Petra production up by 10% in H1
Diamonds
sale increased
15%
in H1 FY 2019
Petra
Diamonds Limited announces trading update for H1 FY 2019 & says the sale of
Petra’s interest in the Kimberley Ekapa Mining Joint Venture which completed on
05 December 2018; all figures are stated excluding the KEM JV, unless otherwise
specified.
According
to the update, H1 diamond production up 10% to 2,019,147 carats over the H1 FY
2018 of 1,843,956 carats. Full year production guidance of carat 3.8- 4.0 mn
cts maintained. H1 revenue up 8% to US$207.1 million over the previous H1 FY
2018: US$191.7 million. Diamonds sale increased 15% to 1,736,357 carats that
was in H1 FY 2018 of 1,510,361 carats.
Rough
diamond prices on a like-for-like basis reduced by caret 4% compared to H2 FY
2018 due to usual seasonal weakness. The product mix during H1, especially at
Cullinan, yielded prices at the lower end of historical ranges.
Capex
of US$40.6 million for the Period tumbled significant low from H1 FY 2018 worth
US$69.4 million was in line with Petra’s declining capex profile. Positive
operational cash flow for the Period was offset by: US$21.2 million of advances
to BEE partners, largely related to the servicing of the BEE bank debt in line
with the Group’s stated intent of reducing its consolidated net debt; these
advances are recoverable against future BEE-partner distributions.
US$8.6
million funding advanced to the KEM JV, recoverable during H2 FY 2019; and US$25
million revenue shortfall due to the volatility in Cullinan’s product mix, a 4%
downward movement in like-for-like pricing and the Koffiefontein disruptions resulting
in Net debt of US$557.2 million (30 June 2018: US$520.7 million and 30
September 2018: US$538.9 million).
Johan
Dippenaar, Chief Executive Officer, commented:
“Petra
has delivered solid production in the first half of FY 2019 underpinned by a
continued improvement in safety performance. We are seeing production reaching
consistent levels while our focus remains on the delivery of operational and
capex efficiencies in order to generate positive free cash flow and subsequent
debt reduction.”
Comments
Post a Comment