Business
Trading Update for H1 FY 2020
Trading Update for H1 FY 2020.
About this update from Petra Diamonds Limited
[{"type":"text","content":"\n \nRNS Number : 9323A Petra Diamonds Limited 27 January 2020 \n\n \n \n \n \n \n\n\n\n27 January 2020\n\n\n LSE: PDL\n\n\n\n \nPetra Diamonds Limited\n(\"Petra\" or the \"Company\" or the \"Group\")\n \nTrading Update for the Six Months ended 31 December 2019\n \n \nPetra Diamonds Limited announces the following Trading Update (unaudited) for the six months ended 31 December 2019 (the \"Period\", \"H1 FY 2020\" or \"H1\"), ahead of the publication of the Company's Interim Results for the Period on 17 February 2020.\n \n \nSUMMARY\n· Lost Time Injury Frequency Rate (\"LTIFR\") of 0.22 (H1 FY 2019: 0.16 and FY 2019: 0.21). Petra remains committed to achieving a zero harm working environment.\n· H1 production up 3% to 2,070,240 carats (H1 FY 2019: 2,019,147 carats). Petra is currently on track to meet or exceed FY 2020 production guidance of ca. 3.8 Mcts, as some of the Project 2022 throughput benefits are starting to deliver. \n· H1 revenue down 6% to US$193.9 million from 1,743,807 carats sold (H1 FY 2019: US$207.1 million from 1,736,357 carats sold), mainly due to lower diamond prices and the previously reported adverse product mix at Finsch and Williamson, partially offset by the sale of the exceptional blue diamond from Cullinan. \n· Q2 FY 2020 saw growing stability in pricing as the calendar year closed. Post Period end, demand has continued to improve as the midstream looks to replenish inventory. Early indications are that rough pricing has improved modestly to date in Q3 FY 2020.\n· All the Project 2022 workstreams (at mine and Group level) are being implemented and are progressing well. The throughput work stream (comprising 75% of the Project 2022 target) has contributed to the improved production performance and assisted in the delivery of a record level of ROM tonnes mined in H1 FY 2020.\n· Net debt at 31 December 2019 of US$596.4 million (30 September 2019: US$592.8 million); diamond inventory of 992,425 carats valued at US$85.2 million at Period end (30 September 2019: US$92.4 million).\n· The Company's South African Lender Group has consented to a waiver of the EBITDA related covenant...