Petra Diamonds Limited · LSE:PDL
Petra Diamonds — Botswana Resource Conference 2015
27 slides from Petra Diamonds's conference presentation, Jun 10, 2015
Slide 1: Discover Petra – A Leading Independent Diamond Producer
Discover Petra – A Leading Independent Diamond Producer 9 – 10 June 2015
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: A Mining Company Offering…
A Mining Company Offering… Revenue Adjusted EBITDA US$m US$m 1. Quality assets & management 203 600 188 502 200 472 392 128 400 317 90 221 100 67 200 2. Attractive market fundamentals 0 0 FY11a FY12a FY13a FY14a LTM FY11a FY12a FY13a FY14a LTM Dec 14 Dec 14 Rough Diamond Production Adjusted Op. Cash
Slide 4: 1. Quality Assets & Management
1. Quality Assets & Management • Petra has majority stakes in 5 of less than 30 significant kimberlite mines in operation • Major diamond resource of 301 Mcts valued at ca. US$58 bn1 Well diversified portfolio Four producing mines in South Africa One producing mine in Tanzania Exploration in Botswan
Slide 5: 1. Quality Assets & Management
1. Quality Assets & Management • Petra acquired five diamond mines from De Beers (four in South Africa, one in Tanzania) July 2007 July 2008 February 2009 May 2010 September 2011 Koffiefontein Cullinan Williamson Kimberley UG Finsch 70% Petra¹; 30% BEE 74%¹ Petra; 26% BEE 75% Petra¹; 25% 74% Petra¹;
Slide 6: 2. Attractive Market Fundamentals
2. Attractive Market Fundamentals Supply1 Global Diamond Supply: Historical & Forecast Rough Production2 • Diamond exploration success rate estimated at <1% 180 • Global rough production fell 27% from 2005 to 2013 160 Peak Production 140 Mctpa (2005) • Supply constraints (<30 significant kimberlite
Slide 7: 3. Growth and Margin Expansion
3. Growth and Margin Expansion • Brownfield expansion programmes on track to lift production to c. 5 Mcts by FY19 FY19 production (US$m) target of c.5 Mcts (Mcts) 1,200 6.0 1,000 5.0 FY14 production of 800 3.1 Mcts; 4.0 revenue of FY11 US$472m 600 production 3.0 of 1.1 Mcts; revenue of 400 US$221m 2
Slide 8: Outlook
Outlook 1. Quality assets & management Operating 5 of <30 significant diamond mines worldwide Favourable medium- to long-term 2. Attractive market fundamentals outlook; lower volatility than other commodities Expansion programmes on track; 3. Growth & margin expansion margins to rise substantially b
Slide 9: Integrated Approach to Sustainability
Integrated Approach to Sustainability Safety Performance 1.2 • Safety of 1 employees is top priority 0.8 • Petra aiming 0.6 for 0.4 continuous improvement 0.2 0 FY FY FY FY FY Q3 FY 2010 2011 2012 2013 2014 2015 Petra’s LTIFR Rate Promoting Sustainable Energy Environmental Management Striving for ze
Slide 10: Kx36 Evaluation and the Quest for our Next Discovery
Kx36 Evaluation and the Quest for our Next Discovery BOTSWANA
Slide 11: Focus On Botswana
Focus On Botswana BOTSWANA • Africa’s premier mining jurisdiction – 25th in the world according to latest Fraser Institute Annual Survey of Mining Companies • World’s largest diamond producer by value • Superb diamond exploration potential • Transparent land tenure system • Politically stable and at
Slide 12: Total Expenditure in BWP
Total Expenditure in BWP BOTSWANA 50 45 40 35 BWP MILLION 30 25 20 15 10 5 0 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FINANCIAL YEAR Note: • Kalahari Diamonds purchase price: US$22 million / ca. BWP 120 million • Total expenditure to date: ca. BWP 320 million 1
Slide 13: Kx36 Project Location
Kx36 Project Location BOTSWANA • Region covered by variable thickness (30 - 120m) of Kalahari Group sediments • The Pre-Kalahari comprises of the Karoo basalts and the Karoo sedimentary sequence • The basalt is heavily faulted, with variable thicknesses, thus making the area structurally complex • T
Slide 14: Kx36 Bulk Sampling Plant
Kx36 Bulk Sampling Plant
Slide 15: Delineation Drilling & 3-D Geological Modelling
Delineation Drilling & 3-D Geological Modelling • Ca. 9,000m of drilling completed, with extended NDD Phase 1 pierce points for country rock NDD Phase 2 geotechnical assessment for NDD Phase 3 with open pit shell modelling (Extended pierce points) • Type 1 modified kimberlite (Skinner) • Magmatic an
Slide 16: Phase I Large Diameter Drilling
Phase I Large Diameter Drilling • LDD: 1,675m, ca. 800 tonnes treated • 286 carats recovered • Diamond breakage generally high at 23 - 29% 516m from surface (VERTICAL DEPTH) LDD Phase 1 16
Slide 17: Phase II LDD Programme
Phase II LDD Programme • Planned drilling programme: • LDD cover/pilot holes • Nine LDD holes (4 x 450m, 5 x 310m) • Directional surveying and downhole geophysics, LDD calliper • Aim to recover ca. 725 carats for a total diamond parcel of ca. 1,000 carats 17
Slide 18: Bulk Sample Processing
Bulk Sample Processing • 10 t/h Bulk Sampling Plant established on site, approved by Department of Mines mid February 2015 • Plant operated on contract by Gemcore • Treatment according to facies identified from cover/pilot hole core – ca. 20 bags per sample • Intention to use larger diamond parcel t
Slide 19: Salient Kx36 Results to Date
Salient Kx36 Results to Date • Modelled Microdiamond grade of undiluted kimberlite: 75 - 180 cpht (assuming 100% diamond recovery above 1 diamond sieve) • Phase I LDD recovered grade: ca. 32 cpht (285 carats from ca. 900 tonnes, calculated from bulk density data and 5.11 ct calliper volume measureme
Slide 20: Kx36 Region Exploration
Kx36 Region Exploration Mag 1vd & EM (120m depth slice) composite image 20
Slide 21: Petra Joint Venture and Co-operation Agreements
Petra Joint Venture and Co-operation Agreements • Strong balance sheet, excellent technical expertise and 6 entrepreneurial flair allow for rapid assessment and involvement in projects 5 • Petra amenable to getting involved in interesting projects at any stage of the Mining Cycle – from 4 grassroots
Slide 22: Manica Diamond Exploration Co-operation Agreement
Manica Diamond Exploration Co-operation Agreement • Co-operation Agreement in Botswana reached in January 2014 with Manica Minerals, led by Dr J.J Gurney • Exploration under the Agreement is fully funded by Petra Diamonds • The Agreement combines the extensive exploration experience of both parties
Slide 23: Orapa North Exploration Programme – PL068/2013
Orapa North Exploration Programme – PL068/2013 • Historical data compilation and review • Xcalibur hi-res magnetic gradiometer data acquisition (1,250 line-km) over 10 known kimberlites in the Orapa area • Initial evaluation (size, diamond bearing potential) of 5 known kimberlites completed through
Slide 24: PL068/2013 – BK7 RC Drilling, Mantle Mapper Results
PL068/2013 – BK7 RC Drilling, Mantle Mapper Results 24
Slide 25: Orapa North Exploration Programme – PL374/2014
Orapa North Exploration Programme – PL374/2014 • Historical data compilation and review • Xcalibur hi-res magnetic gradiometer data acquisition (1,336 line-km) completed over a further 12 known kimberlites in the Orapa area • 6 Larger (5 – 15 ha potential) targets selected for percussion drilling do
Slide 26: Jwaneng South Project
Jwaneng South Project • Older ca. 240 Ma kimberlites could potentially be hidden within Karoo rocks of younger age – KIM signatures might therefore be masked by these younger rocks • The distribution of these rocks are therefore seen as potentially prospective • Integrating drill holes, geological m
Slide 27: Thank You
Thank You 77 Petra BOTSWANA