Petra Diamonds Limited · LSE:PDL
Petra Diamonds — GMP Indaba Presentation February 2012
26 slides from Petra Diamonds's conference presentation, February 2012
Slide 1: Building a world-class diamond producer
Building a world-class diamond producer February 2012
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 Diamonds
Discover Petra Diamonds • London’s largest quoted pure diamond mining group – ‘PDL’ • Provides direct exposure to the positive long term fundamentals of the diamond market • December 2011 – stepped up from AIM to the Main Market of the London Stock Exchange • March 2012 – expected to enter the FTSE
Slide 4: An Exceptional Growth Path
An Exceptional Growth Path July 2007 July 2008 November 2008 May 2010 September 2011 Koffiefontein Cullinan Williamson Kimberley UG Finsch 74% Petra 74% Petra 75% Petra 74% Petra 74% Petra 26% BEE Partners 26% BEE Partners 25% Government of 26% BEE Partners 26% BEE Partners Tanzania Front Cave Block
Slide 5: A Diversified Production Portfolio
A Diversified Production Portfolio Petra is focused on Africa – source of 60% of the world’s diamond production by value 5 * Petra mines – Petra’s portfolio includes five of the world’s most important kimberlite diamond mines
Slide 6: Focus & Strategy
Focus & Strategy Petra plans to produce +5 Mctpa through organic growth Steadily growing annual • Acquisition of Finsch mine production, with a target of over 5 million carats • Utilise resources available Increase by FY 2019 including tailings deposits output • Programmes to deepen underground mine
Slide 7: Compelling Long-Term Fundamentals
Compelling Long-Term Fundamentals • Many of the world’s major diamond mines are in decline and cannot maintain previous output • No new important discoveries since the finds in Canada in the early 1990’s • Petra strategy to focus on extending lives of existing major kimberlite mines • Strong demand
Slide 8: A Shift From West To East
A Shift From West To East World Diamond Jewellery Sales 2000 World Diamond Jewellery Sales 2010 World Diamond Jewellery Sales 2015E RoW 10% RoW 14% Other RoW 20% Italy 2% Asia 8% Hong Kong 2% US 35% India 0% US 38% Taiwan 2% Taiwan 2% US 48% Europe India 11% 16% India 10% Japan 9% Japan 11% Gulf 9%
Slide 9: Late Cycle Play
Late Cycle Play Per capita consumption of key commodities: China relative to the US “steady state” And ever increasing corporate activity…. • Anglo American – to buy Oppenheimer’s stake in De Beers; presentation notes “highly attractive industry fundamentals with late cycle exposure” • Alrosa - no f
Slide 10: Production & Sales – H1 FY 2012
Production & Sales – H1 FY 2012 Unit 6 months to 31 12 months to 30 6 months to 31 December 2011 June 2011 December 2010 (H1 FY 2012) (FY 2011) (H1 FY 2011) Production ROM diamonds Carats 817,161 1,027,609 533,912 Tailings & alluvial diamonds Carats 136,392 90,186 48,190 Total diamonds Carats 953,55
Slide 11: Rough Diamond Prices
Rough Diamond Prices Petra Average Rough Diamond Prices* • Global economic uncertainty caused prices to fall from June 2011 highs Mine H1 FY 2012 Original FY 2011 FY 2010 • Christmas retail sales figures continue to be released; guidance FY generally modest growth seen in US and Europe but Actual Ac
Slide 12: Flagship Asset 1: Cullinan
Flagship Asset 1: Cullinan Unit HY FY 2012 FY 2011 H1 FY 2011 ROM Production Tonnes treated Tonnes 1,225,117 2,323,403 1,187,058 Diamonds produced Carats 426,757 851,193 439,989 Grade Cpht 34.8 36.6 37.1 Tailings Production Tonnes treated Tonnes 370,344 575,605 263,092 Diamonds produced Carats 17,28
Slide 13: Flagship Asset 2: Finsch
Flagship Asset 2: Finsch Unit HY FY 2012 FY 2011¹ H1 FY 2011¹ ROM Production Tonnes treated Tonnes 790,715 n/a n/a Diamonds produced Carats 305,215 n/a n/a Grade Cpht 38.6 n/a n/a Tailings Production Tonnes treated Tonnes 642,090 n/a n/a Diamonds produced Carats 109,348 n/a n/a Grade Cpht 17.0 n/a n
Slide 14: Production & Revenue – FY 2011 & Estimated FY 2019
Production & Revenue – FY 2011 & Estimated FY 2019 Gross Production Gross Revenue FY 2011: 1.1 million carats FY 2011: US$221 million 0.08 21.8 0.06 0.05 18.2 0.03 30.8 Cullinan Williamson 140.2 9.5 Koffiefontein 0.9 Kimberley Undergroud FY 2019: 5.4 million carats FY 2019: ca.US$1 billion* Fissure
Slide 15: Conclusion & Outlook
Conclusion & Outlook Operations • Successful Finsch integration – expected to deliver over 1 million carats for FY 2012 • Petra on track to reach its production target for FY 2012 of over 2 million carats • On target to reach over 5 million carats by FY 2019 Outlook • Premium listing on Main Market
Slide 16: Thank You
Finsch mine, South Africa Thank You
Slide 17: Capital Structure
Capital Structure High Quality Shareholder Base 1 Feb 2012 Share Price Chart (1 year) Al Rajhi Holdings W.W.L. 13.3% Saad Investments Company Ltd/AWAL Bank 12.1% JP Morgan Asset Management Holdings Inc. 7.9% Capital Group International, Inc. 7.3% Scottish Widows Investment Partnership 6.4% T. Rowe P
Slide 18: The Petra Board
The Petra Board Adonis Pouroulis (41) Johan Dippenaar (54) David Abery (49) Jim Davidson (67) Non-Executive Chairman CEO Finance Director Technical Director Successful mining entrepreneur One of South Africa’s most successful Extensive experience as Chief Financial Acknowledged world authority on Fo
Slide 19: H1 FY 2012 – Operations
H1 FY 2012 – Operations Operation Cullinan Finsch Koffiefontein Kimberley Williamson Underground H1 FY H1 FY H1 FY H1 FY H1 FY H1 FY H1 FY H1 FY H1 FY H1 FY 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 ROM Production Tonnes treated (Mt) 1,225,117 1,187,058 790,715 n/a 285,466 463,852 287,187 17
Slide 20: Aim Of Expansion Programmes – Undiluted Ore
Aim Of Expansion Programmes – Undiluted Ore Schematic - block cave mining method Virgin kimberlite ore • Current mining at underground pipe mines taking place in diluted mature caves and low grade remnants • Expansion programmes will open up fresh block caves, delivering undiluted ore in higher grad
Slide 21: Cullinan – Mining Overview
Cullinan – Mining Overview Expansion Plan – Key Components Cullinan Mining Schematic • South Decline to establish production at 830m and then on to the bottom of the new shaft at 930m – end FY 2012 Current Infrastructure (breakaway already Men & Material established at 830m) Shaft Planned Infrastruc
Slide 22: Finsch – Mining Overview
Finsch – Mining Overview Expansion Plan – Key Components Finsch Mining Schematic • Mining currently taking place in Block 4 at 630m – FY Vent Production 2012 Shaft Shaft • Treatment of Pre 1979 Tailings – until FY 2015 • Accessing and development Precursor of Precursor SLC at 630m – SLC Block 4 Rema
Slide 23: Williamson – Mining Overview
Williamson – Mining Overview Expansion Plan – Key Components Williamson Kimberlite Pipe Schematic • Stockpile (due to pit shaping activities) of ca. 900,000 t 1km (>50,000 cts) N • Enhanced rebuild of existing plant (3 Mtpa) completed – expected to be full operational April 2012 LOM Pit Shell • Stan
Slide 24: Koffiefontein – Mining Overview
Koffiefontein – Mining Overview Expansion Plan – Key Koffiefontein Kimberlite Pipe Schematic Components • Installing new front cave at 590m Level – FY 2013 • Installing new block cave at 690m Level – FY 2016 • Tailings programme now ramped up with Petra processing +0.5 Mtpa 24
Slide 25: Kimberley Underground – Mining Overview
Kimberley Underground – Mining Overview Expansion Plan – Key Components Kimberley Underground Kimberlite Pipes Schematic • Temporary mobile pan plant put in place at Wesselton – Q2 FY 2012 • Introduction of scrubber and apron feeder to Joint Shaft plant expected to address bottleneck – Q3 FY 2012 •
Slide 26: Petra Diamonds Cathy Malins
Petra Diamonds Cathy Malins [email protected] +44 20 7318 0452 www.petradiamonds.com
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