Petra endeavors to replace Johan Dippenaar!
Binding Heads of Agreement reached post Year end with regards to the disposal of the Company's interest in the KEM JV to Petra's joint venture partner Ekapa Mining Pty Ltd. As noted in the FY 2018 Trading Update, the Nomination Committee is currently in year two of its three year succession plan and is continuing to review its Board, board committee and senior management structures.
Good progress is being made with plans to make additional changes in FY 2019 in order to ensure the Company has the right mix of expertise and skills. New non-executive appointments are currently being confirmed with a view to making an announcement in this regard in October 2018.
As part of the Nomination Committee Succession plan, a process to identify a successor for the CEO position has now commenced. In line with the Company's development from a phase of intensive capital expenditure and expansion to a focus on steady state operations, Johan Dippenaar will be stepping down from the role when an appointment has been made.
No covenant measurement required for June 2018, further to the South African lender group agreeing to waive this covenant measurement period. Johan Dippenaar, CEO, said: “FY 2018 yielded good operational results, the highest on record to date, in spite of the challenges experienced in FY 2017 and H1 FY 2018, and this was underpinned by strong safety performance across the Group.
Learning from past challenges, the Group’s focus is to regain investor confidence by the continued optimisation of operations, thereby delivering consistent production output with efficient operating and capital expenditure. Petra remains on track to generate free cash flow, enabling the Company to achieve a reduction in leverage to its target of two times or less consolidated net debt to consolidated EBITDA by the end of FY 2020.”
Commenting on the Succession Plan announcements, Adonis Pouroulis, Chairman, said: "Johan has led Petra through a long period of significant growth, taking the Company’s annual production from approximately 175,000 carats in FY 2006 to 4.6 million carats in FY 2018, and establishing the Company as a leading independent diamond producer.
As Petra now approaches the final stage of its expansion plans, it is positioned to reap the benefits and, in line with the Nomination Committee's Succession Plan, a successor for the CEO position will be appointed in due course. Johan will continue in the role of CEO until this time and will work closely with the Board to ensure an efficient handover.
I would like to take this opportunity to express the Board's sincere gratitude for all that he has done for Petra.
We look forward to updating the market with new non-executive appointments in October."
