HomeDiamonds & GemstonesPetra's Cullinan on track to deliver throughput stretch target for FY,2021

Petra’s Cullinan on track to deliver throughput stretch target for FY,2021

Throughput ideas remain the largest contributor to growing operational cash flow and Cullinan remains on track to deliver its throughput stretch target for FY 2021. Due to reduced throughput at Finsch, Koffiefontein and Williamson, the annualised contribution from throughput initiatives is now expected to be in the region of US$50 million, versus previous expectations of US$70 million.

Richard Duffy, Chief Executive of Petra Diamonds, commented:

“We are seeing encouraging signs of a recovery in the diamond market, supporting better pricing, reflected in the third quarter revenue numbers.

“Post completion of the capital restructuring, Petra is in a far stronger position, with a solid platform for future growth and development.


“Production during the period reflected continued out-performance from Cullinan, with remedial action to address waste ingress at Finsch delayed as a result of excessive rainfall levels, which also negatively impacted Koffiefontein, whilst the Williamson mine remains on care and maintenance.


“We expect to see improved performance from Finsch as underground water ingress reduces and the remediation steps are implemented.”


  • Q3 revenue up 16% to US$106.0 million (Q3 FY 2020: US$91.3 million), as prices recovered to pre-COVID-19 levels
  • 9M revenue of US$284.2 million, in-line with prior year (9M FY 2020: US$285.2 million)


  • Q3 production of 704,498 carats (Q3 2020: 932,456 carats) and 9M production of 2,445,360 carats (9M FY 2020: 3,002,697 carats)
  • Post period end an exceptional 11.82 carat blue stone was sold for US$9.5 million and an exceptional 39.34 carat blue stone was recovered, to be sold via special tender

Health and safety:

  • Improving trend in FY 2021, with the Lost Time Injury Frequency Rate for the 9M decreasing to 0.47, from 0.50 in H1, and 0.65 in Q1 (9M FY 2020: 0.27) ascribed to a behaviour-based intervention programme
  • Total injuries, including LTIs, for the 9M decreased to 30 (9M FY 2020: 37)

Balance Sheet:

  • Completion of capital restructuring strengthening the balance sheet, with consolidated net debt reduced to US$290.7 million at 31 March 2021 (31 December 2020: US$700.4 million)
  • Unrestricted cash of US$139.8 million at 31 March 2021 (31 December 2020: US$92.4 million), with undrawn banking facilities available of US$10.8 million
  • Diamond inventory valued at US$75.5 million at 31 March 2021 (31 December 2020: US$105.0 million)

Project 2022 update

Initiatives undertaken to drive cost efficiencies are expected to deliver an annualised run rate of US$20 million going in to FY 2022.

The decrease of US$2 million in cost efficiencies over previous guidance in H1 FY 2022 relates to higher than anticipated electricity pricing in South Africa, combined with the postponement of some moveable asset sales into FY 2022.