Last checked at 28 Jun 2017 07:00
This announcement contains inside information
28 June 2017 | LSE: PDL |
Petra Diamonds Limited
("Petra", "the Company" or "the Group")
Market Update
Petra Diamonds Limited announces the following market update with respect to progress with its capital programmes, production profile and its upcoming results for the year ended 30 June 2017 ("FY 2017" or "the Year").
The Company is on track to achieve record revenue and production figures in FY 2017. However, due to the slower than anticipated build-up of its expansion programmes across its operations, production is now estimated to be ca. 8-9% lower than guidance of ca. 4.4 million carats. As a result, revenue is expected to be ca. 8-9% below market consensus and financial results for the Year are therefore also forecast to be below market expectations.
The Company has now reached an operational run rate across the Group which supports FY 2018 production guidance of ca. 5 million carats (which, as stated before, is being reached a year earlier than originally anticipated). While the ramp-up of production from the sub level cave at Finsch took longer than expected, it is now operating at the required levels. At the new Cullinan plant, both mills and crushing circuits have now been commissioned, with the first mill and crushing circuit having been run very successfully for over a month. As previously announced, all untreated ROM stockpile material at Cullinan (which will total ca. 400-450 Kt at Year end) will be processed in H1 FY 2018. Petra has also built up a ROM stockpile at Kimberley Ekapa Mining of ca. 100 Kt.
With respect to the covenants relating to its banking facilities, the Company has had initial constructive discussions with its lender group and is confident that the likely shortfall in the upcoming ratio measurement, arising from the lower production levels, will not present an issue.
Petra will release its FY 2017 Trading and FY 2018 Guidance Update on 24 July 2017.
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For further information, please contact:
Petra Diamonds, London Telephone: +44 20 7494 8203
Cathy Malins cathy.malins@petradiamonds.com
Cornelia Grant cornelia.grant@petradiamonds.com
Buchanan Telephone: +44 20 7466 5000
(PR Adviser) pdl@buchanan.uk.com
Bobby Morse
Anna Michniewicz
About Petra Diamonds Limited
Petra Diamonds is a leading independent diamond mining group and an increasingly important supplier of rough diamonds to the international market. The Company has interests in five producing operations: three underground mines in South Africa (Finsch, Cullinan and Koffiefontein), the Kimberley Ekapa Mining joint venture (including the Kimberley Underground mine and extensive tailings retreatment operations) and one open pit mine in Tanzania (Williamson). It also maintains an exploration programme in Botswana.
Petra has a core objective to steadily increase annual production to ca. 5.3 million carats by FY 2019. The Group has a significant resource base in excess of 300 million carats.
Petra conducts all operations according to the highest ethical standards and will only operate in countries which are members of the Kimberley Process. Petra is quoted with a premium listing on the Main Market of the London Stock Exchange under the ticker 'PDL' and is a constituent of the FTSE4Good Index. For more information, visit www.petradiamonds.com.