Business
Q3 FY 2020 Trading Update & Liquidity Update
Q3 FY 2020 Trading Update & Liquidity Update.
About this update from Petra Diamonds Limited
[{"type":"text","content":"\n \n THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION\n FOR IMMEDIATE RELEASE\n \n \n \n 29 May 2020\n \n \n LSE: PDL\n \n \n \n \n Petra Diamonds Limited\n \n(\"Petra\" or the \"Company\" or the “Group”)\n \n Q3 FY 2020 Trading Update and Liquidity Update\n \n \n Petra Diamonds Limited announces the following Trading Update (unaudited) for the three months ended 31 March 2020 (the “Period”, “Q3 FY 2020” or “Q3”) and the nine months ending 31 March 2020 (“9M FY 2020”).\n The Company is also providing a further update in relation to liquidity, its capital structure, projected capex and its discussions with relevant financial stakeholders.\n \n \n Summary\n \n Q3 and 9M FY 2020\n \n \n 9M FY 2020 Lost Time Injury Frequency Rate (“LTIFR”): 0.27 (9M FY 2019: 0.19); considerable focus on curtailing the increasing LTIFR via comprehensive safety intervention initiatives which have seen a reduction in LTIFR recorded so far in Q4 FY 2020. Total injuries, including those that did not result in a lost shift, for 9M FY 2020 reduced by 26%.\n Q3 production up 1% to 932,456 carats (Q3 FY 2019: 924,228 carats) notwithstanding the COVID-19 lockdown measures implemented in South Africa from 23 March 2020.\n 9M FY 2020 production up 2% to 3,002,697 carats (9M FY 2019: 2,943,374), demonstrating the delivery of significant throughput benefits realised through the implementation of Project 2022, offset by the disruptions to production relating to Eskom load shedding during Q2 FY 2020 and the COVID-19 lockdown measures towards the end of Q3.\n Q3 revenue down 32% to US$91.3 million (Q3 FY 2019: US$135.2 million), with the March 2020 tender being impacted by the COVID-19 pandemic. Post Period end, a follow-up tender in Antwerp realised US$6.3 million with rough diamond prices for the combined March / April tenders down ca. 27% compared to February 2020 prices. Ca. 24kcts, being 5% of the volume of goods offered for sale and comprising predominantly higher-value goods, remain unsold, further impacting prices realised, and will be offered for sale in the next tender cycle.\n 9M FY 2020 revenue down 17% to US$285.2 million (9M FY 2019: US$342.4 million) due to weaker prices and lower sales in the March tender.\n Net debt at 31 March of US$601.0 million (31 December 2019: US$596.4 million).\n Unrestricted cash of US$64.2 million (31 December 2019...