Petra Diamonds
Limited
(Petra,
the
Company or the
Group)
Company update and
appointment of Chief Financial Officer
Petra will be hosting an
Investor Day in London today at
14:00 BST.
This will include an
overview of revised Life-of-Mine (LOM) plans for Cullinan Mine and
Finsch as well as the long-term potential of these assets. We will
also provide a brief update on the business, current state of the
diamond market, a financial overview of the Company and 5-year
guidance. A presentation will be published on our website at
2pm BST:
https://www.petradiamonds.com/investors/results-reports-presentations/.
The event is being hosted
in person and online, with details below.
Richard Duffy, Chief Executive at Petra,
commented:
“We have worked hard
to deliver an updated business profile in response to ongoing
market challenges and to further enhance our resilience to future
market and capital cycles. We are pleased to present a de-risked
production profile focused on sustainable cash generation, having
reduced costs by US$30 million
annually from FY 2025 and delivering a smoothed capital programme
self-funded until at least the early 2030s. In doing so, we provide
a compelling value proposition, while positioning for a successful
refinancing of our 2026 2L Notes.
We also announce today
the appointment of Johan Snyman as
CFO from October. Johan has made significant contributions to Petra
since joining in January and I look forward to working with him in
his new role.”
Highlights
include:
-
Sustainable reduction in
operating costs of US$30m per annum
from FY 2025
-
Total capital (development
and sustaining capital) profile smoothed to c.US$100m per annum at Petra’s South African
operations to target free cash generation through the
cycle
-
Approved extension
projects expected to be self-funded
-
Production growth to over
3.4 Mcts expected by FY 2028
-
Cullinan Mine LOM
potential to FY 2048 with new shaft for D-Cut not required before
2035 (subject to further studies)
-
Finsch LOM potential to FY
2038
CFO
Succession
Petra is also pleased to
announce the appointment of Johan
Snyman as Chief Financial Officer, with effect from
1 October 2024. Johan will succeed
Jacques Breytenbach who, as
previously announced, will be stepping down from his position as
Chief Financial Officer and Director of the Company at the end of
September 2024 for personal reasons.
Johan joined Petra in January 2024 as
Group Financial Controller. Prior to joining, Johan
was Vice President, Group Financial Reporting at AngloGold Ashanti
Limited where he worked for 17 years. Johan has extensive
experience in various financial roles in the mining sector. He
started his career at KPMG and is a qualified Chartered Accountant
with an MBA (University of Cape
Town).
Debt Optimisation,
Group Guidance & Pricing Assumptions
Petra also announces that,
as part of our focus on debt optimisation, we have further reduced
our 2L Notes through open market purchases totalling US$5 million.
Group guidance for FY 2025
to 2029, indicative estimates of FY 2024 performance and pricing
assumptions for FY 2025 are set out below.
Group guidance for
FY 2025 to 2029
|
Unit
|
FY25
|
FY26
|
FY27
|
FY28
|
FY29
|
Total carats
recovered
|
Mcts
|
2.8-3.1
|
2.9-3.3
|
3.1-3.5
|
3.4-3.7
|
3.4-3.7
|
Cash on-mine costs and
G&A
|
US$m
|
241-257
|
241-257
|
227-242
|
239-255
|
251-266
|
Extension
capex
|
US$m
|
62-67
|
86-93
|
78-84
|
81-88
|
41-44
|
Sustaining
capex
|
US$m
|
26-30
|
25-28
|
21-23
|
22-25
|
23-25
|
Notes: Guidance for FY
2026 to 2029 is subject to the Board’s approval of future
budgets
Real amounts stated in FY
2025 money terms using 6% SA CPI & 2.5% US CPI. US$ equivalent
for SA operations converted at exchange rate of USD1:ZAR18.36
Detailed mine-by-mine
guidance for FY 2025 to 2029 will be included in the presentation
to be published on our website
Indicative
estimates of FY 2024 performance
|
Unit
|
FY
2024e
|
Total carats
recovered
|
Mcts
|
2.74 –
2.78
|
Cash on-mine costs and
G&A
|
US$m
|
261-269
|
Extension
capex
|
US$m
|
56-57
|
Sustaining
capex
|
US$m
|
29-30
|
Pricing
assumptions for FY 2025
US$ per
carat
|
FY
2025
|
Cullinan
Mine
|
125-135
|
Finsch
|
98-105
|
Williamson
|
200-225
|
Future diamond prices are
influenced by a range of factors outside of Petra’s control and so
these assumptions are internal estimates only. Accordingly, no
reliance should be placed on them. The Company assumes no
responsibility to update these market pricing
assumptions.
This announcement includes
inside information as defined in Article 7 of the Market Abuse
Regulation No. 596/2014 and
is being released on behalf of Petra by the Company
Secretary.
INVESTOR
DAY PRESENTATION DETAILS
Investor
Day in person event to be held at: One Heddon
St, London, W1B 4BD
Live
webcast of presentation
Please
register at https://brrmedia.news/PDL_ID24
If you have any questions,
please call +44 7841 920021
or
email: investorrelations@petradiamonds.com
.
Recording
of presentation
A recording
of the webcast will be available later today on
Petra’s website at https://www.petradiamonds.com/investors/results-reports-presentations/
FURTHER
INFORMATION
For further
information please contact:
Investor
Relations, London
Patrick Pittaway
Telephone:
+44 7841 920021
Julia Stone investorrelations@petradiamonds.com
Kelsey Traynor
ABOUT
PETRA DIAMONDS
Petra
Diamonds is a leading independent diamond mining group and a
supplier of gem quality rough diamonds to the international market.
The Company’s portfolio incorporates interests in three underground
mines in South Africa (Cullinan
Mine, Finsch and Koffiefontein) and one open pit mine in
Tanzania (Williamson). The
Koffiefontein mine is currently on care and maintenance in
preparation for a possible sale following the execution of a
definitive sales agreement as announced on 8
April 2024.
Petra's strategy is to
focus on value rather than volume production by optimising
recoveries from its high-quality asset base in order to maximise
their efficiency and profitability. The Group has a significant
resource base which supports the potential for long-life
operations.
Petra strives to conduct
all operations according to the highest ethical standards and only
operates in countries which are members of the Kimberley Process.
The Company aims to generate tangible value for each of its
stakeholders, thereby contributing to the socio-economic
development of its host countries and supporting long-term
sustainable operations to the benefit of its employees, partners
and communities.
Petra is quoted with a
premium listing on the Main Market of the London Stock Exchange
under the ticker 'PDL'. The Company’s loan notes due in 2026 are
listed on the Irish Stock Exchange and admitted to trading on the
Global Exchange Market. For more information, visit
www.petradiamonds.com.