Petra Diamonds (PDL) H2 2024 earnings summary

Executive summary

• Revenue increased to $367 million for FY 2024, driven by deferred sales and higher output at Williamson, but offset by weaker diamond prices year-on-year.

• Adjusted EBITDA fell to $66 million from $113 million, with margin dropping to 18% from 35%, reflecting lower prices and a $71 million swing in diamond inventory movement.

• Net loss after tax was $107 million, including $78 million in impairments at Finsch and Cullinan mines due to revised life of mine plans and lower pricing assumptions.

• Operational free cash flow improved from negative $65 million in FY 2023 to negative $17 million in FY 2024.

• Cost base reduced by $44 million per annum from FY 2025, with $12 million of second lien notes repurchased.

Financial highlights

• Diamonds produced increased to 3.16 Mcts and sold to 2.73 Mcts, supported by Williamson's ramp-up and deferred parcels from FY 2023.

• Average price per carat decreased to $116 from $139 year-on-year.

• CapEx reduced from $117 million to $84 million due to project deferrals, with FY 2025 guidance of $89–98 million.

• Net debt at June 2024 was $201 million, up from $177 million the prior year; $25 million drawn on RCF, $246 million outstanding on second lien notes, and $28 million in unrestricted cash at year-end.

• Bank facilities undrawn and available: $72 million.

Outlook and guidance

• Targeting net cash generation for FY 2025, with modest cash generation expected in FY 2025 and FY 2026, and significant growth from FY 2027.

• CapEx expected to remain below $100 million for FY 2025.

• Diamond price assumptions for FY 2025 maintained, expecting price stabilization by year-end and improvement in 2025.

• Net debt to EBITDA targeted below 1.5x from FY 2026.

• FY 2025 group guidance: 2.8–3.1 Mcts for SA operations, 0.37–0.41 Mcts for Williamson, total cash costs $241–257 million.