PDF was officially established in its current format in 2005 by merging the diamond assets of Efidium and Dorado.
The development of PDF’s exploration assets will be carried out, under the strategic direction of the company, by selected professional companies, in particular Pangea Exploration, through exclusive service contracts.
Pangea Exploration and its principals, have more than 20 years experience in exploration and mine development within Africa, examples include titanium and gold in Mozambique, gold in Tanzania and gold, diamonds and vanadium in South Africa. In terms of the service agreement, exploration and selected administrative services are performed for the group under the direction of the PDF board, and Pangea Exploration employs skilled resources to perform these services.
All exploration budgets are prepared by Pangea Exploration under specific instruction from the board, and which the board then reviews and approves. Pangea Exploration reports to the board on a monthly basis.
PDF is incorporated in the Isle of Man.
PDF’s diamond assets are at various stages of exploration development, ranging from early exploration through bulk sampling to a project at mining stage, situated in Angola. PDF’s projects are all located within highly prospective diamond-bearing geological environments. Whist alluvial deposits constitute the primary focus of the company; a number of the target areas are also located within regions of kimberlite potential. This potential will be evaluated later, on an opportunistic basis. Since 2003, PDF has established a solid operational base with up to 26 professionals stationed at project sites and in regional offices located in Bangui, Kinshasa, Johannesburg and Luanda.
The founding shareholders, executives and affiliates of PDF have, over the last 20 years, established a successful track record for the creation of shareholder value in mineral exploration and mine development throughout the African Continent.
Despite the current financial crisis which is affecting short term demand for rough diamonds and hence price, PDF believes the forecast supply/demand fundamentals of diamonds and resultant positive medium to longer term prognosis for the industry is attractive for new diamond mining entrants. In short, after a recovery from the current crisis and whilst world rough diamond production is expected to remain unchanged or even diminish over the next several years, diamond jewellery demand is predicted to grow at a healthy rate in line with the real GDP growth for the major diamond consuming countries and new emerging diamond markets. The resultant supply/demand deficit should ensure that rough prices continue to increase in the medium to longer term.
The African continent is responsible for over 65% of global diamond production. In addition, geologically highly prospective countries for diamond exploration such as Angola, the DRC, South Africa and the CAR have recently undergone significant positive political, social and fiscal changes. PDF, as a consequence, is concentrating its diamond exploration efforts within Africa and specifically within these countries.
Since 2003 and prior to the IPO PDF had raised approximately US$20m to pursue its objectives. This has comprised initial seed capital from its founders and subsequent capital raisings from prominent international resource and private equity funds, each capital raising having taken place at higher valuations.
PDF’s short term mission is to develop the two most advanced projects in its portfolio to cash flow positive positions by mid 2010 and reduce any unnecessary expenditure throughout the Pangea group of companies. The strategy being implemented by the company to achieve this mission is summarised as follows:
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to develop the Cassanguidi project in Angola to full capacity by mid 2010;
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to optimize the capacity of the Bakerville project Pilot Mining facilities and if funding and markets permit, expand this project to full capacity;
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to cease all unnecessary expenditure on all other projects in the portfolio
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to critically evaluate all other projects to determine whether PDF should continue to hold these projects even on a “care & maintenance” basis
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to reduce overhead expenditure to a level consistent with the reduced level of activity planned.
Admitted to AIM Market in October 2006 and trading under “PDF”.
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