Petra Diamonds Ltd - Q1 FY 2025 operating update and final sales results for Tenders 1 and 2 FY 2025
22 October 2024 LSE: PDL
( Petra or the Company )
Q1 FY 2025 operating update and final sales results for Tenders 1 and 2 FY 2025
“Following changes to the mine plans announced at our Investor Day, diamond production increased 7% from the previous quarter on the back of solid performances from
Reflecting our agility to respond to weaker market conditions, we announced the decision to defer the sale of the majority of our South African goods from Tender 1 in August/September to support steps taken by major producers to manage supply. Our combined first and second tenders indicate continued weakness in the rough diamond market, more than offset by Petra’s product mix. Overall average prices increased 13% compared to the previous tender, with product mix contributing 22%, partially offset by a 9% decrease in like-for-like
[1]
prices. Product mix showed improvement across the operations, with
Revenue recorded in Q1 FY 2025 only reflects the proceeds of
I am pleased to confirm completion of the sale of Koffiefontein to
A further review of cash generation opportunities is currently underway to mitigate the impact of ongoing weakness in the diamond market and a stronger Rand, and we remain committed to our target of net cash generation for the full year in FY 2025. We continue to expect prices to show some improvement in CY 2025, with market fundamentals being supportive in the medium-to-longer term.”
Highlights vs Q4 FY 2024
-- LTIFR and LTIs increased to 0.28 and 4, respectively, (Q4 FY 2024: 0.13
and 2, respectively) resulting in Petra implementing a number of
behaviour-based interventions aimed at improving health and safety
performance
-- Ore processed increased by 7% to 3.2Mt from 3.0Mt largely due to
improved performance at Finsch and Williamson
-- The phased ramp-up of the 78-Level phase II has now been completed at
Finsch, with tonnes treated increasing 7%, but with run-of-mine grades
down 14% due to mining the last remaining level of the sub-level cave.
We expect grades to improve as a result of enhanced grade control
measures and a higher proportion of less-diluted ore from 78-Level phase
II
-- Diamonds produced increased to 679,625 carats (Q4 FY 2024: 636,743
carats) largely due to higher grades at Cullinan Mine and higher tonnes
mined and grade improvements at Williamson
-- Revenue, including profit share arrangements, amounted to US$23 million
(Q4 FY 2024: US$113 million ), impacted by the deferral of the majority
of our South African goods from Tender 1
-- A stronger South African Rand has impacted US$-denominated costs, with
the Rand averaging ZAR17 .96:US$1 (Q4 FY 2024: ZAR18 .71:US$1 ). The impact
for the quarter was mostly mitigated through our currency hedging
programme
-- Capital expenditure for Q1 FY 2025 totalled US$16 million which is
in-line with guidance
-- A US$48 million drawdown was made under the ZAR1.75 billion (US$101
million ) Revolving Credit Facility with Absa Bank, leaving an
outstanding balance of ZAR1.30 billion (US$76 million ) at 30 September
2024
-- Consolidated net debt increased to US$285 million as at 30 September
2024 (30 June 2024 : US$201 million ) due to the deferral of the majority
of our South African goods from Tender 1
Final sales results for Tenders 1 and 2 FY 2025
Sales for the first and second tender cycles of FY 2025 closed this week, yielding
Rough diamond sales results for the respective periods are shown below.
_____________________________________________________________________________ | |Tenders 1-2|Tender 7| |YTD |YTD | | | | | | | | | | | |FY 2025 |FY 2024 |Variance|FY 2025 |FY 20241 |FY 2024 | | | | | | | | | | |Oct 24 |Jun 24 | |Tenders 1-2|Tenders 1-2| | |_____________|___________|________|________|___________|___________|_________| |Diamonds sold|600,161 |337,064 |78% |600,161 |1,191,493 |3,158,780| |(carats) | | | | | | | |_____________|___________|________|________|___________|___________|_________| |Sales (US$ |76 |38 |100% |76 |131 |366 | |million) | | | | | | | |_____________|___________|________|________|___________|___________|_________| |Average price|126 |111 |13% |126 |110 |116 | |(US$/ct) | | | | | | | |_____________|___________|________|________|___________|___________|_________|
1 Revenue and volume variances were impacted by the deferral of the final tender of FY 2023 into FY 2024, leading to higher sales in the comparative YTD FY 2024 period.
Price comparison by operation
Mine by mine average prices for the respective periods are set out in the table below:
__________________________________________________________________ | |Tenders 1-2|Tender 7| | | | | | | |YTD FY 2025|YTD FY 2024| | |US$/carat |FY 2025 |FY 2024 | | |FY 2024| | | | |Tenders 1-2|Tenders 1-2| | | |Oct 24 |Jun 24 | | | | |_____________|___________|________|___________|___________|_______| |Cullinan Mine|1462 |111 |146 |101 |116 | |_____________|___________|________|___________|___________|_______| |Finsch |84 |93 |84 |103 |98 | |_____________|___________|________|___________|___________|_______| |Williamson |164 |158 |164 |203 |191 | |_____________|___________|________|___________|___________|_______|
2
Including the 88kcts of brown goods withdrawn at a revenue of
Pricing assumptions for the remainder of the year remain unchanged:
_______________________ |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 and no reliance should be placed on them. The Company’s pricing assumptions will be considered on an ongoing basis and may be updated as appropriate.
Operating Summary
FY 2025 FY 2024
Unit
Q1 Q4 Var. Q1 Var. 12 months
Safety
LTIFR Rate 0.28 0.13 115% 0.12 133% 0.16
LTIs Number 4 2 100% 2 100% 10
Sales
Diamonds sold Carats 85,449 1,022,430 -92% 932,431 -91% 3,158,780
Revenue1 US$m 23 112 -80% 98 -77% 366
Production
ROM tonnes Mt 3,112,645 2,880,975 8% 2,717,486 15% 11,325,340
Tailings and other Mt 98,002 107,203 -9% 91,008 8% 369,546
tonnes
Total tonnes treated Mt 3,210,647 2,988,178 7% 2,808,494 14% 11,694,886
ROM diamonds Carats 630,768 603,217 5% 652,021 -3% 2,593,471
Tailings and other Carats 48,857 33,526 46% 44,618 10% 136,389
diamonds
Total diamonds Carats 679,625 636,743 7% 696,639 -2% 2,729,861
1 Revenue reflects proceeds from the sale of rough diamonds and excludes revenue from profit share arrangements
INVESTOR WEBCASTS
Webcast presentation for institutional investors and analysts at
Petra’s CEO,
Lines will be open from
Link for recording (available later in the day):
https://www.petradiamonds.com/investors/results-reports/
Petra’s CEO,
FURTHER INFORMATION
Please contact
Investor Relations,
Notes:
The following definitions have been used in this announcement:
a. cpht: carats per hundred tonnes
b. LTIs: lost time injuries
c. LTIFR: lost time injury frequency rate, calculated as the number of LTIs
multiplied by 200,000 and divided by the number of hours worked
d. FY: financial year ending 30 June
e. CY: calendar year ending 31 December
f. Q: quarter of the financial year
g. ROM: run-of-mine (i.e. production from the primary orebody)
h. m: million
i. Mt: million tonnes
j. period: the first quarter of FY 2025
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 two underground mines in
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
Corporate and financial summary as at
______________________________________________________________________________ | | |As at 30 |As at 30 June|As at 31|As at 31|As at 30 | | |Unit |September| |March |December|September| | | | |2024 | | | | | | |2024 | |2024 |2023 |2023 | |___________________|______|_________|_____________|________|________|_________| |Cash at bank – | | | | | | | |(including |US$m |36 |40 |37 |75 |74 | |restricted | | | | | | | |amounts)¹ |US$m |47 |47 |42 |85 |73 | | | | | | | | | | -- Petra Group|US$m |(11) |(7) |(5) |(10) |1 | | (excl. | | | | | | | | Williamson)| | | | | | | |____--__Williamson_|______|_________|_____________|________|________|_________| |Diamond debtors |US$m |— |31 |11 |8 |33 | |___________________|______|_________|_____________|________|________|_________| |Diamond |US$m |92 |32 |71 |54 |52 | |inventories2 | | | | | | | | |Carats|880,479 |286,303 |671,989 |483,142 |479,430 | |___________________|______|_________|_____________|________|________|_________| |2026 Loan Notes3 |US$m |245 |246 |256 |249 |255 | |___________________|______|_________|_____________|________|________|_________| |Bank loans and |US$m |76 |25 |24 |47 |45 | |borrowings4 | | | | | | | |___________________|______|_________|_____________|________|________|_________| |Consolidated Net |US$m |285 |201 |232 |212 |192 | |Debt5 | | | | | | | |___________________|______|_________|_____________|________|________|_________| |Bank facilities | | | | | | | |undrawn and |US$m |26 |72 |69 |8 |8 | |available4 | | | | | | | |___________________|______|_________|_____________|________|________|_________|
Note:
The following exchange rates have been used for this announcement: average for 3M FY 2025 US$1:
Notes:
1. The Group’s cash balances excluding Williamson comprise unrestricted
balances of US$27 million , and restricted balances of US$20 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$245 million which represents the outstanding principal amount of US$199
million (after the repurchases concluded during Q1 FY2025) plus US$52
million of accrued interest and is stated net of unamortised transaction
costs capitalised of US$6 million . During quarter 1 of FY 2025 Petra
purchased and cancelled 2026 Loan Notes with a nominal value of US$8
million through an open market repurchase programme.
4. Bank loans and borrowings represent the Group’s ZAR1.75 billion (US$101
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. As at 30
September 2024 , a total of ZAR1 305 million (US$76 million ) was drawn
leaving a further balance of ZAR445 million (US$26 million ) available for
drawdown.
5. Consolidated Net Debt is bank loans and borrowings plus loan notes, less
cash and diamond debtors.
Mine-by-mine tables:
FY 2025 FY 2024
Unit
Q1 Q4 Var. Q1 Var. 12 months
Sales
Revenue US$m 9 61 -86% 51 -83% 189
Diamonds sold Carats 19 534,767 -100% 519,362 -100% 1,633,456
Average price per US$ 450,928 113 +100% 98 +100% 116
carat
ROM Production
Tonnes treated Tonnes 1,089,570 1,117,591 -3% 1,137,436 -4% 4,497,444
Diamonds produced Carats 314,126 299,301 5% 318,261 -1% 1,268,402
Grade1 Cpht 28.8 26.8 8% 28.0 3% 28.2
Tailings Production
Tonnes treated Tonnes 98,002 107,203 -9% 91,008 8% 369,546
Diamonds produced Carats 48,847 33,526 46% 44,618 10% 136,389
Grade1 Cpht 49.9 31.3 59% 49.0 2% 36.9
Total Production
Tonnes treated Tonnes 1,187,572 1,224,795 -3% 1,228,443 -3% 4,866,990
Diamonds produced Carats 362,983 332,828 9% 362,879 0% 1,404,791
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 –
FY 2025 FY 2024
Unit
Q1 Q4 Var. Q1 Var. 12 months
Sales
Revenue US$m - 37 -100% 39 -100% 120
Diamonds sold Carats - 400,322 -100% 375,214 -100% 1,227,409
Average price per carat US$ - 93 -100% 104 -100% 98
ROM Production
Tonnes treated Tonnes 477,267 446,012 7% 544,140 -12% 2,096,730
Diamonds produced Carats 204,238 222,387 -8% 259,864 -21% 1,001,636
Grade1 Cpht 42.8 49.9 -14% 47.8 -10% 47.8
Williamson –
FY 2025 FY 2024
Unit
Q1 Q4 Var. Q1 Var. 12 months
Sales
Revenue US$m 14 15 -4% 8 82% 59
Diamonds sold Carats 85,430 87,341 -2% 37,856 126% 297,915
Average price per carat US$ 164 168 -2% 203 -19% 191
ROM Production
Tonnes treated Tonnes 1,545,808 1,317,372 17% 1,035,911 49% 4,731,166
Diamonds produced Carats 112,404 81,529 38% 73,896 52% 323,434
Grade1 Cpht 7.3 6.2 17% 7.1 2% 6.8
Capital expenditure breakdown
______________________________________________________ |US$m |Q1 FY 2025 |FY 2024| |_____________|________________________________|_______| | |Extension|Stay-in-Business|Total|Total | |_____________|_________|________________|_____|_______| |Cullinan Mine|8 |0 |8 |48 | |_____________|_________|________________|_____|_______| |Finsch |5 |1 |6 |25 | |_____________|_________|________________|_____|_______| |Williamson |- |2 |2 |10 | |_____________|_________|________________|_____|_______| |Total |13 |3 |16 |83 | |_____________|_________|________________|_____|_______|
[1] Like-for-like refers to the change in realised prices between tenders and excludes revenue from all single stones and Exceptional Stones, while normalising for the product mix impact
4054310_0.jpeg
