Petra Diamonds Limited · LSE:PDL
Petra Diamonds — Investor Presentation (December 2023)
15 slides from Petra Diamonds's investor presentation, Dec 18, 2023
Slide 1: Company and market update
Company and market update 2pm GMT Monday 18 December 2023
Slide 2: Your hosts today
Your hosts today Richard Duffy, CEO Gregory Stephenson, Sales and Marketing Executive 2
Slide 3: Summary
Summary 1. Our latest tender shows pricing is bottoming out, which is supported anecdotally in the wider market 2. Indian moratorium has been effective, but ongoing discipline by the key players is important to provide some price stability 3. Petra has taken prudent steps to improve resilience throu
Slide 4: What is the current state of the diamond market?
What is the current state of the diamond market? Image courtesy of NDC
Slide 5: Petra's recent sales tender results
Petra’s recent sales tender results Rough diamond prices appear to be bottoming out 1 Petra’s av. price split by run-of-mine (ROM) and Exceptional Stones (US$15 million or higher)1 250 180 US$/ct 160 Index (US$, rebased to 100) 200 140 120 150 152.6 100 80 100 60 40 50 20 - H1 FY21 H2 FY21 H1 FY22 H
Slide 6: Market overview
Market overview • Producers working to manage supply and stimulate demand Indian exports monthly from Mar 2018 to Nov 2023 1 • De Beers will continue to offer sightholders flexibility into 2024; Alrosa withheld US$m sales in Sept & Oct 3000 • New partners joining NDC from the midstream, including 8
Slide 7: How are you building resilience into the business?
How are you building resilience into the business?
Slide 8: Recent actions taken to build resilience
Recent actions taken to build resilience Targeted reduction to capex programme Increasing headroom and financial flexibility • Aiming for up to US$65 million in development capital savings • Approval of c. US$43 million increase in Petra's First Lien through slowing or pausing 3 expansion projects u
Slide 9: What industry trends should we expect in CY 2024?
What industry trends should we expect in CY 2024?
Slide 10: Provenance, traceability and future branding opportunities
Provenance, traceability and future branding opportunities G7 sanctions has accelerated the move towards provenance and Traceability enables the traceabilty unique ‘story’ of each • 1 September 2024 has been set as a deadline for G7 countries to natural diamond to be told2: have robust traceability-
Slide 11: Laboratory-grown gem diamonds continue to diverge as a separate product category
Laboratory-grown gem diamonds continue to diverge as a separate product category at a lower price point LGDs and natural diamonds can together grow the overall diamond market, but Pricing divergence continues for larger categories1 they are two distinct product categories 100% • Production capacity
Slide 12: Considerations beyond pricing and value
Considerations beyond pricing and value Laboratory-grown diamonds are manufactured within Natural diamonds were formed billions of years ago and each weeks one is unique and rare • Two manufacturing processes exist (‘Chemical Vapour • Diamond-bearing kimberlites are rare; of 6,800 sampled Deposition
Slide 13: Company outlook
Company outlook Employee looking out over Cullinan Mine’s plant
Slide 14: FY 2024 Company outlook
FY 2024 Company outlook Ongoing stabilisation and optimisation of operations Cullinan Mine: stabilised; continue to develop 813 and 833 Levels to ensure higher grade ore is brought to production from end June FY24 Finsch: manage near term volatility; continue development of 78-Level Phase II project
Slide 15: Q&A
Q&A One of our community education projects, My Maths Buddy – a dictionary of mathematical terms for teachers and pupils
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