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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Petra Diamonds Limited | LSE:PDL | London | Ordinary Share | BMG702782084 | ORD GBP0.0005 (DI) |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 3.30 | 8.01% | 44.50 | 44.50 | 45.00 | 44.50 | 42.00 | 42.00 | 417,069 | 15:19:45 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From Apr 2019 to Apr 2024
TIDMPDL
RNS Number : 1177W
Petra Diamonds Limited
15 April 2019
This announcement contains inside information
15 April 2019 LSE: PDL
Petra Diamonds Limited
("Petra", "the Company" or "the Group")
Trading Update - Q3 FY 2019 Production and Sales Report
Petra Diamonds Limited announces the following trading update (unaudited) for the three month period 1 January 2019 to 31 March 2019 (the "Period", "Q3 FY 2019" or "Q3") and the nine months ending 31 March 2019 ("FY 2019 YTD").
HIGHLIGHTS
-- Lost Time Injury Frequency Rate ("LTIFR") for the nine months to 31 March 2019 of 0.19 (FY 2018 YTD: 0.18).
-- Q3 production of 924,228 carats (Q3 FY 2018: 992,315 carats), reflecting increased production at Cullinan, Koffiefontein and Williamson, offset by lower production at Finsch.
-- Production for the nine months to 31 March 2019 up 4% to 2,943,374 carats (FY 2018 YTD: 2,836,272 carats).
-- Production guidance of 3.8 - 4.0 million carats for FY 2019 maintained.
-- Installation of the remaining draw points across the footprint of the C-Cut Phase 1 block cave at Cullinan is progressing as planned, with completion expected during H1 FY 2020.
-- With the progression across the C-Cut footprint, the incidence of larger stones is improving as demonstrated by the recovery of two +100 carats gem-quality stones during the Period.
-- The 425.1 carat D colour Type II gem quality diamond recovered at Cullinan on 29 March 2019, is expected to be sold during Q4 FY 2019 as previously announced.
-- Q3 revenue decreased 7% to US$135.2 million due to a 6% reduction in sales volumes to 1,061,343 carats sold (Q3 FY 2018: US$145.7 million from 1,131,262 carats sold).
-- Revenue for the nine months to 31 March 2019 up 1% to US$342.4 million from 2,797,700 carats sold (Q3 FY 2018 YTD: US$337.4 million from 2,641,720 carats sold).
-- Rough diamond prices achieved during the two tenders in Q3 up ca. 1% on a like-for-like basis compared to prices achieved in H1 FY 2019.
-- Net debt reduced to ca. US$553.1 million, (31 December 2018: US$559.3 million), excluding US$46.4 million relating to diamond debtors as at 31 March 2019 received shortly after Period end (31 December 2018: US$4.4 million).
Q3 FY 2019 Production and Sales - Summary
Hot Features
Premium
Unit Q3 Q3 Variance Nine months Nine months Variance
FY 2019 FY 2018 to 31 March to 31 March
2019 2018
Sales
-------- ---------- ---------- ----------- ------------- ------------- ---------
Diamonds sold Carats 1,061,343 1,131,262 -6% 2,797,700 2,641,720 6%
-------- ---------- ---------- ----------- ------------- ------------- ---------
Gross revenue US$M 135.2 145.7 -7% 342.4 337.4 1%
-------- ---------- ---------- ----------- ------------- ------------- ---------
Production
-------- ---------- ---------- ----------- ------------- ------------- ---------
ROM tonnes Mt 3.4 3.0 12% 9.8 9.1 8%
-------- ---------- ---------- ----------- ------------- ------------- ---------
Tailings &
other(1) tonnes Mt 0.3 0.4 * 22% 1.3 1.2 16%
-------- ---------- ---------- ----------- ------------- ------------- ---------
Total tonnes
treated Mt 3.7 3.4 7% 11.1 10.2 9%
-------- ---------- ---------- ----------- ------------- ------------- ---------
ROM diamonds Carats 898,517 955,333 * 6% 2,845,234 2,683,959 6%
-------- ---------- ---------- ----------- ------------- ------------- ---------
Tailings &
other(1) diamonds Carats 25,711 36,982 -30% 98,140 152,313 -36%
-------- ---------- ---------- ----------- ------------- ------------- ---------
Total diamonds Carats 924,228 992,315 -7% 2,943,374 2,836,272 4%
-------- ---------- ---------- ----------- ------------- ------------- ---------
1. 'Other' includes alluvial diamond mining at Williamson.
Richard Duffy, Chief Executive Officer, commented:
"I have visited all of Petra's operations and am impressed by the very capable teams and quality asset base, strongly reinforcing my initial views of the business. Our capital investment phase is largely over and we are well positioned to benefit from this as we move towards steady state operational performance.
I am pleased with the incremental improvement in operational performance at Cullinan, Koffiefontein and Williamson and despite a challenging January, Finsch's performance through February and March is as expected. Our focus remains on the delivery of free cash flow to reduce our net debt and generate future options for the Company."
CONFERENCE CALL
Petra's Chief Executive Officer, Richard Duffy and Finance Director, Jacques Breytenbach will host a conference call at 9.30am and 4:00pm BST today to discuss the Q3 FY 2019 Trading Update with investors and analysts. Participants may join the calls by dialling one of the following numbers shortly before the call:
First Call - 9.30am BST
From the UK (toll free): 0800 358 9473
From South Africa (toll free): 0800 111 446
From the rest of the world: +44 333 300 0804
Participant passcode: 66129403#
A replay of the conference call will be available on the following numbers from 12:00pm BST on
15 April 2019.
From UK (toll free): 0800 358 2049
From US (toll free): 1 844 307 9361
From South Africa: +27 21 672 4123
Rest of the world: +44 333 300 0819
Playback passcode: 301282059#
Second Call - 4.00pm BST / 11.00am Eastern Time
This will be a Q&A call only to cater for international investors. Participants are therefore advised to listen to the replay of the earlier conference call in advance, as the main management commentary will not be repeated.
From the United States (toll free): 1 855 857 0686
From the rest of the world: +44 333 300 0804
From the UK (toll free): 0800 358 9473
From South Africa (toll free): 0800 111 446
Participant passcode: 32503418#
COMMENTARY
Health and safety
-- The Group's LTIFR for the nine months to 31 March 2019 remains well managed at 0.19 (FY 2018 YTD: 0.18). The Company continues to focus on its goal of a zero-harm workplace.
Production
-- Q3 production of 924,228 carats (Q3 FY 2018: 992,315 carats) reflected increased production at Cullinan, Koffiefontein and Williamson, offset by lower production at Finsch. Despite power interruptions across South Africa during the quarter and the Company's compliance with Eskom's request for load curtailment, the operational impact of these interruptions was largely offset by a number of mitigating measures, with negligible impact on production.
-- Production for the nine month period to 31 March 2019 increased 4% to 2,943,374 carats (FY 2018 YTD: 2,836,272 carats) following a 6% increase in ROM carats produced to 2,845,234 carats (FY 2018 YTD: 2,683,959 carats), partially offset by the planned reduction in tailings throughput at Finsch. Production guidance of 3.8 - 4.0 million carats for FY 2019 is maintained.
-- Finsch Q3 production decreased 30% to 387,370 carats (Q3 FY 2018: 553,669 carats) which is ca. 55,000 carats below expectations, 80% of which relates to a delay in the planned winder upgrade and a belt tear on the main underground conveyor, both of which occurred in January 2019. These issues have been addressed, with underground production in both February and March 2019 being in line with expectations. The balance of the Q3 shortfall relates to lower grades in the ROM surface stockpiles (overburden dumps), which are nearing depletion. Underground ROM grades remained in line with guidance during the quarter.
-- Cullinan Q3 production increased 22% to 432,001 carats (Q3 FY 2018: 354,403 carats) following a 10% increase in ROM tonnes treated to 1.04 Mt (Q3 FY 2018: 0.95 Mt) and ROM grades remaining in line with expectations at 40.0 cpht (Q3 FY 2018: 36.2 cpht). The installation of the remaining draw points across the footprint of the C-Cut Phase 1 block cave is progressing as planned, with completion expected during H1 FY 2020, reaching maturity during FY 2020. With the progression across the C-Cut footprint, an improvement in the incidence of larger stones is evident, which included the recovery of two gem-quality stones larger than 100 carats each during the Period, and also demonstrates the ability of the plant to recover these stones. Proactive management of the Eskom load curtailment saw tailings production halted during the quarter to focus on higher value ROM production.
-- Koffiefontein Q3 production increased 42% to 17,355 carats (Q3 FY 2018: 12,180 carats), with ROM throughput achieving its annualised target of 1 Mtpa, following the return to stable production after the community unrest related to municipal service delivery experienced in Q2 FY 2019.
-- Williamson Q3 production increased 21% to 87,503 carats (Q3 FY 2018: 72,063 carats) with production continuing in line with expectations. Three gem-quality pink stones were recovered and sold during the Period, positively impacting the average price achieved.
Sales and Diamond Market
Diamond Market
-- There were signs of stabilisation in the diamond market during Q3 with steady demand across all size categories.
Diamond Sales and Prices
-- Q3 revenue decreased 7% to US$135.2 million (Q3 FY 2018: US$145.7 million), mainly due to lower production from Finsch. Revenue for the nine month period to 31 March 2019 increased marginally to US$342.4 million (Q3 FY 2018: US$337.4 million).
-- Rough diamond prices were up ca. 1% for Q3 on a like-for-like basis in comparison to Petra's results for H1 FY 2019, the six month period to 31 December 2018.
-- A further two tenders will be held during Q4 (April to June 2019).
-- Prices realised during Q3 are summarised in the table below.
Mine Actual Actual Actual
(US$/ct) (US$/ct) (US$/ct)
Q3 FY 2019 H1 FY 2019 FY 2018
Finsch 101 105 108
----------- ----------- ---------
Cullinan 101 96 125
----------- ----------- ---------
Koffiefontein 559 447 525
----------- ----------- ---------
Williamson 285 223 270
----------- ----------- ---------
Succession Planning
-- The Nomination Committee is in the final year of its three year Succession Plan. During the Period, the Company announced the appointment of Richard Duffy as CEO effective 1 April 2019.
-- In a recent statement regarding the voting at the Company's November 2018 Annual General Meeting the Board confirmed that given the recent CEO appointment and to ensure continuity and stability of leadership and management, the appointment of a new Chairman was not considered appropriate at this time. The Nomination Committee expects to make further changes to the composition of the Board during this calendar year.
Corporate
-- A summary of the Group's current cash, diamond inventories, debtors, borrowings and net debt is set out below.
Unit 31 Mar 2019 31 Dec 2018 30 Jun 2018
Closing exchange R14.48:US$1 R14.35:US$1 R13.73:US$1
rate used for
conversion
--------- ------------ ------------ ------------
Cash at bank US$M 96.9 90.7 236.0
--------- ------------ ------------ ------------
Diamond inventories US$M 64.9 76.3 54.0
Carats 674,632 811,718 529,054
--------------------------------- ------------ ------------ ------------
Diamond debtors US$M 46.4 4.4 75.0
--------- ------------ ------------ ------------
US$650 million
loan notes (issued
April 2017) US$M 650.0 650.0 650.0
--------- ------------ ------------ ------------
Bank loans and
borrowings US$M _ _ 106.7
--------- ------------ ------------ ------------
Net debt US$M 553.1 559.3 520.7
--------- ------------ ------------ ------------
South African
bank facilities
undrawn and
available US$M 103.6 104.5 2.6
--------- ------------ ------------ ------------
Consolidated
net debt for
covenant measurement
purposes US$M 580.8 627.4 531.6
--------- ------------ ------------ ------------
-- The Company's ZAR1.5 billion (US$103.6 million) South African banking facilities remain undrawn and available, with an unrestricted cash balance of US$84.5 million as at 31 March 2019.
-- Discussions with South African lenders relating to covenant re-profiling are expected to be finalised by 30 April 2019.
The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014.
Notes:
1. The following definitions have been used in this announcement: a. ct: carat b. cpht: carats per hundred tonnes c. Exceptional Diamonds: stones that sell for more than US$5 million each d. LTIFR: lost time injury frequency rate e. Mcts: million carats f. Mt: million tonnes g. ROM: run-of-mine, i.e. relating to production from the primary orebody h. SLC: sub-level cave, a variation of block caving
i. Tailings: material that has already been processed through a plant and stockpiled on dumps at surface
2. Diamond inventory carrying values are stated at the lower of cost of production on the weighted average basis or estimated net realisable value.
Ends
For further information, please contact:
Petra Diamonds, London Telephone: +44 20 7494 8203
Marianna Bowes investorrelations@petradiamonds.com
Salisha Ilyas
Buchanan Telephone: +44 20 7466 5000
(PR Adviser) pdl@buchanan.uk.com
Bobby Morse
Chris Judd
Ariadna Peretz
About Petra Diamonds Limited
Petra Diamonds is a leading independent diamond mining group and a consistent supplier of gem quality rough diamonds to the international market. The Company has a diversified portfolio incorporating interests in three underground producing mines in South Africa (Finsch, Cullinan and Koffiefontein) and one open pit producing mine in Tanzania (Williamson). Petra also conducts a limited exploration programme in Botswana and South Africa, which is currently under review.
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 of ca. 290 million carats, which supports the potential for long-life operations.
Petra conducts all operations according to the highest ethical standards and will only operate 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' and is a constituent of the FTSE4Good Index. For more information, visit www.petradiamonds.com .
APPIX A - MINE BY MINE PRODUCTION TABLES
Finsch - South Africa
Unit Q3 Q3 Variance Nine months Nine months Variance
FY 2019 FY 2018 to 31 to 31
March March
2019 2018
Sales
-------- --------- ---------- --------- ------------ ------------ ---------
Revenue US$M 48.0 66.5 -28% 135.1 167.3 -19%
-------- --------- ---------- --------- ------------ ------------ ---------
Diamonds sold Carats 475,312 620,627 -23% 1,304,843 1,591,073 -18%
-------- --------- ---------- --------- ------------ ------------ ---------
Average price per
carat US$ 101 107 -6% 104 105 -2%
-------- --------- ---------- --------- ------------ ------------ ---------
Total ROM Production
-------- --------- ---------- --------- ------------ ------------ ---------
Tonnes treated Tonnes 758,003 841,583 -10% 2,261,337 2,400,863 -6%
-------- --------- ---------- --------- ------------ ------------ ---------
Diamonds produced Carats 379,488 530,578 -28% 1,307,422 1,462,437 -11%
-------- --------- ---------- --------- ------------ ------------ ---------
Grade cpht 50.1 63.0 -21% 57.8 60.9 -5%
-------- --------- ---------- --------- ------------ ------------ ---------
Tailings Production
-------- --------- ---------- --------- ------------ ------------ ---------
Tonnes treated Tonnes 52,532 171,103 -69% 186,927 686,326 -73%
-------- --------- ---------- --------- ------------ ------------ ---------
Diamonds produced Carats 7,882 23,091 -66% 27,372 127,828 -79%
-------- --------- ---------- --------- ------------ ------------ ---------
Grade cpht 15.0 13.5 11% 14.6 18.6 -21%
-------- --------- ---------- --------- ------------ ------------ ---------
Total Production
-------- --------- ---------- --------- ------------ ------------ ---------
Tonnes treated Tonnes 810,535 1,012,686 -20% 2,448,265 3,087,189 -21%
-------- --------- ---------- --------- ------------ ------------ ---------
Diamonds produced Carats 387,370 553,669 -30% 1,334,794 1,590,265 -16%
-------- --------- ---------- --------- ------------ ------------ ---------
Note:
1. The Company is not able to precisely measure the ROM / tailings grade split because ore from both sources is processed through the same plant; the Company therefore back-calculates the grade with reference to resource grades.
Cullinan - South Africa
Unit Q3 Q3 Variance Nine months Nine months Variance
FY 2019 FY 2018 to 31 to 31
March March
2019 2018
Sales
-------- ---------- ---------- --------- ------------ ------------ ---------
Revenue US$M 46.2 49.1 -6% 112.4 110.5 2%
-------- ---------- ---------- --------- ------------ ------------ ---------
Diamonds sold Carats 456,652 404,775 13% 1,145,188 843,787 36%
-------- ---------- ---------- --------- ------------ ------------ ---------
Average price per
carat US$ 101 121 -17% 98 131 -25%
-------- ---------- ---------- --------- ------------ ------------ ---------
ROM Production
-------- ---------- ---------- --------- ------------ ------------ ---------
Tonnes treated Tonnes 1,043,105 951,449 10% 3,039,730 2,734,679 11%
-------- ---------- ---------- --------- ------------ ------------ ---------
Diamonds produced Carats 417,742 344,357 21% 1,203,186 946,951 27%
-------- ---------- ---------- --------- ------------ ------------ ---------
Grade cpht 40.0 36.2 11% 39.6 34.6 14%
-------- ---------- ---------- --------- ------------ ------------ ---------
Tailings Production
-------- ---------- ---------- --------- ------------ ------------ ---------
Tonnes treated Tonnes 164,911 154,547 7% 861,265 191,570 350%
-------- ---------- ---------- --------- ------------ ------------ ---------
Diamonds produced Carats 14,259 10,046 42% 60,841 14,687 314%
-------- ---------- ---------- --------- ------------ ------------ ---------
Grade cpht 8.6 6.5 33% 7.1 7.7 -8%
-------- ---------- ---------- --------- ------------ ------------ ---------
Total Production
-------- ---------- ---------- --------- ------------ ------------ ---------
Tonnes treated Tonnes 1,208,016 1,105,996 9% 3,900,994 2,926,249 33%
-------- ---------- ---------- --------- ------------ ------------ ---------
Diamonds produced Carats 432,001 354,403 22% 1,264,027 961,638 31%
-------- ---------- ---------- --------- ------------ ------------ ---------
Note:
1. The Company is not able to precisely measure the ROM / tailings grade split because ore from both sources is processed through the same plant; the Company therefore back-calculates the grade with reference to resource grades.
Koffiefontein - South Africa
Unit Q3 Q3 Variance Nine months Nine months Variance
FY 2019 FY 2018 to 31 to 31
March March
2019 2018
Sales
-------- --------- --------- --------- ------------ ------------ ---------
Revenue US$M 8.3 7.0 19% 18.8 18.0 4%
-------- --------- --------- --------- ------------ ------------ ---------
Diamonds sold Carats 14,925 13,101 14% 38,332 34,656 11%
-------- --------- --------- --------- ------------ ------------ ---------
Average price per
carat US$ 559 534 5% 490 520 -6%
-------- --------- --------- --------- ------------ ------------ ---------
ROM Production
-------- --------- --------- --------- ------------ ------------ ---------
Tonnes treated Tonnes 282,860 163,335 73% 660,251 452,813 46%
-------- --------- --------- --------- ------------ ------------ ---------
Diamonds produced Carats 17,355 12,180 42% 42,630 37,472 14%
-------- --------- --------- --------- ------------ ------------ ---------
Grade cpht 6.1 7.5 -18% 6.5 8.3 -22%
-------- --------- --------- --------- ------------ ------------ ---------
Total Production
-------- --------- --------- --------- ------------ ------------ ---------
Tonnes treated Tonnes 282,860 163,335 73% 660,251 452,813 46%
-------- --------- --------- --------- ------------ ------------ ---------
Diamonds produced Carats 17,355 12,180 42% 42,630 37,472 14%
-------- --------- --------- --------- ------------ ------------ ---------
Williamson - Tanzania
Unit Q3 Q3 Variance Nine months Nine months Variance
FY 2019 FY 2018 to 31 to 31
March March
2019 2018
Sales
-------- ---------- ---------- --------- ------------ ------------ ---------
Revenue US$M 32.6 23.1 41% 76.1 41.6 83%
-------- ---------- ---------- --------- ------------ ------------ ---------
Diamonds sold Carats 114,452 92,759 23% 309,365 172,204 80%
-------- ---------- ---------- --------- ------------ ------------ ---------
Average price per
carat US$ 285 249 14% 246 242 2%
-------- ---------- ---------- --------- ------------ ------------ ---------
ROM Production
-------- ---------- ---------- --------- ------------ ------------ ---------
Tonnes treated Tonnes 1,300,659 1,078,518 21% 3,811,110 3,481,911 9%
-------- ---------- ---------- --------- ------------ ------------ ---------
Diamonds produced Carats 83,932 68,218 23% 291,997 237,099 23%
-------- ---------- ---------- --------- ------------ ------------ ---------
Grade cpht 6.5 6.3 2% 7.7 6.8 13%
-------- ---------- ---------- --------- ------------ ------------ ---------
Alluvial Production
-------- ---------- ---------- --------- ------------ ------------ ---------
Tonnes treated Tonnes 112,709 99,166 14% 308,266 292,338 5%
-------- ---------- ---------- --------- ------------ ------------ ---------
Diamonds produced Carats 3,570 3,845 -7% 9,927 9,798 1%
-------- ---------- ---------- --------- ------------ ------------ ---------
Grade cpht 3.2 3.9 -19% 3.2 3.4 -5%
-------- ---------- ---------- --------- ------------ ------------ ---------
Total Production
-------- ---------- ---------- --------- ------------ ------------ ---------
Tonnes treated Tonnes 1,413,368 1,177,684 20% 4,119,376 3,774,249 9%
-------- ---------- ---------- --------- ------------ ------------ ---------
Diamonds produced Carats 87,503 72,063 21% 301,924 246,897 22%
-------- ---------- ---------- --------- ------------ ------------ ---------
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
END
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April 15, 2019 02:00 ET (06:00 GMT)
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