Petra Diamonds Ltd - Potential exit of Petra's investment in Koffiefontein
PR Newswire
London, April 26
| 26 April 2022 | LSE: PDL |
Petra Diamonds Limited
Potential exit of Petra's investment in Koffiefontein
Petra Diamonds Limited ("Petra", the "Company" or the "Group") announces that, in conjunction with its Black Economic Empowerment (BEE) partners, Kago Diamonds (Pty) Ltd and Itumeleng Petra Diamonds Employee Trust (IPDET), it is exploring a responsible exit from its investment in the Koffiefontein diamond mining operations in South Africa.
Following the conclusion of the Business Re-engineering project, which Petra announced in its interim results, Petra has updated its plan for the Koffiefontein mine, which has a current mine plan to FY 2025. A process of right-sizing the operation, which is likely to involve a reduction in employee headcount under Section 189A of the Labour Relations Act, 66 of 1995, has commenced. This process aims to provide for sustainable operations at Koffiefontein until the end of Petra's mine plan.
Given the gross resource base of c. 5.25 million carats as at 30 June 2021, including c. 1.11 million carats in the indicated resource category associated with underground resources, it may be feasible for another owner to extend the mine's life. The focus of this disposal process will be to identify a technically and financially suitable buyer that could potentially unlock further value from Koffiefontein.
In the event that a suitable buyer is not identified through this process, Petra remains committed to operate the mine responsibly in accordance with its current life of mine plan before proceeding with a decommissioning, rehabilitation and closure programme.
It should be noted that the disposal process will run in parallel to the Section 189A process currently underway and does not in any way impact or alter it, and vice versa.
Petra has appointed Questco Corporate Advisory ("Questco") to manage the disposal process on its behalf. All parties interested in participating in the disposal process are invited to contact Questco to register their interest.
The closing date for registering an interest with Questco is 09 May 2022 and the contact details are:
- Ciska Kloppers +27 82 303 4826
- Kaveshan Subramanian +27 73 201 4359
- projectoasis@questco.co.za
ABOUT PETRA DIAMONDS
Petra Diamonds is a leading independent diamond mining group and a supplier of gem quality rough diamonds to the international market. The Company's portfolio incorporates interests in three underground producing mines in South Africa (Finsch, Cullinan and Koffiefontein) and one open pit mine in Tanzania (Williamson).
Petra's strategy is to focus on value rather than volume production by optimising recoveries from its high-quality asset base in order to maximise their efficiency and profitability. The Group has a significant resource base of ca. 230 million carats, which supports the potential for long-life operations.
Petra strives to conduct all operations according to the highest ethical standards and only operates in countries which are members of the Kimberley Process. The Company aims to generate tangible value for each of its stakeholders, thereby contributing to the socio-economic development of its host countries and supporting long-term sustainable operations to the benefit of its employees, partners and communities.
Petra is quoted with a premium listing on the Main Market of the London Stock Exchange under the ticker 'PDL'. The Company's US$336.7 million notes due in 2026 are listed on the Irish Stock Exchange and admitted to trading on the Global Exchange Market. For more information, visit www.petradiamonds.com.
FURTHER INFORMATION
Please contact
Petra Diamonds, London Telephone: +44 207494 8203
Jill Sherratt investorrelations@petradiamonds.com
Julia Stone
