Business
Q4 FY 2022 and FY 2022 Trading Update
Q4 FY 2022 and FY 2022 Trading Update.
About this update from Petra Diamonds Limited
[{"type":"text","content":"\n \n \n \n \n 19 July 2022\n \n \n LSE: PDL\n \n \n \n Petra’s Q4 FY 2022 and FY 2022 Trading Update\n Strong revenue growth and continued improvement in balance sheet\n Petra announces its unaudited Trading Update for the fourth quarter (“Quarter” or “Q4 FY 2022”) and financial year ending 30 June 2022 (“Year” or “FY 2022\"). Petra will host calls at 09:30 and 16:00 BST today, details of which can be found at the end of this statement.\n Richard Duffy, Chief Executive Officer of Petra, commented:\n “This year’s performance completes the successful turnaround of Petra and includes the implementation of our new operating model, incorporating continuous improvement, following the conclusion of Project 2022 which has delivered improved efficiency, capital discipline and strong cash generation. Progress on these fundamentals has enabled us to expand our focus to executing our value-led growth strategy, including the two projects at Cullinan Mine and Finsch, while incorporating our recently developed sustainability framework.\n “We continued to deliver safe, robust operating performance into the fourth quarter, recovering over 3.35Mcts for the year, in line with guidance, while reducing our LTIFR by 52%. Total revenue increased to US$585.2 million, benefiting from a combination of supportive diamond market fundamentals and a 41.5% increase in like-for-like diamond prices year on year, the reopening of the Williamson mine and the recovery and sale of US$89.1 million of Exceptional Stones. The subsequent strong free cash flow generated in FY 2022 highlights the successful conclusion of Project 2022 and has delivered an 82% reduction in Consolidated Net Debt to US$40.6 million.\n “We reaffirm our production and cost guidance through to FY 2025. An increase in the lead-time for some capital items will shift some FY 2022 capex to FY 2023 with no expected impact on the anticipated project timing or overall capex spend. We are monitoring cost increases in our operations very closely, but our relatively low fuel consumption, disciplined cost management, three-year labour agreements to June 2024 and exposure to a weaker South African Rand will assist us in better absorbing these cost pressures. Petra’s enhanced operating model provides a platform for greater stability and resilience, enabling further cash generation to fund our capex r...