REG - Petra Diamonds Ltd - Postponement of Tender 6 FY 2023

Petra DiamondsAnnouncement

07/06/2023 07:00

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RNS Number : 8761B  Petra Diamonds Limited  07 June 2023

FOR IMMEDIATE RELEASE

 7 June 2023  LSE: PDL

 

Postponement of Tender 6 FY 2023

 

Richard Duffy, Chief Executive Officer of Petra Diamonds (Petra), said:

 

"In light of what we expect to be a temporary slowdown in the market for rough
diamonds as a result of elevated inventory in the mid-stream, we have taken
the decision to postpone the majority of our Tender 6 rough diamond sales. Our
ability to be flexible in the timing of our tenders is attributable to our
strengthened balance sheet and the resilience of our business. This will defer
sales revenues for only a relatively short period and we believe it is in the
best interests of the business and shareholders.

 

The diamonds originally earmarked for sale in June will now be tendered in
August, which historically coincides with stronger demand due to the end of
Northern Hemisphere summer holidays and the commencement of manufacturing
orders being filled ahead of the seasonally strong end of year festive
period."

 

The previously planned Tender 6 in June 2023 would have offered c.230kct of
goods for sale from Cullinan Mine and c.150kct from Finsch. Instead, these
goods, together with the 75.9kcts of predominantly higher value stones
withheld from Tender 5 as well as run of mine production from both Cullinan
Mine and Finsch, will be offered for sale in our first tender of FY 2024 which
is expected to be held in August 2023.

 

As a result of Petra's financial year end falling on the 30 June 2023, the
deferral of sales from FY 2023 into FY 2024 will impact Petra's revenues and
financial results in both financial years. The Company is confident that the
deferral of sales revenues for a relatively short period of time is in the
best interests of the business and is manageable from a liquidity perspective
without having to draw on its ZAR1 billion (US$52 million) revolving credit
facility.

 

Petra expects to announce its preliminary results for FY 23 on 12 September
2023.

 

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

 

For further information, please contact:

 

Petra Diamonds, London                 Telephone: +44 20 7494
8203

Patrick
Pittaway
investorrelations@petradiamonds.com
(mailto:investorrelations@petradiamonds.com)

Julia Stone

 

Camarco (Financial PR)

Gordon
Poole
Telephone: +44 20 3757 4980

Owen
Roberts
petradiamonds@camarco.co.uk (mailto:petradiamonds@camarco.co.uk)

Elfie Kent

 

 

About Petra Diamonds Limited

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
(Finsch, Cullinan Mine and Koffiefontein) and one open pit 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
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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