Petra Diamonds Limited
Annual Report and Accounts 2013
42
Performance Review
Operational Review continued
Performance in FY 2013
Williamson is an open pit operation, based upon the mining of the
146 hectare Mwadui kimberlite. Since taking over the mine in early 2009,
Petra has implemented the Phase 1 development programme, which involved
a substantial rebuild of the existing plant and major pit reshaping work,
and production successfully recommenced in Q4 FY 2012.
Williamson delivered 150,342 carats of ROM production in FY 2013
(FY 2012: 42,855 carats), supplemented by 14,035 carats of alluvial
production (which is carried out by contractors). Petra continues to be
encouraged by the high quality of the Williamson production and it is
positive to note that a 35.8 carat Williamson stone sold for US$1.3 million
during the June 2013 tender, being the first +US$1 million stone from
Williamson under Petra’s stewardship.
Costs
The on-mine cash cost per total tonnes treated reduced to US$12/t
(FY 2012: US$18/t) as the mine moved out of the start-up phase.
Development Plan
On 12 August 2013, Petra announced plans to increase ROM production to
ca. 3.6 Mt in FY 2014, before steadily ramping up to ca. 5 Mtpa by FY 2017,
which at a grade of ca. 6.0 cpht will deliver ca. 300,000 carats. This is an
increase from previous guidance of 3.6 Mtpa, due to a focus on the plant
design to deliver energy efficiency and water recovery circuit improvements,
resulting in the ability to increase throughput.
Petra will continue to consider approaches to increase production beyond
5 Mtpa, but an expansion plan above this level is dependent upon security
of appropriate electricity and water supplies. The Company will provide
an update on this as and when appropriate.
Petra’s current mine plan for Williamson has a life of 20 years, but given
that the Mwadui kimberlite hosts a major resource of 39.4 Mcts, there
is potential to extend the LOM considerably.
Capex
Capex reduced to US$11.7 million for the Year (FY 2012: US$22.0 million)
and was predominantly spent on finalising the rebuilt plant and on other
production related activities, including pit shaping/shale removal,
haul road construction and slimes/tailings handling facilities.
DELIVERING OUR STRATEGY
OUTPUT
Production recommenced
in Q4 FY 2012 and ramped up to
planned levels in FY 2013.
RECOVERIES
A 35.8ct white
diamond sold for US$1.3m, being
first +US$1m stone from operation
under Petra management.
EFFICIENCIES
Focus on the
plant design to deliver energy
efficiency and water recovery
circuit improvements.
Williamson
Tanzania’s only important diamond producer, Williamson is based upon the 146 hectare
Mwadui kimberlite pipe.
AVERAGE PRICE PER CARAT
US$254
+7%
PRODUCTION (ROM + ALLUVIAL)
carats
164,376
+188%
ROM GRADE
5.5 cpht
+6%
ON-MINE CASH COST PER TONNE
US$12
-33%
REVENUE
US$41.9m
+261%
REVENUE CONTRIBUTION
11%
ROM TONNES
2,730,133
+230%
In FY 2013, Williamson reached a milestone of achieving 2.7 million
man hours worked without recording a lost time injury (“LTI”), which is
an exceptional safety performance.
Focus on safety
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