Petra Diamonds is targeting cash savings of up to $75 million by June 2024 as it deferred two of its capital projects.
The deferrals would be at Cullinan Mine’s C-Cut extension project and the 3-Level SLC extension project at Finsch.
Company chief executive Richard Duffy said they would minimise the impact of these deferrals and seek to deliver increased production into a stronger pricing environment.
Petra said although the deferred programmes are expected to restart in July 2024, the company retains the flexibility to restart the deferred programmes earlier should market conditions improve.
“We will continue to maintain our flexibility to respond to market conditions safely and responsibly, through our enhanced operating model and flexible sales approach," said Duffy.
Meanwhile, Petra has maintained its production guidance for FY 2024, although it is now expected to be towards the lower end of the guidance range of 2.9 million to 3.2 million carats.
It said the impact of the project deferrals on production and capital expenditure guidance for FY 2025 and FY 2026 would be provided on a mine-by-mine basis once the value-engineering and re-planning work has been completed.
“During this period of reduced development activity, the company will assess further value-engineering opportunities for its capital development programmes aimed at improving efficiencies and/or lowering overall costs, whilst undertaking re-planning work that looks to minimise the impact of these deferrals on the Company and its growth profile,” it said.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
