Click here to load reader
Upload
others
View
1
Download
0
Embed Size (px)
Citation preview
AGM & Analyst Presentation
17 December 2009
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 Materialswarranty 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 aactual 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,f rther distrib ted passed on or the contents other ise di lged directl or indirectl to an other person (e cept the recipient’sfurther 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.
2
Petra Diamonds – Investment Case
• An important producer of rough diamonds, with one of the world’s largest diamondresources (262 million carats gross / 119 million carats attrib ) - (195 million caratsresources (262 million carats gross / 119 million carats attrib.) (195 million caratsattrib. post exercise of Cullinan option)
• The only significant diamond producer to offer substantial production growth:The only significant diamond producer to offer substantial production growth:
• Increased from 175,000 carats in 2006 to 1 million carats for 2009
Set to increase from 1 million carats to over 3 million carats per annum (“ctpa”)• Set to increase from 1 million carats to over 3 million carats per annum (“ctpa”)
• Diversified portfolio – 6 producing mines with 1 more to come on-stream imminently
• Experienced management and operations team with proven track record
• Diamond market fundamentals expected to result in strong diamond prices• Diamond market fundamentals expected to result in strong diamond prices
Successful placing raised US$120m to acquire further 37% of Cullinan, expand production strengthen balance sheet
3
expand production, strengthen balance sheet
Petra to capitalise on the anticipated major diamond supply deficit
Diamond Market Overview
• Diamond supply is in decline - most important diamond mines are past their production peak
• No new major discoveries for many years - no new major sources of production to come
• Prices achieved at Petra’s tenders have risen substantially since market lows of early ‘09
• Long term price recovery firmly in place - some volatility may occur
• Strong demand drivers going forward, particularly from emerging markets
Falling supply Rising demandGlobal Production (MM ct)
180
200
80
100
120
140
160
MM
ct
0
20
40
60
80
2 2160m carats down to
Petra: A Unique Growth Story
Majors:
Anglos / Private Diversified Diversified State-ownedAnglos / Private Diversified Diversified State owned
Pure diamond equities with significant production:
Diamond ProducerDiamond Producer & Diamond Producer
Diversified production portfolio
All assets in expansion phase
S b t ti l d ti d
Diamond Producer & Retail Stores
Diamond Producer
Substantial production and earnings growth to be delivered
5
Production Portfolio
Williamson
Production
South Africa • Cullinan
• Koffiefontein
• Kimberley Underground*
• Fissures
• Helam
• Sedibeng
• StarGeographically focused portfolio in stable and low-risk countries
6Tanzania • Williamson* Acquisition to complete imminently
in stable and low risk countries
Mines + Assets + Infrastructure
Petra has acquired four of the world’s important diamond mines
July 2007 July 2008 November 2008 Completion due soon
CullinanKoffiefontein Williamson Kimberley UG
July 2007 July 2008 November 2008 Completion due soon
7
The Petra Advantage
• Substantially improving mine performance by:• Treating each mine as a core assetg• Driving down operating costs to one of the lowest in the industry• Improving efficiencies & right-sizing operations
E i ti l t• Empowering operational teams
• Generating ROI through cost effective capital expenditureg g p p• Cost effective capital expansions through application of in-house skills
• Maximising revenues and profitability through:• Optimising diamond recovery across the spectrum, especially large and
‘specials’• Selling production via open tender system, achieving best market prices
8
Iconic Mines – Writing The History Of Diamonds
The Golden Jubilee755 carats rough,
546 polishedCullinan mine
The Taylor Burton241 carats rough,
69 polished
The Cullinan3,106 carats rough
Largest gem diamond ever discoveredCullinan mine
The Oppenheimer 253.7 carats rough
Perfect yellow diamondDutoitspan Mine, Kimberley U/G
Cullinan mineCullinan mine
The Centenary599 carats rough,
The Blue Heart31 carats polished
The Greater Star of AfricaLargest polished yield from the
The Williamson Pink55 carats rough, 24 carats599 carats rough,
274 polishedCullinan mine
31 carats polishedCullinan mine
9
Largest polished yield from the Cullinan at 530 carats
Sits in the Royal SceptreCullinan mine
55 carats rough, 24 carats polished; gifted to Princess
Elizabeth on her engagementWilliamson mine
Petra Gems – Delivering Earnings Upside
• Petra’s mines regularly produce ‘specials’, providing substantial upside on forecast revenue
• Cullinan • 39 carat rough blue diamond – sold for US$8.8m
• 26 carat rough blue diamond – cut and polished to 726 carat rough blue diamond cut and polished to 7 carats (pictured) – sold for US$9.4m
• 507 carat white diamond (pictured) – Petra considering optimum route to market
• 168 carat white diamond (sold for US$6.3m) 58 and 53 carat white diamonds (sold for US$2.8m)
• Koffiefontein
The 507 carat white diamond recovered at Cullinan in September 2009 –considered to be one of the top 20 high quality white diamonds ever found
• 34 carat diamond sold for US$1.0m
• Williamson • 47 carat diamond sold for US$0.6m
• Fissures • 126.7 carat diamond sold for US$5.3m
10
$
The ‘Star of Josephine’ – a 7.03 carat, fancy vivid blue, internally flawless diamond from Cullinan; sold for US$1.35m per carat at auction in May 2009
Cullinan
Ownership 37% Petra / 37% Al Rajhi / 26% BEE partners (PDCC) – option to take Petra ownership to 74%
Mining type Block cave miningg type oc ca e g
Production*
FY 09: 1.99 mt (888,595 carats)FY 10: 2.2 mt (957,000 carats)substantial growth to 4 mt (2.2 mcts), plus 4 mt g ( ) ptailings (0.4 mcts) by 2019
ROM value* US$95 per caratOn-mine cost per tonne* R160 (US$20) per ROM tonneOn mine cost per tonne R160 (US$20) per ROM tonneMine life +50 years (+21 years current mine plan)
• Source of world’s largest gem diamond ever – 3 106 carats
• Acquired by PDCC July 2008 for US$125m (R1bn)• Profitable first year of production despite diamond downturn• Cost per ROM tonne reduced from R220 to R170
ever 3,106 carats• Produced over 300
diamonds of over 100 carats and a quarter of all
• Further upside - Large Diamond Recovery Plant on stream end 09• Option for Petra to increase its stake to 74% (from Al Rajhi)• Tailings treatment facility to handle 1mtpa (100,000 ctpa) by 2012,
diamonds over 400 carats
• Only reliable source of highly prized, rare bl di d
11
increasing to 4mtpa (400,000 ctpa) by 2014blue diamonds
* Company forecasts
Cullinan Expansion
Accessing C-Cut / Tailings production
• 133m carat C-Cut resource, ROM grade 55cpht55cpht
• C-cut production 4 mtpa (2.2m ctpa) from 2019
• Phase 1 – 2019 to 2030
• Tailings – 17m carat gresource (165mt), grade 10cpht
• Tailings production 4 mtpa• Tailings production 4 mtpa (0.4 mct pa) from 2014
* Company forecast
12Takes gross production to 2.6m ctpa & revenue in excess of US$220 million*
KoffiefonteinOwnership 70% Petra / 30% BEE partnersMining type Front cave mining
FY 09: 0.9 mt (52,089 carats)Production*
FY 09: 0.9 mt (52,089 carats)FY 10: 1.0 mt (76,000 carats) expectedgrowth to 1.2 mt (104,000 ctpa) by 2017
ROM value* US$480 per carat$ pOn-mine cost per tonne* R123 (US$15) per ROM tonneMine life +21 years
I ROM t f• Increase ROM tonnes from 1mtpa to 1.2mtpa (104,000 ctpa)
• ROM grade to increase from
• One of the world’s top kimberlite mines by average value per • ROM grade to increase from
6.6cpht to 8.7cpht
• 400,000 tpa tailings production (1 4mct / 65mt
average value per carat
• Renowned for high value white diamonds and a regular producer production (1.4mct / 65mt
resource) – 10,000 ctpa
• Ebenhaezer pipe offers further upside
of coveted pink diamonds
* Company forecasts
13
further upside
Takes gross production to 114,000 ctpa & revenue in excess of US$50 million*
Company forecasts
WilliamsonOwnership 75% Petra / 25% Government of TanzaniaMining type Open pit miningFY09 bulk sampling 1 5mt delivering 84 486 carats (5 7cpht)FY09 bulk sampling 1.5mt delivering 84,486 carats (5.7cpht)
Production post upgrade* 10 mtpa / 600,000 ctpaROM value* US$200 per caratOn-mine cost per tonne* US$7.30 per ROM tonneMine life +20 years
• 3 year expansion programme reshaping open pit installing autogenous• 3 year expansion programme - reshaping open pit, installing autogenous mill and constructing new plant
• New plant will treat increased tonnages and improve diamond recoveriesCapex required US$45 $50m
• Renowned for high value and pink diamonds
• Capex required US$45-$50m• 146 hectare (360
acre) orebody, continuously mined for 70 years
• Nov ‘08 – majority stake in Williamson acquired for U$10m
* C f t
14Takes gross production to 600,000 ctpa & revenue in excess of US$120 million*
* Company forecasts
Kimberley Underground – Completion Expected Soon
Ownership 74% Petra / 26% BEE Partners
Mining type Block cave mining
Forecast production* 1mtpa (180,000 carats) from year twoROM value* US$170 – US$200 per caratOn-mine cost per tonne* R100 (US$12) per ROM tonneOn-mine cost per tonne R100 (US$12) per ROM tonneMine life +12 years
• Acquisition consideration of US$2.0m (R15m) cash, due to complete soon• Asset comprises Bultfontein, Dutoitspan and Wesselton mines• Care and maintenance period enabled Petra to build up a substantial • Potential for large and fancy yellow diamonds
stockpile of ore – 400,000 tonnes containing in excess of 70,000 carats• Diamond recoveries will commence on completion as new plant already
commissioned
fancy yellow diamonds• Produced the
Kimberley Octahedral – at 616ct currently the largest uncut diamond
• Considerable upside to expand life of mine g
in the world
* Company forecasts
15Brings new gross production of 180,000 ctpa & revenue in excess of US$32 million*
Path To Over 3 Million Carats
4,000,000
Petra Diamond Production Profile (gross)
3,500,000
Fissures
Kimberley
Koffiefontein
2,500,000
3,000,000
ced
Williamson
Cullinan
1,500,000
2,000,000
Car
ats
Prod
u
1,000,000
, ,
0
500,000
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
16
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Financial Year
Tender Results - Update
Diamond prices (US$ per carat)
Hi t i l FY2009 FY2010 L t t t dHistoricalaverage
FY2009 FY2010(up to Nov ‘09)
Latest tender
Cullinan 92¹ 66 74 125³
Koffiefontein 484² 252 378 7964
Williamson n/a 126 140 176
Fissures 210² 186 150 1605
Notes:
Fissures 210² 186 150 1605
1. 6 months to December 20082. Average FY 20083. Includes US$2.8m for 58 and 53 carat diamonds (but does not include the sale of the 168 carat
diamond for US$6 3m); US$90 per carat without these stones
17
diamond for US$6.3m); US$90 per carat without these stones 4. Includes US$1m for a 34 carat stone; US$494 per carat without this stone5. Due to mix of fissure production
Cullinan Pre and Post Option ExerciseStructure Pre Option Structure Post Option (exercisable by 18 Dec 2009)
• US$80m loan (originally US$95m) from Al Rajhi to CIHL (Cullinan JV vehicle), 8% interest, repayable Dec 2011. On repayment of loan, Petra interest to increase from 37% to 44%
• Consideration: issue to Al Rajhi of 36m shares (agreed value for option of 80p per share) on option exercise and US$35m deferred cash payment (payable Dec 2011),
• US$100m option fee payable by Petra to Al Rajhi to increase Cullinan interest from 44% to 60% (14% interest in Cullinan remained with Al Rajhi - purchase by Petra to 74% by separate negotiation)
(p y )
• Petra assumes US$80m Cullinan loan repayable to Al Rajhi; loan reduces on option exercise by US$30m (US$15m cash and US$15m in shares (11.4m at 80p))
• Balance of US$50m Cullinan loan repayable US$35m Dec 2010 and• CIHL loan to CDM of R830m (US$104m), to be repaid from CDM
cash flow – cashflows ring-fenced for Al Rajhi loan
• CIHL loan to BEE partners of R290m (US$36m), to be repaid from CDM cash flow
• Balance of US$50m Cullinan loan repayable US$35m Dec 2010 and US$15m Dec 2011, 8% interest
• Loan to CDM of R830m (US$104m) and loan to BEE of R290m (US$36m) to be repaid to PDL from CDM cash flow – cashflows now flow to PDL (no “cash trap”)
PDL37% effective interest in CDM
Al Rajhi37% effective interest in CDM
9% holding in PDL (pre Placing) US$80m loan due from CIHL
50% 50% Al Rajhi18.1% holding in PDL (post Placing and
• Convertible Loan Note (US$20.5m) to be repaid on option exercise
CIHL (JV vehicle) BEER290m (US$36m) loan due to CIHL BEEPDL
g (p goption)
US$50m loan due from PDL
C lli (CDM)
74% 26%
Cullinan (CDM)
74% 26%R290m (US$36m) loan due to PDL
PDL
18
Cullinan (CDM)R830m (US$104m) loan due to CIHL
Cullinan (CDM)R830m (US$104m) loan due to PDL
Cullinan Option – Consolidated Ownership
• Increase Cullinan attributable resources: from75.7mct to 151.4mct 74%
60%70%80%
ip (%
)
Cullinan Ownership
• Increase Cullinan attributable production:¹ from>320,000ct to >650,000ct
• Continuing Al Rajhi support: NED to be appointed to
37%
0%10%20%30%40%50%60%
Pre option Post option exercise
Cul
linan
Ow
ners
hi 50%
g j ppPetra Board
• Benefits:
Si lifi P t hi t t f C lli
Pre-option Post-option exercise
151.4
120140160
ces
(Mct
s)
Attributable Resources
• Simplifies Petra ownership structure of Cullinan
• Gives Petra access to Cullinan cash flows
• Cullinan consolidated into Petra’s financial
75.7
020406080
100
Pre-option Post-option exercise
Attr
ibut
able
Res
ourc 50%
Cullinan consolidated into Petra s financial statements
• Removes convertible overhang
p p
$80
$50
$75
$100
t (U
S$M
)
37.5%
Cullinan Debt
• Improves balance sheet$50
$0
$25
$50
Pre-option Post-option exercise
Cul
linan
Deb
t
19
74% of Cullinan, increased cash flows and strengthened balance sheetNote 1: Based on Cullinan 2009 production of 888,595 carats
US$120m (£72.7m) Placing
Objectives: to increase ownership in Cullinan from 37% to 74%, deliver growth by expandingproduction and strengthen balance sheet
• Completion of US$120m Placing (net ~US$114m) 3 December 2009
• First tranche shares started trading on AIM 4 December 2009
S d t h h t t t di AIM 18 D b 2009• Second tranche shares start trading on AIM 18 December 2009
Use of proceeds US$mP t ttl t f US$80 Al R jhi / C lli l i l dPart settlement of US$80m Al Rajhi / Cullinan loan, incl. accruedinterest (US$15m cash + US$9.6m interest) 24.6Repayment of Convertible Note to Al Rajhi 20.5New funds required for increased Cullinan ownership 45 1New funds required for increased Cullinan ownership 45.1
Development capital for Cullinan 15Expansion capital for Williamson 15Expansion capital for Williamson 15Short term debt 38.9Subtotal 68.9
Total 114
20
Total 114
Strengthening the Balance Sheet
• Placing strengthens the balance sheet by reducing debt
• Broadens Petra’s shareholder register to increase liquidity
GROUP CASH New funds
Group cash and debt:
(US$m) Pre raising net of costs Post raising
Cash 5.0 30.0 35.0*
GROUP DEBT(US$m)
Pre raising Petra attrib. (50%)
New funds net of costs
Post raisingPetra attrib. (100%)
Al Rajhi convertible note (incl. interest) 20.5 20.5 0
Al Rajhi Cullinan loan US$89.6m (incl. interest)** 44.8** 24.6** 50.0**
Deferred consideration (Cullinan option), due Dec 2011 - - 35.0
Other various Group debt 62.7 38.9 23.8
BEE loans due to Petra (R260m) - - (36)
Total 128 0 84 0 72 8Total 128.0 84.0 72.8
21* Pro forma cash figure calculated as pre-raising cash plus net new funds: does not account for trading results in Placing period** Current Cullinan ownership, Petra consolidates 50% of Al Rajhi debt; post Cullinan restructure Petra will consolidate 100% Al Rajhi debt
Capital Structure
Current Post raising &Cullinan OptionSaad Investments Company Limited 44.0% 23.0%
Al Rajhi Holdings W.W.L. 9.0% 18.1%
JP Morgan Asset Management UK Limited 9 6% 9 3%JP Morgan Asset Management UK Limited 9.6% 9.3%
Scottish Widows Investment Partnership 0.0% 6.2%
Capital Group International, Inc. 0.0% 6.2%
Directors 8.5% 4.7%
Shares in issue 184.0 million 352.6 million
Market capitalisation (as at 16 December 09) £126 million £206 million
Estimated Free Float 47.4% 54.2%
Saad• Saad’s assets have been frozen while the Saad group is undergoing a restructuring• Petra and its advisers are in regular dialogue with the administrators• Administrators have advised that 78m Petra shares is not ‘loose’ stock - not an active overhang
22
Conclusion
• Track record: Petra’s operational success is proven on each major asset
• Major assets & resources: high quality gem diamond output
• Upside: increased liquidity, strengthened balance sheet & capital structure
• Growth story: uniquely expanding production in a rising diamond market
• Returns: potential for high return on investment
Fund raising delivers:Increased ownership & resources – 74% of Cullinan
Increased carat production taking 1m to over 3m ctpa
23
Increased carat production – taking 1m to over 3m ctpaIncreased revenue – all mines forecast to operate at high margins
Appendix
24
The Petra Board
Adonis PouroulisChairman
Johan DippenaarCEO
David AberyFinance Director
Jim DavidsonTechnical Director
Successful mining entrepreneur One of South Africa’s most successful diamond
Extensive experience as Chief Financial Officer in South
Acknowledged world authority on kimberlite geology and
Founded Petra Diamonds in 1997 and floated first diamond company on AIM
successful diamond entrepreneurs with 20 years’ experience
Founded diamond group in
Financial Officer in South African and UK business environments
In-depth knowledge of AIM
on kimberlite geology and exploration
Over 20 years’ experience in mine management
Along with fellow directors, built Petra into pan-African diamond group with over 3500 employees
Founded diamond group in 1990 and grew portfolio to 3 producing mines before listing as Crown Diamonds on ASX
In depth knowledge of AIM
Integral to structuring and deliverance of strategic group corporate development,
mine management
Formerly Head of Diamond Exploration for Rio Tinto across Southern Africa
Instrumental in raising funds to help finance and structure early stage mining companies in Africa
Merger with Petra in 2005 –now at helm of AIM’s largest diamond company
including acquisitions and joint ventures As Technical Director of Crown
Diamonds, managed specialist underground fissure mines over a decade
2525
Africa a decade
Reserves And Resources
A ib bl b Total carat baseAttributable carat base
Fissures - 4.7
Kimberley - 6 9
Fissures - 4.5
Kimberley - 5.2Kimberley - 6.9
Koffiefontein - 5.9Koffiefontein -4.2Williamson -
Williamson - 40.1
Cullinan - 204.6
a so30.0Cullinan - 75.7
119 million carats 262 million carats
26
Diamond Market – World Consumption
Diamonds in Jewellery - 2009 Rest of world
Diamonds in Jewellery - after 2015
Italy
4%
18%
Italy
2%Hong Kong
2%
Rest of world
14%
USA
40%Hong Kong
2%
Taiwan
USA
35%Taiwan
2%
2%
India
7%
2%
Japan
India
11%
Gulf
8%China
8%
Japan
11%
Measured at Polished Wholesale Prices
Gulf
9%China
16%
9%
Measured in Polished
Wholesale Prices
Measured at Polished Wholesale Prices
Source: RBC Capital Markets and De Beers
27
Long Term Demand Outlook
• Diamond jewellery has traditionally represented only a small percentage of total jewellery sales in China/India
• Diamonds currently represent just 10-12% of total jewellery sales in these countries
Regional Focus on Diamond Jewellery
100%
Diamonds Other Jewellery
sales in these countries
• Conversely, penetration of diamond jewellery in the mature US market is 70%
• Total jewellery consumption in China and India is forecast to grow at a CAGR of around 9% (2010-2015)
70%
25%
50%
75%
a CAGR of around 9% (2010-2015)
• Growth in HNWI in recent years has been dominated by emerging economies - particularly in regions where jewellery is highly popular (Middle East and Asia Pacific)
Source: KPMG: “The global gems and jewellery industry”
12% 10%
0%
25%
China India US
Forecast Jewellery Consumption (2010 - 2015) HNWI Leisure Investment By RegionCAGR:1.7%
CAGR:8.5%
CAGR:9.2%
80
10%7%3%
8%5%8%8%
13%8% 12%11% Miscellaneous
20
40
60
US
$b
n
24% 25% 29% 24% 27%
31% 29% 19% 22% 17%
17% 17%19%
33%25%
13% 10% 17% 10%
8%Sports Investments
Other Collectibles
Jewellery
Art Collections
Source: KPMG: “The global gems and jewellery industry”Source: World Wealth Report 2008 (CapGemini/Merrill Lynch)Excludes short expenditure such as: “Wellness”, “Luxury Consumables”, “Luxury/Experiential Travel”
0
US China India
2010E 2015E
24% 25% 29% 24% 27%
Europe Latin America NorthAmerica
Asia Pacific Middle East
Luxury Collectibles
Emerging markets should provide some solid insulation from slow demand in the US and Europe28
Group Production and Sales Summary
Unit Year ended30 June 2009Year ended 30 June 2008 Change
Production
Diamonds produced (attributable) Carats 492,349 126,478 289%
Diamonds produced (gross, 100% Cullinan*) Carats 1,099,367 200,287 449%
Sales
Revenue (attributable) US$M 69.3 76.9 -10.9%
Revenue (gross 100%Revenue (gross, 100% Cullinan **) US$M 94.4 77.3 22.2%
Diamonds sold (gross, 100% Cullinan) Carats 1,011,707 230,172 339.5%)
* Net group production for IFRS reporting (adjusted to 50% Cullinan consolidated before minorities), 655,069 carats.** Net group revenue for IFRS reporting (adjusted to 50% Cullinan consolidated before minorities), US$68.7 million.*** Decrease in average value per carat due to Cullinan production coming on stream.
29
Production Ramp Up & CAPEX Profile
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019Operation Area
BAW/BB1E/AUCGap Fillers
Financial Year
Cullinan
AUC SouthBAW Phase 1C‐Cut Phase 1Total Tonnes (Mt) 2.200 2.400 2.400 2.400 2.426 2.680 2.845 3.145 3.150 4.000Total Carats (Mcts) 0.957 1.117 1.239 1.314 1.520 1.649 1.801 2.018 2.133 2.600Expansion Capex (US$m) 18 0 47 6 45 4 17 7 26 6 28 1 32 9 50 3 55 3 26 6Expansion Capex (US$m) 18.0 47.6 45.4 17.7 26.6 28.1 32.9 50.3 55.3 26.6
‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Total Tonnes (Mt) 1.231 0.000 0.000 5.000 10.000 10.000 10.000 10.000 10.000 10.000Total Carats (Mcts) 0.066 0.000 0.000 0.300 0.600 0.600 0.600 0.600 0.600 0.600Expansion Capex (US$m) 16.3 20.1 14.6 0.0 0.0 0.0 0.0 0.0 0.0 0.0Current Operation
Williamson
Kofffiefontein pNew Block CaveTotal Tonnes (Mt) 0.948 0.948 0.948 0.948 0.948 1.000 1.100 1.200 1.200 1.200Total Carats (Mcts) 0.076 0.080 0.080 0.080 0.080 0.100 0.108 0.114 0.114 0.114Expansion Capex (US$m) 1.7 3.1 3.1 3.1 3.1 1.9 1.9 1.9 5.0 5.0Bultfontein ‐ 845 BCKimberley U/GDutoitspan ‐ 870 BCDutoitspan ‐ NW cornerWesselton ‐ 995 BCTotal Tonnes (Mt) 0.746 0.780 0.916 1.000 1.000 1.000 1.000 1.000 1.000 0.919Total Carats (Mcts) 0.065 0.217 0.223 0.200 0.181 0.181 0.181 0.181 0.181 0.163Expansion Capex (US$m) 5 1 13 1 2 6 1 3 0 0 0 0 0 0 0 0 0 0 0 0Expansion Capex (US$m) 5.1 13.1 2.6 1.3 0.0 0.0 0.0 0.0 0.0 0.0Total Tonnes (Mt) 0.247 0.266 0.276 0.284 0.291 0.304 0.304 0.304 0.304 0.304Total Carats (Mcts) 0.126 0.138 0.144 0.148 0.155 0.165 0.165 0.165 0.165 0.165Expansion Capex (US$m) 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
Petra Diamonds Total Tonnes (Mt)1 5.372 4.394 4.540 9.632 14.665 14.984 15.249 15.648 15.654 16.423
(Gross Numbers) Total Carats (Mcts)1 1.291 1.552 1.686 2.042 2.535 2.695 2.855 3.078 3.193 3.643
Fissures
30
(Gross Numbers) Total Carats (Mcts) 1.291 1.552 1.686 2.042 2.535 2.695 2.855 3.078 3.193 3.643Expansion Capex (US$m)2 41.1 84.0 65.7 22.2 29.7 30.0 34.8 52.2 60.3 31.6
1. Excludes production form tailings retreatment operations2. Expansion capital expenditure stated in 2009 money terms‐ ‐ ‐ ‐ ‐ ‐ ‐ Williamson plant and infrastructure upgrade
Cullinan – Key Objective
20
+100 & +200 Carat Stones Recovered At Cullinan Diamond Mine
151617181920
1112131415
6789
10+100
+200
123456
01
1921
1923
1925
1927
1929
1931
1950
1952
1954
1956
1958
1960
1962
1964
1966
1968
1971
1973
1975
1977
1979
1981
1983
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
2005
2007
2009
31
Kimberley Underground Orebodies
32
Fissures (Helam, Sedibeng, Star)
Ownership Sedibeng: Petra 74.5%/BEE 25.5%Helam & Star: Petra 100% Helam: Full shrinkage overhand stoping
Mining typeHelam: Full shrinkage overhand stopingSedibeng: Full shrinkage overhand stopingStar: Open stope underhand
FY09 production 71,274 caratsp ,ROM values* US$180 per caratOn-mine cost per tonne* R415 (US$52) per ROM tonneMi lif C bi d 20
• Strategic review completed at Helam and Star – both mines operated at lower levels of production in FY 2009
• Narrow vein, low tonnage ‘fissure’ operations
Mine life Combined +20 years
operated at lower levels of production in FY 2009• Future production planned to be in excess of 120,000 ctpa
operations• High value
kimberlite mines in comparison to world average
* Company forecasts
33Increase production from 70,000 ctpa to 120,000 ctpa*
Block Caving Schematic
34
Block Caving – Side View
VIRGIN KIMBERLITEVIRGIN KIMBERLITEPIPE
HIGHGSTRESS
UNDERCUT
DRAWPOINTS
PRODUCTIONLEVEL
LEVEL
WINCH
HAULAGE 35
Petra DiamondsCathy RobertsCathy Roberts
[email protected]+44 20 7318 0452
www.petradiamonds.com