REG-Petra Diamonds: FY 2020 Trading Update
23/07/2020 07:05
23 July 2020 LSE: PDL
Petra Diamonds Limited
("Petra" or the "Company" or the “Group”)
FY 2020 Trading Update
Petra Diamonds Limited announces the following unaudited Trading Update for
the year ended 30 June 2020 (the “Year” or “FY 2020”).
Summary
Impact of COVID-19 Pandemic
* The unprecedented impact of COVID-19 has significantly reduced activity
throughout the diamond market pipeline from production, rough sales, trading,
cutting and polishing, right through to consumer sales.
* Production: The Company’s response to COVID-19 saw a reduction in
throughput at the mines in South Africa to accommodate the temporary lockdown,
which affected operations for three weeks from 26 March, following which a
phased ramp up of operations was permissible as lockdown restrictions were
eased. However, the additional COVID-19 health and safety-led procedures that
needed to be introduced to contain the spread of the virus significantly
reduced available working hours. In order to mitigate this, revised shift
configurations have been implemented, with the support of organised labour,
which are targeting a ramp up in the South African operations to pre-COVID-19
production levels. In Tanzania, the Williamson mine remains on care and
maintenance due to the impact of low pricing on its liquidity.
* Sales: The Company took the decision to cancel its usual May and June 2020
tenders due to the significantly reduced demand from the midstream during this
period, exacerbated by travel restrictions making it all but impossible for
clients to view goods on offer. As a result, significant inventory build was
witnessed to 30 June 2020 (notwithstanding the reduced production levels). The
Company realised some US$10.5 million sales in Q4, following the partial sale
of goods not sold during the March tender, coupled with relatively low levels
of sales in June, mainly to the local South African cutting and polishing
market.
FY 2020 Results
* Lost Time Injury Frequency Rate (“LTIFR”): 0.29 (FY 2019: 0.21) with 19
LTIs recorded in FY 2020 as opposed to 16 in FY 2019; total injuries,
including those that did not result in a lost shift, reduced by 27%.
* Production down 7% to 3.59 Mcts (FY 2019: 3.87 Mcts); positive throughput
improvements driven by Project 2022 led to the highest ROM production recorded
in the Company’s history for the nine months up to 31 March 2020, but
overall performance for the full Year was negatively impacted by the COVID-19
measures affecting Q3 and Q4 production.
* Revenue decreased 36% to US$295.8 million (FY 2019: US$463.6 million),
reflecting weaker prices during the period to February 2020, exacerbated by
significant price reductions and major disruptions to the planned sales cycles
following the outbreak of the COVID-19 pandemic.
* Group FY 2020 total on mine cash costs expected to be largely in line with
guidance.
* Operational Capex (excluding capitalised borrowing costs) reduced 58% to
US$34.2 million (FY 2019: US$81.4 million), lower than original guidance of
ca. US$43.0 million reflecting management’s response to the COVID-19 impact
on the business.
* Net debt as at 30 June 2020 of US$658.0 million (31 March 2020: US$601.0
million) due to lower sales and the capitalisation of the deferred coupon
payment on the Company’s US$650 million loan notes of US$23.6 million.
* Unrestricted cash of US$53.6 million (31 March 2020: US$64.2 million),
including US$52.0 million further to the Company drawing down ZAR400 million
under its revolving credit facility and ZAR500 million under its working
capital facilities (31 March 2020: $28.0 million drawn under the bank
facilities).
Outlook
* Following Year end, the Company sold 574 kcts for US$36.4 million, bringing
the total sales across the South Africa operations for the June / July tender
cycle to US$40.6 million (US$4.2 million of which was included in our June
numbers) from 581.9 kcts sold, mainly through agreements with some of its
long-standing customers; payment terms have been agreed which will see the
cash from these sales being received during July and August 2020. The next
tender is planned for September, subject to prevailing market conditions and
any COVID-19 related regulations.
* Project 2022 has resulted in the implementation of various initiatives which
have eliminated or mitigated the impact of bottlenecks in the production
processes of the various mines, resulting in the increased throughput recorded
for FY 2020, prior to the disruption of the COVID-19 pandemic. The focus of
the project now also includes a sustainable optimisation of the Company’s
cost structure during this period of reduced revenue generation.
* Due to ongoing uncertainty around the impact of COVID-19, production
guidance for FY 2021 will be provided once a sustainable level of operational
stability has been reached.
* Regrettably, 39 employees have been confirmed COVID-19 positive at the South
African operations to date and while the majority of those affected are only
experiencing mild symptoms, and some are now back at work, we have tragically
experienced a death at Cullinan related to the disease – more information is
provided in the Health and safety section.
* The Company released longer-term capital guidance within its Q3 FY 2020
Trading Update confirming that a significantly reduced level of capital
expenditure is planned for FY 2021 of ca. US$28 million; refer to the document
‘Analyst Guidance - Indicative longer term capex guidance’ at
https://www.petradiamonds.com/investors/analysts/analyst-guidance/.
* The Company is continuing to explore strategic options to evaluate the
optimal capital structure for the long-term success of the business, which
includes running a Formal Sale Process to invite suitable and deliverable
offers for either the Group or one or more of its assets.
* The Company continues to have constructive discussions with the Ad Hoc Group
of holders of the Group's Senior Secured Second Lien Notes and also with the
South African lender group regarding a long term solution to improve the
Group's capital structure. The Company expects to announce further progress in
this regard in calendar Q3 2020.
FY 2020 Production, Sales and Capex – Summary¹
Unit FY 2020 FY 2019 Variance
Sales
Diamonds sold Carats 2,895,497 3,736,847 -23%
Revenue US$M 295.8 463.6 -36%
Production
ROM diamonds Carats 3,442,593 3,763,622 -9%
Tailings & other (1)diamonds Carats 146,583 111,324 +32%
Total diamonds Carats 3,589,176 3,874,946 -7%
Tonnages
ROM tonnes Mt 11.5 13.3 -13%
Tailings & other (1)tonnes Mt 0.8 1.6 -50%
Total tonnes Mt 12.3 14.9 -17%
Capex
Expansion US$M 20.0 56.0 -64%
Sustaining US$M 14.2 25.4 -44%
Borrowing Costs Capitalised US$M 0.0 3.7 -100%
Total US$M 34.2 85.1 -59%
Notes:
1. 'Other' represents alluvial diamond mining at Williamson.
Richard Duffy, Chief Executive of Petra Diamonds, commented:
“Petra’s operations have again delivered strongly in an extremely
challenging environment that continues to be severely impacted by the COVID-19
pandemic. Despite our robust underlying business, significantly reduced
revenues that are the result of a disrupted diamond market have required us to
formally engage with our note holders and consider other strategic options to
deliver a more sustainable capital structure going forward.
“We remain highly focused on taking all steps necessary to mitigate the risk
of COVID-19 to all Petra people, following the Mandatory Codes of Practice we
have in place at each South African operation and in line with the guidelines
recommended by the Minerals Council South Africa. It is with great sadness
that we have experienced a death at the Cullinan mine related to the disease
and on behalf of the Board, I extend our sincere condolences to the family,
friends and colleagues of the deceased.”
Health and safety
* The Group reported an LTIFR of 0.29 (FY 2019: 0.21) in FY 2020. The Group
recorded 19 LTI’s in FY 2020 (FY 2019: 16), 11 of which were at Finsch where
the majority of the accidents were found to be behavioural in nature and of
low severity. Considerable focus has been placed on changing these behaviours
through management intervention, including in-shift safety stops, visible-felt
leadership and management walkabouts, safety discipline enforcement and safety
inspection processes. Our primary value at Petra is “Let’s Do No Harm”,
meaning safety is at the heart of everything we do, and the Company is
continuously aiming to improve the systems and processes already in place to
support our aspiration of a zero harm working environment.
* The Group recorded 45 total number of injuries in FY 2020 (including lost
time injuries), a 27% improvement against FY 2019 (61 total number of
injuries).
* The health, safety and wellbeing of all Petra people remains the Company’s
overriding priority. While Petra’s South African mines are highly mechanised
underground operations, with limited human interaction, the Company has put in
place stringent protocols in order to minimise the risk of COVID-19 to its
employees and contractors. More information about the Company’s response to
the pandemic can be accessed here:
https://www.petradiamonds.com/sustainability/health-and-safety/our-response-to-covid-19/
* Regrettably, 39 employees have been confirmed COVID-19 positive at the South
African operations to date – 28 at Cullinan, four in Group Services, three
at Finsch and four at Koffiefontein. All cases have been dealt with in terms
of the Company’s comprehensive Response Plan. While the majority of those
affected are only experiencing mild symptoms, and some are now back at work,
we have tragically lost one employee at Cullinan (Mr Joseph Phoku,
Boilermaker) due to COVID-19 related disease. Our heartfelt condolences go to
his family, friends and colleagues; support will be offered to his next of
kin.
* There have been no cases of COVID-19 confirmed at the Williamson mine in
Tanzania to date.
Production
* FY 2020 production totalled 3.59 Mcts (FY 2019: 3.87 Mcts). While the
Company was on track to meet or exceed its original guidance of ca. 3.8 Mcts
(guidance was suspended on 27 March 2020), production was severely disrupted
by the lockdown implemented in South Africa from 26 March 2020 and the
Williamson mine in Tanzania being placed on care and maintenance in April
2020.
Cullinan
* Production totalled 1,578,400 carats (FY 2019: 1,655,929 carats) with
underground throughput of 4.0 Mt, almost matching FY 2019’s 4.1 Mt, and an
average ROM grade of 37.3 cpht (FY 2019: 38.6 cpht).
* Production from the C-Cut and CC1 East mining areas increased to ca. 3.9 Mt
in FY 2020 (FY 2019: ca. 3.6 Mt) with the remaining tonnage being supplemented
from older B-Block mining areas. As a result of the COVID-19 disruptions,
Cullinan’s ROM tonnes treated for Q4 represented ca. 60% of the production
rate achieved during the preceding three quarters.
* A total of 0.2 Mt of recovery tailings were treated with an average grade of
37.2 cpht.
* FY 2020 Capex of US$15.0 million was mainly spent on the development of the
C-Cut Phase 1 block cave, development to North Crusher 2, and rehabilitation
in the North West Corner of C-Cut Phase 1. Based on the re-prioritisation of
capital spend, the completion of the shaft plant interface project was
deferred. The current system has proved to be reliable and will be utilised in
the interim.
* FY 2021 Capex for Cullinan is guided at ca. US$13 million, primarily
relating to underground development, including the decline to the CC1E
production areas, the finalisation and commissioning of North Crusher 2, and
the implementation of the sixth XRL stream to expose all large diamonds to
X-ray technology in order to minimise the recirculation of these larger stones
and improve the value of diamonds recovered. It also includes Stay in Business
capex.
Finsch
* Overall production totalled 1,643,568 carats (FY 2019: 1,755,768 carats)
with ROM carat production of 1,603,678 carats (FY 2019: 1,724,265 carats) and
tailings production of 39,890 carats (FY 2019: 31,503 carats). The ROM grade
for FY 2020 was 59.0 cpht (FY 2019: 56.1 cpht).
* The contribution from underground ROM production increased to 1,594,194
carats (FY 2019: 1,504,722 carats) while the treatment of surface overburden
ROM stockpiles decreased to 9,484 carats (FY 2019: 219,544 carats).
* Finsch’s ROM tonnes treated reduced to 2,719,389 tonnes (FY 2019:
3,073,479 tonnes), mainly as a result of the COVID-19 related disruptions from
March 2020, with Finsch’s ROM tonnes treated for Q4 representing 61% of
the production rate achieved during the preceding three quarters. The tonnage
contribution from the Block 5 SLC ramped up to 2.7 Mt (FY 2019: 2.5 Mt),
notwithstanding the Q4 disruptions, with the remaining ROM ore supplemented
from surface overburden ROM stockpiles, which came at a much reduced grade as
the stockpiles were depleted over the year.
* FY 2020 Capex of US$7.7 million was mainly spent on underground development
and infrastructure relating to the Block 5 SLC.
* FY 2021 Capex is guided at ca. US$6 million, primarily relating to the
continuation of the SLC development, the installation of the third crusher and
Stay in Business capex.
Koffiefontein
* ROM production totalled 69,077 carats (FY 2019: 63,635 carats), with ROM
tonnage throughput down 11% on FY 2019, significantly impacted by the COVID-19
related disruptions since March 2020, but overall carats produced up 9% due to
the average ROM grade rising from 6.4 cpht in FY 2019 to 7.7 cpht in FY 2020.
As a result of the COVID-19 disruptions, Koffiefontein’s ROM tonnes treated
for Q4 represented some 35% of the production rate achieved during the
preceding three quarters, with lockdown activities focussed primarily on
mining, while treatment of stockpiled ore has been limited. A ROM stockpile of
70,041 tonnes was available for treatment at Period end.
* FY 2020 Capex of US$3.5 million was mainly spent on the completion of the
SLC development and 56 Level workshop.
* FY 2021 Capex is guided at ca. US$2 million primarily relating to the
finalisation of the 56 Level workshop and other Stay in Business capex.
Williamson
* FY 2020 production totalled 298,130 carats (FY 2019: 399,615 carats),
impacted by the pit slump of approximately 1.3 million tonnes that occurred at
the mine in January 2020 in an area on the south western sector of the pit, as
well as the decision to place the mine on care and maintenance during April
2020.
* Discussions with the Government in relation to various issues, including the
overdue VAT receivables and the blocked diamond parcel, are ongoing but have
been interrupted by the COVID-19 outbreak.
* FY 2020 Capex of US$8.0 million mainly related to in-pit waste removal and
concurrent slimes dam extensions, and the extension of the tailings disposal
infrastructure.
* FY 2021 Capex is guided at ca. US$7 million, primarily related to the
ongoing waste removal, focused mainly on removal of the pit slump material,
and concurrent slimes dam extensions, and the completion of the tailings
disposal facilities. It also includes Stay in Business capex.
Production Outlook
South Africa
* Post the lockdown that came into effect on 26 March 2020, the Company’s
South African operations were reduced to approximately one third of normal
operating levels. From 1 June 2020, South Africa moved to Lockdown Level 3
restrictions, which allowed for a further easing of restrictions and a
subsequent increase in production. Lockdown Level 3 permits mines to allow
100% of their employees to return to work, but imposes strict conditions on
employers to mitigate the risks of COVID-19 transmissions.
* Petra has responded well to these conditions in the areas of awareness and
training, wearing of personal protective equipment (“PPE”), regular
sanitising, maintaining social distance, employee transportation and
screening, testing and the handling of suspected positive cases identified.
All of the procedures have been captured in the Mandatory Codes of Practice
(“MCOP”) for each operation. We are pleased to confirm that all the South
African Operations (Cullinan, Finsch and Koffiefontein) have completed and
signed off their MCOPs for the mitigation and management of the COVID-19
outbreak and that these have been submitted to the Department of Mineral
Resources and Energy (“DMRE”).
* A significant challenge to ramping up operations back to steady state is
allowing all employees to return to work while complying with the social
distancing and hygiene measures vital to the effective implementation of the
MCOPs. Petra has therefore taken the decision, following extensive
consultation and planning in cooperation with the relevant organised labour
and employee stakeholders, to move to “continuous operations” in order to
maximise the number of shifts available and thereby optimise production levels
while the COVID-19 pandemic remains a significant business threat.
Tanzania
* The Williamson mine in Tanzania remains under care and maintenance and
recommencement of operations is dependent on improved market conditions and
rough diamond pricing.
Project 2022 Update
* Project 2022 is not only fully operational across the Group, but its
principles of focused and continuous improvement are being entrenched in the
operating model and are becoming part of the culture of the Company.
* Work to date has resulted in the implementation of various initiatives which
have eliminated or mitigated the impact of bottlenecks in the production
processes of the various mines, resulting in increased throughput as reported.
The focus of the project now also includes a sustainable optimisation of the
Company’s cost structure during this period of reduced revenue generation.
* Prior to the outbreak of COVID-19, the implementation of the project’s
initiatives was firmly on track and was ahead of schedule. The implementation
has, however, been significantly interrupted by the COVID-19 lockdown. When
operations return to full capacity, focused steps will be taken to ensure that
the momentum of idea generation and implementation returns to its pre-lockdown
levels to ensure the delivery of the expected benefits.
REVENUE AND DIAMOND MARKET
Diamond Market
* The diamond market remains severely impacted by the COVID-19 outbreak, which
has significantly reduced activity throughout the pipeline, from production,
rough sales, trading, cutting and polishing right through to consumer sales.
At present very limited rough diamond sales are taking place and there was a
voluntary ban on importing rough diamonds into the cutting and polishing
factories of India in June, which has been extended for the majority of July,
in addition to which many factories remain closed or operating at much reduced
capacity. The industry is hopeful that conditions will improve later this year
as lockdown measures around the world are eased and retail outlets reopened.
* The disruption to supply caused by the COVID-19 pandemic will serve to
exacerbate the longer-term trend of declining supply, as evidenced by the
recently released Kimberley Process Statistics, which saw production by volume
down 12% from 148.4 Mcts in 2018 to 130.3 Mcts in 2019 and down 7% by value
from US$14.5 billion in 2018 to US$13.5 billion in 2019.
* The recently relaunched Natural Diamond Council (previously known as the
Diamond Producers Association) will play a role in supporting the retail
market, with its first major advertising campaign planned for later in the
year.
Diamond Sales and Prices
* FY 2020 revenue decreased 36% to US$295.8 million (FY 2019: US$463.6
million) due to the number of carats sold for the Year decreasing 23% to
2,895,497 carats (FY 2019: 3,736,847 carats) and a weaker diamond market.
* The Company’s tender in February 2020 saw pricing on a like-for-like basis
strengthen marginally in comparison to prices achieved in H1 FY 2020,
reflecting stable market conditions before the COVID-19 pandemic took hold
globally. Overall for the Year, Petra’s realised diamond prices reduced by
ca. 18%, impacted by the major market disruption caused by the COVID-19
pandemic.
* Only limited sales were possible in Q 4 FY 2020 due to the lockdown measures
in place globally. The Company realised some US$10.5 million sales in Q4,
following the partial sale of goods not sold during the March tender, coupled
with relatively low levels of sales in June, mainly to the local South African
cutting and polishing market.
* Since the Year end, the Company sold 574 kcts for US$36.4 million, bringing
the total sales across the South Africa operations for the June / July tender
cycle to US$40.6 million (US$4.2 million of which was included in our June
numbers) from 581.9 kcts sold, mainly through agreements with some of its
long-standing customers; payment terms have been agreed which will see cash
from these sales being received during July and August 2020. The next tender
is planned for September and is most likely to take place in person in
Antwerp; however, the Company will continue to remain flexible in terms of its
approach to diamond sales in order to achieve the best possible route to
market, subject to prevailing market conditions and any COVID-19 related
regulations or restrictions.
* The table below provides the average diamond prices achieved for FY 2020 and
FY 2019, though prices achieved in FY 2020 do not reflect true run-of-mine
averages as the Company chose to withhold certain goods of predominantly
higher quality for sale in Q4 due to the depressed pricing environment.
* The mines continued to recover the full range of diamonds in FY 2020,
including the Cullinan mine where the production profile for the year included
a number of larger white diamonds of high quality, as well as the recovery of
a number of blue diamonds of varying qualities.
Mine FY 2020 US$/ ct FY 2019 US$/ct
Cullinan 98 110
Finsch 75 99
Koffiefontein 387 480
Williamson 177 231
Balance Sheet
* A summary of the Group’s current cash, diamond inventories, debtors,
borrowings and net debt is set out below.
Unit 30 Jun 2020 31 Mar 2020 31 Dec 2019 30 Jun 2019
Exchange rate used for conversion R17.32:US$1 R17.84:US$1 R13.99:US$1 R14.07:US$1
Cash at bank US$M 67.6 77.0 53.6 85.2
Diamond inventories US$M Carats 85.0 1,357,584 61.3 842,144 85.2 992,425 57.5 666,201
Diamond debtors US$M 4.8 14.9 12.8 23.8
US$650 million loan notes including May 2020 deferred coupon of US$23.6 million US$M 673.6 650.0 650.0 650.0
Bank loans and borrowings US$M 52.0 28.0 - -
Net debt US$M 658.0 601.0 596.4 564.8
Bank facilities undrawn and available US$M 0.0 22.4 107.2 106.6
Consolidated net debt for covenant measurement purposes (1, 2) US$M 693.2 627.0 632.9 595.2
Notes:
1. Consolidated Net Debt is bank loans and borrowings plus loan notes, less
cash, less diamond debtors and includes the Black Economic Empowerment
guarantees of ca. US$40.0 million (ZAR693.6 million) as at 30 June 2020 (ca.
US$54.2 million (ZAR762.5 million) as at 30 June 2019).
2. In terms of the Amendment Agreement entered into on 29 May 2020, Petra and
the South Africa lender group have agreed that covenant measurements will not
be undertaken for the period ending 30 June 2020.
Notes to announcement:
1. The following exchange rates have been used for this announcement: average
for the Year US$1:ZAR17.11 (FY 2019: US$1:ZAR14.19); closing rate as at 30
June 2020 US$1:ZAR17.32 (30 June 2019: US$1:ZAR14.07).
2. The following definitions have been used in this announcement: 1. ct: carat
2. cpht: carats per hundred tonnes
3. kcts: thousand carats
4. LTIFR: lost time injury frequency rate; the number of LTIs multiplied by
200,000 and divided by the number of hours worked
5. Mctpa: million carats per annum
6. Mcts: million carats
7. Mt: million tonnes
8. Mtpa: million tonnes per annum
9. ROM: run-of-mine, i.e. relating to production from the primary orebody
10. SLC: sub-level cave, a variation of block caving
~ Ends ~
For further information, please contact:
Petra Diamonds, London Telephone: +44 20 7494 8203
Cathy Malins investorrelations@petradiamonds.com
Des Kilalea
Marianna Bowes
Rothschild & Co
Giles Douglas giles.douglas@rothschildandco.com
Glen Cronin glen.cronin@rothschildandco.com
Mahir Quraishi mahir.quraishi@rothschildandco.com
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. 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 a founder member of the Natural Diamond
Council, which aims to promote the desirability of natural diamonds and
support the integrity of the diamond jewellery industry.
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
APPENDIX
FY 2020 MINE BY MINE PRODUCTION TABLES
Cullinan – South Africa
Unit H2 FY 2020 H1 FY 2020 FY 2020 FY 2019 Variance
Sales
Revenue US$M 34.8 81.7 116.5 171.4 -32%
Diamonds sold Carats 452,898 730,847 1,183,745 1,562,922 -24%
Average price per carat US$ 77 112 98 110 -10%
ROM Production
Tonnes treated Tonnes 1,677,485 2,295,197 3,972,682 4,119,406 -4%
Diamonds produced Carats 627,111 855,371 1,482,482 1,589,707 -7%
Grade (1) Cpht 37.4 37.3 37.3 38.6 -3%
Tailings Production
Tonnes treated Tonnes 140,437 117,112 257,549 956,035 -73%
Diamonds produced Carats 61,502 34,416 95,918 66,222 +45%
Grade (1) Cpht 43.8 29.4 37.2 6.9 +438%
Total Production
Tonnes treated Tonnes 1,817,922 2,412,309 4,230,231 5,075,441 -17%
Diamonds produced Carats 688,613 889,787 1,578,400 1,655,929 -5%
Capex
Expansion Capex US$M 1.9 10.0 11.9 37.2 -68%
Sustaining Capex US$M 1.1 2.0 3.1 6.8 -54%
Borrowing Costs Capitalised US$M 0.0 0.0 0.0 2.3 -100%
Total Capex US$M 3.0 12.0 15.0 46.3 -67%
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.
Finsch – South Africa
Unit H2 FY 2020 H1 FY 2020 FY 2020 FY 2019 Variance
Sales
Revenue US$M 39.4 61.7 101.1 170.2 -41%
Diamonds sold Carats 564,219 783,962 1,348,181 1,711,311 -21%
Average price per carat US$ 70 79 75 99 -25%
ROM Production
Tonnes treated Tonnes 1,185,133 1,534,256 2,719,389 3,073,479 -12%
Diamonds produced Carats 722,971 880,707 1,603,678 1,724,265 -7%
Grade (1) Cpht 61.0 57.4 59.0 56.1 +5%
Tailings Production
Tonnes treated Tonnes 37,374 174,167 211,541 223,568 -5%
Diamonds produced Carats 7,040 32,850 39,890 31,503 +27%
Grade (1) Cpht 18.8 18.9 18.9 14.1 +34%
Total Production
Tonnes treated Tonnes 1,222,507 1,708,423 2,930,930 3,297,047 -11%
Diamonds produced Carats 730,011 913,557 1,643,568 1,755,768 -6%
Capex
Expansion Capex US$M 1.4 4.2 5.6 13.6 -58%
Sustaining Capex US$M 0.5 1.4 2.1 9.1 -76%
Borrowing Costs Capitalised US$M 0.0 0.0 0.0 1.4 -100%
Total Capex US$M 1.9 5.6 7.7 24.1 -68%
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 H2 FY 2020 H1 FY 2020 FY 2020 FY 2019 Variance
Sales
Revenue US$M 11.0 14.7 25.7 28.9 -11%
Diamonds sold Carats 32,163 34,163 66,326 60,291 +10%
Average price per carat US$ 341 431 387 480 -19%
ROM Production
Tonnes treated Tonnes 330,409 561,296 891,705 1,000,726 -11%
Diamonds produced Carats 24,532 44,545 69,077 63,635 +9%
Grade Cpht 7.4 7.9 7.7 6.4 +22%
Total Production
Tonnes treated Tonnes 330,409 561,296 891,705 1,000,726 -11%
Diamonds produced Carats 24,532 44,545 69,077 63,635 +9%
Capex
Expansion Capex US$M 0.8 1.7 2.5 5.2 -51%
Sustaining Capex US$M 0.4 0.6 1.0 0.8 +25%
Total Capex US$M 1.2 2.3 3.5 6.0 -41%
Williamson – Tanzania
Unit H2 FY 2020 H1 FY 2020 FY 2020 FY 2019 Variance
Sales
Revenue US$M 16.6 35.9 52.5 93.0 -44%
Diamonds sold Carats 102,410 194,835 297,245 402,329 -26%
Average price per carat US$ 162 184 177 231 -24%
ROM Production
Tonnes treated Tonnes 1,325,532 2,654,906 3,980,438 5,082,319 -22%
Diamonds produced Carats 72,468 214,888 287,356 386,016 -26%
Grade Cpht 5.5 8.1 7.2 7.6 -5%
Alluvial Production
Tonnes treated Tonnes 103,869 198,698 302,567 413,151 -27%
Diamonds produced Carats 3,311 7,463 10,774 13,599 -21%
Grade Cpht 3.2 3.8 3.6 3.3 8%
Total Production
Tonnes treated Tonnes 1,429,401 2,853,604 4,283,005 5,495,470 -22%
Diamonds produced Carats 75,779 222,351 298,130 399,615 -25%
Capex
Expansion Capex US$M 0.0 0.0 0.0 0.0 0%
Sustaining Capex US$M 2.3 5.7 8.0 8.6 -6%
Total Capex US$M 2.3 5.7 8.0 8.6 -6%
Note:
1. Negatively impacted by the 71,654 carat parcel blocked for export.
CAPEX RECONCILIATION
Capex Unit FY 2020 FY 2019
Cullinan US$M 15.0 46.3
Finsch US$M 7.7 24.1
Koffiefontein US$M 3.5 6.1
Williamson US$M 8.0 8.6
Subtotal – Capex incurred by operations US$M 34.2 85.1
Corporate / exploration US$M 0.4 1.8
Total Group Capex US$M 34.6 86.9
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$0.0 million (FY 2019: US$3.7 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.
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