REG-Petra Diamonds Ltd: Company update and appointment of Chief Financial Officer

Petra DiamondsAnnouncement

27/06/2024 07:15

 

 

 27 June 2024   LSE: PDL   

 

 

Petra Diamonds Limited

(Petra, the Company or the Group)

 

Company update and appointment of Chief Financial Officer

 

 

Petra will be hosting an Investor Day in London today at 14:00 BST.

 

This will include an overview of revised Life-of-Mine (LOM) plans for Cullinan
Mine and Finsch as well as the long-term potential of these assets. We will
also provide a brief update on the business, current state of the diamond
market, a financial overview of the Company and 5-year guidance. A
presentation will be published on our website at 2pm BST:

https://www.petradiamonds.com/investors/results-reports-presentations/.

 

The event is being hosted in person and online, with details below.

 

Richard Duffy, Chief Executive at Petra, commented:

 

“We have worked hard to deliver an updated business profile in response to
ongoing market challenges and to further enhance our resilience to future
market and capital cycles. We are pleased to present a de-risked production
profile focused on sustainable cash generation, having reduced costs by US$30
million annually from FY 2025 and delivering a smoothed capital programme
self-funded until at least the early 2030s. In doing so, we provide a
compelling value proposition, while positioning for a successful refinancing
of our 2026 2L Notes.

 

We also announce today the appointment of Johan Snyman as CFO from October.
Johan has made significant contributions to Petra since joining in January and
I look forward to working with him in his new role.”

 

Highlights include:

 
* Sustainable reduction in operating costs of US$30m per annum from FY 2025
* Total capital (development and sustaining capital) profile smoothed to
c.US$100m per annum at Petra’s South African operations to target free cash
generation through the cycle
* Approved extension projects expected to be self-funded 
* Production growth to over 3.4 Mcts expected by FY 2028
* Cullinan Mine LOM potential to FY 2048 with new shaft for D-Cut not required
before 2035 (subject to further studies)
* Finsch LOM potential to FY 2038
 

CFO Succession

Petra is also pleased to announce the appointment of Johan Snyman as Chief
Financial Officer, with effect from 1 October 2024. Johan will succeed Jacques
Breytenbach who, as previously announced, will be stepping down from his
position as Chief Financial Officer and Director of the Company at the end of
September 2024 for personal reasons. Johan joined Petra in January 2024 as
Group Financial Controller. Prior to joining, Johan was Vice President, Group
Financial Reporting at AngloGold Ashanti Limited where he worked for 17 years.
Johan has extensive experience in various financial roles in the mining
sector. He started his career at KPMG and is a qualified Chartered Accountant
with an MBA (University of Cape Town).

Debt Optimisation, Group Guidance & Pricing Assumptions

Petra also announces that, as part of our focus on debt optimisation, we have
further reduced our 2L Notes through open market purchases totalling US$5
million.

 

Group guidance for FY 2025 to 2029, indicative estimates of FY 2024
performance and pricing assumptions for FY 2025 are set out below.

 

Group guidance for FY 2025 to 2029

 

                             Unit  FY25     FY26     FY27     FY28     FY29     
 Total carats recovered      Mcts  2.8-3.1  2.9-3.3  3.1-3.5  3.4-3.7  3.4-3.7  
 Cash on-mine costs and G&A  US$m  241-257  241-257  227-242  239-255  251-266  
 Extension capex             US$m  62-67    86-93    78-84    81-88    41-44    
 Sustaining capex            US$m  26-30    25-28    21-23    22-25    23-25    

 Notes: Guidance for FY 2026 to 2029 is subject to the Board’s approval of
future budgets

Real amounts stated in FY 2025 money terms using 6% SA CPI & 2.5% US CPI. US$
equivalent for SA operations converted at exchange rate of USD1:ZAR18.36

Detailed mine-by-mine guidance for FY 2025 to 2029 will be included in the
presentation to be published on our website 

 

Indicative estimates of FY 2024 performance

                             Unit  FY 2024e       
 Total carats recovered      Mcts  2.74 – 2.78    
 Cash on-mine costs and G&A  US$m  261-269        
 Extension capex             US$m  56-57          
 Sustaining capex            US$m  29-30          

 

Pricing assumptions for FY 2025

 US$ per carat  FY 2025  
 Cullinan Mine  125-135  
 Finsch         98-105   
 Williamson     200-225  

 

Future diamond prices are influenced by a range of factors outside of
Petra’s control and so these assumptions are internal estimates only.
Accordingly, no reliance should be placed on them. The Company assumes no
responsibility to update these market pricing assumptions.

 

This announcement includes inside information as defined in Article 7 of the
Market Abuse Regulation No. 596/2014 and is being released on behalf of
Petra by the Company Secretary.

 

INVESTOR DAY PRESENTATION DETAILS

 

Investor Day in person event to be held at: One Heddon St, London, W1B 4BD

 

Live webcast of presentation

Please register at https://brrmedia.news/PDL_ID24

 

If you have any questions, please call +44 7841 920021 or email:
investorrelations@petradiamonds.com .

 

Recording of presentation

A recording of the webcast will be available later today on Petra’s website
at https://www.petradiamonds.com/investors/results-reports-presentations/

 

 

FURTHER INFORMATION

 

For further information please contact:

 

Investor Relations, London

Patrick Pittaway      Telephone: +44 7841 920021

Julia Stone      investorrelations@petradiamonds.com

Kelsey Traynor

 

 

 

ABOUT PETRA DIAMONDS

 

Petra Diamonds is a leading independent diamond mining group and a supplier of
gem quality rough diamonds to the international market. The Company’s
portfolio incorporates interests in three underground mines in South Africa
(Cullinan Mine, Finsch and Koffiefontein) and one open pit mine in Tanzania
(Williamson). The Koffiefontein mine is currently on care and maintenance in
preparation for a possible sale following the execution of a definitive sales
agreement as announced on 8 April 2024.

 

Petra's strategy is to focus on value rather than volume production by
optimising recoveries from its high-quality asset base in order to maximise
their efficiency and profitability. The Group has a significant resource base
which supports the potential for long-life operations.

 

Petra strives to conduct all operations according to the highest ethical
standards and only operates in countries which are members of the Kimberley
Process. The Company aims to generate tangible value for each of its
stakeholders, thereby contributing to the socio-economic development of its
host countries and supporting long-term sustainable operations to the benefit
of its employees, partners and communities.

 

Petra is quoted with a premium listing on the Main Market of the London Stock
Exchange under the ticker 'PDL'. The Company’s loan notes due in 2026 are
listed on the Irish Stock Exchange and admitted to trading on the Global
Exchange Market. For more information, visit www.petradiamonds.com.

 

 

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