bottlenecks on site The ore is milled to Simplified Cullinan process flow diagram 5 liberate the 6 Rough diamonds diamonds are separated out from the ore 1 4 Draw point from the The ore is block cave hoisted to the surface 3 Cr
Slide 29: Specific ideas within mining are being implemented
Project 2022 in Action Specific ideas within mining are being implemented Area Idea Shrink shift change: Increase the number of productive hours on Loading the loaders by changing the blasting time and ensuring that shift handovers happen efficiently Weekend loading: Appoint a contractor to load ove
Slide 30: The mining ideas are complemented by a set of ideas in the plant
Project 2022 in Action The mining ideas are complemented by a set of ideas in the plant Area Idea Optimisation and redesign of high-pressure grinding roll crushers: Refurbish and redesign the rolls so that they crush Recycle recycled material more effectively and reduce the recycle load of the crush
Slide 31: P2022 is working to change the behaviours of all employees across site
Project 2022 in Action P2022 is working to change the behaviours of all employees across site Petra Diamonds Limited: Cullinan Site Visit 31
Slide 32: Responsible Mining
7 PetraDiamonds Responsible Mining
Slide 33: By responsibly developing our assets, we unlock value for all stakeholders
Responsible Mining By responsibly developing our assets, we unlock value for all stakeholders Mining right holders in South Africa comply with Group policies and practices aligned to National Mineral and Environmental Petroleum Mine Health Management Resources and Safety Act Development Act ¹ Act an
Slide 34: Managing our Material Impacts in support of the SDGs
Managing our Material Impacts in support of the Sustainable Development Goals (“SDGs”) Petra Diamonds Limited: Cullinan Site Visit 34
Slide 35: Energy Use
Energy Use Carbon emissions Eskom Load Shedding • Diamond mining is less energy intensive than some types of mining • 9 December 2019: Eskom made – only represented 16% of on-mine cash costs in FY 2019 unprecedented move to Stage 6 load shedding (removal of 6000MW) further to • Petra’s energy use is
Slide 36: Water Use
Water Use Water management objectives Water Management 1. Improve water use efficiency • Water demand and conservation management has been identified as 2. Improve percentage of recycled the most significant environmental risk to our operations, including water used in production Cullinan • Diamond
Slide 37: Cullinan Pit Wall Scaling Stakeholder Engagement
Cullinan Pit Wall Scaling Stakeholder Engagement • Ad hoc, incident-based engagement on pit scaling with community since early 2015, especially closure and detour of R513 road section • Pit scaling incidents in 2019 highlighted the need for structured and sustained engagement with interested and aff
Slide 38: Cullinan Community Investment Areas – City of Tshwane in Gauteng Province
Cullinan Community Investment Areas – City of Tshwane in Gauteng Province City of Tshwane Region 5 City of Tshwane Region 7 Petra Diamonds Limited: Cullinan Site Visit 38
Slide 39: Education, Training and Development
Education, Training and Development The most important contribution we can make to socio-economic development • Efforts start at grassroots level – improving education standards in local schools • Bursaries, scholarships and training offered to community members • Numerous Company programmes to deve
Slide 40: Case Study – Chipa Tabane High School
Case Study – Chipa Tabane High School “If you want to make a difference in this country, invest in education” Petra Diamonds Limited: Cullinan Site Visit 40
Slide 41: Playing a Positive Role within our Communities
Playing a Positive Role within our Communities Petra constructed the Lethabong Day Centre within Petra constructed the Multi Sports Facilities for use Petra constructed an expansion of the Onverwacht the Onverwacht school grounds, with 3 classrooms by 3 local primary schools, using labourers from th
Slide 42: Enterprise and Supplier Development Programme (ESD)
Enterprise and Supplier Development Programme (“ESD”) Assisting local businesses to create sustainable economic growth in our communities Petra has dedicated Enterprise Development Resource Centres Case Study: Outclass Crystallized Gems (“OCG”) in place at each operation to support local businesses,
Slide 43: Cullinan Outlook
Cullinan Outlook Petra aims to build on Cullinan’s exceptional legacy C-Cut project nearly complete • With first development in 2014, the major C-Cut project is now nearing completion • All 107 drawpoints have been installed and the entire footprint of the new C-Cut block cave is expected to be full
Slide 44: Safety induction & site visit orientation
Safety induction & site visit orientation
Slide 45: Site visit risk overview
Site visit risk overview 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
Slide 46: Rescue Pack Induction
RESCUE PACK INDUCTION Petra Diamonds Limited: Cullinan Site Visit 46
Slide 47: Plan View of Cullinan Mining Areas
Plan View of Cullinan Mining Areas 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 47
Slide 48: Cullinan Plant – Aerial Overview
Cullinan Plant – Aerial Overview Aerial Overview of surface plant 9 1. ROM Feed 2. ROM Silo and Return Silo 10 3. Mill Section 14 12 4. XRL Recovery 3 5. HPGR Crusher 11 6. DMS Plant 7. Final Recovery 6 8. Tailings Disposal 7 8 5 2 13 9. Slimes Disposal 4 10.New Eskom Substation 11.MV Substation 12.
Slide 49: Appendix
New image tbc 7 PetraDiamonds Appendix
Slide 50: Analyst Guidance FY 2020 – Group Capex Profile
Analyst Guidance FY 2020 – Group Capex Profile 1 All Capex numbers stated in FY 2020 money terms (ZAR14.0/US$1 where applicable) 2 Depreciation on mining assets for FY 2020 guided at ca. US$85-90 million at R14.0/US$1 Petra Diamonds Limited: Cullinan Site Visit 50
Slide 51: Tailings Residue Deposit Management in line with Best Practice
Tailings Residue Deposit Management in line with Best Practice • In South Africa risk-based mandatory Codes of Practices (“COP”)1 are available for all residue deposits at our mines as required by, and according to set guidelines from the Department of Mineral Resources (DMR), Mine Health and Safety
Slide 52: Thank you
Thank you Further enquiries: investorrelations@petradiamonds.com +44 20 74948203 www.petradiamonds.com
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