We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Register to chat with like-minded investors on our interactive forums.
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 42.00 | 41.00 | 41.40 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From Apr 2019 to Apr 2024
TIDMPDL
RNS Number : 4562V
Petra Diamonds Limited
23 July 2018
The following replaces the announcement issued by Petra Diamonds Limited at 7am BST this morning, further to the changes below:
FY 2019 Guidance Highlights - Outlook for FY 2019 Absolute Costs:
-- Total FY 2019 absolute on-mine cash costs are expected to remain largely flat compared to FY 2018 expected costs in ZAR local currency, "notwithstanding an increase in overall tonnages and inflationary increases." (previously said "with the decrease in overall tonnage throughput offset by inflationary increases.")
Cullinan - FY 2018 Results:
-- Production increased 74% to 1,368,720 carats (FY 2017: 786,509 carats) mainly due to a 97% increase in ROM carat production as the new C-Cut Phase 1 block cave continued to ramp up and the new plant operated at planned throughput rates. Production from the undiluted C-Cut mining areas (including CC1E) increased to "ca. 2.46 Mt in FY 2018" (previously said "ca. 2 Mt in FY 2018").
23 July 2018 LSE: PDL
Petra Diamonds Limited
("Petra" or the "Company" or the "Group")
FY 2018 Trading Update and FY 2019 Guidance Update
Petra Diamonds Limited announces its Trading Update (unaudited) for the year ended 30 June 2018 (the "Year" or "FY 2018"), ahead of its preliminary results for the Year ("Prelim Results"), which will be released on 17 September 2018.
The Company also announces updated analyst guidance for the year to 30 June 2019 ("FY 2019").
Further to the announcement on 5 July 2018 that the Company and its black economic empowerment ("BEE") partners have entered into binding Heads of Agreement to dispose of their interest in the Kimberley Ekapa Mining Joint Venture ("KEM JV"), results and guidance have been disclosed both with and without the inclusion of this business unit; the divestment is expected to complete before the end of September 2018.
FY 2018 HIGHLIGHTS
-- Safety:
o Lost Time Injury Frequency Rate ("LTIFR") improved to 0.23 (FY 2017: 0.27).
-- Production:
o Production up 15% to 4.6 Mcts (FY 2017: 4.0 Mcts), in line with guidance of 4.6 to 4.7 Mcts.
o Adjusted for the sale of KEM JV: production up 19% to 3.8 Mcts (FY 2017: 3.2 Mcts).
-- Revenue:
o Revenue up 21% to US$576.4 million (FY 2017: US$477.0 million).
o Adjusted for the sale of KEM JV: revenue up 25% to US$494.6 million (FY 2017: US$394.8 million).
-- The diamond market remained stable throughout FY 2018, with rough diamond prices on a like for like basis up ca. 2% for the Year, compared to FY 2017.
-- Total FY 2018 Group absolute operating costs remained in-line with expectations despite inflationary pressures and additional costs incurred at KEM JV in relation to security and other measures associated with illegal mining activities (as noted in Petra's FY 2018 Interim Results). However, the strengthening of the Rand during the Year had a negative impact on US Dollar reported operating costs.
-- FY 2018 unit cost per tonne has been adversely affected by below planned throughput with a high percentage of fixed costs, especially at Koffiefontein and KEM JV. Further detail on the breakdown of costs will be given in the Prelim Results announcement.
-- Operational Capex:
o Operational Capex (excluding capitalised borrowing costs) reduced to US$142.7 million (FY 2017: US$255.1 million), within budget and in line with the Company's reducing capital profile.
o Adjusted for the sale of KEM JV: operational Capex of US$128.9 million (FY 2017: US$226.7 million).
-- Net debt as at 30 June 2018 reduced to US$436.1 million (US$518.8 million net of diamond debtors of US$82.7 million) (30 June 2017: US$513.9 million (US$555.3 million net of diamond debtors of US$41.5 million)) further to the completion of the 5 for 8 Rights Issue and the receipt of the net proceeds of ca. US$170 million.
Post Year End
-- Binding Heads of Agreement reached with regards to the disposal of the Company's interest in the KEM JV to Petra's joint venture partner Ekapa Mining (Pty) Ltd for ca. ZAR300 million.
-- The KEM JV asset will be accounted for as an asset held for sale as at 30 June 2018 in the Company's Prelim Results and it is expected that a non-cash impairment charge will be recorded in the region of US$35 - 45 million.
FY 2019 GUIDANCE HIGHLIGHTS
As outlined in the recent Rights Issue Prospectus (published 24 May 2018), FY 2019 and FY 2020 production guidance was stated to be at the lower end of the guidance issued in July 2017. This will be accompanied by an ongoing focus on delivering the most effective capital and operational cost profiles for its portfolio in order to protect overall profit margins.
This is in line with the Board's strategic focus on driving operational efficiency with emphasis on value-over-volumes, as well as a close focus on operational costs, productivity and ongoing optimisation of the portfolio (as demonstrated by the proposed disposal of the Company's interest in KEM JV).
-- FY 2019 production is expected to be 4.6 to 4.8 Mcts. -- Excluding KEM JV, FY 2019 production is expected to be 3.8 to 4.0 Mcts.
-- Total FY 2019 absolute on-mine cash costs are expected to remain largely flat compared to FY 2018 expected costs in ZAR local currency, notwithstanding an increase in overall tonnages and inflationary increases. As the Company transitions from its capital-intensive phase to steady state operations, it will have a core focus on further streamlining operations and re-setting the cost base across its portfolio.
-- FY 2019 Capex (excluding capitalised borrowing costs) is guided at ca. US$100 million (excluding KEM JV: ca. US$93 million), continuing the declining trend since peak Capex was reached in FY 2016. All future Capex figures guided in this announcement are in FY 2019 money terms, converted at an exchange rate of ZAR12.75:US$1.
-- Total Capex for FY 2020 is expected to be ca. US$72 million (excluding KEM JV), mostly relating to Cullinan and Finsch. Sustaining Capex post FY 2020 is expected to be ca. US$30 million per annum; planning on Expansion Capex post FY 2020 is ongoing.
FY 2018 Production, Sales and Capex - Summary(1)
Hot Features
Premium
Unit FY 2018 FY 2017 Variance
Sales
-------- ---------- ---------- ---------
Diamonds sold Carats 4,550,292 4,006,856 +14%
-------- ---------- ---------- ---------
Revenue US$M 576.4 477.0 +21%
-------- ---------- ---------- ---------
Production
-------- ---------- ---------- ---------
ROM diamonds Carats 3,731,951 2,849,247 +31%
-------- ---------- ---------- ---------
Tailings & other(2)
diamonds Carats 879,531 1,163,966 -24%
-------- ---------- ---------- ---------
Total diamonds Carats 4,611,482 4,013,213 +15%
-------- ---------- ---------- ---------
Tonnages
-------- ---------- ---------- ---------
ROM tonnes Mt 12.9 10.1 +29%
-------- ---------- ---------- ---------
Tailings & other(2)
tonnes Mt 7.7 8.7 -12%
-------- ---------- ---------- ---------
Total tonnes Mt 20.6 18.8 +10%
-------- ---------- ---------- ---------
Capex
-------- ---------- ---------- ---------
Expansion US$M 120.1 230.8 -48%
-------- ---------- ---------- ---------
Sustaining US$M 22.6 24.3 -7%
-------- ---------- ---------- ---------
Borrowing Costs Capitalised US$M 35.8 45.5 -21%
-------- ---------- ---------- ---------
Total US$M 178.5 300.6 -41%
-------- ---------- ---------- ---------
Notes:
1. Production, sales and Capex stated on an attributable basis, including 75.9% of KEM JV. 2. 'Other' represents alluvial diamond mining at Williamson.
FY 2018 Production, Sales and Capex - Summary (Excluding KEM JV)
Unit FY 2018 FY 2017 Variance
Sales
-------- ---------- ---------- ---------
Diamonds sold Carats 3,793,799 3,184,893 +19%
-------- ---------- ---------- ---------
Revenue US$M 494.6 394.8 +25%
-------- ---------- ---------- ---------
Production
-------- ---------- ---------- ---------
ROM diamonds Carats 3,649,337 2,761,464 +32%
-------- ---------- ---------- ---------
Tailings & other(1)
diamonds Carats 186,130 451,315 -59%
-------- ---------- ---------- ---------
Total diamonds Carats 3,835,467 3,212,779 +19%
-------- ---------- ---------- ---------
Tonnages
-------- ---------- ---------- ---------
ROM tonnes Mt 12.1 9.4 +29%
-------- ---------- ---------- ---------
Tailings & other(1)
tonnes Mt 1.6 2.6 -39%
-------- ---------- ---------- ---------
Total tonnes Mt 13.7 12.0 +14%
-------- ---------- ---------- ---------
Capex
-------- ---------- ---------- ---------
Expansion US$M 110.0 206.9 -47%
-------- ---------- ---------- ---------
Sustaining US$M 18.9 19.8 -5%
-------- ---------- ---------- ---------
Borrowing Costs Capitalised US$M 35.8 45.5 -21%
-------- ---------- ---------- ---------
Total US$M 164.7 272.2 -40%
-------- ---------- ---------- ---------
Notes:
1. 'Other' represents alluvial diamond mining at Williamson.
Johan Dippenaar, Chief Executive of Petra Diamonds, commented:
"FY 2018 represents a solid progression for the Group after the challenges of FY 2017 and H1 FY 2018, and places our production on a firm footing, backed up by a strong safety performance.
"The future focus of the Group will be on the continued optimisation of production volumes and cost structures across our portfolio in order to maximise cash generation."
CONFERENCE CALLS
Petra will hold two conference calls today hosted by Chief Executive Johan Dippenaar, Finance Director Jacques Breytenbach and Chief Operating Officer Luctor Roode to discuss the FY 2018 Trading Update and FY 2019 Guidance with investors and analysts.
Detailed guidance documents can be downloaded from the 'Analyst Guidance' page of Petra's website at: www.petradiamonds.com/investors/analysts/analyst-guidance. Participants on the calls are recommended to have these documents to hand.
First Call - 9:30am BST
UK Toll-Free Number: 0808 237 0040
From South Africa (toll free): 0800 222 290
From the rest of the world: +44 20 3428 1542
Participant passcode: 64276584#
A replay of the conference call will be available on the following numbers:
From UK (toll free): 0808 237 0026
From South Africa (toll free): 0800 002 877
From the rest of the world: +44 20 3426 2807
Playback passcode: 698101#
Second call - 4:00pm BST
Petra will host a second call to cater for international investors.
From the United States (toll free): 1866 928 7517
From the rest of the world: 020 3428 1542
From the UK (toll free): 0808 237 0040
From South Africa (toll free): 0800 222 290
Participant passcode: 64276584#
HEALTH AND SAFETY
-- The Group's LTIFR improved to 0.23 (FY 2017: 0.27). Although the Company is very encouraged by this improving trend, it will continue to strive to reach its goal of a zero-harm workplace.
OPERATIONS
-- Production rose 15% to 4.6 Mcts for FY 2018 (FY 2017: 4.0 Mcts), due to the underground expansion programmes continuing to ramp up and the resultant higher contribution of undiluted ore from the new mining areas together with the ongoing ramp-up of the new Cullinan Plant.
ROM carats produced increased 31% to 3,731,951 carats (FY 2017: 2,849,247 carats), contributing ca. 81% of the Group's production profile (FY 2017: ca. 71%), in comparison to lower value carats from surface tailings operations.
Finsch
FY 2018 Results:
-- ROM production increased 6% to 1,926,467 carats (FY 2017: 1,818,454 carats) driven by a higher average ROM grade of 62.5 cpht (FY 2017: 56.6 cpht), positively impacted by the treatment of higher-grade surface ROM material, coupled with the increase in undiluted tonnes from the new Block 5 Sub Level Cave ("SLC").
-- This partially offset the underperformance of ROM tonnage throughput due to lower tonnes from the South West Precursor ancillary orebody ("SW Precursor"), where production was curtailed further to intermittent caving leading to safety concerns around the stability of the ground conditions in the vicinity of the mining area. This is necessitating continual reassessment of the manner in which the SW Precursor orebody can be accessed, as described further below.
-- Overall production decreased 4% to 2,073,477 carats (FY 2017: 2,149,896 carats), with the increase in ROM production offset by the planned reduction in tailings production, which decreased to 147,010 carats (FY 2017: 331,442 carats).
-- Block 5 SLC ramped up further and delivered ca. 1.65 Mt in FY 2018 compared to 0.75 Mt in FY 2017.
-- FY 2018 Expansion Capex of US$42.3 million was mainly spent on underground development and infrastructure relating to the Block 5 SLC.
Guidance:
-- ROM throughput of 3.1 Mt in FY 2018 will rise to 3.2 Mt in FY 2019, as disclosed in Petra's recent Rights Issue prospectus (published 24 May 2018). This is lower than previous guidance of 3.5 Mtpa due to the exclusion of the SW Precursor from the mine plan.
-- The SW Precursor is a smaller ancillary orebody (ca. 1.2 ha in size, compared to the main orebody of ca. 4.7 ha), which contains ca. 3 Mt of ore above 63 Level and another ca. 3 Mt between 63 Level and 73 Level. The relatively small size and its proximity to the main pipe affects the ability to induce continuous caving and the stability of the rim tunnel. Refer to the schematic 'Finsch Plan View' at: https://www.petradiamonds.com/investors/analysts/analyst-guidance/.
-- The Company will continue to assess plans to achieve its longer term throughput target of 3.5 Mtpa at Finsch by investigating options to safely reintroduce the SW Precursor from 73 Level or increasing throughput rates from the Block 5 SLC.
-- FY 2019 planned tonnage from the SLC is ca. 2.7 Mt, with the remaining tonnes to be sourced from the ROM overburden dumps.
-- Finsch's ROM grade of 62.5 cpht was higher than guidance primarily due to the contribution of high grade surface overburden dumps. The ROM grade is expected to reduce to within the guidance range of 56 - 59 cpht for FY 2019, mainly due to the depletion of these high grade overburden dumps from FY 2019, although partially offset by the increased ramp up of the Block 5 SLC.
-- Limited tailings production of ca. 200,000 tonnes is planned for FY 2019, which includes mostly remnants from the higher grade pre-79 tailings. While tailings production post FY 2019 does not form part of the current mine plan, lower grade post-79 tailings material remains available to supplement the underground operations in the future.
-- Total absolute on mine cash cost is guided at ca. ZAR1,270 million. Unit costs are expected to increase due to the mining of predominantly ROM tonnes, an increase in drilling and blasting activities associated with SLC mining, a reduction in the previously guided Block 5 SLC ROM throughput and the effect of a relatively high fixed cost base associated with mining operations. As the mine transitions from a capital-intensive expansion phase into a steady state production phase, the right sizing and streamlining of the cost structure at Finsch will be a priority focus in FY 2019.
-- Expansion Capex for FY 2019 is guided at ca. US$16 million, primarily relating to the completion of the blue (kimberlite) tunnel development in the Block 5 SLC.
Cullinan
FY 2018 Results:
-- Production increased 74% to 1,368,720 carats (FY 2017: 786,509 carats) mainly due to a 97% increase in ROM carat production as the new C-Cut Phase 1 block cave continued to ramp up and the new plant operated at planned throughput rates. Production from the undiluted C-Cut mining areas (including CC1E) increased to ca. 2.46 Mt in FY 2018 (FY 2017: ca. 1.2 Mt).
-- Plant optimisation is ongoing, with the recovered ROM grade improving from ca. 33 cpht achieved in H1 FY 2018 to 37.8 cpht for H2 FY 2018, with Q4 FY 2018 yielding a grade of 39.3 cpht, in line with revised guidance of 37 - 42 cpht for 2H"HH2.
-- A total of 0.4 Mt of tailings were treated with an average grade of 6.5 cpht.
-- FY 2018 Expansion Capex of US$55.5 million was mainly spent on the C-Cut Phase 1, CC1E and finalisation of the new plant.
Guidance:
-- 1.0 Mt ROM was hoisted and treated in Q4 FY 2018, which demonstrates the strong progress and capability of the Cullinan operations. However, the Company is guiding for a range of 3.7 - 4.0 Mt to be treated during FY 2019, due to the continued ramp-up of C-Cut Phase 1, the depletion of the old B Block mining areas and the switch-over period required for the implementation of the new shaft / plant interface, which is scheduled to be completed by Q3 FY 2019. This will aid in alleviating constraints with the link between the underground hoisting system and the plant.
-- The C-Cut Phase 1 project is planned to contribute ca. 3 Mt for the year. A further 0.7 - 1.0 Mt will be sourced predominantly from the CC1E mining area, as well as from other B Block tonnes.
-- Steady state production of 4.0 Mtpa will be delivered from C-Cut Phase 1 and CC1E. The Company will on an ongoing basis investigate the optimal plan to utilise the full extent of the large Cullinan orebody (ca. 16 ha at current production depths).
-- ROM grade is expected to remain in the 38 - 42 cpht range from FY 2019 onwards.
-- Tailings production is planned at ca. 1.5 - 1.7 Mt yielding 6 - 7 cpht, whilst the plant optimisation (total throughput in relation to mill settings and recirculating load) is ongoing. Longer term steady state tailings production is expected to be ca. 2 Mtpa yielding 6 - 7 cpht.
-- Total absolute on mine cash cost is guided at ca. ZAR1,135 million.
-- FY 2019 expansion Capex for Cullinan is guided at ca. US$45 million, primarily relating to the installations of the final C-Cut Phase 1 drawpoint and the shaft / plant interface.
Koffiefontein
FY 2018 Results:
-- ROM production increased 3% to 52,537 carats (FY 2017: 51,173 carats) further to the commissioning of the new ground handling system during Q3, which enabled the subsequent ramp up of tonnages in Q4 and allowed the mine to reach its revised guidance of ca. 0.65 - 0.7 Mt for FY 2018.
-- During May and June 2018, ca. 187,000 tonnes were hoisted, in line with the mine's FY 2019 annualised targeted throughput of 1.0 Mtpa.
Guidance:
-- The SLC is expected to maintain the throughput rates achieved in May and June 2018 and deliver ROM throughput of ca. 1.0 Mtpa at an average grade of 7.5 - 8.0 cpht for FY 2019.
-- Total absolute on mine cash cost is guided at ca. ZAR420 million.
-- FY 2019 expansion Capex is guided at ca. US$5 million, primarily relating to blue (kimberlite) tunnel development in the SLC.
Williamson
FY 2018 Results:
-- The mine performed well operationally with production up 51% to 341,102 carats (FY 2017: 225,202 carats), being the highest level of production achieved by the mine in over 40 years. This is despite operations being impacted by liquidity constraints due to the parcel of ca. 72,000 carats that remains blocked for export and the overdue VAT receivables of ca. US$15 million.
-- FY 2018 Capex of US$4.6 million mainly related to waste stripping and slimes dam construction.
Guidance:
-- ROM throughput is planned at ca. 4.7 Mt at a grade of ca. 6.75 - 7 cpht for FY 2019, supplemented by alluvial production of ca. 0.4 Mt at a grade of ca. 2.5 cpht.
-- Total on mine absolute cost is guided at ca. US$59 million.
-- Total Capex is guided at US$5 million for FY 2019, primarily related to waste stripping. This level of Capex is funded from the mine's own cash flow and could be adjusted when issues relating to the blocked parcel and VAT are resolved.
Kimberley Ekapa Mining Joint Venture
FY 2018 Results (stated in 75.9% attributable terms):
-- Petra's attributable production decreased 3% to 775,645 carats for the Year (FY 2017: 800,434 carats), with ROM production decreasing 6% to 82,246 carats (FY 2017: 87,783 carats). This was below guidance due to a combination of factors including the labour disruption experienced in Q1 FY 2018, project delays and the mudrush incident at Bultfontein which has led to the early closure of this underground mining area. Tailings production decreased 3% to 693,399 carats (FY 2017: 712,651 carats) further to the severe rain storms during Q3 restricting access to higher grade dumps.
-- Binding Heads of Agreement reached post Year end with regards to the disposal of the Company's interest in the KEM JV to the Company's joint venture partner Ekapa Mining (Pty) Ltd for ca. ZAR300 million.
REVENUE AND DIAMOND MARKET
Diamond Market
-- The diamond market was stable throughout FY 2018, though subject to normal seasonal fluctuations in pricing. As at the date of this announcement, it is considered to remain healthy, as evidenced by strong demand at Petra's tenders and further substantiated by inventory within the pipeline assessed to be at relatively normal levels and positive demand from the retail market, particularly in the US and China.
-- The Company expects the diamond market to remain stable in FY 2019.
Petra Sales and Prices
-- FY 2018 revenue increased 21% to US$576.4 million (FY 2017: US$477.0 million) due to the number of carats sold for the Year increasing 14% to 4,550,292 carats (FY 2017: 4,006,856 carats) and an improving average product mix due to the higher proportion of ROM versus tailings carats.
-- The diamond market saw seasonal weakness in July to October 2017, with Petra prices on a like-for-like basis down approximately 5% before recovering approximately 1.5% in December 2017, and since increasing by approximately 5% in H2 FY 2018. Such fluctuations in part reflect the seasonal nature of the rough market, due to the fact that retailers are ready to restock after the festive selling season, which includes Thanksgiving in the U.S., Christmas, Chinese New Year and Valentine's Day, thereby serving to introduce fresh liquidity into the diamond pipeline and draw down inventory levels of polished diamonds.
-- Overall rough diamond prices on a like for like basis were up ca. 2% for the Year, compared to FY 2017.
-- Following an assessment of the level of guidance provided by the Company, future price guidance has been removed, and Petra will now instead report historical and actual prices achieved and provide additional commentary as required to highlight any anomalies.
Mine Actual Guidance Actual
US$/ct US$/ct US$/ct
FY 2018 FY 2018 FY 2017
Finsch 108(1) 101 - 106 101
-------- --------- --------
Cullinan 125(2) 140 - 160 120
-------- --------- --------
Koffiefontein 525(1) 525 - 550 506
-------- --------- --------
KEM JV 108(1) 105 - 115 100
-------- --------- --------
Williamson 270(3) 214 - 224 258
-------- --------- --------
Notes:
1. In line with expectations. 2. Below historical averages due to lower incidence of higher value stones. 3. Higher average value achieved due to higher incidence of high value stones.
Due to the variability in Cullinan's achieved prices, the following historical price information is provided, which is based on the sale of 7,883,301 carats over the nine year period FY 2010 to FY 2018 for an average of US$144 per carat:
-- on an annual basis, a high of US$185 per carat and a low of US$120 per carat was achieved (FY 2018: US$125 per carat);
-- on a half yearly basis, a high of US$247 per carat and a low of US$87 per carat was achieved (FY 2018: high of US$140 and low of US$118); and
-- on a quarterly basis, a high of US$293 per carat and a low of US$63 per carat was achieved (FY 2018: high of US$157 and low of US$97).
CORPORATE AND FINANCIAL
Rights Issue
-- On 24 May 2018, the Company announced a 5 for 8 Rights Issue to raise net proceeds of ca. US$170 million via the issuance of 332,821,725 Rights Issue Shares at an Issue Price of 40 pence per share. The main driver for the fundraise was to accelerate a reduction in leverage to a more sustainable level, with the Board setting a target of Consolidated Net Debt to Consolidated EBITDA of 2x or less by FY 2020, and to enable management to focus on ongoing operational delivery and optimisation, as well as to assist in mitigating short-term issues relating to currency volatility and other ongoing business challenges.
On 13 June 2018, shareholders approved the Rights Issue, with over 99% of votes cast in favour of the transaction and on 29 June 2018, the Company announced that it had received valid acceptances representing ca. 95% of the total number of Rights Issue Shares offered to shareholders. The remaining ca. 5% of Rights Issue Shares were subsequently placed with institutions on the same day at a price of 52.25 pence per share. Petra's number of shares in issue is now 865,336,485.
Further to the receipt of the funds from the Rights Issue, the Company utilised ca. US$107 million to fully pay down outstanding drawn indebtedness with its South African Lending Group, (thereby realising cash interest savings of ca. US$10 - 12 million per annum), whilst retaining both of these facilities.
Balance Sheet
-- A summary of the Group's current cash, diamond inventories, debtors, borrowings and net debt is set out below.
Unit 30 June 2018 30 June 2017
Exchange rate used for R13.73:US$1 R13.05:US$1
conversion
--------- ------------- -------------
Cash at bank US$m 237.9 203.7
--------- ------------- -------------
Diamond inventories US$m 64.6 50.2
Carats 624,951 570,264
--------------------------------------------- ------------- -------------
Diamond inventories US$m 55.1 42.3
(excluding KEM JV) Carats 529,054 493,296
--------- ------------- -------------
Diamond debtors US$m 82.7 41.5
--------- ------------- -------------
US$650 million loan notes
(issued April 2017) US$m 650.0 650.0
--------- ------------- -------------
Bank loans and borrowings US$m 106.7 109.0
--------- ------------- -------------
Net debt US$m 518.8 555.3
--------- ------------- -------------
Consolidated net debt for
covenant measurement purposes(1) US$m 521.7 616.8
--------- ------------- -------------
Note:
1. Consolidated Net Debt is bank loans and borrowings plus loan notes, less cash, less diamond debtors and includes the BEE guarantees of ca. US$85.6 million (ZAR1,175 million) issued by Petra to the lenders as part of the BEE financing concluded in December 2014.
Bank Facility Covenants
-- The Company's South African bank debt was settled shortly after Year end, as per one of the core objectives of the Rights Issue.
-- No covenant measurement will be taken for June 2018, further to the South African lender group agreeing to waive this covenant measurement period subject to the completion of the Rights Issue.
-- Following the completed Rights Issue, the Company aims to engage with the South African lender group in order to simplify the financing agreements with regards to covenants and BEE partner debt.
Board and Management Structures
-- As noted in the Company's Rights Issue announcement on 24 May 2018, the Company is continuing to review its Board, board committee and senior management structures in line with its development from a phase of intensive capital expenditure and expansion to a focus on steady state operations, as well as to address improving diversity at the higher levels of the business.
-- To this end, the Company's Nomination Committee, which is currently in year two of its three year succession plan, is making good progress with plans to make additional changes in FY 2019 in order to ensure the Company has the right mix of expertise and skills. New developments will be announced in this regard before the end of H1 FY 2019.
South African Mining Charter
-- On 15 June 2018, the South African Department of Mineral Resources gazetted a revised draft Mining Charter which was open for comments from stakeholders for 30 days prior to a mining summit held on 7 - 8 July 2018. The Minister of Mineral Resources has since announced that the period for comment has been extended until 31 August 2018. The Minerals Council South Africa, which represents the South African mining industry and of which Petra is a member, will be providing submissions in relation to the draft Charter.
Update on Tanzania
-- No further update to be reported on the blocked Williamson parcel or outstanding VAT receivables.
Notes
1. The following exchange rates have been used for this announcement: average for the Year US$1:ZAR12.86 (FY 2017: US$1:ZAR13.59); closing rate as at 30 June 2018 US$1:ZAR13.73 (30 June 2017: US$1:ZAR13.05).
2. The following definitions have been used in this announcement: a. ct: carat b. cpht: carats per hundred tonnes c. Mctpa: million carats per annum d. Mcts: million carats e. Mt: million tonnes f. Mtpa: million tonnes per annum g. ROM: run-of-mine, i.e. relating to production from the primary orebody h. SLC: sub-level cave, a variation of block caving
The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014.
Ends
For further information, please contact:
Petra Diamonds, London Telephone: +44 20 7494 8203
Cathy Malins investorrelations@petradiamonds.com
Cornelia Grant
Marianna Bowes
Buchanan Telephone: +44 20 7466 5000
(PR Adviser) pdl@buchanan.uk.com
Bobby Morse
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). It announced in July 2018 an agreement to dispose of its interest in the Kimberley Ekapa Mining JV in South Africa. It also maintains an exploration programme in Botswana and South Africa.
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 the efficiency and profitability of its operations. The Group has a significant resource base in excess of 300 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
FY 2018 MINE BY MINE PRODUCTION TABLES
Finsch - South Africa
H2 H1
Unit FY 2018 FY 2018 FY 2018 FY 2017 Variance
Sales
-------- ---------- ---------- ---------- ---------- -----------
Revenue US$M 131.1 100.8 231.9 216.7 +7%
-------- ---------- ---------- ---------- ---------- -----------
Diamonds sold Carats 1,182,240 970,446 2,152,786 2,141,885 +1%
-------- ---------- ---------- ---------- ---------- -----------
Average price per
carat US$ 111 104 108 101 +6%
-------- ---------- ---------- ---------- ---------- -----------
ROM Production
-------- ---------- ---------- ---------- ---------- -----------
Tonnes treated Tonnes 1,525,115 1,559,280 3,084,395 3,212,169 -4%
-------- ---------- ---------- ---------- ---------- -----------
Diamonds produced Carats 994,608 931,859 1,926,467 1,818,454 +6%
-------- ---------- ---------- ---------- ---------- -----------
Grade(1) Cpht 65.2 59.8 62.5 56.6 +10%
-------- ---------- ---------- ---------- ---------- -----------
Tailings Production
-------- ---------- ---------- ---------- ---------- -----------
Tonnes treated Tonnes 279,749 515,224 794,973 1,651,089 -52%
-------- ---------- ---------- ---------- ---------- -----------
Diamonds produced Carats 42,273 104,737 147,010 331,442 -56%
-------- ---------- ---------- ---------- ---------- -----------
Grade(1) Cpht 15.1 20.3 18.5 20.1 -8%
-------- ---------- ---------- ---------- ---------- -----------
Total Production
-------- ---------- ---------- ---------- ---------- -----------
Tonnes treated Tonnes 1,804,864 2,074,503 3,879,368 4,863,258 -20%
-------- ---------- ---------- ---------- ---------- -----------
Diamonds produced Carats 1,036,881 1,036,596 2,073,477 2,149,896 -4%
-------- ---------- ---------- ---------- ---------- -----------
Capex
-------- ---------- ---------- ---------- ---------- -----------
Expansion Capex US$M 18.3 24.0 42.3 58.4 -28%
-------- ---------- ---------- ---------- ---------- -----------
Sustaining Capex US$M 4.3 3.4 7.7 9.1 -15%
-------- ---------- ---------- ---------- ---------- -----------
Borrowing Costs
Capitalised US$M 8.4 7.1 15.5 18.9 -18%
-------- ---------- ---------- ---------- ---------- -----------
Total Capex US$M 31.0 34.5 65.5 86.4 -24%
-------- ---------- ---------- ---------- ---------- -----------
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
H2 H1
Unit FY 2018 FY 2018 FY 2018 FY 2017 Variance
Sales
-------- ---------- ---------- ---------- ---------- -----------
Revenue US$M 105.6 61.4 167.0 91.3 +83%
-------- ---------- ---------- ---------- ---------- -----------
Diamonds sold Carats 896,657 439,012 1,335,669 760,957 +76%
-------- ---------- ---------- ---------- ---------- -----------
Average price per
carat US$ 118 140 125 120 +4%
-------- ---------- ---------- ---------- ---------- -----------
ROM Production
-------- ---------- ---------- ---------- ---------- -----------
Tonnes treated Tonnes 1,957,857 1,783,229 3,741,086 1,882,911 +99%
-------- ---------- ---------- ---------- ---------- -----------
Diamonds produced Carats 739,426 602,594 1,342,020 679,622 +97%
-------- ---------- ---------- ---------- ---------- -----------
Grade(1) Cpht 37.8 33.8 35.9 36.1 -1%
-------- ---------- ---------- ---------- ---------- -----------
Tailings Production
-------- ---------- ---------- ---------- ---------- -----------
Tonnes treated Tonnes 375,726 37,023 412,749 506,176 -18%
-------- ---------- ---------- ---------- ---------- -----------
Diamonds produced Carats 22,060 4,640 26,700 106,887 -75%
-------- ---------- ---------- ---------- ---------- -----------
Grade(1) Cpht 5.9 12.5 6.5 21.1 -69%
-------- ---------- ---------- ---------- ---------- -----------
Total Production
-------- ---------- ---------- ---------- ---------- -----------
Tonnes treated Tonnes 2,333,583 1,820,252 4,153,835 2,389,087 +74%
-------- ---------- ---------- ---------- ---------- -----------
Diamonds produced Carats 761,486 607,234 1,368,720 786,509 +74%
-------- ---------- ---------- ---------- ---------- -----------
Capex
-------- ---------- ---------- ---------- ---------- -----------
Expansion Capex US$M 25.5 30.0 55.5 120.9 -54%
-------- ---------- ---------- ---------- ---------- -----------
Sustaining Capex US$M 5.1 1.4 6.5 4.3 +51%
-------- ---------- ---------- ---------- ---------- -----------
Borrowing Costs
Capitalised US$M 11.2 9.1 20.3 26.6 -24%
-------- ---------- ---------- ---------- ---------- -----------
Total Capex US$M 41.8 40.5 82.3 151.8 -46%
-------- ---------- ---------- ---------- ---------- -----------
Notes:
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
H2 H1
Unit FY 2018 FY 2018 FY 2018 FY 2017 Variance
Sales
-------- --------- --------- ---------- ---------- -----------
Revenue US$M 16.2 11.0 27.2 28.4 -4%
-------- --------- --------- ---------- ---------- -----------
Diamonds sold Carats 30,381 21,555 51,936 56,068 -7%
-------- --------- --------- ---------- ---------- -----------
Average price per
carat US$ 534 511 525 506 +4%
-------- --------- --------- ---------- ---------- -----------
ROM Production
-------- --------- --------- ---------- ---------- -----------
Tonnes treated Tonnes 359,781 289,478 649,259 667,821 -3%
-------- --------- --------- ---------- ---------- -----------
Diamonds produced Carats 27,245 25,292 52,537 51,173 +3%
-------- --------- --------- ---------- ---------- -----------
Grade Cpht 7.6 8.7 8.1 7.7 +6%
-------- --------- --------- ---------- ---------- -----------
Total Production
-------- --------- --------- ---------- ---------- -----------
Tonnes treated Tonnes 359,781 289,478 649,259 667,821 -3%
-------- --------- --------- ---------- ---------- -----------
Diamonds produced Carats 27,245 25,292 52,537 51,173 +3%
-------- --------- --------- ---------- ---------- -----------
Capex
-------- --------- --------- ---------- ---------- -----------
Expansion Capex US$M 4.1 5.5 9.6 13.8 -30%
-------- --------- --------- ---------- ---------- -----------
Sustaining Capex US$M 0.4 2.3 2.7 5.5 -51%
-------- --------- --------- ---------- ---------- -----------
Total Capex US$M 4.5 7.8 12.3 19.3 -36%
-------- --------- --------- ---------- ---------- -----------
Kimberley Ekapa Mining JV - South Africa
H2 H1
Unit FY 2018(1) FY 2018(1) FY 2018(1) FY 2017(1) Variance
Sales
-------- ------------ ------------ ------------- ------------- -----------
Revenue US$M 48.1 33.5 81.6 82.3 -1%
-------- ------------ ------------ ------------- ------------- -----------
Diamonds sold Carats 455,700 300,793 756,493 821,963 -8%
-------- ------------ ------------ ------------- ------------- -----------
Average price per
carat US$ 106 111 108 100 +8%
-------- ------------ ------------ ------------- ------------- -----------
ROM Production
-------- ------------ ------------ ------------- ------------- -----------
Tonnes treated Tonnes 338,588 430,188 768,776 597,025 +29%
-------- ------------ ------------ ------------- ------------- -----------
Diamonds produced Carats 32,727 49,519 82,246 87,783 -6%
-------- ------------ ------------ ------------- ------------- -----------
Grade Cpht 9.7 11.5 10.7 14.7 -27%
-------- ------------ ------------ ------------- ------------- -----------
Tailings Production
-------- ------------ ------------ ------------- ------------- -----------
Tonnes treated Tonnes 3,248,206 2,802,785 6,050,991 6,153,657 -2%
-------- ------------ ------------ ------------- ------------- -----------
Diamonds produced Carats 378,819 314,581 693,399 712,651 -3%
-------- ------------ ------------ ------------- ------------- -----------
Grade Cpht 11.7 11.2 11.5 11.6 -1%
-------- ------------ ------------ ------------- ------------- -----------
Total Production
-------- ------------ ------------ ------------- ------------- -----------
Tonnes treated Tonnes 3,586,794 3,232,973 6,819,767 6,750,682 +1%
-------- ------------ ------------ ------------- ------------- -----------
Diamonds produced Carats 411,546 364,099 755,645 800,434 -3%
-------- ------------ ------------ ------------- ------------- -----------
Capex
-------- ------------ ------------ ------------- ------------- -----------
Expansion Capex US$M 3.8 6.3 10.1 23.9 -58%
-------- ------------ ------------ ------------- ------------- -----------
Sustaining Capex US$M 1.9 1.8 3.7 4.5 -18%
-------- ------------ ------------ ------------- ------------- -----------
Total Capex US$M 5.7 8.1 13.8 28.4 -51%
-------- ------------ ------------ ------------- ------------- -----------
Note:
1. Data represent Petra's 75.9% attributable share in the KEM JV.
Williamson - Tanzania
H2 H1
Unit FY 2018 FY 2018 FY 2018 FY 2017 Variance
Sales
-------- ---------- ---------- ----------- ---------- -----------
Revenue US$M 50.0 18.5 68.5 58.4 +17%
-------- ---------- ---------- ----------- ---------- -----------
Diamonds sold Carats 174,079 79,445(1) 253,524(1) 226,110 +12%
-------- ---------- ---------- ----------- ---------- -----------
Average price per
carat US$ 287 233 270 258 +5%
-------- ---------- ---------- ----------- ---------- -----------
ROM Production
-------- ---------- ---------- ----------- ---------- -----------
Tonnes treated Tonnes 2,256,170 2,403,393 4,659,563 3,667,781 +27%
-------- ---------- ---------- ----------- ---------- -----------
Diamonds produced Carats 159,800 168,881 328,681 212,215 +55%
-------- ---------- ---------- ----------- ---------- -----------
Grade Cpht 7.1 7.0 7.0 5.8 +22%
-------- ---------- ---------- ----------- ---------- -----------
Alluvial Production
-------- ---------- ---------- ----------- ---------- -----------
Tonnes treated Tonnes 192,549 193,172 385,721 403,811 -4%
-------- ---------- ---------- ----------- ---------- -----------
Diamonds produced Carats 6,468 5,953 12,421 12,987 -4%
-------- ---------- ---------- ----------- ---------- -----------
Grade Cpht 3.4 3.1 3.2 3.2 -
-------- ---------- ---------- ----------- ---------- -----------
Total Production
-------- ---------- ---------- ----------- ---------- -----------
Tonnes treated Tonnes 2,448,719 2,596,565 5,045,284 4,071,592 +24%
-------- ---------- ---------- ----------- ---------- -----------
Diamonds produced Carats 166,268 174,834 341,102 225,202 +51%
-------- ---------- ---------- ----------- ---------- -----------
Capex
-------- ---------- ---------- ----------- ---------- -----------
Expansion Capex US$M 1.9 0.7 2.6 14.1 -82%
-------- ---------- ---------- ----------- ---------- -----------
Sustaining Capex US$M 0.5 1.5 2.0 0.9 +122%
-------- ---------- ---------- ----------- ---------- -----------
Total Capex US$M 2.4 2.2 4.6 15.0 -69%
-------- ---------- ---------- ----------- ---------- -----------
Note:
1. Negatively impacted by the 71,654 carat parcel blocked for export.
KEY FY 2019 OPERATING AND CAPEX ASSUMPTIONS
The table below sets out management's guidance in respect of the key operating parameters for FY 2019.
Unit Finsch Cullinan Koffiefontein KEM JV Williamson
ROM tonnes
------ ---------- ----------- -------------- -------- -----------
Tonnes treated Mt 3.2 3.7 - 4.0 1.0 0.6 4.7
------ ---------- ----------- -------------- -------- -----------
Grade Cpht 56 - 59 38 - 42 7.5 - 8.0 13 - 14 6.5 - 7
------ ---------- ----------- -------------- -------- -----------
Tailings/other
tonnes
------ ---------- ----------- -------------- -------- -----------
Tonnes treated Mt 0.2 1.5 - 1.7 0.0 5.7 0.4
------ ---------- ----------- -------------- -------- -----------
Grade Cpht 18 - 20 6 - 7 n/a 11 - 12 2.5
------ ---------- ----------- -------------- -------- -----------
Total production
------ ---------- ----------- -------------- -------- -----------
Tonnes treated Mt 3.4 5.2 - 5.7 1.0 6.3 5.1
------ ---------- ----------- -------------- -------- -----------
On mine cash ZARm ZAR1,270m ZAR1,135m ZAR420m ZAR840m US$59m
cost
------ ---------- ----------- -------------- -------- -----------
Capex
------ ---------- ----------- -------------- -------- -----------
Expansion
Capex ZARm 200 570 65 55 US$0m
------ ---------- ----------- -------------- -------- -----------
Sustaining
Capex ZARm 125 130 30 40 US$5m
------ ---------- ----------- -------------- -------- -----------
Total Capex ZARm 325 700 95 95 US$5m
------ ---------- ----------- -------------- -------- -----------
Notes:
1. For detail on the figures above, please download the document 'Analyst Guidance - Detailed' available from the Company's website at: http://www.petradiamonds.com/investors/analysts/analyst-guidance.
2. Grades stated are recovered grades with appropriate dilution and plant modification factors already applied.
3. All Capex numbers in this announcement exclude capitalised borrowing costs, in line with previous guidance.
4. An inflation increase of 8% in ZAR terms has been applied to update all Capex from FY 2018 money terms to FY 2019 money terms. All Capex changes are therefore given in inflation adjusted comparable FY 2018 money terms. FY 2018 Capex guidance figures for the South African operations are converted at an exchange rate of ZAR12.25/US$1.
CAPEX RECONCILIATION
Capex Unit FY 2018 FY 2017
Finsch US$M 65.5 86.4
------ -------- --------
Cullinan US$M 82.3 151.8
------ -------- --------
Koffiefontein US$M 12.3 19.3
------ -------- --------
KEM JV US$M 13.8 28.4
------ -------- --------
Williamson US$M 4.6 15.0
------ -------- --------
Helam US$M 0.0 0.0
------ -------- --------
Subtotal - Capex incurred by
operations US$M 178.5 300.9
------ -------- --------
Petra internal projects division
- Capex under construction
/ invoiced to operations US$M (1.7) (0.3)
------ -------- --------
Corporate / exploration US$M 2.3 1.4
------ -------- --------
Total Group Capex US$M 179.1 302.0
------ -------- --------
Notes:
1. Petra operates an internal projects / construction division and, although this division's spend is reported in the Group's total Capex, it is policy not to account for it on a specific mine's Capex until the work completed is invoiced to the relevant operation.
2. Capex for the Year includes US$35.8 million (FY 2017: US$45.5 million) of capitalised borrowing costs, which is also included in the applicable mine-by-mine tables above.
3. Petra's annual Capex guidance is cash-based and excludes capitalised borrowing costs. Given that the majority of Petra's debt funding is in relation to its expansion and development programmes, Petra's guidance is to assume that the majority of interest and financing fees will be capitalised for the duration of the project phases and not expensed through the income statement.
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
MSCLLFFIDIIVFIT
(END) Dow Jones Newswires
July 23, 2018 06:29 ET (10:29 GMT)
1 Year Petra Diamonds Chart |
1 Month Petra Diamonds Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
