Petra Diamonds Limited · LSE:PDL
Petra Diamonds — Investor Presentation (February 2011)
27 slides from Petra Diamonds's investor presentation, February 2011
Slide 1: Building A Leading Diamond Producer
Building A Leading Diamond Producer February 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 March 2011 July 2007 July 2008 November 2008 May 2010 (Pending) Koffiefontein Cullinan Williamson Kimberley UG Finsch 74% Petra 74% Petra 75% Petra 74% Petra 74% Petra 26% Re-Teng 14% Thembinkosi / 25% Government of 26% Sedibeng Mining 26% BEE Partners Diamonds 12
Slide 4: Growth Profile – Historic
Growth Profile – Historic million Gross Production Gross Revenue Recovery in carats Major US$ million rough diamond increase due prices & sale of 1.4 to higher volume 200 Cullinan H it Heritage Cullinan mine 180 1.2 Acquisitions 160 of Cullinan and Willi Williamson 1.0 140 120 Acquisition 0.8 of Kof
Slide 5: Growth Profile – Future
Growth Profile – Future 6 800 700 5 600 4 500 Expected Gross Expected Carats 3 400 Revenue (Millions) (US$ m) 300 2 200 1 100 0 - FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 (Actual) Cullinan Koffiefontein Kimberley U/G Williamson Fissures Finsch Revenue Revenue (
Slide 6: Exposure To Strong Diamond Market
Exposure To Strong Diamond Market • Diamond supply constraints - world’s largest diamond mines are past their peak • Only around 30 diamond mines of significance globally • Significant supply / demand deficit expected to emerge in 3 years • Strong demand growth continues from China & India – urbanis
Slide 7: A Diversified Production Portfolio
A Diversified Production Portfolio • Finsch further diversifies Petra’s Portfolio • Seamless fit with other operations • Increases Petra’s critical mass • Personnel • Procurement • Leveraging off previous experience • Focus on efficiencies: right-size operation, restructure cost base & empower manag
Slide 8: Finsch – A Major Diamond Producer
Finsch – A Major Diamond Producer • South Africa’s second largest diamond mine by production • State-of-the-art infrastructure & modern plant • (Shaft 4.6 Mtpa; Plant 7.2 Mtpa) • Resource of 48 Mcts, incl. 26.6 Mcts reserves & 4.7 Mcts tailings • Av. p production of ca. 2 Mcts p pa over last 5 yyrs
Slide 9: Finsch – Potential For ‘Specials’
Finsch – Potential For ‘Specials’ • Finsch has produced a number of large, special diamonds in its history • Recovery of significant large, high-value stones can substantially increase the total value of production in any one year 204.7 carats (2003) Selection of specials p recovered in last 4 yyear
Slide 10: Block Caving – Aim Of Expansion Programmes
Block Caving – Aim Of Expansion Programmes VIRGIN KIMBERLITE PIPE DRAWPOINTS UNDILUTED ORE UNDERCUT LEVEL PRODUCTION LEVEL LOADERS HAULAGE 10
Slide 11: Finsch – Underground Schematic
Finsch – Underground Schematic Footprint at 800m Level Main pipe: 4.4 ha Precursor: 1.6 ha 11
Slide 12: 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 caratst and
Slide 13: Williamson
Williamson • Renowned for high value and pink diamonds • 146 hectare (360 acre) open pit, continuously mined for 70 years • Major expansion programme underway to reshape pit , refurbish existing plant and construct new 10Mtpa plant including autogenous mill 13
Slide 14: 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 3 5 4.0 4 0 10.0 10 0 1.2 1 2 1.0 1 0 Expansion tonnes (Mtpa) (FY2018) (FY2019) (FY2014) (FY2017) (FY2012) ROM US$ / carat (1) 135 105 200 480 250 ( ht) (1) G d (cpht) Grade 47
Slide 15: Balanced Production & Revenue
Balanced Production & Revenue Gross Production FY 2012 (1)(2) Gross Revenue FY 2012 (1)(2) 3.1 Million Carats US$444 million $105 1.0 Cullinan Williamson $178 Koffiefontein 1.5 Kimberley $40 Fissure Mines 0.2 Finsch $36 0.1 0.2 $30 $55 0.1 Mcts US$m Gross Production FY 2019 (1) Gross Revenue FY 2019
Slide 16: Equity Placing – January 2011
Equity Placing – January 2011 • Placing raised US$325m from international institutional investor base • Further strengthened balance sheet • Broadened very high quality shareholder register • Heavily oversubscribed – reflected investor interest in diamond market • Strong financial position to execut
Slide 17: Capital Structure
Capital Structure High Quality Shareholder Base 31 Jan 2011 Share Price Chart Al Rajhi Holdings W W.W.L. WL 13 5% 13.5% Saad Investments Company Ltd/AWAL Bank 12.3% JP Morgan Asset Management (UK) Ltd 8.8% Capital Group International, Inc. 7.4% Scottish Widows Investment Partnership 5.7% BlackRock I
Slide 18: Appendices
\y PetraDiamonds Appendices
Slide 19: The Petra Board
The Petra Board Adonis Pouroulis Johan Dippenaar David Abery Jim Davidson Chairman CEO Finance Director Technical Director S Successful f l mining i i entrepreneur t One off South O S th Africa’s Af i ’ mostt Extensive E t i experience i as Chi Chieff Acknowledged A k l d d worldld authority th it s
Slide 20: Growth Profile – Delivering Results (FY 2010)
Growth Profile – Delivering Results (FY 2010) EBITDA* Profit After Tax EPS US$M US$M US cents 80 80 70.2 30 70.9 22.65 70 60 20 60 40 10 50 ‐49.38 20 0 40 ‐89.0 0 10 -10 30 -20 -20 20 40 -40 30 -30 10 ‐8.6 0 -60 -40 10 -10 80 -80 50 -50 -20 FY 2009 FY 2010 -100 FY 2009 FY 2010 -60 FY 2009 FY 2010 FY
Slide 21: Trading Update (6 months to 31 Dec 2010)
Trading Update (6 months to 31 Dec 2010) Unit 6 months ended 31 6 months ended 30 6 months ended 31 December 2010 June 2010 December 2009 Sales S l Revenue US$M 90.0 115.3(¹) 62.4 Diamonds sold Carats 584,234 552,871 572,227 Production ROM diamonds Carats 533,912 503,819 547,054 Tailings & alluvial
Slide 22: Finsch Production Profile
Finsch Production Profile Tonnes Treated FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY (Millions) (3 mth) 2018+ Existing Block 4 & Pillars 0.8 2.9 2.7 2.1 2.0 0.4 SLC (Precursor & 770 L) 0.3 0.5 0.8 0.8 0.3 Block 5 - 880m Level 0.3 0.3 2.5 3.2 3.5 UNDERGROUND 0.8 3.2 3.2 3.2 3.1 3.2 3.2
Slide 23: Petra Expansion Profile (incl. Finsch)
Petra Expansion Profile (incl. Finsch) Financial Year 2011 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 S C 770 meter Level - Block 5 880 meter Level Development tonnes ROM Tonnes (Mt) 0.8 3.2 3.2 3.2
Slide 24: Group Gross Resources
Group Gross Resources G Gross C Caratt B Base G Gross I it Value In-situ V l 309.1 Mcts US$38.0 billion 48.1 $5.7 4.6 $0.7 7.5 Cullinan $1.4 5.7 57 Williamson Koffiefontein $2.2 Mcts Kimberley US$bn 40.0 $20.8 Fissures Finsch 203.3 $7.2 24
Slide 25: 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 25
Slide 26: Kimberley Underground
Kimberley Underground 3.5 ha @ • Potential for large and 995m Level fancy yellow diamonds • P Produced d d th the Ki Kimberley b l 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 curre
Slide 27: Thank You
\y PetraDiamonds Thank You
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