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Trading statements

Petra Diamonds warns on FY financial results

28 June 2017 07:16

Petra Diamonds warns its revenue is expected to be about 8-9% below market consensus and that its financial results for the year are therefore also forecast to be below market expectations.

"The company is on track to achieve record revenue and production figures in FY 2017," it said.

"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."

Petra Diamonds had now reached an operational run rate across the group that supported 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 was 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," said Petra Diamonds.

"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."

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