Petra Diamonds, which has operations in South Africa and Tanzania will reduce costs by $30 million annually from fiscal year (FY) 2025 and deliver a smoothed capital programme self-funded until at least the early 2030s.
Company chief executive Richard Duffy said the cost-cutting measures provide a compelling value proposition while positioning Petra for a successful refinancing of its 2026 second lien (2L) notes.
Petra said the total capital (development and sustaining capital) profile smoothed to about $100 million per year at its South African operations to target free cash generation through the cycle.
The company is also expected to produce more than 2.8 million carats in FY 2025 rising to over 3.4 million carats by FY 2028 and FY 2029.
Petra is expected to produce up to 2.78 million carats in FY2024.
Meanwhile, the company appointed Johan Snyman as its chief financial officer, with effect from 1 October 2024.
He will succeed Jacques Breytenbach who will be stepping down from his position at the end of September 2024 for personal reasons.
Snyman joined Petra in January 2024 as group financial controller.
He previously worked at AngloGold Ashanti as the vice president, of group financial reporting.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
