Petra Diamonds Limited · LSE:PDL
Petra Diamonds — Shareholder Meeting (November 2016)
15 slides from Petra Diamonds's shareholder meeting presentation, Nov 28, 2016
Slide 1: FY 2016 Annual General Meeting
FY 2016 Annual General Meeting 28 November 2016 Driving Forward
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: Focus on Africa
Focus on Africa • Five producing mines (four in South Africa and one in Tanzania), plus exploration in Botswana and South Africa • Diversified portfolio is key to managing production risk across the Group Petra Diamonds Limited November 2016 3
Slide 4: An Exceptional Growth Plan
An Exceptional Growth Plan July 2007 July 2008 February 2009 Koffiefontein Cullinan Williamson Petra has acquired six non-core diamond mining operations from De Beers Petra approach: • Flat management structures 70% Petra¹; 30% BEE 74%¹ Petra; 26% BEE 75% Petra¹; 25% Government of Tanzania • Focus o
Slide 5: Moving to Undiluted Ore
Moving to Undiluted Ore • Caving is a safe and proven mechanised mining method; provides access to higher volumes of ore than other methods • Current underground mining taking place in diluted, mature caves nearing end of lives • Expansion programmes to take next ‘cut’ by deepening and establishing
Slide 6: Growth and Margin Expansion
Growth and Margin Expansion Adjusted EBITDA margin expected to rise from ca. 38% in FY 2016 to +50% by FY 2019 • Increase in ROM grades and increase in tonnage throughput (mainly due to Kimberley Mines transaction) to lead to ca. 43% growth in production • Lower value tailings carat production to re
Slide 7: Growth and Margin Expansion
Growth and Margin Expansion Petra to maintain a fairly flat tonnage profile from FY 2017 onwards, but the replacement of poor quality tonnes with better quality tonnes will significantly grow production and increase the average value per carat FY 2019 production target of ca. 5.3 Mcts; revenue of ca
Slide 8: FY 2016 Highlights
FY 2016 Highlights Continued production growth • Record production of 3.7 Mcts and 19.0 Mt in FY 2016 • FY 2019 target increased from ca. 5 Mcts to ca. 5.3 Mcts Expansion programmes on track • SLC at Finsch and new C-Cut block cave at Cullinan commenced initial production • Cullinan mill plant proje
Slide 9: Diamond Market – Overview
Diamond Market – Overview Supply Demand • Supply constraints: Global rough diamond production • US recovery: economy continues to improve; very strong rose 2% to 127 Mcts worth $13.9bn in 2015 (average diamond buying culture (ca. 45% of world demand); retail $109/ct) demand currently performing well
Slide 10: Diamond Market – Overview
Diamond Market – Overview FY 2016 Market FY 2017 Outlook • Petra pricing down ca. 6% for Year • Market conditions will depend on continued supply discipline from • H1: Market experienced challenging conditions in H1 2016 – the major producers, as well as a stable retail market, particularly Petra pr
Slide 11: Exceptional Diamonds
Exceptional Diamonds • Petra classifies ‘exceptional diamonds’ as stones that sell for +$5 million each • Exceptional diamonds contributed on average $23 million pa from FY 2009 to FY 2016 • Average increased to ca. $36 million pa in FY 2014 to FY 2016 • First tender of FY 2017 included sale of a 13
Slide 12: Sustainability
Sustainability Health and Safety • Achievements: Stable LTIFR; Finsch won two MineSAFE Awards • Challenges: Petra’s mining method and operations are inherently safe but there is an ever present risk of accidents • Fatality in Jul 15 at Tailings Treatment Plant at Cullinan related to equipment mainte
Slide 13: Integrated Approach to Sustainability
Integrated Approach to Sustainability Williamson Children’s Day Environmental Awareness Local Economic Development An annual fun day for children of all ages Tree planting at local schools Finsch’s Small Business supports entrepreneurs Professional Development Education Community Exposure to career
Slide 14: The Petra Board
The Petra Board Adonis Pouroulis Johan Dippenaar Jim Davidson Non-Executive Chairman CEO Technical Director One of South Africa’s most successful Acknowledged world authority on kimberlite Successful mining entrepreneur diamond entrepreneurs with 25 years’ geology and exploration Founded Petra Diamo
Slide 15: Thank You
Thank You Further enquiries: Investor Relations [email protected] +44 20 7494 8203 www.petradiamonds.com