Business
FY 2020 Trading Update
FY 2020 Trading Update.
About this update from Petra Diamonds Limited
[{"type":"text","content":"\n \n \n \n \n \n 23 July 2020\n \n \n LSE: PDL\n \n \n \n Petra Diamonds Limited\n (\"Petra\" or the \"Company\" or the “Group”)\n FY 2020 Trading Update\n Petra Diamonds Limited announces the following unaudited Trading Update for the year ended 30 June 2020 (the “Year” or “FY 2020”).\n Summary\n Impact of COVID-19 Pandemic\n \n The unprecedented impact of COVID-19 has significantly reduced activity throughout the diamond market pipeline from production, rough sales, trading, cutting and polishing, right through to consumer sales. \n \n Production: The Company’s response to COVID-19 saw a reduction in throughput at the mines in South Africa to accommodate the temporary lockdown, which affected operations for three weeks from 26 March, following which a phased ramp up of operations was permissible as lockdown restrictions were eased. However, the additional COVID-19 health and safety-led procedures that needed to be introduced to contain the spread of the virus significantly reduced available working hours. In order to mitigate this, revised shift configurations have been implemented, with the support of organised labour, which are targeting a ramp up in the South African operations to pre-COVID-19 production levels. In Tanzania, the Williamson mine remains on care and maintenance due to the impact of low pricing on its liquidity.\n \n Sales: The Company took the decision to cancel its usual May and June 2020 tenders due to the significantly reduced demand from the midstream during this period, exacerbated by travel restrictions making it all but impossible for clients to view goods on offer. As a result, significant inventory build was witnessed to 30 June 2020 (notwithstanding the reduced production levels). The Company realised some US$10.5 million sales in Q4, following the partial sale of goods not sold during the March tender, coupled with relatively low levels of sales in June, mainly to the local South African cutting and polishing market.\n \n FY 2020 Results\n \n Lost Time Injury Frequency Rate (“LTIFR”): 0.29 (FY 2019: 0.21) with 19 LTIs recorded in FY 2020 as opposed to 16 in FY 2019; total injuries, including those that did not result in a lost shift, reduced by 27%.\n \n \n Production down 7% to 3.59 Mcts (FY 2019: 3.87 Mcts); positive throughput improvements driven by Project 2022 led to the highest ...