News Bureau

February 21, 2017

Petra production up 24% in 1H 2017!

According to the Interim results for the six months of Petra Diamonds for the period of H1 FY 2017 their revenue gone up 48% to US$228.5 million compare to the H1 FY 2016 of US$154.0 million. This growth brought net profit after tax to US$35.2 million compared to H1 FY 2016 of US$2.2 million loss.

Petra diamonds production up 24% to 2,015,087 carats over the H1 FY 2016 had accounted 1,629,403 carats. Improving ROM grade profiles achieved as a results of accessing undiluted ore: +20% to 54.5 cpht at Finsch and +34% to 34.5 cpht at Cullinan. Costs remain well controlled despite inflationary pressures.

The execution of the Group’s underground expansion projects at Finsch and Cullinan continues as expected; both Finsch’s Block 5 SLC and Cullinan’s C-Cut Phase 1 projects delivered initial production during the Period, in line with earlier guidance, and both projects remain on track to deliver ca. 1 Mt each in FY 2017.

As announced in the H1 FY 2017 Trading Update, construction work on the new Cullinan plant was disrupted by contract labour stoppages; these issues have since been resolved and construction work resumed at the end of January 2017.

Commissioning is expected to commence towards the end of March 2017, ca. 8 weeks later than originally planned, and ramp-up to full production during Q4 FY 2017; it is also envisaged that the old plant at Cullinan will continue to operate until the end of March / early April 2017.

Johan Dippenaar, CEO of Petra, commented, “Petra has achieved strong operational and financial results for H1 FY 2017, owing to the increased contribution of undiluted ore and continued stabilisation in market conditions.

We are now reaching an exciting inflection point in the Company’s development and are on track to start benefitting from a declining Capex profile, a significant increase in ROM grades and product mix, and the associated improvement in margins and cash flow.

The team is highly committed to maintaining momentum and continuing to achieve operating efficiencies throughout the ramp up of each project in order to accomplish our stated goal of ca. 5.3 million carats by FY 2019, whilst upholding safety as our number one priority.”

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