Petra produces over 3002K Cts
Petra Diamonds announces the Trading Update for the three months ended 31 March 2020 that is Q3 FY 2020 and the nine months ending 31 March 2020. The Company is also providing a further update in relation to liquidity, its capital structure, projected capex and its discussions with relevant financial stakeholders.
According to the report for Q3 and 9M FY 2020, Petra Diamonds Q3 production remained 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.
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.
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. 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.
Post the lockdown that came into effect on 26 March 2020, the Company’s South African operations were reduced to approximately one third of normal operating levels. From around 24 April 2020 to date, the South African mines have been operating at staffing levels of no more than 50%, in accordance with the Department of Minerals and Energy (DMRE) guidelines.
From 1 June 2020, South Africa will be moving to Level 3 restrictions, which will allow for a further easing of restrictions and a subsequent increase in production. The Company is in discussions with the DMRE and organised labour around further increasing production, safely and in accordance with COVID-19 regulations.
