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Interim Results (6 Months to 31 December 2011) February 2012

Interim Results (6 Months to 31 December 2011)Highlights Operations: • Production up 64% to 953,553 carats (H1 FY 2011: 582,102 carats) • Cash operating unit costs well controlled

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Page 1: Interim Results (6 Months to 31 December 2011)Highlights Operations: • Production up 64% to 953,553 carats (H1 FY 2011: 582,102 carats) • Cash operating unit costs well controlled

Interim Results (6 Months to 31 December 2011) February 2012

Page 2: Interim Results (6 Months to 31 December 2011)Highlights Operations: • Production up 64% to 953,553 carats (H1 FY 2011: 582,102 carats) • Cash operating unit costs well controlled

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 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 in

an investment activity and any decision in connection with a purchase of shares in the Company must be made solely on the

basis of the publicly available information. Accordingly, neither the Company nor its directors makes any representation or

warranty 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 notice

or liability to any party. The presentation materials contain forward-looking statements which involve risk and uncertainties and

actual results and developments may differ materially from those expressed or implied by these statements depending on a

variety of factors. No representation or warranty, express or implied, is made as to the fairness, accuracy or completeness of the

information 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 has

been no adverse change, or any event reasonably likely to involve any adverse change, in the condition (financial or otherwise) of

the 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’s

professional advisers) or published, in whole or in part, for any purpose whatsoever. The Presentation Materials may not be used

for the purpose of an offer or solicitation to subscribe for securities by anyone in any jurisdiction.

2

Page 3: Interim Results (6 Months to 31 December 2011)Highlights Operations: • Production up 64% to 953,553 carats (H1 FY 2011: 582,102 carats) • Cash operating unit costs well controlled

Overview

3

Main Factors Affecting H1 Positive Outlook for H2

• A weaker diamond market – rough diamond prices

fell from July highs, causing revenue to be

~US$23.0m lower (as previously stated in Main

Market step-up prospectus)

• Diamond market stabilised end November

• Prices were slightly stronger at Petra’s 1st tender in

2012, with US$44m generated on sales of

~300,000 carats

• Lower sales due to xmas holiday period and lock-

up of initial Finsch production

• Production and sales expected to be substantially

higher in H2 further to:

• release of inventory

• full 6 months Finsch production and

increased production across the Group

• Exceptional financial items:

• weaker Rand (R8.13 vs R6.84) resulted in

US$35.7m unrealised forex loss in H1

• once-off transaction costs of US$2.7m

Jul Jun Dec Feb Nov Sep Aug Mar Jan Apr May Oct Jun

H1 H2

Petra Typical Tender Sales Cycle

1 2 3 4 5 6 7 8

Page 4: Interim Results (6 Months to 31 December 2011)Highlights Operations: • Production up 64% to 953,553 carats (H1 FY 2011: 582,102 carats) • Cash operating unit costs well controlled

Summary Results

4

6 months to 31

December 2011

(US$m)

6 months to 31

December 2010

(US$m)

Year ended 30

June 2011

(US$m)

Revenue 101.4 90.0 220.6

Mining and processing costs (72.1) (66.8) (146.9)

Other direct income 1.4 1.3 2.7

Profit from mining activity* 30.7 24.5 76.4

Exploration expense (0.8) (0.4) (1.3)

Corporate overhead (4.9) (3.9) (8.0)

Adjusted EBITDA* 25.0 20.2 67.1

Transaction costs (2.7) - -

Net impairment charges and reversals - - 6.5

Depreciation (18.7) (10.1) (22.4)

Share based payment expense (0.6) (1.0) (1.9)

Net unrealised foreign exchange (loss) / gain (35.7) 20.9 18.6

Net finance income / (expense)* 0.9 (3.2) (3.5)

Tax credit / (expense) / credit 5.1 (2.3) (5.2)

Net (loss) / profit after tax – Group* (26.7) 24.5 59.2

Basic (loss) / profit per share attributable to the equity holders of the Company – US$

cents* (5.23) 6.79 12.83

Adjusted basic earnings per share attributable to equity holders of the Company before

unrealised forex movements & once off transaction costs – US$ cents* 2.46 0.86 8.41

* Refer to announcement dated 28 February 2012 for detailed notes

Page 5: Interim Results (6 Months to 31 December 2011)Highlights Operations: • Production up 64% to 953,553 carats (H1 FY 2011: 582,102 carats) • Cash operating unit costs well controlled

Highlights

Operations:

• Production up 64% to 953,553 carats (H1 FY 2011: 582,102 carats)

• Cash operating unit costs well controlled despite inflationary pressures

• Capex of US$56.7 million (H1 FY 2011 US$47.7 million)

Corporate:

• Successful step-up from AIM to the Main Market of the London Stock Exchange

• Petra to increase its interests in its various SA operations by acquiring 49.24% effective

interest in main BEE partner Sedibeng Mining

• Appointment of Dr Patrick Bartlett and Gordon Hamilton as independent NEDs

• Completion of Finsch acquisition for R1.425 billion (ca. US$192 million)

• US$48 million debt facilities put in place with Rand Merchant Bank (“RMB”)

Health & Safety

• Group lost time injury frequency rate (“LTIFR”) of 0.91 (H1 FY 2011: 0.64)

• Regrettably a fatality occurred at Kimberley Underground on 22 January 2012

• Petra striving for zero harm across all its operations

5

Page 6: Interim Results (6 Months to 31 December 2011)Highlights Operations: • Production up 64% to 953,553 carats (H1 FY 2011: 582,102 carats) • Cash operating unit costs well controlled

Operating Cashflow

6

H1

FY 2012

(US$m)

H1

FY 2011

(US$m)

FY 2011

(US$m)

(Loss) / profit before tax (31.8) 26.8 64.4

Adjusted for non cashflow items 53.5 (5.9) 3.6

Cash generated before working capital changes 21.7 20.9 68.0

Increase in net working capital (23.0) (8.1) (15.8)

Cash (utilised in) / generated from operations (1.3) 12.8 52.2

Finance expense and taxation (2.3) (0.9) (1.6)

Net cash (utilised in) / generated from operating activities (3.6) 11.9 50.6

Page 7: Interim Results (6 Months to 31 December 2011)Highlights Operations: • Production up 64% to 953,553 carats (H1 FY 2011: 582,102 carats) • Cash operating unit costs well controlled

Balance Sheet Snapshot

31 Dec 2011

(US$m)

31 Dec 2010

(US$m)

Cash and cash equivalents:

Bank 45.1 20.8

Diamond inventories 38.1 20.2

Total 83.2 41.0

Loans, borrowings and deferred consideration:

IFC / RMB Debt Facilities (ca. US$83m in total)* (70.5) (54.1)

RMB Debt Facility (ca. US$48m in total)** undrawn n/a

Deferred Cullinan consideration (repayable on or before 31 March

2012)***

(6.0) (32.9)

Other loans and borrowings - (3.0)

BEE loans due to Petra 110.0 68.0

Net loans due to Petra / (net debt) 33.5 (22.0)

7

* IFC interest charged at US$ 6 month LIBOR + 4.5%; RMB interest charged at South African 3 month JIBAR +4.5%

** Interest charged at South African 3 month JIBAR +2.5% for Revolving Credit Facility portion of US$36m and +2.4% for Working Capital Facility portion of US$12m

*** Interest charged at 7% per annum post 31 Dec 2011

Page 8: Interim Results (6 Months to 31 December 2011)Highlights Operations: • Production up 64% to 953,553 carats (H1 FY 2011: 582,102 carats) • Cash operating unit costs well controlled

H1 FY 2012 – Operations

Operation Cullinan Finsch Koffiefontein Kimberley

Underground

Fissures Williamson

H1 FY

2012

H1 FY

2011

H1 FY

2012

H1 FY

2011

H1 FY

2012

H1 FY

2011

H1 FY

2012

H1 FY

2011

H1 FY

2012

H1 FY

2011

H1 FY

2012

H1 FY

2011

Total Production

Tonnes treated (Mt) 1,595,461 1,450,150 1,432,805 n/a 759,590 802,446 287,187 176,527 92,031 121,366 59,774 254,648

Diamonds recovered

(carats) 444,040 468,056 414,563 n/a 21,538 34,500 34,751 24,988 36,074 43,710 2,587 10,847

Sales

Revenue (US$M) 48.6 57.8 28.3 n/a 6.5 17.2 8.1 4.9 8.4 7.9 1.5 2.0

Diamonds sold (carats) 379,894 481,049 219,408 n/a 15,196 36,669 26,395 17,271 32,835 41,522 5,044 7,722

Average price per carat

(US$) 128 120 129 n/a 426 470 308 285 255 192 298 264

Costs

On-mine cash cost per

tonne treated (ZAR) 173 162 138 n/a 118 103 208 223 1,013 619 n/a n/a

Capex

Capex (US$M) 21.1 12.9 1.4 n/a 4.8 4.2 2.5 2.1 1.6 4.6 17.5 16.4

8

• SA Costs generally well controlled despite inflationary pressures – core focus for Petra

• Costs at Finsch in line with initial expectations

• Fissures adversely affected by low production volumes

• Cost break-down for Williamson n/a as costs capitalised during the plant rebuild project

• Group Capex of US$56.7m reflects acceleration of development programmes; incls. US$8.4m incurred at Group projects division

Page 9: Interim Results (6 Months to 31 December 2011)Highlights Operations: • Production up 64% to 953,553 carats (H1 FY 2011: 582,102 carats) • Cash operating unit costs well controlled

Production & Revenue – H1 2011 vs H1 2012

Diamonds Sold

H1 2011: 584,234 carats

Gross Revenue

H1 2011: US$90 million

83%

6%

7%3%

1%

H1 2012: 678,772 carats H1 2012: US$101.4 million Fissure Mines

Kimberley

Underground

Koffiefontein

Williamson

Cullinan

Finsch

9

64%

19%

9%

6%

2%

56%

2%

32%

5%

1%

4%

49%

6%

28%

8%

1%

8%

Page 10: Interim Results (6 Months to 31 December 2011)Highlights Operations: • Production up 64% to 953,553 carats (H1 FY 2011: 582,102 carats) • Cash operating unit costs well controlled

Diamond Market Fundamentals

10

Source: Deutsche Bank / Alrosa, April 2011 Source: RBC Capital Markets, February 2012

• 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’s strategy is to focus on extending lives of existing major kimberlite mines

• Strong demand drivers going forward, particularly from emerging markets

• Tiffany & Co and Swatch both reported to be investigating means to secure supply

Significant supply/demand deficit forecast to emerge Production forecast to remain relatively flat

5

7

9

11

13

15

17

19

21

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

US

$bn

Supply in 2008 Prices Demand

0

20

40

60

80

100

120

140

160

180

200

2006A

2007A

2008A

2009A

2010A

2011E

2012E

2013E

2014E

2015E

2016E

2017E

2018E

2019E

Ct m

m

Global Rough Diamond Production

Page 11: Interim Results (6 Months to 31 December 2011)Highlights Operations: • Production up 64% to 953,553 carats (H1 FY 2011: 582,102 carats) • Cash operating unit costs well controlled

Late Cycle Play

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 firm decision taken

but considering an IPO in 2012-

2014

• Chow Tai Fook – leading

Chinese diamond retailer raised

US$2 billion in Hong Kong IPO –

plans to increase stores in Asia

from 1,300 to 2,000 by 2016

• Graff Diamonds – preparing to

raise up to US$1 billion in Hong

Kong IPO to expand in Asia

(Financial Times – 17 Feb 2012)

11

Per capita consumption of key commodities: China relative to the US “steady state”

Page 12: Interim Results (6 Months to 31 December 2011)Highlights Operations: • Production up 64% to 953,553 carats (H1 FY 2011: 582,102 carats) • Cash operating unit costs well controlled

Diamond Market Performance – 2011

• De Beers estimates global diamond jewellery market

grew by +11% – 13%

• Major US market grew by ~8%

• China (+~30%) and India (+10% – 15%) continued

exceptional growth

• Far East (China, Hong Kong, Taiwan, India and the Gulf)

expected to account for +40% of global demand by 2016

12

Source: De Beers Group Strategy

Production (mm carats) 2008 2009 2010 2011

De Beers 48.1 24.6 33.0 31.3

Alrosa 36.9 32.8 34.3 34.5E

Rio Tinto 20.8 14.0 13.8 11.7

BHP Billiton 3.3 3.2 3.1 2.5

Kimberley Process

Statistics Global Production

163.9 120.2 128.3 tbc

Global Demand Growth

Majors Production Flat or Declining

Consumer Demand Forecasts 2011 & 2016 (US$ PWP)

India 10%

Hong Kong 2%

Gulf 7%

Turkey 2%

RoW 18%

Taiw an 2%

China 11%

Japan 10%

USA 38%

India 15%

Hong Kong 2%

Gulf 6%

Turkey 2%

RoW 15%

Taiw an 2%

China 16%

Japan 8%

USA 34%

2011

2016

Page 13: Interim Results (6 Months to 31 December 2011)Highlights Operations: • Production up 64% to 953,553 carats (H1 FY 2011: 582,102 carats) • Cash operating unit costs well controlled

Rough Diamond Prices

• Global economic uncertainty caused prices to fall from

June 2011 highs

• Rand weakness partially offset lower pricing during the

Period (South African production)

• Market stabilised in late H1; Petra expects trend to

continue but some volatility could be experienced

• First tender in H2 achieved US$44.4 million on sale of

306,149 carats

13

Petra Average Rough Diamond Prices*

Mine

H1 FY 2012

Actual

(US$)

Original

guidance FY

2012

(US$)

FY 2011

Actual

(US$)

FY 2010

Actual

(US$)

Cullinan 128 163 148

141

(101 excl.

Cullinan

Heritage)

Finsch 129 155 n/a n/a

Koffiefontein 426 549 564 402

Kimberley

Underground 308 325 333 n/a

Fissures 255 271 244 185

Williamson 298

(alluvials)

230

(ROM –

medium term)

302 157

* Prices given are the average of ROM and tailings as Petra tenders mine

production on a mixed parcel basis

RBC Capital Markets – Rough Diamond Price Index

50

70

90

110

130

150

170

190

210

01/0

6/2

001

01/0

6/2

002

01/0

6/2

003

01/0

6/2

004

01/0

6/2

005

01/0

6/2

006

01/0

6/2

007

01/0

6/2

008

01/0

6/2

009

01/0

6/2

010

01/0

9/2

010

01/1

2/2

010

01/0

6/2

011

01/1

0/2

011

01/1

2/2

011

01/0

1/2

012

June 2

001 =

100

Rough Price Index – Jan 2012

Page 14: Interim Results (6 Months to 31 December 2011)Highlights Operations: • Production up 64% to 953,553 carats (H1 FY 2011: 582,102 carats) • Cash operating unit costs well controlled

Cullinan – Development Programme Update

14

Cullinan Mining Schematic

BA5

Rock Shaft

Men & Material

Shaft

Current Shaft Bottom

580 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-CUT

Phase 1

200 0 metres

Current extent of South Decline

16Ha @ 830 Level

Loading Level

880m Shaft Bottom

Current Shaft Bottom 805 Level

732m Level

Expansion Plan – to deliver

2.0 Mctpa ROM & 0.4 Mctpa

tailings by FY 2019

• South Decline to establish

production at 830m and then

on to bottom of new shaft at

930m – end FY 2012

• Approval of additional North

Decline to create further

access to 830m production

level - commencing H2 FY

2012

• Contract for shaft deepening

& related infrastructure

awarded

• Shaft deepening from 580m

to 930m to replace the

current conveyor belt ore-

handling system – mid FY

2015

• Production from new cave –

FY 2015

• Upgrading and streamlining

of plant facilities in order to

treat 4Mt underground & 4Mt

tailings – from FY 2015, 4

year ongoing programme

Proposed North Decline

Page 15: Interim Results (6 Months to 31 December 2011)Highlights Operations: • Production up 64% to 953,553 carats (H1 FY 2011: 582,102 carats) • Cash operating unit costs well controlled

Vent

Shaft Production

Shaft

630m Level 670m Level

770m Level

Shaft Bottom

825m

880m

Block Cave

950m Decline to 880m

SLC Conveyor

Ore Handling

Sub level Cave

Block 4 Pillars

Block 4

Remaining

Block 5

Not in

current

mine plan

Precursor

SLC

Finsch – Development Programme Update

15

Kimberlite Footprint @880m Level:

Main pipe: 3.7ha

Precursors: 1.5ha

Finsch Mining Schematic

Current Infrastructure

Planned Infrastructure

Expansion Plan – to deliver

production of 1.6 Mctpa ROM

& 0.3 Mctpa tailings by FY

2018

• Mining currently taking place

in Block 4 at 630m – FY

2012

• Treatment of Pre 1979

Tailings – until FY 2015

• Development of Sub Level

Cave across 2/3 orebody

footprint at ~770m – FY 2013

• Production from Block 5 at

880m – FY 2014 onwards

• Deepening of shaft to 950m

and ore-handling

infrastructure on 880m Level

– End FY 2015

• Treatment of Post 1979

Tailings – FY 2015 to FY

2020

• Ramp up ROM to 3.5 Mpta –

FY 2018 880m base of Resource (open ended at depth)

Page 16: Interim Results (6 Months to 31 December 2011)Highlights Operations: • Production up 64% to 953,553 carats (H1 FY 2011: 582,102 carats) • Cash operating unit costs well controlled

Production & Revenue – FY 2011 & Estimated FY 2019

Gross Revenue Gross Production

FY 2011: 1.1 million carats

FY 2019: 5.4 million carats

FY 2011: US$221 million

FY 2019: ca.US$1.3 billion*

* Calculated using a 4% real price increase FY 2019 figures are management estimates 16

Cullinan 0.9

Williamson 0.6

Koffiefontein 0.05

Kimberley 0.2

Fissures 0.08

Cullinan 2.4

Fissures 0.1

Williamson 0.03

Koffiefontein 0.1

Kimberley 0.06

Finsch 1.9

Cullinan 140.2 Koffiefontein 30.8

Fissures 21.8

Williamson 9.5

Kimberley 18.2

Cullinan 489

Williamson 179 Koffiefontein 85

Kimberley 70

Fissure 52

Finsch 419

Page 17: Interim Results (6 Months to 31 December 2011)Highlights Operations: • Production up 64% to 953,553 carats (H1 FY 2011: 582,102 carats) • Cash operating unit costs well controlled

Outlook

17

Operations

• H2 production expected to be significantly higher than H1, mainly due to inclusion of Finsch production for full

6 month period

• All expansion programmes on target to deliver +2 Mctpa in FY 2012 & +5 Mctpa by FY 2019

• Focus remains on:

• cost control and increased production in H2 will assist in improving unit costs

• execution of capital expansion programmes

Sales

• Sales to be substantially higher in H2 set against same fixed cost structure

Corporate

• Main Market listing & FTSE 250 inclusion will see increased profile & IR activity

• Objective to further broaden Petra’s shareholder base & commencement of marketing in Asia

Market

• Some short-term volatility due to current global uncertainty but long-term fundamentals remain firmly in place

• Petra’s strong production growth will maximise leverage to anticipated supply deficit

Page 18: Interim Results (6 Months to 31 December 2011)Highlights Operations: • Production up 64% to 953,553 carats (H1 FY 2011: 582,102 carats) • Cash operating unit costs well controlled

Expected FTSE Index Ranking (as at 23 Feb 2012)

Index review scheduled for 7 March; changes to Index implemented Monday 19 March 2012

18

FTSE All Share FTSE 350 Mining Index

Size Rank Name Mkt Cap (mm)

1 BHP Billiton £123,693

2 Rio Tinto £72,307

3 Xstrata £36,021

4 Anglo American £35,771

5 Glencore International £30,363

6 Fresnillo £13,310

7 Antofagasta £13,270

8 ENRC £9,433

9 Randgold Resources £6,866

10 Kazakhmys £6,126

15 Bumi £1,855

16 Hochschild Mining £1,729

17 Kenmare Resources £1,417

18 Petropavlovsk £1,410

19 New World Resources £1,385

20 Centamin £1,035

21 Petra Diamonds £781

22 Aquarius Platinum £682

23 Anglo Pacific Group £355

24 Gem Diamonds £347

25 Allied Gold £246

Size Rank Name

Mkt Cap

(mm)(1)

231 Home Retail Group £846

232 Chemring Group £839

233 SVG Capital £823

234 Bluecrest Allblue Fund £818

235 Premier Farnell £811

236 Berendsen £809

237 Atkins £803

238 HICL Infrastructure £795

239 Senior £790

240 Petra Diamonds £781

241 Beazley £769

242 Elementis £750

243 Cable & Wireless £748

244 Bodycote £746

245 Yule Catto & Co £743

246 Howden Joinery £742

247 Genus £740

248 Micro Focus International £736

249 Domino Printing Sciences £736

Sources: ProQuote and Bloomberg

(1) In line with FTSE calculations, and to provide an accurate ranking, market caps in the FTSE All Share table are based only on LSE traded shares

Page 19: Interim Results (6 Months to 31 December 2011)Highlights Operations: • Production up 64% to 953,553 carats (H1 FY 2011: 582,102 carats) • Cash operating unit costs well controlled

Thank You

Finsch mine, South Africa

Page 20: Interim Results (6 Months to 31 December 2011)Highlights Operations: • Production up 64% to 953,553 carats (H1 FY 2011: 582,102 carats) • Cash operating unit costs well controlled

Discover Petra Diamonds

• London’s largest quoted pure diamond mining group – ‘LSE: 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 250 Index

• Exceptional growth – objective to increase production to over 5 million carats by FY 2019

FY 2007 FY 2011

Gross Resources 9 million carats 300 million carats

Production ~180,000 carats 1.1 million carats

Gross Revenue US$17.0 million US$220.6 million

On Mine EBITDA US$1.3 million US$76.4 million

20

Page 21: Interim Results (6 Months to 31 December 2011)Highlights Operations: • Production up 64% to 953,553 carats (H1 FY 2011: 582,102 carats) • Cash operating unit costs well controlled

Capital Structure

21

High Quality Shareholder Base 24 Feb 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%

Scottish Widows Investment Partnership 5.0%

T. Rowe Price 5.0%

BlackRock Investment (UK) Limited 4.2%

M&G Investments 3.6%

Kames Capital 3.3%

Ignis Investment Services Limited 3.0%

Directors 2.8%

Listing LSE: PDL

Average daily trading volume

(shares) – YTD

0.75m

Shares in issue 501m

Free float 72.0%

Market cap @ 152p (24 Feb

2012)

£762m

Share Price Chart (1 year)

Page 22: Interim Results (6 Months to 31 December 2011)Highlights Operations: • Production up 64% to 953,553 carats (H1 FY 2011: 582,102 carats) • Cash operating unit costs well controlled

An Exceptional Growth Path

22

Cullinan

July 2008

74% Petra 26% BEE Partners

Block Cave

16yr Mine Plan

+50yr Potential Life

Williamson

November 2008

75% Petra 25% Government of

Tanzania

Open Pit

17yr Mine Plan

+50yr Potential Life

Kimberley UG

May 2010

74% Petra 26% BEE Partners

Block Cave

11yr Mine Plan

+12yr Potential Life

Finsch

74% Petra 26% BEE Partners

Block Cave

18yr Mine Plan

+25yr Potential Life

Koffiefontein

July 2007

74% Petra 26% BEE Partners

Front Cave

14yr Mine Plan

+20yr Potential Life

September 2011

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

Page 23: Interim Results (6 Months to 31 December 2011)Highlights Operations: • Production up 64% to 953,553 carats (H1 FY 2011: 582,102 carats) • Cash operating unit costs well controlled

Aim Of Expansion Programmes – Undiluted Ore

23

Virgin kimberlite ore

Production level

Undercut

level

Drawpoints

Loaders

Haulage

Undiluted

ore

Schematic - block cave mining method

• 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 grade areas

• Substantial higher revenue per

tonne leading to increased

margins

Page 24: Interim Results (6 Months to 31 December 2011)Highlights Operations: • Production up 64% to 953,553 carats (H1 FY 2011: 582,102 carats) • Cash operating unit costs well controlled

Williamson – Mining Overview

24

Granite Breccia

RVK

Bouma

Shale Island

BVK

PK

Geology

205m

LOM Pit Shell

Schematic showing cut-away geology

and planned open pit

N 1km

Williamson Kimberlite Pipe Schematic Expansion Plan – Key

Components

• Stockpile (due to pit shaping

activities) of ca. 900,000 t

(>50,000 cts)

• Enhanced rebuild of existing

plant (3 Mtpa) completed –

expected to be fully

operational April 2012

• Standby power now available

at site due to recent power

issues – Q3 FY 2012

• Longer term expansion plan

to enable a 10 Mtpa operation

and construction of new main

plant currently dependent

upon confirmation of secure

electricity supply from

Tanesco, normalisation of

rainfall and treatment results

following 6 to 9 month

production period using

rebuilt 3 Mtpa plant– New

timing tbc

Page 25: Interim Results (6 Months to 31 December 2011)Highlights Operations: • Production up 64% to 953,553 carats (H1 FY 2011: 582,102 carats) • Cash operating unit costs well controlled

Koffiefontein – Mining Overview

25

Koffiefontein Kimberlite Pipe Schematic Expansion Plan – Key

Components

• Installing new sub-level

cave at 560m to 600m

Level – FY 2013

• Installing new block

cave at 690m Level –

FY 2016

• Tailings programme

now ramped up with

Petra processing +0.5

Mtpa

Page 26: Interim Results (6 Months to 31 December 2011)Highlights Operations: • Production up 64% to 953,553 carats (H1 FY 2011: 582,102 carats) • Cash operating unit costs well controlled

Kimberley Underground – Mining Overview

26

4.5 ha @ 870m Level

0.5 ha @ 845m Level

3.5 ha @ 995m Level

Kimberley Underground Kimberlite Pipes Schematic Expansion Plan – Key

Components

• 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

• Construction and

commissioning of main

plant (40,000 tpm) at

Wesselton – Q4 FY 2012

• Underground development

– FY 2012 onwards

• Sampling programme

underway to extend mine

life – FY 2012 onwards

Page 27: Interim Results (6 Months to 31 December 2011)Highlights Operations: • Production up 64% to 953,553 carats (H1 FY 2011: 582,102 carats) • Cash operating unit costs well controlled

Capex Profile (as published Sep 2011; an updated profile will be published later this year)

27

Financial Year 2012 2013 2014 2015 2016 2017 2018 2019

Operation Area Finsch Existing Block 4 (630 meter Level)

- Block 4 pillars

- SLC Block 4 precursor

- SLC 770 meter Level

- Block 5 880 meter Level Development tonnes

ROM Tonnes (Mt) 2.2 3.2 3.2 3.2 3.5 3.5 3.5 3.5

Tailings Tonnes (Mt) 1.6 2.8 3.5 3.5 3.5 3.0 3.0 3.0

Expansion Capex (US$m) 34.2 107.8 110.4 65.4 29.9 - - -

Stay-in-business Capex (US$m) 4.7 6.6 6.9 6.9 7.1 6.8 6.8 6.9 Cullinan ROM Tonnes (Mt) 2.4 2.4 2.4 2.6 2.6 2.8 3.2 4.0 Tailings Tonnes (Mt) 1.0 3.0 4.0 4.0 4.0 4.0 4.0 4.0 Expansion Capex (US$m) 60.9 78.5 74.8 52.6 20.7 19.0 19.0 19.0 Stay-in-business Capex (US$m) 4.2 8.6 6.9 7.0 6.1 6.1 6.1 6.3 Williamson ROM Tonnes (Mt) 0.9 5.1 10.0 10.0 10.0 10.0 10.0 10.0 Expansion Capex (US$m) 45.9 35.3 - - - - - - Stay-in-business Capex (US$m) 4.3 6.2 6.5 6.2 5.9 5.6 5.3 5.0 Koffiefontein ROM Tonnes (Mt) 0.6 0.8 1.0 1.1 1.2 1.2 1.2 1.2 Tailings Tonnes (Mt) 0.9 0.9 0.7 0.6 0.5 0.5 0.5 0.5 Expansion Capex (US$m) 7.5 8.5 9.2 5.9 8.9 - - - Stay-in-business Capex (US$m) 4.0 4.2 4.3 2.8 2.6 2.5 2.5 2.4 Kimberley U/G ROM Tonnes (Mt) 1.1 1.2 1.0 1.0 1.0 1.0 1.0 1.0 Expansion Capex (US$m) 17.9 9.6 7.4 - - - - - Stay-in-business Capex (US$m) 3.0 2.9 2.4 2.4 2.3 2.3 2.2 1.7 Fissures ROM Tonnes (Mt) 0.2 0.3 0.3 0.3 0.3 0.3 0.3 0.3 Tailings Tonnes (Mt) - - - - - - - - Expansion Capex (US$m) - - - - - - - - Stay-in-business Capex (US$m) 2.1 2.1 2.1 2.0 1.9 1.9 1.9 1.8 Petra Diamonds (Gross)

ROM Tonnes (Mt) 7.4 12.9 17.9 18.2 18.6 18.8 19.2 20.0

Expansion Capex (US$m) 166.5 239.7 201.7 123.9 59.5 19.0 19.0 19.0

Stay-in-business Capex (US$m) 22.3 30.6 29.1 27.2 25.9 25.2 24.9 24.1 1. All monetary values stated in 2011 money terms; ZAR:USD rate used: R6.75

Page 28: Interim Results (6 Months to 31 December 2011)Highlights Operations: • Production up 64% to 953,553 carats (H1 FY 2011: 582,102 carats) • Cash operating unit costs well controlled

Sustainability – Our Commitment

Cullinan Agricultural Hub

Mwadui Primary School – owned and operated by Williamson and provides free education to 460 learners

The Williamson Nursery, with the capacity to raise 500,000 seedlings annually

Portable skills workshop at Koffiefontein – Boiler making

Conservation work at Cullinan including Rhino de-horning

Page 29: Interim Results (6 Months to 31 December 2011)Highlights Operations: • Production up 64% to 953,553 carats (H1 FY 2011: 582,102 carats) • Cash operating unit costs well controlled

Petra Diamonds

Cathy Malins

[email protected]

+44 20 7318 0452

www.petradiamonds.com