Diamond miner Petra Diamonds achieved a 37% year-on-year increase in adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) to $195.4-million for the financial year ended June 30.

Its adjusted Ebitda margin improved to 39%, from 36% in the 2017 financial year.

Revenue rose by 25% year-on-year to $495.3-million as a result of a 19% year-on-year increase in production to 3.79-million carats and an improved average product mix owing to the higher proportion of run-of-mine (RoM) versus tailings carats.

Profit from mining activities increased by 33% to $205.1-million, owing to the increase in revenue and other direct income, but partially offset by a 20% increase in costs.

For the first half of the financial year under review, the Koffiefontein and Kimberley Ekapa Mining (KEM) joint venture (JV) incurred impairments of $118-million.

Petra’s interest in the KEM JV has, subsequently, been sold to JV partner Ekapa Mining, while various interventions were implemented at Koffiefontein. As a result of the commissioning of a new ground handling system at Koffiefontein, the mine has since improved its operational delivery.

“Financial year 2018 yielded good operational results, the highest on record to date, in spite of the challenges experienced in financial year 2017 and the first half of the 2018 financial year, and this was underpinned by strong safety performance across the group,” CEO Johan Dippenaar commented on Monday.

SUCCESSION PLANS
Petra on Monday also announced that as part of its nomination committee’s succession plan, a process to identify a successor for the CEO position has gotten under way, with Dippenaar to step down once a new CEO has been appointed.

“Johan has led Petra through a long period of significant growth, taking the company’s annual production from approximately 175 000 ct in financial year 2006 to 4.6-million carats in financial year 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,” Petra chairperson Adonis Pouroulis commented.