REG-Petra Diamonds: Conclusion of Wage Agreement with NUM in South Africa

Petra DiamondsAnnouncement

06/10/2020 15:45

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION

FOR IMMEDIATE RELEASE

 6 October 2020   LSE: PDL 

Petra Diamonds Limited

(“Petra”, “the Company” or “the Group”)

Conclusion of Wage Agreement with NUM in South Africa

Petra Diamonds Limited announces that it has concluded a one-year wage
agreement with the National Union of Mineworkers (“NUM”) covering its
South African operations for the financial year to 30 June 2021 (“FY
2021”).

The Company will make a once-off, ex gratia payment at the end of November
2020 of between ZAR5,000 - 8,500 to employees graded in the A and B Paterson
Bands. In addition, employees in the A Paterson band will receive an increase
of 5.5% in their cash earnings, effective 1 January 2021, with employees in
the B Paterson band receiving 5%. Apart from wage increases, the agreement
also covers various outstanding discussion points between Petra and the NUM,
with clear timelines for finalisation of these, as well as a commitment to
continue discussions on a wage agreement for the following financial year to
30 June 2022.

Richard Duffy, Chief Executive of Petra Diamonds, commented:

“We thank our partners in the NUM for their positive and constructive
engagement that has resulted in this agreement. This now allows us to renew
our focus on continuing to deliver operationally as we reposition the business
in emerging from what has been a particularly challenging period”.

This agreement constitutes a full and final settlement of the FY 2021
substantive negotiations.

For further information, please contact:

Petra Diamonds,
London                                        
Telephone: +44 20 7494 8203

Cathy
Malins                                                  
            investorrelations@petradiamonds.com

Marianna
Bowes                                                        
Des
Kilalea                                                                 

The information contained within this announcement is considered by the
Company to constitute inside information as stipulated under the Market Abuse
Regulations (EU) No.596/2014. Upon the publication of this announcement via a
Regulatory Information Service, this inside information will be considered to
be in the public domain. The person responsible for arranging for the release
of this announcement on behalf of the Company is Jacques Breytenbach, Finance
Director.

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'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. 250 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.
The Company’s US$650 million loan notes due in 2022 are listed on the Global
Exchange market of the Irish Stock Exchange. For more information, visit
www.petradiamonds.com.



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