Petra Diamonds (PDL-LN):
Q1 2017 (1 July – 21 October 2016), production up 30% over Q1 2016 to 1,097,523 carats, due to the positive increase to initial production from undiluted areas, improving run-of-mine (RoM) grades at both Cullinan and Finsch and increased tailings production from Kimberley Ekapa Mining. The company is on track to be cash flow positive from H2 FY 2017.
Q1 reveue generated was US$94.7m from the sale of 745,447 carats, (Q1 2016: no tender held).
A second tender was closed after the Q1 reporting period which generated US$66.4m from the sale of 574k carats; prices held firm with year-to-date rough diamond prices, remaining flat in comparison to H2 FY 2016. A third and final tender will be held H1 FY 2017, scheduled for Decmber 2016.
The Cullinan plant project remains on track and in-line with expectations. The new caves being installed at Cullinan and Finsch are both starting to deliver undiluted ore and will reult in a continued increasing RoM grade profile and improved product mix.
Net Q1 debt US$463.9m is within expected levels and excludes cash from the October diamond tender. Petra has undrawn bank facilities of US$70m and a cash balance of US$30m.
Tragically there were four Petra employees being fatally injured during the period in three unrelated incidents.
John Dippenaar the CEO commented: “Petra’s focus remains on the health and safety of our workforce, maintenance of a healthy balance sheet, the tight control of costs and the successful roll-out of our expansion plans, which will continue to deliver increased contributions from higher quality production areas.”