Announcing its interim unaudited results for the six months ended December 31, 2017 (H1 FY 2018), Petra Diamonds Limited  reported it had earned revenues of US$ 225.2 million for the period, as compared to US$ 228.5 million earned in H1 2017.

Petra reported an adjusted EBITDA of US$ 80.1 million for the period as compared to US$ 87.1 million in the same period of the previous year.

While adjusted net profit after tax amounted to US$ 5.3 million for H1 FY 2018, as compared to US$ 24.1 million for the same period of the previous year; the Company reported a net loss after tax amounting to US$ 117.7 million as against a profit  of US$ 35.2 million reported for H1 FY 2017. This translates into a basic loss per share of  17.55 US$ cents  as compared to basic profit per share of 5.27 US$ cents booked in H1 FY 2017.

“The Group recorded a net loss of US$ 117.7 million for the Period, impacted by a US$ 118.0 million impairment of the Koffiefontein and KEM JV operations and a US$ 7.9 million one-off charge related to the settlement with the South African Revenue Service on the right to claim a deduction on unutilised capital allowances,” Petra explained.

In the CEO’s Review, it was stated that: “Petra increased production 10% to 2.2 Mcts. Strong performance from Finsch and Williamson, and an improving performance from Cullinan, was offset by underperformance from both Koffiefontein and KEM JV, as well as a ca. 60,000 ROM carat impact of the industrial action in South Africa in Q1.”

The Company said that financial measures related to operating performance of profit from mining activities and adjusted EBITDA were in line with H1 consensus. “However these measures were adversely impacted by strike action at certain South African operations in Q1, the inability to sell the blocked Williamson parcel, and the strengthening ZAR against the USD, which had a combined impact of ca. US$18 million,” Petra summed up.

Cash generated from operations in H1 FY 2018 was also much below the H1 FY 2017 level of US$86.4 million. The Company’s net debt at the end of the period stood at US$ 644.7 million  as compared US$ 555.3 million as on 30 June 2017. 

The Company also announced forthcoming changes to the Board. Technical Director, Jim Davidson, will be retiring from the Company at 30 June 2018.  Meanwhile Jacques Breytenbach, Petra’s CFO,  has  joined  the Board as Finance Director.