Releasing its preliminary unaudited results for the year ended 30 June 2018 (FY 2018), Petra Diamonds Limited announced an increase in revenue and profit from mining activities even as it reported a net loss after tax of US$ 203 million due to the impact of discontinued operations and certain impairment charges.

The Company said that CEO Johan Dippenaar will be stepping down and, in line with the Nomination Committee's Succession Plan, a successor for the CEO position will be appointed in due course. It added that Dippenaar will continue in the role of CEO until this time and will work closely with the Board to ensure an efficient handover.

Giving further details, Petra said that its revenue for the year was up 25% to US$ 495.3 million (FY 2017: US$ 394.8 million) and adjusted EBITDA was up 37% to US$ 195.4 million (FY 2017: US$ 142.6 million). Profit from mining activities rose 33% to US$ 205.1 million (FY 2017: US$ 153.9 million).

While, as previously reported the Koffiefontein impairment charge of US$ 66 million, the total loss on discontinued operations relating to Kimberley Ekapa (KEM) JV was 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).

The net loss after tax, including KEM JV, was US$ 203.1 million (FY 2017 net profit after tax: US$ 20.7 million), Petra said.

However, adjusted operating cashflow rose 7% to US$ 157.0 million (FY 2017: US$ 147.0 million), despite the negative impact of the blocked Williamson parcel and overdue VAT receivables in Tanzania.

Production, excluding the KEM JV, was up 19% to 3.8 Mcts (FY 2017: 3.2 Mcts); including KEM JV, up 15% to 4.6 Mcts (FY 2017: 4.0 Mcts).

Subsequent to the close of the last financial year, Petra reported total production of 718,635 carats for July and August, and said it is on track to achieve previously stated guidance of 3.8 - 4.0 Mcts for FY 2019.

The Company reported sales of ~US$ 78 million from the September tender, with prices down ~5% on a like-for-like basis, compared with H2 FY 2018, affected by seasonal weakness as in previous years. Six further tenders are planned for FY 2019.

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.”

He added that the Group was focused on regaining 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. I would like to take this opportunity to express the Board's sincere gratitude for all that he has done for Petra."