Production over 2.9mn carats at Petra

Q3 revenue decreased 7%

yet remained up YoY!

Petra Diamonds presented report for the three month period 1 January 2019 to 31 March 2019 Q3 FY 2019 and the nine months ending FY 2019 YTD. Q3 production of 924,228 carats over Q3 FY 2018 was of 992,315 carats that reflecting increased production at Cullinan, Koffiefontein and Williamson, offset by lower production at Finsch.

Petra Diamond Production for the nine months to 31 March 2019 up 4% to 2,943,374 carats over FY 2018 YTD of 2,836,272 carats. Petra claims that the production guidance of 3.8 – 4.0 million carats for FY 2019 maintained.

Installation of the remaining draw points across the footprint of the C-Cut Phase 1 block cave at Cullinan is progressing as planned, with completion expected during H1 FY 2020. With the progression across the C-Cut footprint, the incidence of larger stones is improving as demonstrated by the recovery of two +100 carats gem-quality stones during the Period.

Accordingly, the 425.1 carat D colour Type II gem quality diamond recovered at Cullinan on 29 March 2019 is expected to be sold during Q4 FY 2019 as previously announced.

Q3 revenue decreased 7% to US$135.2 million due to a 6% reduction in sales volumes to 1,061,343 carats sold while Q3 FY 2018 had remained of US$145.7 million from 1,131,262 carats sold. Yet, revenue for the nine months to 31 March 2019 up 1% to US$342.4 million from 2,797,700 carats sold over Q3 FY 2018 of US$337.4 million from 2,641,720 carats sold.

Richard Duffy, Chief Executive Officer, commented: “I have visited all of Petra’s operations and am impressed by the very capable teams and quality asset base, strongly reinforcing my initial views of the business. Our capital investment phase is largely over and we are well positioned to benefit from this as we move towards steady state operational performance.

I am pleased with the incremental improvement in operational performance at Cullinan, Koffiefontein and Williamson and despite a challenging January, Finsch’s performance through February and March is as expected. Our focus remains on the delivery of free cash flow to reduce our net debt and generate future options for the Company.”