Petra Diamonds Ltd - Audited Full Year 2024 results
24 September 2024 LSE: PDL
(“Petra or “the Company”)
Audited Full Year 2024 results
Enhancing resilience
Petra announces its audited Full Year 2024 results for the twelve months ended
“In FY 2024, Petra demonstrated its agility in responding to a weaker pricing environment by building greater business resilience. Actions taken during the Year reduced planned cash expenditure by
We have transitioned Finsch from a 2.8Mtpa to a 2.2Mtpa operation with greater emphasis on planning and maintenance. With our two South African mines starting to access fresh ore from newly developed project areas and Willamson at full production, we remain confident in meeting our FY 2025 guidance. With a smoothed capital profile and
We acknowledge the difficult market conditions through FY 2024 and believe that prices will stabilise through to the end of CY 2024 with some improvement expected in CY 2025. Ongoing discipline by producers is expected to assist in rebalancing inventory across the pipeline. We continue to see supportive market fundamentals in the medium and longer term.
We are rolling out traceability technology for our South African operations which will enable the tracing of our +0.5ct gem-quality diamonds from mine-to-finger. This will provide consumers with assurance and verification around provenance and origin along with information on our sustainability credentials (including social and community projects) which are supported through purchases of our diamonds. We believe traceability technologies will further differentiate natural diamonds through highlighting their rarity, uniqueness and benefits to stakeholders.
As part of the focus on addressing our capital structure, we initiated the repurchase of a portion of our 2026 2L Notes through an Open Market Repurchase (OMR) programme.
To date, we have repurchased and cancelled
-- FY 2024 revenue amounted to US$367 million (FY 2023: US$325 million )
including revenue from profit share agreements of US$1 million (FY 2023:
US$1 million )
-- The average realised price in FY 2024 was US$116 /ct, down 17% from
US$139 /ct in FY 2023, largely due to a 12.4% decline in like-for-like
prices, with the balance attributed to product mix movements
-- Total on-mine cash costs in FY 2024 increased 11% compared to FY 2023
largely due to the ramp-up at Williamson and cost inflation. A build-up
of diamond inventory in FY 2023 of US$34 million and a subsequent
release in FY 2024 of US$37 million contributed to adjusted mining and
processing costs increasing from US$202 million in FY 2023 to US$296
million
-- Adjusted EBITDA, being profit from mining activities less adjusted
corporate overhead, reduced to US$66 million (FY 2023: US$113 million ),
representing an adjusted EBITDA margin of 18% (FY 2023: 35%) driven by
reduced rough diamond prices
-- Adjusted net loss of US$46 million compared to US$2million for FY 2023
-- Adjusted loss per share of USc21compared to a USc3 loss per share for FY
2023
-- Operational free cash outflow for the Year improved from US$65 million
in FY 2023 to US$17 million in FY 2024, reflecting an increase in cash
from operations of US$19 million and a reduction of US$33 million in
total capital expenditure following the deferral of certain capital
projects during FY 2024 in response to the depressed diamond market
-- Consolidated net debt decreased from US$212 million at 31 December 2023
to US$201 million (30 June 2023 : US$177 million )
-- As previously announced, during the Year the Group increased its
commitments under the ZAR1 billion (c. US$54 million ) revolving credit
facility (RCF) with Absa Bank to ZAR1.75 billion (c. US$96 million ),
providing an additional c. US$41 million of liquidity headroom
-- In August and September 2024 , the Group drew down ZAR855 million (c.
US$47 million ) from the RCF as a result of the deferral of South African
goods from Tender 1 FY 2025. We expect to repay these amounts following
the closing of the upcoming tender in October 2024
-- During the Year, the Group repurchased US$5 million of 2026 2L Notes in
an OMR programme for cash consideration of US$4 million . Post
period-end, a further US$7 million were repurchased for a cash
consideration of US$5 million
This announcement contains selected information from the Company’s full set of Financial Statements for FY 2024. For the Company’s full set of Financial Statements for FY 2024, please refer to pages 115 to 166 of the Company’s Annual Report and Financial Statements for FY 2024. The Company’s Annual Report and Financial Statements for FY 2024 is available here: https://www.petradiamonds.com/investors/results-reports-presentations/
US$m unless stated otherwise FY 2024 FY 2023 Variance Rough diamonds sold (carats) 3,158,780 2,329,817 +36% Revenue 367 325 +13% Average realised price per carat (US$/carat) 116 139 -17% Adjusted mining and processing costs 296 202 +47% Adjusted EBITDA1 66 113 -42% Adjusted EBITDA margin (%)1 18% 35% -49% Adjusted (loss) / profit before tax1 (59) 8 -838% Adjusted loss after tax1 (46) (2) -2200% Net loss after tax (107) (102) -5% Basic loss per share (USc) (43) (38) -13% Adjusted loss per share1 (USc) (21) (3) -600% Capital expenditure 84 117 -28% Operational free cashflow1 (17) (65) +74% Consolidated net debt1 201 177 +14% Unrestricted cash 20 44 -55% Consolidated net debt : Adjusted EBITDA1 3.0x 1.6x +88%
Note 1: For all non-GAAP measures refer to the Summary of Results table within the Financial Results section of the FY 2024 Annual Report
Note 2: During FY 2023, Koffiefontein was placed on care and maintenance activities in the run-up to a responsible closure. Koffiefontein is still classified as a discontinued operation in terms of IFRS 5.
Adjusted profit contribution per mine
US$ millions FY 2024 FY 2023
Cullinan Finsch Williamson Total Cullinan Finsch Williamson Total
Mine Mine
Revenue 190 120 57 367 183 93 49 325
Adjusted
mining and (123) (109) (64) (296) (82) (65) (55) (202)
processing
costs2
Other direct 1 1 — 2 — — — —
income
Adjusted
profit from 68 12 (7) 73 101 28 (6) 123
mining
activities
Adjusted
profit 36% 10% (12%) 20% 55% 30% (12%) 38%
margin
Adjusted (7) (10)
Group G&A
Not allocated per mine Not allocated per mine
Adjusted 66 113
EBITDA1
Note 1: For all non-GAAP measures refer to the Summary of Results table within the Financial Results section of the FY 2024 Annual Report
Note 2: Adjusted mining and processing costs include certain technical and support activities which are conducted on a centralised basis; these include sales & marketing, human resources, finance & supply chain, technical, and other functions. For purposes of above, these costs have been allocated 60% to
Adjusted profit from mining activities decreased to
Capital expenditure breakdown
US$ FY 2024 FY 2023
millions
CullinanMine Finsch Williamson Central Total CullinanMine Finsch Williamson Central Total
Extension 36 19 — — 55 41 31 — — 72
Stay in 12 6 10 1 29 12 12 19 2 45
Business
Total 48 25 10 1 84 53 43 19 2 117
Total capital expenditure reduced to
Dividends
In line with our dividend policy, no dividends are proposed for FY 2024 and the Board will review this again in FY 2025.
Market outlook
Some stabilisation in diamond prices is expected in the last quarter of CY 2024 on the back of seasonally higher demand. We expect diamond prices to show a modest recovery in the new year with market fundamentals providing pricing support in the medium and longer-term.
Set out below are the Group’s current diamond pricing assumptions for each of its mines for FY 2025.
US$ per carat FY 2025Cullinan Mine 125-135 Finsch 98-105 Williamson 200-225
Future diamond prices are influenced by a range of factors outside of the Group’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 by the Company from time to time .
Key operational guidance maintained and i s available on Petra’s website at: https://www.petradiamonds.com/investors/analysts/analyst-guidance/
PRESENTATION DETAILS
Webcast presentation for institutional investors and analysts at
Petra’s CEO,
Participants are advised to join the call at least 15 minutes ahead of the start. Link for live presentation via Teams: https://events.teams.microsoft.com/event/874d33d6-6144-4cc1-98f1-a49331f66132@3c08cd12-de9b-4814-9ea3-392066758217
Link for recording (available later in the day):
https://www.petradiamonds.com/investors/results-reports/
Petra’s CEO,
FURTHER INFORMATION
Petra Diamonds, London +44 (0)784 192 0021
Patrick Pittaway investorrelations@petradiamonds.com
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
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
[1]
Compared to previous guidance issued for FY 2025 in
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