Q1 FY 2023 Operating Update

Petra Diamonds Ltd - Q1 FY 2023 Operating Update

PR Newswire

London, October 24

Petra Diamonds Limited

Q1 FY 2023 Operating Update

Petra reports strong operating results for the first quarter of FY 2023

Richard Duffy, Chief Executive Officer of Petra, commented:

“Petra continued its solid and safe operating performance into the first quarter of FY 2023. We maintain our production guidance for the year, although expect this will be towards the lower end of the range for Cullinan Mine and Finsch. We are very pleased with the successful tender offer for our bonds that has further strengthened our balance sheet through a reduction in gross debt of US$143.6m over the quarter which will save Petra some US$14m in annual interest payments.”

Highlights

1 Revenue reflects proceeds from the sale of rough diamonds and excludes revenue from profit share arrangements (as noted in the text above)

Strong and safe production

Balance sheet further strengthened through successful debt tender offer

Outlook

We continue to benefit from the operational improvements we have made across the business which provide for greater stability and resilience. We will continue to seek to mitigate the impact of the recent challenges experienced at Cullinan Mine and Finsch and remain confident in our ability to generate cash to fund capex, allow further deleveraging and the payment of dividends.

While our operations have benefitted from a weaker Rand, we continue to closely monitor the current macro-economic uncertainties, particularly the impact of inflation on our cost base, and the impact of sanctions on Russian producers as well as the ongoing implications of COVID-19 on demand in China. The backdrop of structural changes to the supply and demand fundamentals in the diamond market remains unchanged and we anticipate it to remain supportive going forward, although we expect some short-term volatility driven largely by the ongoing lockdowns in China.

We have extended the closing of our second sales tender for FY 2023 for a portion of our gem and near gem quality goods, particularly in the +1ct to 5ct size ranges, as a result of unusual market conditions with some build up in inventory pre-Diwali. Pricing in other size categories are in line with expectations. We will confirm the sales results for this tender around mid-November. This extension is not currently expected to have any impact on the closing of our third sales tender.

CONFERENCE CALLS

09:30am and 16:00 BST today

Petra’s CEO, Richard Duffy, and CFO, Jacques Breytenbach, will host calls today to discuss this trading update at 09:30 and 16:00 BST.

Registration for calls:

United Kingdom 0800 640 6441

South Africa 087 550 8441

United States (Local) 1 646 664 1960

All other locations +44 20 3936 2999

09:30: Access code: 511492

16:00: Access code: 342891

Press *1 to ask a question, *2 to withdraw your question, or *0 for operator assistance.

Link for recording (available later today): 

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

Investor Meet webcast at 11.30 BST

Petra will present the results on the Investor Meet Company platform, predominantly aimed at retail investors. To join: https://www.investormeetcompany.com/petra-diamonds-limited/register-investor

FURTHER INFORMATION

Please contact

Petra Diamonds, London Telephone: +44 207494 8203Patrick Pittaway [email protected]Julia Stone

Notes:

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 producing 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 of ca. 226.6 million carats, 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.

Corporate and financial summary 30 September 2022

Note: The following exchange rates have been used for this announcement: average for Q1 FY 2023 US$1: ZAR17.02 (FY 2022: US$1: ZAR15.22); closing rate as at 30 September 2022 US$1: ZAR18.15 (30 June 2022: US$1: ZAR16.27).

Notes:

Mine-by-mine tables:

Cullinan Mine – South Africa

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

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.

Williamson - Tanzania

Koffiefontein – South Africa

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.