Petra Diamonds Limited · LSE:PDL
Petra Diamonds — Botswana Resource Conference 2014
20 slides from Petra Diamonds's conference presentation, Jun 10, 2014
Slide 1: Discover Petra – A Leading Independent Diamond Producer
Discover Petra – A Leading Independent Diamond Producer 10-11 June 2014
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: Discover Petra
Discover Petra LSE: PDL: Constituent of FTSE 250; market capitalisation of ca. £850m / US$1.4bn (as at 30 April 2014) 1. Pure play diamond exposure: uniquely poised to benefit from late cycle credentials and growing middle classes 2. Quality management and assets: consistent strategy, performance an
Slide 4: Quality Management and Assets
Quality Management and Assets • Diversified portfolio: five producing mines in South Africa, one in Tanzania and exploration in Botswana • World-class resource: +300 million carats (largest outside the majors) worth ~US$55.0 billion¹ (at 30 June 2013), incl. one Tier 1 asset (Cullinan) Africa produc
Slide 5: Organic Growth Path to 5 Million Carats pa
Organic Growth Path to 5 Million Carats pa • FY 2014 onwards – operating cashflow to cover capital programme FY 2019 production target of ca. 5.0 Mcts; revenue of ca. US$1bn 1000 6.0 FY 2014 production Carat production (million carats) target of ca. 5.0 3.0 Mcts; consensus FY 2013 revenue of product
Slide 6: Focused Exploration in Botswana
Focused Exploration in Botswana 10-11 June 2014 BOTSWANA
Slide 7: 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 • Largest diamond producer by value • Transparent land tenure system • Stable politically and attractive fiscal regime • Superb diamond explora
Slide 8: Total Expenditure in BWP
Total Expenditure in BWP 45 40 35 30 BWP MILLIONS 25 20 15 10 5 0 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FINANCIAL YEARS Note: • Kalahari Diamonds purchase price: US$22 million / ~ BWP 120 million • Total expenditure to date ~ BWP 275 million 8
Slide 9: KX36 Project Location & Regional Geology
KX36 Project Location & Regional Geology • CKGR areas 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
Slide 10: KX36 License Area - PL 224/2007
KX36 License Area - PL 224/2007 • Karoo Basalts overlain by ~ 60m of Kalahari sand, and a further 20m of calcrete and silcrete • KX36 pipe has a ~5Ha sub-circular sub-crop • Deepest borehole intersection 516m below surface (open ended at depth) Kx36 10
Slide 11: Delineation Drilling & 3-D Geological Modelling
Delineation Drilling & 3-D Geological Modelling • ~6000m of drilling completed, with extended pierce points for country rock NDD Phase 1 geotechnical assessment NDD Phase 2 NDD Phase 3 with • Type 1 modified kimberlite (Extended pierce (Skinner) points) • Magmatic and transitional facies identified
Slide 12: Downhole Geophysical Logging Results
Downhole Geophysical Logging Results • Black1 Coherent Kimberlite Relatively Magnetic, Conductive • Black2 Coherent Kimberlite Relatively Magnetic, Resistive • Green Coherent Kimberlite Virtually Non-Magnetic, Relatively Conductive Depth from Depth to Unit /"Facies" Interpretation Description of roc
Slide 13: Large Diameter Drilling
Large Diameter Drilling • LDD : 1,675m, ~800 tonnes treated • 286 carats recovered • LDD grades were not in line with modelled grade from micro diamonds • Diamond breakage generally high at 23- 29% 516m from surface (VERTICAL DEPTH) LDD Phase 1 13
Slide 14: Salient KX36 Results to Date
Salient KX36 Results to Date • Micro diamond modelled grade of undiluted kimberlite: 75 to 180 cpht LDD004: 5.12 ct • LDD recovered grade: 32 cpht, not taking into account diamond breakage • Two 5ct gem diamonds recovered in 280 carats • Additional bulk sampling planned to better define grade and di
Slide 15: Kokong Project Location
Kokong Project Location • Petra PL’s straddle both Kgalagadi and Southern Districts • Kokong kimberlite field lies to the west of Kokong Village • Project area lies on the Kaapvaal craton some 60km east of the Kheis Mobile belt (~2.0-1.8 Ga) 15
Slide 16: Kokong Kimberlite Field
Kokong Kimberlite Field Northern Kimberlite Trend Intermediate Trend Southern Kimberlite Trend • 76 Known kimberlites, average size 38 ha (large); several diamondiferous; upper Cretaceous age • Most with preserved craters, and beneath 80-120m Kalahari cover • Structurally controlled field; clusters
Slide 17: Kokong Exploration Programme
Kokong Exploration Programme • Hi-res Xcalibur magnetic gradiometer survey in progress over the Kokong licences • Flight line spacing: 100m • Total line-km: ~ 6,353 km • Nominal ground clearance: 15m • Geophysical ground follow-up • KIM sampling • Percussion drilling on positive results 17
Slide 18: Manica Minerals Ltd Diamond Exploration JV
Manica Minerals Ltd Diamond Exploration JV • Petra has entered into a co- operation agreement in Botswana (Jan 2014) with Manica Minerals, led by Dr. J.J Gurney • The JV exploration is fully funded by Petra Diamonds • The Agreement will combine the extensive exploration experience of both parties •
Slide 19: Exploration Programme
Exploration Programme • Historical data compilation and review • Acquisition of ~ 1,250 line- km of hi-res ground magnetics over 10 known kimberlites in the Orapa area and several new targets (completed), with Xcalibur hi- res magnetic gradiometer data acquisition to follow in selected areas (in pro
Slide 20: Thank You
Thank You 77 Petra BOTSWANA