Petra Diamonds Limited · LSE:PDL
Petra Diamonds — Technical Presentation (February 2018)
44 slides from Petra Diamonds's technical presentation, Feb 1, 2018
Slide 1: Finsch Site Visit
Finsch Site Visit 1 February 2018
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. T
Slide 3: Finsch Site Visit Itinerary
Finsch Site Visit Itinerary • 06:00 Pick up from Sandton, Johannesburg • 07:00 Depart Lanseria • 08:15 Arrive at Finsch • 08:30 Overview on Petra, Finsch & Safety briefing • 09:30 Underground visit • 12:00 Overview of Central Control Room • 12:30 Corporate Social Responsibility • 13:00 Plant and ope
Slide 4: About Finsch
” About Finsch
Slide 5: Location within Petra Portfolio
Location within Petra Portfolio 5
Slide 6: Finsch Overview
Finsch Overview Fincham & Schwabel established Finsch Diamonds Extensive modifications treatment plant 1961 1963 1978 1980 1990 2002 2008 2011 1961 1980 14 Sep 2011 Established Finsch 1963rights Full mining 1978 First stage Upgrade of treatment Open 1990 pit operation Development of Second upgrade o
Slide 7: The Petra Story Commences for Finsch – Oct 2011
The Petra Story Commences for Finsch – Oct 2011 The first single boom Sandvik drill rig arrives at Finsch Mine The LOM Plan for Finsch Mine at the time 7
Slide 8: Mine Site Layout
Mine Site Layout 9 2 6 5 4 8 1 3 7 1 Underground 3 Post-79 TD 5 Waste rock dump 7 FRD’s 1,2 and 3 and Infill Dam 2 Pre-79 TMR 4 Overburden Deposit 6 Britz FRD 8 Old Paddocks 8
Slide 9: Diamond Profile
Diamond Profile • Rich in gem quality smaller diamonds • Highly commercial goods of +5 carats • Produces a number of +50 carat stones pa – both white and yellow diamonds Selection from tender 36cts & 43cts 53cts 43cts 2.9cts 2 classic models of 6-7.5cts 9
Slide 10: Safety Performance
Safety Performance Highest LTIFR/nr = 2006FY: 0.39 / (12) 2004 = Previous time that development was done underground 2010 – current = Increase in activities, employees and projects both Lowest LTIFT/nr = 2014FY: 0.10 (2) underground and surface plant *LTIFR = Nr of lost time injuries x 200,000 hrs /
Slide 11: SHE Achievements
SHE Achievements Finsch was second place in the Northern Cape Mine Managers’ Association (NCMMA) Awards, for the AMMSA, SACMA, SAIMM underground mines safety category – MineSAFE November 2016 “John T Ryan” Plaque for National Winner (Diamond Mining Category) July 2016 and again in August 2017 Finsch
Slide 12: Finsch – Production Plan
Finsch – Production Plan • ROM diamond production expected to increase approx. 10% on FY 2017, due to increase in mining of undiluted ore from newly established mining areas Tonnes treated and grades Carat production and average diamond values 3.0 140 7.0 70 Million carats $/ct cpht Million tonnes 2
Slide 13: Current Trading – H1 FY 2018 Results
Current Trading – H1 FY 2018 Results Unit H1 FY 2018 H1 FY 2017 Variance FY 2017 Sales Revenue US$m 100.8 99.3 +2% 216.7 Diamonds sold Carats 970,446 1,010,015 -4% 2,141,885 Average price per carat US$ 104 98 +6% 101 ROM Production Tonnes treated Tonnes 1,559,280 1,498,449 +4% 3,212,169 Diamonds pro
Slide 14: Block 5 SLC Mining and Development Programme
Block 5 SLC Mining and Development Programme
Slide 15: Geology
Geology • Finsch pipe is hosted by banded ironstones at surface and thereafter dolomites of the Griqualand West Sequence of the Transvaal Supergroup • A Group II kimberlite pipe with an age of 118Ma • 17.9ha on surface • Main pipe tapers to 3.7ha and Precursor to 1.5ha at 880m • Truncates earlier Pr
Slide 16: Finsch – Development Programme
Finsch – Development Programme Expansion Plan FY 2017 Development: Waste: 1,523 metres; Raiseboring:427 metres; Kimberlite 3,733 metres • Expansion plan to take production to ca. 2.0 Mctpa (ROM) by FY 2018 • Sub level cave - tunnelling in host rock complete - All 22 tunnels in production – first 2 l
Slide 17: Underground Development
Underground Development SLC rim intersection 63 Pillars SWPC 70, 73, 75 & 78 level rim drives complete SLC Phase 1 SLC Phase 2 BC Ground BC Sections 2,3 & 4 of Handling SLC ground handling tunnels complete 17
Slide 18: Sub-level Caving
Sub-level Caving • A cave where most of the recovered rock is drilled, charged and blasted • The face must continuously advance: • To disturb the column above • To manage the damaged brows • Performance is highly dependent on: • Extraction sequencing and disciplined following of it • Drill and blast
Slide 19: Block 5 Sub-level Cave
Block 5 Sub-level Cave Cycles of Mining the SLC Long hole drilling Charging & Blasting Loading & Tipping 19
Slide 20: Crushing & Conveyance
Crushing & Conveyance Complete In Progress 20
Slide 21: Production Ramp-up
Production Ramp-up 300 000 70 Industrial Action Forecast 60 250 000 50 200 000 Grade (cpht) 40 Tons Mined 150 000 30 100 000 20 50 000 10 - 0 Block 5 SLC & SWPC - Block 4 - Pillar Mining - Block 4 - Block Cave ROM Grade 21
Slide 22: Plant Overview
” Plant Overview
Slide 23: Plant Infrastructure
Plant Infrastructure Pre upgrade: • Original plant built – 1964 • First upgrade completed – 1980 • Underground operation commence – 1990 • Introduced Pre-79 dump retreatment – 2003 • Full contops since 2005 – capacity of 5.7 Mtpa Post upgrade: • Treatment plant upgrade – predominantly the DMS, recov
Slide 24: Plant Overview
Plant Overview Ore Reception Ore Preparation Concentration Mine Residue Disposal Recovery WIFS 24
Slide 25: Simplified Process Flow
Simplified Process Flow Shaft -300mm Primary Gyratory Crusher -150mm Buffer Stockpile Secondary & Tertiary Crushing High Pressure Rolls Crushing Coarse DMS -22mm Overspill Bin +22mm -150mm -22+ 1mm Feed Separation & -22+8mm Final Recovery Primary Scrubbing & Secondary Screening Scrubbing -1mm -8+1mm
Slide 26: Treatment Profile
Treatment Profile 600 000 70 Industrial Forecast Action 60 500 000 50 400 000 Grade (cpht) 40 Tons 300 000 30 200 000 20 100 000 10 - 0 ROM Underground ROM Surface Stockpile Tailings Overall Grade 26
Slide 27: Typical Production Layout
Typical Production Layout 27
Slide 28: Operating Costs
” Operating Costs
Slide 29: Operating Cost History and Make-up
Operating Cost History and Make-up 400 On-mine cash cost per tonne treated 7 Million tonnes treated R/t treated 350 6 • Risk of rising electricity costs 300 managed through efficient 5 250 design of new infrastructure 4 200 3 • Maintenance and 150 2 management of new and old 100 infrastructure 50 1
Slide 30: Labour Relations – Risk Mitigation
Labour Relations – Risk Mitigation • Labour relations at Petra’s South African operations were stable for the three year period up to the negotiation of a new three year deal in 2017 • September 2017: Finsch, Koffiefontein and KEM JV experienced labour disruption (contained to less than two weeks),
Slide 31: CSD
CSD
Slide 32: Northern Cape District Municipalities
Northern Cape District Municipalities Finsch Diamond Mine falls within the Kgatelopele local Municipality (8) which includes the towns of Danielskuil and Lime Acres 32
Slide 33: Corporate Social Responsibility Objective
Corporate Social Responsibility Objective Our main objective is to continue building effective relationships with employees, stakeholders and the community at large Principles: • Transparency • Employee participation (committee members) • Utilising of local suppliers and service providers • Comply w
Slide 34: Focus Areas
Focus Areas • Infrastructure • Health Care Services • Community Development and Support • Education and Training: • Early Childhood Development (ECD) • Maths & Science • Outreach programmes • Sports, Arts and Culture 34
Slide 35: Water Infrastructure
Water Infrastructure Resident of Danielskuil next to the installed pre-paid Bulk water infrastructure and water meter and all water borehole upgrades at Danielskuil leakages fixed 35
Slide 36: Electrical Infrastructure
Electrical Infrastructure Electrical infrastructure upgrade in partnership with two local mines (PPC Lime and Idwala Lime) 36
Slide 37: Health Care Services
Health Care Services An extension to local clinic adding a Pharmacy Finsch in partnership with the Local Municipality, section to dispense medicine local mines and Department of Health donated additional medical equipment for the Mobile Clinic 37
Slide 38: Community Development
Community Development Community skills development programme to address skills shortages by unemployed youth to access opportunities. • Drivers License Project • 20 unemployed youth participated in the programme • Portable Skills • 10 unemployed youth took part in the programme • Internship – based
Slide 39: Enterprise Development
Enterprise Development Provide community members with an opportunity to be employed alleviating poverty and unemployment Services • Computer and internet access (business purposes only) • Business advice • Entrepreneurial training and business mentoring • Assistance with business plan/profile compil
Slide 40: School Support
School Support • School subsidy: Assist six schools with additional funding to meet the needs of learners • Donations to schools Finsch donating two printers to Finsch Primary School and Sha-Leje Primary School 40
Slide 41: Corporate Social Investment
Corporate Social Investment Finsch sponsored Kgatelopele Social Development Forum with a new Gazebo. Local sports teams sponsored sports equipment 41
Slide 42: Outlook
Outlook
Slide 43: Finsch Outlook
Finsch Outlook • Transformation in production profile • Depletion of lower value Pre-79 tailings resource planned during H2 FY 2018 • Ramp up of undiluted ore from new mining areas to contribute ca. 1.9 Mt in FY 2018 • Expected to lead to improving average product mix • Improving mining costs • Deco
Slide 44: Thank You
Thank You Further enquiries: Investor Relations investorrelations@petradiamonds.com +44 20 7494 8203 www.petradiamonds.com
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