REG-Petra Diamonds Ltd: Q3 FY 2025 Operating & Business Update

Petra DiamondsAnnouncement

Yesterday 07:02

 

 

 22 May 2025  LSE: PDL  

 

 

Petra Diamonds Limited

 

Q3 FY 2025 Operating & Business Update

 

 

Petra is today providing the following operating and business update for Q3 FY
2025. The quarter marked another period of steady operational delivery across
the Group. The Group continued to execute on its short-term priorities,
including labour restructuring, general cost control and disciplined capital
management. Both Cullinan and Finsch Mines maintained their solid
performances, supported by the ongoing focus on safe, stable operations and a
revised cost discipline approach. The Group remains on track to deliver
production guidance for FY 2025 of 2.4 - 2.7 Mcts for the SA Operations.

 

Operationally, Finsch began mining from the 81L block, which should result in
improved quality and higher overall recovered value. As mentioned in the
recent update on 9 April, while production volumes were largely maintained at
Cullinan Mine, it continued to experience weaker product mix. Recovery is
expected to improve as tonnage from the new CC1E sub-level cave ramps up and
extensions to the C-Cut progress, but short-term volatility in product mix is
likely to continue.

 

The partial sale of Tender 5 for Finsch and Williamson was completed in early
April, resulting in total sales of 176kcts sold for US$18 million. Due to the
uncertainty caused by the US tariff announcement, a decision was made to delay
the sale of Tender 5 goods from Cullinan Mine, which we expect to complete in
early June 2025, along with our Tender 6 cycle.  

 

The labour restructuring in support services that was initiated in December
2024 was successfully concluded during the quarter. As an outcome of our Life
of Mine plan reviews, the Cullinan Mine will transition from a Continuous
Operation (Contops) to a 3-shift operation in FY26. Consequently, a Section
189A (retrenchment) consultation process was initiated at the beginning of May
2025.  This process is expected to be completed by mid-July 2025, and marks
the final element of the internal Business Restructuring Plan that was
launched in December 2024.

 

Petra also announced the completion of the sale of Williamson Diamond Mine to
Pink Diamonds. This is in line with streamlining Petra to our two core South
African assets, which present significant value over the long term.

 

Vivek Gadodia and Juan Kemp, interim joint Chief Executive Officers of Petra,
commented:

 

"Alongside the broader diamond sector, Petra has been navigating a very
difficult diamond market. Despite this, Petra has shown considerable
resilience by delivering on its production and cost targets, while undergoing
unprecedented changes in the Business, including the regrettable loss of jobs.
We fully appreciate all the sacrifices, commitment, and hard work of our
employees.

 

We believe the steps we have taken over the past 12 months position Petra well
for a successful refinancing. We will now look to commence engagements with
our lenders on the refinancing of our debt maturing in early 2026.”

 

Highlights vs Q2 FY 2025 (excludes Williamson as a discontinued operation)

 
* LTIFR and LTIs are 3 and 0.42 respectively (Q2 FY 2025: 2 and 0.26
respectively)
* Ore processed reduced marginally to 1.7Mt from 1.8Mt with the continued
ramp-up of production at Finsch offset by lower output from Cullinan mine. ROM
grade performance across both operations is similar to the previous quarter
* Revenue amounted to US$42 million (Q2 FY 2024: US$106 million) with Q2 FY
2025 benefiting from the deferral of Tender 1 FY 2025 to Q2 FY 2025
* The South African Rand weakened following a period of strength, with the
Rand averaging ZAR18.48:US$1 (Q2 FY 2025: ZAR17.89:US$1)
* Capital expenditure for Q3 FY 2025 totalled US$15 million, in-line with
guidance announced following the smoother capital profile implemented in FY
2024
* Bank loans and borrowings represent the Group’s ZAR1.75 billion (US$93
million) revolving credit facility (RCF). As at 31 March 2025, ZAR 1.2 billion
(US$66 million) was drawn, following a drawdown of US$22 million from the RCF
for working capital purposes in February 2025
* Consolidated net debt increased to US$258 million as at 31 March 2025 (31
December 2024: US$225 million) due to working capital requirements
* Balance of Tender 5 and Tender 6 results expected to be announced in June
2025
 

Operating Summary (excludes Williamson as a discontinued operation)

 Safety, sales and production 2  Unit        Three months                             Nine months YTD               
                                 Q3 FY 2025             Q2 FY 2025  Var.  Q3 FY 2024  FY 2025    FY 2024    Var.    
 Safety                                                                                                             
 LTIFR                           -           0.42       0.26        +62%  0.30        0.38       0.24       +58%    
 LTIs                            Number      3          2           +50%  3           9          8          +13%    
                                                                                                                    
 Sales                                                                                                              
 Diamonds sold                   Carats      558,651    1,113,364   -50%  386,444     1,672,034  1,925,777  -13%    
 Revenue 1                       US$m        41.6       105.9       -61%  47.7        156.0      211.3      -26%    
                                                                                                                    
 Production                                                                                                         
 ROM tonnes                      Tonnes      1,585,838  1,640,637   -3%   1,634,715   4,793,312  5,030,571  -5%     
 Tailings and other tonnes       Tonnes      124,703    110,625     +13%  75,100      333,330    262,343    +27%    
 Total tonnes treated            Tonnes      1,710,541  1,751,262   -2%   1,709,815   5,126,642  5,292,914  -3%     
                                                                                                                    
 ROM diamonds                    Carats      563,875    567,301     -1%   562,033     1,649,541  1,748,349  -6%     
 Tailings and other diamonds     Carats      45,920     65,143      -30%  22,227      159,920    102,863    +55%    
 Total diamonds                  Carats      609,795    632,444     -4%   584,260     1,809,461  1,851,212  -2%     

1 Revenue reflects proceeds from the sale of rough diamonds and excludes
revenue from profit share arrangements

2 Re-presented to exclude Williamson which is classified as a discontinued
operation

 

 

 

 


INVESTOR WEBCASTS

 

There will be no investor webcasts for the Q3 FY 2025 Operating Update.

 

FURTHER INFORMATION

 

For further information, please contact:

 

Investor Relations, London

       Telephone: +44 (0)7495470187

Kelsey Traynor     investorrelations@petradiamonds.com

 

 

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 two underground mines in South Africa
(Cullinan and Finsch Mines).

 

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 on the Main Market of the London Stock Exchange under the
ticker 'PDL'. The Company’s loan notes, due in 2026, are listed on EuroNext
Dublin (Irish Stock Exchange). For more information, visit
www.petradiamonds.com.

Corporate and financial summary 31 March 2025 (excludes Williamson as a
discontinued operation)

 

                                          Unit         As at 31 March 2025  As at 31 December 2024  As at 30 September2024  As at 30 June 2024      
 Total cash at bank¹                      US$m         36                   52                      47                      47                      
 Diamond debtors                          US$m         2                    —                       —                       31                      
 Diamond inventories 2                    US$m Carats  31 397,182           27 346,037              84 826,957              28 259,755              
 2026 Loan Notes 3                        US$m         231                  225                     245                     246                     
 Bank loans and borrowings 4              US$m         66                   43                      76                      25                      
 Consolidated Net Debt 5                  US$m         258                  215                     273                     193                     
 Bank facilities undrawn and available 4  US$m         30                   50                      26                      72                      

 

Note: The following exchange rates have been used for this announcement:
average for 9M FY 2025 US$1: ZAR18.12 (H1 FY 2025 US$1: ZAR17.93; 3M FY 2025:
US$1: ZAR17.96; FY 2024: US$1: ZAR18.71); closing rate as at 31 March 2025
US$1: ZAR18.30 (31 December 2024 US$1: ZAR18.85; 30 September 2024: ZAR17.26
and 30 June 2024: ZAR18.19).

 

Notes:
1. The Group’s cash balances excluding Williamson comprise unrestricted
balances of US$18 million, and restricted balances of US$18 million.
2. Recorded at the lower of cost and net realisable value.
3. The 2026 Loan Notes, originally issued following the capital restructuring
(the “Restructuring”) completed during March 2021, have a carrying value
of US$231 million which represents the outstanding principal amount of US$186
million (after the repurchases concluded during H1 FY 2025) plus US$48 million
of accrued interest and is stated net of unamortised transaction costs
capitalised of US$3 million. During H1 FY 2025, Petra purchased and cancelled
2026 Loan Notes with a nominal value of US$24 million through an open market
repurchase programme. 
4. Bank loans and borrowings represent the Group’s ZAR1.75 billion (US$96
million) revolving credit facility (RCF). In August and September 2024, the
Group drew down ZAR855 million (c. US$48 million) from the RCF as a result of
the deferral of South African goods from Tender 1 FY 2025. ZAR500 million (c.
US$28 million) was repaid during November and December 2024. In January 2025,
the Group drew down a further ZAR400 million (US$22 million) from the RCF for
working capital requirements. As at 31 March 2025, a total of ZAR1.205 billion
(US$66 million) was drawn leaving a further balance of ZAR545 million (US$30
million) available for drawdown. 
5. Consolidated Net Debt is bank loans and borrowings plus loan notes, less
cash and diamond debtors.
 


Mine-by-mine tables:

 

Cullinan Mine – South Africa

                          Unit        Three months                             Nine months YTD               
                          Q3 FY 2025             Q2 FY 2025  Var.  Q3 FY 2024  FY 2025    FY 2024    Var.    
 Sales                                                                                                       
 Revenue                  US$m        22.7       69.0        -67%  31.9        100.2      128.5      -22%    
 Diamonds sold            Carats      294,592    640,050     -54%  233,460     934,661    1,098,689  -15%    
 Average price per carat  US$         77         108         -29%  137         107        117        -8%     
                                                                                                             
 ROM Production                                                                                              
 Tonnes treated           Tonnes      1,000,455  1,107,787   -10%  1,164,009   3,197,812  3,379,853  -5%     
 Diamonds produced        Carats      294,220    331,079     -11%  319,490     939,425    969,100    -3%     
 Grade 1                  Cpht        29.4       29.9        -2%   27.4        29.4       28.7       +2%     
                                                                                                             
 Tailings Production                                                                                         
 Tonnes treated           Tonnes      124,703    110,625     +13%  75,100      333,330    262,343    +27%    
 Diamonds produced        Carats      45,920     65,143      -30%  22,227      159,920    102,863    +55%    
 Grade 1                  Cpht        36.8       58.9        -37%  29.6        48.0       39.2       +22%    
                                                                                                             
 Total Production                                                                                            
 Tonnes treated           Tonnes      1,125,158  1,218,412   -8%   1,239,109   3,531,142  3,642,196  -3%     
 Diamonds produced        Carats      340,140    396,222     -14%  341,717     1,099,345  1,071,963  +3%     

 

Note: 1. Petra 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        Three months                           Nine months YTD               
                          Q3 FY 2025           Q2 FY 2025  Var.  Q3 FY 2024  FY 2025    FY 2024    Var.    
 Sales                                                                                                     
 Revenue                  US$m        18.9     36.9        -49%  15.9        55.8       82.9       -33%    
 Diamonds sold            Carats      264,059  473,314     -44%  152,984     737,373    827,088    -11%    
 Average price per carat  US$         72       78          -8%   104         76         100        -24%    
                                                                                                           
 ROM Production                                                                                            
 Tonnes treated           Tonnes      585,383  532,849     +10%  470,706     1,595,499  1,650,718  -3%     
 Diamonds produced        Carats      269,656  236,222     +14%  242,543     710,116    779,249    -9%     
 Grade                    Cpht        46.1     44.3        +4%   51.5        44.5       47.2       -6%     

 

Williamson – Tanzania

                          Unit        Three months                             Nine months YTD               
                          Q3 FY 2025             Q2 FY 2025  Var.  Q3 FY 2024  FY 2025    FY 2024    Var.    
 Sales                                                                                                       
 Revenue                  US$m        15.7       17.8        -12%  17.9        47.5       42.2       +13%    
 Diamonds sold            Carats      93,441     102,151     -9%   90,285      281,022    210,574    +33%    
 Average price per carat  US$         168        174         -4%   198         169        200        -16%    
                                                                                                             
 ROM Production                                                                                              
 Tonnes treated           Tonnes      1,228,755  1,201,668   +2%   1,216,754   3,976,231  3,413,794  +16%    
 Diamonds produced        Carats      80,834     88,469      -9%   81,317      281,706    241,905    +16%    
 Grade 1                  Cpht        6.6        7.4         -11%  6.7         7.1        7.1        -       

Notes:
1. The following definitions have been used in this announcement:
1. cpht: carats per hundred tonnes
2. LTIs: lost time injuries
3. LTIFR: lost time injury frequency rate, calculated as the number of LTIs
multiplied by 200,000 and divided by the number of hours worked
4. FY: financial year ending 30 June
5. CY: calendar year ending 31 December
6. H: half of the financial year
7. ROM: run-of-mine (i.e. production from the primary orebody)
8. m: million
9. Mt: million tonnes
10. Mcts: million carats
11. ktcs: thousand carats
 

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