Petra Diamonds Regulatory News (PDL)

Petra Diamonds Limited

H1 FY 2025 Operating Update

Petra reports its operating results for the first half of FY 2025

Richard Duffy, Chief Executive Officer of Petra, commented:

"Petra delivered a solid operating performance in Q2 FY 2025, leading to total tonnes treated increasing 7% in H1 FY 2025 compared to H1 FY 2024. As a result, we are reiterating our FY 2025 production guidance of 2.8 – 3.1 Mcts for the Group.

Finsch’s performance improved through the first half as mining successfully transitioned into fresher ore associated with the 78-Level Phase II, resulting in reduced dilution and more predictable operations, while Cullinan Mine and Williamson continued to perform well and according to plan. At Cullinan Mine, we continued to make good progress on the CC1E development project, with first contribution of higher grade ore taking place in the second quarter. This project is expected to ramp-up over the next 16-18 months.

In terms of safety, I am pleased that our safety performance has recovered following a temporary increase in LTIs and the LTIFR early in FY 2025, largely relating to the implementation of a new shift configuration at Finsch. Safety remains our top priority and we continue to focus on behaviour-based interventions in support of our goal of zero harm.

Our third Tender of FY 2025 showed ongoing diamond price weakness at the end of CY 2024, although we are encouraged by recent reports of stronger online jewellery demand in the US and stronger jewellery demand in India over the festive season and Diwali, respectively. This, together with reduced supply from the major producers and industry-wide marketing efforts, should help rebalance inventories. On the back of the last tender results, the continued demand weakness from China and the current product mix at Finsch, we have revised our FY 2025 pricing assumptions for Finsch from US$80/ct – US$90/ct to US$70/ct – US$80/ct.  

We remain committed to our target of sustainable net cash generation from FY 2025 and have commenced additional cash generation and savings initiatives, as announced in our Tender 3 results. A multi-stream Restructuring Plan has been initiated, which includes fixed and variable labour cost reductions, non-labour cost reductions, capital optimisation and additional revenue generation initiatives. The Restructuring Plan will form the basis of re-engaging with our lenders to execute on refinancing our debt in 2025. Further details will be provided at our interim results in February 2025.

Notwithstanding the continued market weakness, our consolidated net debt reduced from US$285 million at Q1 FY 2025 to US$225 million at Q2 FY 2025, with the amount drawn on the RCF increasing by US$18 million from 30 June 2024 mainly due to the repurchase of bonds through the Open Market Repurchase Programme."

Highlights vs H1 FY 2024

Operating Summary

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

Our revised pricing assumptions for FY 2025 are:

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.

INVESTOR WEBCASTS

Webcast presentation for institutional investors and analysts at 09:30am GMT today

Petra’s CEO, Richard Duffy, CFO, Johan Snyman, and Chief Restructuring Officer (‘CRO’), Vivek Gadodia, will host a webcast for institutional investors and analysts to discuss this operating update.

Lines will be open from 09:15am GMT and participants are encouraged to register early to avoid queues around the start time of 09:30am GMT.

To join: https://events.teams.microsoft.com/event/f94c5334-91de-49d7-9e21-98996e39ca09@3c08cd12-de9b-4814-9ea3-392066758217

Link for recording (available later in the day):

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

Investor Meet Company webcast at 14.30pm GMT today

Petra's CEO, Richard Duffy, CFO, Johan Snyman, and CRO, Vivek Gadodia, will also present these results live on the Investor Meet Company platform, predominantly aimed at retail investors.

To join: https://www.investormeetcompany.com/petra-diamonds-limited/register-investor

FURTHER INFORMATION

For further information, please contact:

Investor Relations, London

Patrick Pittaway      Telephone: +44 (0)784 192 0021

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) 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 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 December 2024

Note: The following exchange rates have been used for this announcement: average for 6M FY 2025 US$1: ZAR17.93 (FY 2024: US$1: ZAR18.71); closing rate as at 31 December 2024 US$1: ZAR18.85 (30 June 2024: ZAR18.19; 31 March 2024 US$1: ZAR18.92; 31 December 2023: US$1: ZAR18.28; and 30 September 2023: ZAR18.92).

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

Williamson – Tanzania

Capital expenditure breakdown

Notes: