(IDEX Online) - Petra Diamonds Limited said long-time CEO Johan Dippenaar, will be stepping down after 12 years.
Chairman Adonis Pouroulis 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."
Commenting on miner's latest results for the year ended 30 June, Dippenaar 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 optimization 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."
Financial Highlights:
Revenue up 25% to US$495.3 million (FY 2017: US$394.8 million).
Profit from mining activities up 33% to US$205.1 million (FY 2017: US$153.9 million).
Previously reported Koffiefontein impairment charge of US$66 million.
Total loss on discontinued operations relating to KEM JV of US$104.3 million (US$52.0 million impairment passed in H1 FY 2018, further impairments of US$40.7 million in H2 FY 2018, and a trading loss of US$11.6 million for the Year).
Net loss after tax of US$203.1 million (FY 2017 net profit after tax: US$20.7 million), including KEM JV.
Net debt reduced to US$445.7 million (US$520.7 million net of diamond debtors of US$75.0 million) further to the receipt of Rights Issue net proceeds (30 June 2017: US$522.7 million (US$555.3 million net of diamond debtors of US$32.6 million)).
Current Trading
Total production of 718,635 carats for July and August; on track to achieve previously stated guidance of 3.8 - 4.0 Mcts for FY 2019 (excluding KEM JV).
Grades recovered in FY 2019 to date are in line with expectations, with Cullinan recording a ROM grade of 40.6 cpht in the financial year to date.
Previously reported turnaround at Koffiefontein being maintained, in line with FY 2019 targeted throughput.
Sales of ca. US$78 million from the September tender, with prices down ca. 5%, affected by seasonal weakness as in previous years. Cullinan average price in the lower end of historical price ranges. Six further tenders planned for FY 2019.
Current ZAR:USD weakness is expected to have positive impact on ZAR cashflows.
Outlook
Focus on operational cost efficiencies; total FY 2019 absolute on-mine cash costs are expected to remain largely flat compared to FY 2018 costs in ZAR local currency.
? FY 2019 Capex (excluding capitalised borrowing costs) is guided at ca. US$93 million, continuing the declining trend since peak Capex was reached in FY 2016.
? The recent ZAR:USD weakness has provided favourable hedging opportunities and the Board is reviewing the potential to take a longer view and increase percentages of US Dollar denominated sales covered.
? Whilst noting the typical seasonal weakness experienced at the first tender of FY 2019, the Company expects prices to be broadly stable in FY 2019.