delivering growth in diamonds – fy 2012 results...proven track record – continuous growth 4 0.0...
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Delivering Growth in Diamonds – FY 2012 Results24 September 2012
LISTEDP R E M I U M
The Finsch mine in South Africa
2
Important Notice
These Presentation Materials do not constitute or form part of any invitation, offer for sale or subscription or any solicitation forany 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 reliedupon in any manner or for any purpose whatsoever.
These Presentation Materials must not be used or relied upon for the purpose of making any investment decision or engaging inan investment activity and any decision in connection with a purchase of shares in the Company must be made solely on thebasis of the publicly available information. Accordingly, neither the Company nor its directors makes any representation orwarranty in respect of the contents of the Presentation Materials.
The information contained in the Presentation Materials is subject to amendment, revision and updating in any way without noticeor liability to any party. The presentation materials contain forward-looking statements which involve risk and uncertainties andactual results and developments may differ materially from those expressed or implied by these statements depending on avariety of factors. No representation or warranty, express or implied, is made as to the fairness, accuracy or completeness of theinformation or opinions contained herein, which have not been independently verified.
The delivery of these Presentation Materials shall not at any time or in any circumstance create any implication that there hasbeen no adverse change, or any event reasonably likely to involve any adverse change, in the condition (financial or otherwise) ofthe Company since the date of these Presentation Materials.
The Presentation Materials are confidential and being supplied to you for your own information and may not be reproduced,further distributed, passed on, or the contents otherwise divulged, directly or indirectly, to any other person (except the recipient’sprofessional advisers) or published, in whole or in part, for any purpose whatsoever. The Presentation Materials may not be usedfor the purpose of an offer or solicitation to subscribe for securities by anyone in any jurisdiction.
Discover Petra Diamonds
• LSE: PDL & member of FTSE 250
• 8 producing mines (7 in SA; 1 in Tanzania)
• Exploration in Botswana
• +300 million carat diamond resource
• Track record of production growth delivery
• Brownfields expansion – proven operations
• Accessing undiluted ore blocks will substantially increase future margins
• Long term strategy to reach 5 Mcts by 2019
• Sustainability at heart of Petra
3
A leading diamond producer with an exceptional growth profile
Africa produces ~60% of world’s diamonds by value
Proven Track Record – Continuous Growth
4
0.0
0.5
1.0
1.5
2.0
2.5
3.0
FY2008
FY2009
FY2010
FY2011
FY2012
FY2013
Gross Production Profile
Strong production growth due to Finsch acquisition
Mcts
Major increase due to higher
volume Cullinan mine
0
50
100
150
200
250
300
350
400
450
FY2008
FY2009
FY2010
FY2011
FY2012
FY2013
Gross Revenue Profile
US$ million
Recovery in rough diamond prices & sale of 507 ct Cullinan Heritage
Finsch contribution
boosts revenue
Decreased revenuedue to the economic downturn
2.8Mcts EST
+US$400m* EST
2.2 Mcts+98% US$316.9m
+44%
* FY 2013 revenue is a management estimate only
FY 2012 – Results Snapshot
5
1: Adjusted EBITDA excludes impairment charges and reversals, share based expense, unrealised foreign exchange gains and losses and non-recurring transaction costs
0
20
40
60
80
100
120
FY2008
FY2009
FY2010
FY2011
FY2012
Profit from mining activity US$M
-20
0
20
40
60
80
100
FY2008
FY2009
FY2010
FY2011
FY2012
US$M Adjusted EBITDA1
0
10
20
30
40
50
60
70
80
90
FY2008
FY2009
FY2010
FY2011
FY2012
US$M Net Operating Cashflow
+35%+35% +58%
Health & Safety• The health and safety of employees is Petra’s number one priority
• Regrettably 1 fatal accident in 2012 at Kimberley Underground
• Individual operations continue to achieve very good performance
• ISO 14001 and OHSAS accreditation for Finsch and Cullinan
• Finsch achieved 1,000,000 fatality free shifts during year
• Williamson achieved 3 years without a LTI and Presidential award for excellent Environmental Management
6
0
0.2
0.4
0.6
0.8
1
1.2
FY 2008 FY 2009 FY 2010 FY 2011 FY 2012
Group Lost Time Injury Frequency Rate (LTIFR)
FY 2012 – Summary of Results
7
FY 2012(US$ m)
FY 2011(US$ m)
Revenue¹ 316.9 220.6Mining and processing costs (222.6) (146.9)Other direct income 9.0 2.7Profit from mining activity¹ 103.3 76.4Exploration expense (3.0) (1.3)Corporate overhead (10.0) (8.0)Adjusted EBITDA¹ 90.3 67.1Transaction costs (3.1) -Net impairment charges and reversals - 6.5Depreciation (41.0) (22.4)Share based payment expense (1.0) (1.9)Net unrealised foreign exchange (loss) / gain¹ (38.6) 18.6Net finance income / (expense)¹ 1.8 (3.5)Tax expense (10.5) (5.2)Net (loss) / profit after tax – Group (2.1) 59.2Basic (loss) / eps (US$ cents)¹ (0.48) 12.83Diluted (loss) / eps (US$ cents)¹ (0.48) 12.35Adjusted net profit after tax² 39.2 34.9Adjusted basic eps (US$ cents)² 7.82 8.41Adjusted diluted eps (US$ cents)² 7.61 8.09
1. Refer to announcement dated 24 September 2012 for detailed notes2. Adjusted net profit after tax is stated after non-controlling interests and before unrealised forex gains/losses and non-recurring transaction costs
FY 2012 Highlights
8
Operations Highlights
• Production up 98% to 2.2 Mcts (FY 2011: 1.1 Mcts)
• All expansion plans on target to reach Group objective of 5 Mcts by FY 2019
• Capex of US$138.8m (FY 2011: US$110.9m) within expectations
• Large Diameter Drilling campaign completed on KX36 discovery in Botswana
Corporate Highlights
• Completion of Finsch acquisition for R1.425bn (ca. US$192m)
• Step-up from AIM to Main Market of LSE & inclusion in FTSE 250 Index
• Appointment of Dr Patrick Bartlett and Mr Gordon Hamilton as independent NEDs
• Additional debt facilities totaling ca. US$49.5m put in place, comprising ZAR200m (ca. US$24.5m) from RMB and, post year end, US$25m from IFC
• Additional working capital facilities of ZAR100m (ca. US$12.2m) put in place with RMB
Post Year end Highlights
• Appointment of Mr Tony Lowrie as Senior Independent NED
• Public disposal process underway to sell the Fissure Mines
• Review of Group’s debt requirements progressing well; provisional commitments given by syndicate of banks; process expected to complete Q2 FY 2013
Operating Costs
9
• Gross mining and processing cash costs for the South African operations increased by 16% on a ZAR basis, due to:
• upwards pressure on electricity and labour costs (9% of the increase)
• treatment of higher tonnages across the operations versus FY 2011 (7% of the increase)
• Unit cost increases countered by higher volumes treated
43%
33%
15%
9%
Other
Power
Consumables and Stores
Labour
On mine cash cost
On mine cash costs
Diamondroyalties
Inventory movement
Centralised Operating
Cost
Other Cash mining and
processing costs
Depreciation Share based expense
Total miningand
processing costs
234.3 1.4 (19.4) 11.6 (5.3) 222.6 40.6 0.7 263.9
Breakdown of mining and processing costsFY 2012 (US$ million)
Operating Cashflows
10
FY 2012(US$M)
FY 2011(US$M)
Group net (loss) / profit after tax (2.1) 59.2
Income tax charge 10.5 5.2
Profit before taxation 8.4 64.4
Adjusted for non cashflow items 76.3 4.7
Cash generated before working capital changes 84.7 69.1
Increase in net working capital (2.8) (16.6)
Cash generated from operations 81.9 52.5
Finance expense and taxation (2.0) (1.6)
Net cash generated from operating activities 79.9 50.9
Cash utilised in capital expenditure(Excluding interest capitalised and other non cash items)
(135.5) (105.2)
Balance Sheet Snapshot
FY 2012US$M)
FY 2011(US$M)
Cash and cash equivalents:
Bank 47.3 324.9¹
Diamond debtors 22.1 19.9
Diamond inventories 24.5 13.3
Total 93.9 358.1
Loans, borrowings and deferred consideration:
IFC / RMB facilities drawn down, incl. RMB working capital (ca. US$136m total facilities)²
(69.2) (75.5)
Deferred Cullinan consideration (repaid in full FY 2012) (nil) (18.7)
Total 69.2 94.2
BEE loans due to Petra 89.4 50.9
Net 114.1 314.7
11
¹ Included US$192 million applied to settle the Finsch acquisition consideration on 14 September 2011² IFC interest charged at US$ 6 month LIBOR +4.5%; RMB interest charged at South African 3 month JIBAR +4.5% and 3 month JIBAR at 3.5% (two separate facilities)³ July 2012 total available facilities increased by a net US$12.2 million due to new IFC facilities finalised (US$25 million) and previous RMB facility reduced
020406080
100120140160180200
2004 2005 2006 2007 2008 2009 2010 2011
Vol
ume
(cts
)
Global Diamond Production - Volume
Source: Kimberley Process Statistics 2004-2011
Diamond Market – Declining Supply
Majors Production(Mctpa) 2008 2009 2010 2011
De Beers 48.1 24.6 33.0 31.3
Alrosa 36.9 32.8 34.3 34.6
Rio Tinto 20.8 14.0 13.8 11.7
BHP Billiton 3.3 3.2 3.1 2.5
Total 109.1 74.6 84.2 80.1
• Global production of just 124 Mcts in 2011 (Zimbabwe: 8.5 Mcts) vs 176 Mcts in 2005 (Zimbabwe: 0.2 Mcts)
• Less than 30 significant mines in production
• Many major producers moving from open pit to underground – lower tonnages & higher operating costs
• No important new discoveries since early 1990’s
• Long lead times to production (7 – 14 years)
12
Diamond Market – Increasing Demand
13
Per capita consumption of key commodities: China relative to the US “steady state”
• Demand driven by urbanisation trend and growing middle class
• 2015: 221 Chinese cities with population of +1m (vs 107 in Europe, Japan & US combined)
• Chinese 5 year economic plan seeks to boost China’s domestic consumption
• Diamond consumption per capita in emerging regions still way below that of mature markets
• Far Eastern markets noted for love of luxury as symbols of wealth and social status
Strong demand growth driven by China and India:China expected to surpass the size of the US market by 2025
Source: BofA Merrill Lynch Global Metals and Mining Research Source: Rio Tinto – September 2012
Diamond Prices
14
Mine
FY 2013Actual September
Tender Results
(US$/ct)
FY 2013Guidance
Weighted Average
(US$/ct)
FY 2012Actual
Average
(US$/ct)
FY 2011 Actual
Average
(US$/ct)
Finsch 133 129 138 n/a
Cullinan 1492 129 128 148
Koffiefontein 566 475 487 564
KimberleyUnderground 2363 300 320 333
Williamson 243 220 236 3024
First tender of FY 2013 mainly delivered better than expected prices, but FY 2013 guidance is unchanged
1: All average values are a mix of ROM and tailings production, as Petra tenders production from each mine on a mixed ROM/tailings parcel basis2: Included a 69 carat stone sold for US$3.4 million3: Wesselton plant in commissioning stage4: Williamson FY 2011 value relates to alluvial production only, as there was no ROM production whilst the Phase 1 development programme was underway
Petra Production Profile
15
A 102ct yellow (Finsch)
Profile runs the full spectrum, from high to low value, across all fancy colours
A typical Type II of 68ct (Cullinan)
A very rare 3ct lilac (Finsch)
A 152ct (Cullinan)
A very high quality 13ct yellow (Cullinan)
A distinctively shaped 177ct brown (Cullinan)
Two classic colourless Finsch models of around 6 to 7.5 cts
A 113ct (Cullinan)
FY 2012 – A Snapshot
16
Cullinan: Underground production and development Finsch: Production control room
Williamson: Recommenced production after rebuilt plant commissioning
Kimberley UG: Plant constructionKoffiefontein: Ebenhaezer open pit tonnes supplemented underground
Aim Of Expansion Programmes – Undiluted Ore
17
• Current mining at underground pipe mines taking place in diluted mature caves resulting in lower grades
• Expansion programmes will open up fresh block caves, delivering access to undiluted ore resulting in higher grades
• Grades expected:
• Cullinan ~34cpht to ~50cpht
• Finsch ~30cpht to ~47cpht
• Koffiefontein ~5cpht to ~8cpht
• Substantial higher revenue per tonne leading to increased margins
• Reduces wear and tear on processing systems (waste rock is harder & more abrasive than kimberlite)
Still need to amend word ‘depleted’ to ‘mature’ below
Mature block cave
Current Mining AreaBlock 4 Pillars
Block 5Sub-Level Cave
Block 5Block Cave
South westPrecursor
670m
780m
825mShaft
Bottom
900m
950m
SLC CONVEYOR
Finsch – Expansion PlanExpansion Plan – to take production to just under 2 Mctpa by FY 2017 (1.6 Mctpa ROM & 0.3 Mctpa tailings)
• Mining currently taking place in Block 4 at 630m – FY 2012/13
Change in scope for FY 2013 to FY 2016:• SW Precursor removed from
mine plan• Footprint of SLCs enlarged; • Main Block 5 cave deferred by
two years• Earlier access to undiluted ore
& defers major Capex
Expansion plan – key points:• Development of SLC down to
780m – from FY 2013• Shaft deepening to 950m &
ore-handling infrastructure –End FY 2015
• First production from Block 5 SLC – FY 2015, ramping up to full production – FY 2017
• Steady state production from Block 5 block cave – FY 2020
Finsch Mining Schematic
Current Infrastructure
Planned Infrastructure
710m
Kimberlite Footprint @880m Level:Main pipe: 3.7haPrecursors: 1.5ha
880m base of Resource(open ended at depth) 18
Cullinan – Development Programme
Cullinan Mining Schematic
Loading Level
Expansion Plan – to take production to ca. 2.4 Mctpa by FY 2019 (2.0 Mctpa ROM & 0.4 Mctpa tailings)• Shaft deepening contractor
commenced work on site – FY 2012
• South Decline to access new production levels at 830m and then on to bottom of new shaft at 930m – end FY 2013
• North Decline to create further access to 830m production level – commenced
• Tailings programme ramp up to treat 4 Mtpa from FY 2015
• Shaft deepening from 580m to 930m to replace the current conveyor belt ore-handling system – mid FY 2015
• Initial production from new C-Cut cave – FY 2017
• Upgrading and streamlining of plant facilities in order to treat 4 Mt underground & 4 Mt tailings – from FY 2015, 4 year programme
BA5
Rock Shaft
Men & MaterialShaft
Current Shaft Bottom580 Level
630m Level
AUC South and BAW Phase 1
BB1E
830m Level
1073m base of Resource(open ended at depth)
930m Shaft Bottom
Current Infrastructure
Planned Infrastructure
C-CUTPhase 1(~5ha)
2000metres
Current extent of South Decline
North Decline
16Ha @830 Level
732m Level
880m Shaft Bottom
CurrentShaft Bottom805 Level
19
KX36 – Kimberlite Evaluation Update
• New discovery in Botswana
• Core drilling and micro-diamond sampling campaign indicated:
• Initial modelled (undiluted) diamond grade between 75-180 cpht
• Indications of a reasonably coarse diamond size distribution from MiDA modelling
• Potential kimberlite tonnage between 28 Mt and 34 Mt to a depth of 516m below surface
• Surface area interpreted to be ~5 ha under 78m of Kalahari overburden
• LDD bulk sampling campaign –drilling finished in September 2012
• Sample treatment in progress
Calcretized KimberliteWeathered KimberliteFresh Kimberlite
Initial Core Drilling516m
Phase 1Large Diameter (24”) Drilling
516m
310m
20
Production & Revenue – FY 2012 vs FY 2019
Gross Production
FY 2012: 2.2 million carats
Gross Revenue
FY 2012: US$316.9 million
FY 2019: c.5 million carats(1) FY 2019: c.US$1 billion(1)
Fissure Mines
KimberleyUnderground
Koffiefontein
Williamson
Cullinan
Finsch
21
35%
4%
6%6%6%
43%39%
3%2%3%3%
50%
43%
7%9%5%
36%
50%
6%2%4%
38%
(1) FY 2019 figures are management estimates calculated using a 4% real price increase
Strategy in Action – FY 2012 and FY 2013
22
Increaseoutput
Organic growth to 5 Mctpa
- undiluted ore and higher volumes Optimise
recoveriesDrive
efficiencies
• Production target of 2.85 Mcts
• Total tonnages treated to increase from 10Mt to ~17Mt
• Continue to focus on “value” as opposed to “volume” production
• Ongoing plant refinements at Wesselton (Kimberley Underground) and Williamson
• Introduction of re-crush circuit to Cullinan modular tailings plant
• Continue to optimise plant processing and security
• Continue to drive efficiencies across the mines
• Focus on cost improvements at Koffiefontein and Kimberley Underground
• Continue to closely monitor and control Capex
• Acquired Finsch mine• Recommenced
production at Williamson
• Group production doubled to 2.2 Mcts
• Inflationary cost pressures well controlled
• Capex was in line with guidance
• Focus on recoveries at Finsch saw highest frequency of +50ct stones per million ROM carats since 2003
• Ongoing plant modifications across all the operations
FY 2012 Focus for FY 2013
Responsible Leadership and Sustainability underpin Petra’s operations
FY 2012 – Sustainability HighlightsHealth and Safety Always in action
Investing in education and communitiesTsholofelo Place of Hope (Finsch Children’s home)
Promoting biodiversity and progressive rehabilitation
The Williamson Nursery, with the capacity to raise 500,000 seedlings annually
Water is treated at Williamson and provided to local community
Commitment to local economic developmentThe indigenous nursery at Koffiefontein
Water Management
Appendix
Employees at the Williamson mine
Capital Structure
25
High Quality Shareholder Base 20 Sep 2012
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%
Prudential plc group of companies* 5.1%
T. Rowe Price 5.0%
Scottish Widows Investment Partnership 5.0%
BlackRock Investment (UK) Limited 4.2%
Kames Capital 3.3%
Directors 2.5%
Listing LSE: PDL
Average daily trading volume (shares) – YTD
1.0m
Shares in issue 505.7m
Free float 72%
Market cap @ 102p (20 September 2012)
£519m
Share Price Chart (1 year)
* of this holding, 25,467,015 shares are held by M&G Investment Funds 3
The Petra Board
Adonis Pouroulis (42)Non-Executive Chairman
Successful mining entrepreneurFounded Petra Diamonds in 1997 and floated first diamond company on AIMAlong with fellow directors, built Petra into pan-African diamond group with over 4,700 employeesInstrumental in raising funds to help finance and structure early stage mining companies in Africa
Johan Dippenaar (55)CEO
One of South Africa’s most successful diamond entrepreneurs with +20 years’ experience Founded diamond group in 1990 and grew portfolio to three producing mines before listing as Crown Diamonds on ASXMerger with Petra in 2005 – now at helm of London’s largest diamond company
David Abery (49)Finance Director
Extensive experience as Chief Financial Officer in South African and UK business environmentsIn-depth knowledge of London capital marketsIntegral to structuring and deliverance of strategic group corporate development, including acquisitions and joint ventures
Jim Davidson (67)Technical Director
Acknowledged world authority on kimberlite geology and exploration+20 years’ experience in diamond mine managementFormerly Head of Diamond Exploration for Rio Tinto across Southern AfricaAs Technical Director of Crown Diamonds, managed specialist underground fissure mines over a decade
Tony Lowrie (70)Senior Independent Non-Executive DirectorOver 35 years association with the equities business and an experienced NEDFormerly Chairman of ABN AMRO Asia Securities & MD of ABN AMRO Bank. Has previously been a NED of Allied Gold Plc (prior to its merger with St Barbara Limited), Dragon Oil plc, J. D. Wetherspoon plc and several quoted Asian closed end fundsCurrently NED of Kenmare Resources plc and a Director of the Edinburgh Dragon Fund
Dr Patrick Bartlett (66)Independent Non-Executive Director
Acknowledged expert on kimberlite geology and design and geotechnical aspects of block cavingFormerly Chief Geologist for De Beers; responsible for all kimberlite mines in South AfricaIn-depth knowledge of several Petra mines, having worked at Finsch, Koffiefontein, Kimberley Underground, plus was geologist at Cullinan between 1983 to 2003Since retiring has been involved in block caving projects for BHP, Anglo and Rio Tinto
Gordon Hamilton (66)Independent Non-Executive Director
Extensive experience as a NED across wide range of businesses, both JSE and LSE listed; chairs Audit Committee for all these companiesFormerly a partner for +30 years at Deloitte & Touche LLP; primarily responsible for multinational and FTSE 100 listed company audits, mainly in mining, oil & gas, and aerospace and defence; headed up Deloitte South Africa desk in LondonServed for 9 years as member of the UK Financial Reporting Review Panel
Dr Omar Kamal (38)Non-Executive Director
Managing Director for Al Rajhi (Petra’s largest shareholder)Co-manages international investments in various asset classes – focus on equities, private equity, real estatePossesses broad expertise and knowledge ranging from past experience as an academic, working in the financial industry and strategy consultant with a global financial services arm
26
An Exceptional Growth Path
27
Cullinan
July 2008
Block Cave
18yr Mine Plan+50yr Potential Life
Williamson
November 2008
Open Pit
18yr Mine Plan+50yr Potential Life
Kimberley UG
May 2010
Block Cave
10yr Mine Plan+12yr Potential Life
Finsch
Block Cave
18yr Mine Plan+25yr Potential Life
Koffiefontein
July 2007
Front Cave
13yr Mine Plan+20yr Potential Life
September 2011
Petra has acquired the following five diamond mines from De Beers:
Successful track record:• Focus on efficiencies: right-size operation, restructure cost base & empower management• Industry leading team utilises in-house capabilities to execute capex programmes• Focus on ‘value’ as opposed to ‘volume’ production; optimise plant processing & security to ensure
recovery of full spectrum of diamonds• Achieve best rough diamond prices through open tender system
FY 2012 – Operations Results
Operation Finsch Cullinan Koffiefontein Kimberley Underground
Williamson
FY 2012 FY 2011 FY 2012 FY 2011 FY 2012 FY 2011 FY 2012 FY 2011 FY 2012 FY 2011
Total Production
Tonnes treated (Mt) 3,861,012 n/a 3,172,671 2,899,008 1,465,950 1,388,135 587,065 443,655 1,105,027 530,689
Diamonds recovered (carats) 1,104,618 n/a 867,780 895,439 40,117 47,956 68,422 57,402 57,050 29,510
Sales
Revenue (US$M) 136.9 n/a 112.0 140.2 18.9 30.8 19.8 18.2 11.6 9.5
Diamonds sold (carats) 989,101 n/a 876,384 944,405 38,798 54,640 61,895 54,733 49,153 31,555
Average price per carat (US$) 138 n/a 128 148 487 564 320 333 236 302
Costs
On-mine cash cost per tonne treated
134 n/a 177 164 125 115 295 191 18 n/a
Capex
Expansion Capex 8.7 n/a 46.9 11.5 6.1 0.0 15.4 1.8 20.6 34.8
Sustaining Capex 3.3 n/a 7.5 22.4 5.4 11.0 5.6 11.2 1.6 1.8
Total Capex 12.0 n/a 54.4 33.9 11.5 11.0 21.0 13.0 22.2 36.6
28
0
2
4
6
8
10
12
14
16
18
20
1903190519071909191119131915191719191921192319251927192919311950195219541956195819601962196419661968197119731975197719791981198319851987198919911993199519971999200120032005200720092011
+100 & +200 carat stones recovered at Cullinan(including stones recovered up to August 2012)
+100 +200
Cullinan – Large Stones
29
Petra takeover in July 2008
Williamson – Overview
30
Granite BrecciaRVKBoumaShale IslandBVKPK
Geology
205m
LOM Pit Shell
Schematic showing cut-away geology and planned open pit
N1km
Williamson Kimberlite Pipe SchematicExpansion Plan – Key Components
• Company successfully recommenced production at Williamson further to the enhanced rebuild of plant –Q4 FY 2012
• Re-crush circuit in plant, which will lead to an improved grade, will commence commissioning – Q2 FY 2013
• ROM stockpile (ca. 700,000t containing +40,000 carats), established due to the pit-shaping operations to be treated – FY 2013 to FY 2016
• Ramp up of production from ~2.5 Mt in FY 2013 to ~3.6 Mt by FY 2016
• Phase 2 longer term expansion plan to raise production above 3.6 Mtpa –currently under review
Koffiefontein – Overview
31
Koffiefontein Kimberlite Pipe SchematicExpansion Plan – to take production to ca. 100,000 ctpa by FY 2016 (90,000 ctpa ROM & 10,000 ctpa tailings)
• Planned reduction in ROM tonnes supplemented by ore from Ebenhaezer open pit (~5ha)
• Installing new sub-level cave between 560m to 600m Level – FY 2013 to FY 2015
• Planned new block cave at 690m Level –development to commence FY 2016
• Ramp up ROM production from ~0.26 Mt in FY 2013 to 1 Mt (FY 2016) and on to 1.2 Mtpa (FY 2018)
Kimberley Underground – Overview
32
4.5 ha @ 870m Level
0.5 ha @ 845m Level
3.5 ha @ 995m Level
Kimberley Underground Kimberlite Pipes SchematicExpansion Plan – to take production to ca. 135,000 ctpa by FY 2016
• Construction and commissioning of main plant (40,000 tpm) at Wesselton – underway
• Substantial stockpile of ore at each plant built up (~0.7Mt combined)
• Mining to continue at Wesselton and Joint Shaft at a combined rate of ~760,000 tpa in FY 2013, ramping up steadily to 1 Mtpa -from FY 2016
• Sampling programme underway to extend mine life – underway
33
Capex Profile
Notes1 All tonnes shown above are expressed in millions2 All capex numbers above are stated in FY 2013 money terms3 Capex above does not include any capitalised borrowing costs as per IAS 23
Financial Year 2013 2014 2015 2016 2017 2018 2019OperationFinsch ROM tonnes treated 2.8 2.8 3.2 3.5 3.5 3.5 3.5
Tailings tonnes treated 2.8 3.5 3.5 3.5 3.0 3.0 3.0 Expansion Capex (ZARm) 449.8 665.7 377.8 221.9 321.1 168.2 93.0 Sustaining Capex (ZARm) 93.6 78.7 71.7 71.0 68.7 67.5 83.0
Cullinan ROM tonnes treated 2.7 2.8 2.9 2.9 2.9 3.1 4.0 Tailings tonnes treated 2.7 3.0 4.0 4.0 4.0 4.0 4.0 Expansion Capex (ZARm) 671.1 556.2 391.1 153.9 141.3 141.3 141.3 Sustaining Capex (ZARm) 68.2 67.8 44.7 49.9 53.3 53.8 56.5
Koffiefontein ROM tonnes treated 0.3 0.5 1.0 1.0 1.0 1.2 1.2 Tailings tonnes treated 1.5 1.2 0.7 0.8 0.8 0.5 0.5 Expansion Capex (ZARm) 107.3 82.6 49.9 40.2 - - - Sustaining Capex (ZARm) 32.0 37.6 21.1 22.0 21.8 12.2 12.1
Kimberley U/G ROM tonnes treated 1.1 1.0 1.0 1.0 1.0 1.0 1.0 Expansion Capex (ZARm) 48.7 19.9 26.9 - - - - Sustaining Capex (ZARm) 33.7 22.0 21.4 21.3 11.1 11.0 10.8
PETRA Expansion Capex (ZARm) 1 276.9 1 324.4 845.7 416.0 462.3 309.5 234.3 (SA Operations) Sustaining Capex (ZARm) 227.6 206.2 158.9 164.2 154.9 144.6 162.4
Williamson ROM tonnes treated 2.5 3.3 3.6 3.6 4.0 4.0 4.0 (Tanzania) Alluvial tonnes treated 0.5 - - - - - -
Expansion Capex (USDm) 8.6 - - - - - - Sustaining Capex (USDm) 2.8 3.5 3.7 3.9 4.1 4.2 4.4
PETRA Total ROM tonnes treated 9.4 10.3 11.6 12.0 12.5 12.8 13.7 (All operations) Total tailings/other tonnes treated 7.5 7.7 8.2 8.3 7.8 7.5 7.5
Total tonnes treated 16.9 18.1 19.8 20.3 20.2 20.3 21.2
• Corporate tax• 28%
• Diamond Royalty• Formula based on profitability of mining operation; 0.5% up to 7% of turnover
• State Diamond Trader• Petra complies with SA legislation and offers 10% of SA production to the SDT; Petra values the
goods internally and then agrees a market price with the Government Diamond Valuator; Petramaintains very good working relationship with both the GDV and the SDT
• New Order Mining Right• Petra holds new order mining rights for all its operations, excluding in relation to the Fissure Mines,
where old order mining rights are held• Black Economic Empowerment
• Petra’s SA operations are all fully compliant with BEE legislation (26% ownership)
USD/ZAR
Trading range from 1 July 2011 to 20 September 2012
The South African Diamond Industry
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35
• Corporate tax
• 28%
• Diamond Royalty
• 5% of turnover
• Diamond marketing
• No constraints imposed by Government; 100% of production exported to Antwerp
The Tanzanian Diamond Industry
Further enquiries:Petra Diamonds
Cathy [email protected]
+44 20 7318 0452www.petradiamonds.com
The Cullinan mine, South Africa