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LONDON - Petra Diamonds Limited (LSE: LON:PDL), a leading independent diamond mining group, reported improved cash flow for the first half of the fiscal year 2025, driven by significant cost reductions and capital expenditure optimizations. The company, known for its operations in South Africa and Tanzania, has been focusing on enhancing cash generation and reducing net debt as part of its multi-stream Restructuring Plan.
For the six months ending December 31, 2024, Petra's operational free cash inflow was US$16 million, a turnaround from the US$21 million outflow in the same period the previous year. The company's revenue, however, declined to US$115 million from US$164 million year-over-year, primarily due to a shift in tender sales from the previous fiscal year.
Adjusted mining and processing costs saw a 19% reduction to US$98 million, demonstrating the impact of cost-saving measures. Capital expenditure dropped by 32% to US$30 million, in line with the company's revised spending profile announced in June 2024. Despite these improvements, Petra reported a basic loss per share from continuing operations of USc30.
Petra sold its interest in the Koffiefontein mine in October 2024, avoiding closure-related costs of US$23 million. In addition, the company entered into an agreement in January 2025 to sell its interest in Williamson for up to US$16 million, expected to complete by year-end.
As part of its ongoing efforts to manage liquidity, Petra obtained a waiver from Absa Bank for not meeting certain covenant ratios in its Revolving Credit Facility as of December 31, 2024. The company continues to target net free cash flow generation from FY 2025 and remains focused on refinancing its debt within the current fiscal year.
The company's joint interim CEOs Vivek Gadodia and Juan Kemp emphasized the importance of the implemented cost reduction plans and the company's transition to more efficient operations. Petra anticipates resuming refinancing discussions with lenders after revising its business plan with updated cost savings initiatives and Life of Mine Plans.
This article is based on a press release statement from Petra Diamonds Limited.
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