Petra Diamonds is still on track to deliver $75 million in cash savings in fiscal year 2024 as a result of capital deferrals and cost savings of about $10 million.
“The company has further increased its cost savings target for fiscal year 2025 to more than $30 million per annum, on a sustainable basis going forward, across its South African operations, centralised services and overheads,” said Petra chief executive Richard Duffy.
“This cost rebase will align our group support structures with our more streamlined operational requirements and transition Petra to a more smoothed capital profile to enable sustainable net free cash flow generation, notwithstanding the continued slower recovery of the diamond market as a result of ongoing economic uncertainty and weakness in China.”
He said Petra would provide regular updates on the company’s delivery against the US$30 million plus annualised cost savings target.
Meanwhile, Duffy said that since deciding to close the Koffiefontein Diamond Mine in South Africa, Petra has remained committed to exploring a responsible exit in consultation with its stakeholders. “I am pleased that the sale agreement reached with Stargems will, once completed, provide ongoing economic activity in the region,” he said.
“We believe Stargems has the technical and financial capability to conduct operations in a responsible manner for all stakeholders.”
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
