Petra Diamonds Limited has said that it is on track to achieve record revenue and production figures in FY 2017, but that production is now estimated to be ~8-9% lower than guidance of ~4.4 million carats announced earlier. The Company said that this change was due to “the slower than anticipated build-up of its expansion programmes across its operations.”

The Company also said that as a result, revenue is expected to be ~8-9% below market consensus. It added that “financial results for the Year are therefore also forecast to be below market expectations”.

Reiterating that it has now reached an operational run rate across the Group which supports FY 2018 production guidance of ~5 million carats (which, as stated before, is being reached a year earlier than originally anticipated), the Company reported that the ramp-up of production from the sub level cave at Finsch took longer than expected, though it is now operating at the required levels.

Petra also noted that at the new Cullinan plant, both mills and crushing circuits have now been commissioned, with the first mill and crushing circuit having been run very successfully for over a month. It said that, as previously announced, all untreated ROM stockpile material at Cullinan (which will total ~400-450 Kt at Year end) will be processed in H1 FY 2018. Petra has also built up a ROM stockpile at Kimberley Ekapa Mining of ~100 Kt.

Expressing confidence that with respect to the covenants relating to its banking facilities, the likely shortfall in the upcoming ratio measurement, arising from the lower production levels, will not present an issue, the Company reported that it has had initial constructive discussions with its lender group.

Petra will release its FY 2017 Trading and FY 2018 Guidance Update on 24 July 2017.