Petra Diamonds Regulatory News (PDL)

Petra Diamonds Limited

(Petra or the Company)

Q3 FY 2024 Operating Update and Final Sales Results for Tender 5 FY 2024

Richard Duffy, Chief Executive Officer of Petra, commented:

“Production for the quarter is consistent with the preceding quarter and in-line with expectations. At Finsch, the first of the 78-Level Phase II production tunnels was successfully commissioned in March 2024, with commissioning of the remaining six tunnels expected to be completed by June 2024. We confirm our FY 2024 production guidance of 2.75 – 2.85 Mcts.

Our fifth tender cycle yielded US$49 million from the sale of 362kcts. Average prices per carat received were 22% higher than Tender 4, supported by the sale of a 14.76ct exceptional colour and clarity blue diamond for US$8.2 million. Like-for-like1 prices were relatively flat through this seasonally weaker period, being 0.8% lower than Tender 4.

We continue to update our life of mine plans to support our transition to a smoother capex profile. This includes a replanned ramp-up of the deferred capital projects from Q1 FY 2025.

On 8 April 2024, we announced the signing of a definitive transaction agreement for the sale of Koffiefontein which is expected to result in Petra avoiding closure-related costs of US$15-18 million included in the Company’s 31 December 2023 balance sheet provisions. We also announced an increased cost savings target of more than US$30 million per annum that will sustainably lower our cost base. Around half of these savings are expected to come through a rebasing of fixed and variable costs in-line with reduced throughput at Finsch, with the remaining half as savings across operating costs and overheads at the Group level and Cullinan Mine.

During the quarter we repaid US$23m of our RCF to reduce interest costs and had available liquidity of US$104 million at the end of Q3 FY 2024. While net debt had increased at the end of Q3 FY 2024, proceeds from the recently-closed Tender 5 have more than offset this increase. Together with the actions taken to sustainably reduce costs, this further enhances our business resilience.”

[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

Highlights vs Q2 FY 2024

Final sales results for Tender 5 FY 2024

The sales of the fifth tender cycle of FY 2024 closed this week with 362kcts sold yielding US$49 million, with average prices increasing 22% over Tender 4, noting a marginal 0.8% decrease in like-for-like prices. Around 48kcts of Tender 5 goods were sold in Q3 FY 2024 yielding some US$17 million.

These results include a 14.76ct exceptional colour and clarity blue gemstone recovered from the Cullinan Mine which the Company sold into a partnership agreement with sale proceeds of US$8.2 million.

Rough diamond sales results for the respective periods are set out below:

Note 1: Exceptional Stones are defined as rough diamonds for US$15 million or more each.

Sales

Total revenue YTD FY 2024 from rough diamond sales is US$285 million, compared to US$316 million in the first five tenders of FY 2023, excluding Koffiefontein. Year-on-year volume variances were affected by the deferral of certain FY 2023 sale parcels sold as part of Tender 1 of FY 2024.

Mine by mine average prices for the respective periods are set out in the table below:

Like-for-like prices

Like-for-like rough diamond prices decreased marginally by 0.8% on Tender 4 FY 2024. Prices for plus 2ct goods remained solid, while prices for smaller goods showed some seasonal weakness contributing to the overall decline. Average like-for-like prices for the first five tenders of FY 2024 were down 8.5% year-to-date compared to the equivalent five tenders of FY 2023. Pricing assumptions for the remainder of the year remain unchanged.

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.

Product Mix

The balance of price movements is attributable to product mix, with Cullinan Mine benefiting from the 14.76ct blue stone which sold for US$8.2 million in this cycle. Williamson’s average price was impacted by reduced prevalence of higher-valued single stones, ascribed to the mining areas currently accessed and expected to be temporary in nature.

Operating Summary

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

2 Petra classifies “Exceptional Stones” as rough diamonds which sell for US$15 million or more each

3 Re-presented to exclude Koffiefontein which is classified as a discontinued operation

INVESTOR WEBCASTS

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

Petra’s CEO, Richard Duffy, and CFO, Jacques Breytenbach, will host a live virtual presentation including Q&A for institutional investors and analysts at 09:30 BST today to discuss this operating update.

To join: https://events.teams.microsoft.com/event/cfe4e98b-bdfa-4060-847a-2549a20f9fbe@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 BST today

Petra’s CEO, Richard Duffy, and CFO, Jacques Breytenbach, 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

Please contact

Investor Relations, London

Patrick Pittaway      Telephone: +44 20 7494 8203

Julia Stone      investorrelations@petradiamonds.com

Kelsey Traynor

Notes:

The following definitions have been used in this announcement:

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 mines in South Africa (Cullinan Mine, Finsch and Koffiefontein) and one open pit mine in Tanzania (Williamson). The Koffiefontein mine is currently on care and maintenance in preparation for a possible sale following the execution of a definitive sales agreement as announced on 8 April 2024.

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 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 as at 31 March 2024

Note: The following exchange rates have been used for this announcement: average for 9M FY 2024 US$1: ZAR18.75 (H1 FY2024: US$1: ZAR18.69; FY 2023: US$1: ZAR17.77; 3M FY 2024: US$1: ZAR18.65); closing rate as at 31 March 2024 US$1: ZAR18.92 (31 December 2023: US$1: ZAR18.28; 30 June 2023: US$1: ZAR18.83 and 30 September 2023: US$1: 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

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

FY 2024 Capital expenditure breakdown