Its getting there......

15 August 2012
LSE: PDL

Petra Diamonds Limited

("Petra" or the "Company" or the "Group")


Guidance Update

Petra Diamonds Limited announces that it has today publishedupdated analyst guidance for the year to 30 June 2013 ("FY 2013") and updated high level guidance for the period thereafter to FY 2019.Highlights of the updated guidance are below - the detailed guidance documentscan be downloaded from Petra's website athttp://www.petradiamonds.com/investors/financial-reports-and-results/analyst-guidance-15-aug-12.aspx.



Petra will announce its preliminary financial results for the year to 30 June 2012 on 24 September 2012.


FY 2013 Guidance Highlights

· Tonnes processed expected to be ca.17million tonnes ("Mt"), an increase of ca. 60% over FY2012 actual (10.4 Mt). This increase is due to a full year's production at Finsch and Williamson, combined with contributions from Petra's other operations.

· Carat production target of ca. 2.85million carats; an increase of ca.30% on FY 2012 actual (2.2 million carats); this target is 0.25 million carats lower than previous guidance issued early FY 2012, being mainly due to the revision of the mining scope at Finsch and the slightly lower production levels at Williamson (both covered below).

· Petra's production target of 5 million carats pa by FY 2019 remains on track.

· Further to Petra taking over operation of Finsch in September 2011, a mining scope change will be applied at the mine to improve the long term economics and tooptimise the production plan from a geotechnical and mining perspective. This will bring the added benefit of reducingexpansion Capex on previous guidance by ca.ZAR336million (ca. US$42 million)for FY 2013 and by ca.ZAR570million (ca. US$71 million) for the combined period from FY2013 to FY2016 (in comparable FY 2013 money terms).

· Guidance for Williamson adjusted toca.2.5Mtpa for FY 2013, climbing to 3.6 Mtpa by FY 2015.Petra still intendsto significantly increase productionabove these levels and the Company will update the market on further expansion programmes in due course wheninternal studies are completed.The deferral of the Phase 2 expansion programme, due to electricity and water supply constraints, will reduce plannedexpansion Capex forFY2013 by approximatelyUS$29million (in comparable FY 2013 money terms).

· Diamond prices expected to remain flat for the restof calendar year2012, with increases expected in calendar year2013 due to the effects of production decreases by major producers and the restocking of inventories in the pipeline, combined with a gradual improvement in global financial conditions.Whilst current rough prices remain under pressure, management continues to believe that the outlook is positive in the medium term.

· Unit operating costsin FY 2013 money slightly above previous guidance, mainly due to South African mining inflation running above the South African consumer price index (CPI). Costs remain well controlled and future increases will continue to be well managedby the Group.

· Expansion Capex for FY 2013 of ca.ZAR1,280million (ca. US$160 million) (South Africa) and US$8.6million (Tanzania), adecrease of ZAR213million (ca. US$27 million)(South Africa) and ca. US$29million(Tanzania)(as noted above)(in comparable FY 2013 money terms).



Conference Call

Petra's CEO, Johan Dippenaar, and Finance Director, David Abery, willhost a conference call at 9:30am BST today to discuss the updated guidance with investors and analysts. Participants are requested to access the detailed guidance documents from Petra's website and have them to hand before the call.



Participants may join the call by dialling one of the following three numbers shortly before the call:

From UK (toll free): 0800 368 1895

Questor share tip: Petra remains a gem despite production setback
Petra Diamonds shares have taken a tumble following revised production guidance. Questor keeps a buy.

Petra Diamonds shares have taken a tumble following revised production guidance. By Garry White
7:00AM BST 21 Aug 2012
2 Comments
Petra Diamonds
102p -1½
Questor says BUY

Petra Diamonds shares have plunged in the past few weeks, underperforming the wider mining sector significantly. Questor thinks the falls have been overdone.

Ahead of an update on the company's production guidance, there was a wave of selling. The market was anticipating a reduction and this duly emerged.

The company lowered its expectations for the year to June 2013, saying it now thought it would mine 2.85m carats, a cut of 250,000 carats.

The reduction was caused by a change in mining plans at its Finsch operation, which has been amended because of "increased levels of geotechnical risks".

The Finsch mine was bought in September 2011 from De Beers and the original forecast was determined during the due diligence process. It has since looked at its assumptions in more detail.

With Finsch only recently entering the fold, it should also not be too startling that guidance has had to change once Petra's management had all the facts. Petra has also delayed the second phase of its expansion at its Williamson mine because of power and water issues, with lower grades at its Cullinan mine expected to be offset by mining a higher tonnage of rock.

These changes mean that capital expenditure will be $71m (£45.2m) lower in 2013 and there will be a $29m fall in 2014 to 2016.

Despite this, output is still expected to jump by 60pc in the current year. Petra also maintained its output target of 5m carats by 2019, compared with production of 2.2m carats in the year to June 2012.

Petra shares have been on a volatile journey since they were named as a tip of the year in January. The year started off very well and the shares soared to 188.2p in March – a 2012 gain of 64pc.

The shares were boosted by a recovery in the diamond price and market cheer about the group's production profile over the next few years.

However, the resurgence of the eurozone debt crisis prompted diamond prices to head south. The shares have moved down so they are now 11pc lower than where they were at the start of the year. Such a sharp negative move looks unwarranted. Yes, the cut in near-term guidance is a negative as it has made some wonder whether the 2019 target is achievable. But the company believes it is and management has a history of being pretty good with their guidance, despite the recent statement.

Once the current sovereign debt fears recede, diamond prices are likely to recover, as they did in 2011.

However, prices are likely to remain flat in the second half of 2012, despite the usual boost from festive holidays and the Indian wedding season.

After the recent fall, Petra shares are now trading on a 2013 earnings multiple of 10.3, falling to 6.9 in 2014. The company does not pay a dividend.

With the market's current backdrop, it can be argued that an easing back in production, with the consequent strengthening of the balance sheet because of lower spending, is not actually such a bad thing.

When diamond prices recover, as they should once there is an easing of global debt fears, the shares should rebound substantially.

They are now 15pc lower than when Questor last recommended a purchase, but the recommendation remains the same. Buy.

Mining Sector: Petra Diamonds up after 44% jump in revenues
StockMarketWire.com
Petra Diamonds (LON:PDL) shares were up in late afternoon trading after it reported that revenues were up 44% to $316.9m in the year to end-June (2011: $220.6m).

Profit from mining activity was up 35% to $103.3m (2011: $76.4m) on production up 98% to 2,208,862 carats (FY 2011: 1,117,795).

Operating cashflow was up 57% to $79.9m (2011: $50.9m).

Adjusted EBITDA rose 35% to $90.3m (2011: $67.1m).

Adjusted EPS was 7.82 cents per share profit (2011: 8.41 cents per share profit).

Basic EPS: 0.48 cents per share loss (2011: 12.83 cents per share profit).

Loss after tax was $2.1m (2011: $59.2m), affected by unrealised foreign exchange losses of $38.6m and non-recurring transaction costs of $3.1m.

Cash at bank at 30th June 2012 was $47.3m (2011: $324.9m).

Bank debt was $65.4m (2011: $69.6m); available but undrawn bank facilities (30th June 2012): $66.3m (2011: $19.9m).

Diamond inventory at period end was $24.5m (2011: $13.3m).

Production up 98% to 2,208,862 carats (FY 2011: 1,117,795).

Capex was $138.8m (2011: $110.9m) (including interest capitalised), within the Company's expectations and in accordance with the roll-out of the Group's expansion programmes.

Petra stepped-up from AIM to the Main Market of the London Stock Exchange in December 2011 and was subsequently included in the FTSE 250 Index in March 2012.

Petra said whilst the rough diamond market remains under pressure as the current economic uncertainty continues, it believes the medium to long-term outlook remains positive due to the strong supply/demand fundamentals.

Chart looks great....one to go long on....

Nice rise....more to come.....

Another one which has done well recently and Macquarie note still positive on this stock, as is Investec.
Investec today reaffirms its buy investment rating on Petra Diamonds Ltd (LON:PDL) and raised its price target to 141p (from 122p).

Panmure Gordon today reaffirms its hold investment rating on Petra Diamonds Ltd (LON:PDL) and raised its price target to 120p (from 112p).

StockMarketWire.com
Petra Diamonds said it has delivered another firm production quarter in Q3 and that it has hiked its FY 2016 production target to 3.6-3.65 Mcts, further to the integration of the Kimberley Mines assets.

"We are excited about our partnership in Kimberley, given the potential for long-term sustainable operations to the benefit of employees and the local communities there," said CEO Johan Dippenaar.

"Our expansion programmes remain on track and the opening up of undiluted mining areas has continued to yield improved grades at both Finsch and Cullinan.

"The construction of the new plant at Cullinan is also on track, and we remain highly focused on delivering the capital projects on time and within budget.

"Petra is currently near the end of its peak Capex year and the Group is confident that its revised covenant and debt facility levels are aligned to successfully complete its expansion programmes."

Further highlights for the period Jan. 1 to March 31 are given below:
* Production up 26% to 995,905 carats (Q3 FY 2015: 791,443 carats); Q3 production favourably impacted by production from the Kimberley tailings operations attributable to Petra following completion of the Kimberley Mines acquisition in January 2016. Production for nine months to 31 March 2016 up 10% to 2,625,308 carats (nine months to 31 March 2015: 2,392,511 carats).

* Production guidance for FY 2016 increased to 3.6 - 3.65 Mcts from 3.3 - 3.4 Mcts following the initial integration of the Kimberley Mines assets.

* Revenue up 25% to US$120.5 million (Q3 FY 2015: US$96.1 million), due to increased sales volumes and the sale of the 32.33 carat pink diamond from Williamson for US$15 million. Revenue for nine months to 31 March 2016 down 12% to US$274.4 million (Q3 FY 2015: US$311.0 million).

* Diamonds sold increased 13% to 937,526 carats (Q3 FY 2015: 826,815 carats) further to the initial integration of the Kimberley Mines assets.

* Rough diamond prices up ca. 3.5% on a like for like basis in comparison to the average for H1 FY 2016, due to an improvement in rough diamond market conditions.

* Expansion programmes, including the Cullinan plant project, remain in line with expectations.

* Cash at bank at 31 March 2016 of US$39.0 million (31 March 2015: US$41.8 million), diamond inventories of ca. US$54.3 million (31 March 2015: ca. US$37.3 million) and diamond debtors of US$46.0 million (31 March 2015: US$15.0 million).

* Net debt at 31 March 2016 of US$395.6 million (31 March 2015: US$99.3 million). The Company has bank facilities undrawn and available of US$114.2 million (31 March 2015: US$91.1 million), split as to ZAR1.6 billion and US$6.2 million.

* Agreement reached post Period end with lender group for improved covenant measurements regarding the Company's senior lender facilities (refer to the table on page 6 for further information).

Barclays Capital today reaffirms its overweight investment rating on Petra Diamonds Ltd (LON:PDL) and raised its price target to 145p (from 125p).

StockMarketWire.com
Petra Diamonds (PDL) recovered a 121.26 carat white diamond at the Cullinan mine in South Africa.

The stone is a Type II diamond of exceptional colour and clarity, and is an example of the large, high-quality diamonds for which the mine is known.

The diamond will be sold in the last tender of Petra's 2016 financial year, which is currently underway in Johannesburg.

This diamond, along with various other high-quality stones that will also be included in the tender, will deliver an improved product mix at the mine in the last quarter of 2016.

StockMarketWire.com
Petra Diamonds and Ekapa Mining have agreed to combine their respective operations in the Kimberley area into an unincorporated JV named the Kimberley Ekapa Mining Joint Venture (KEM JV).

"These assets fit well with the Group portfolio, given Petra's existing Kimberley Underground operations in the area," said CEO Johan Dippenaar.

"Importantly, the transaction demonstrates our commitment to ensuring a sustainable future for the diamond mining industry in Kimberley, which will benefit the Kimberley Mines workforce and local community.

"The KEM JV is expected to bring significant synergies to the operations at Kimberley, including the ability to increase throughput and reduce operating costs, thereby extending the operation's mine life.

"Further production guidance will be included in the Company's FY 2016 Trading Update and FY 2017 Market Guidance announcement, to be released on 25 July 2016."

The respective operations comprise:
1. Petra's Kimberley Underground mines (via its subsidiary Crown Resources (Pty) Ltd);

2. Ekapa Mining's tailings operations (via its subsidiaries Super Stone Mining (Pty) Ltd ("Super Stone Mining"), and Kimberley Miners Forum (Pty) Ltd); and

3. Kimberley Mines tailings operations (via Ekapa Minerals (Pty) Ltd owned 50.1% Ekapa Mining and 49.9% Petra)

finnCap today reaffirms its buy investment rating on Petra Diamonds Ltd (LON:PDL) and set its price target at 213p

StockMarketWire.com
Petra Diamonds has recovered a 138.57-carat Type IIa, D colour diamond at the Cullinan mine in South Africa. The diamond will be offered for sale as part of Petra's next sales process in late August in Johannesburg.

i'ld rather have the diamond than the company's shares :-)

StockMarketWire.com
Petra Diamonds has issued a production and sales update for Q1, which ended Sept. 30.

HIGHLIGHTS:
- Q1 production up 30% to 1,097,523 carats (Q1 FY 2016: 842,796 carats), due to increased contribution from undiluted ROM ore, improving ROM grades and additional tailings production from Kimberley Ekapa Mining.

- Q1 revenue US$94.7 million from 745,447 carats sold (Q1 FY 2016: no tender held).

- Following the Period end, Petra closed its second tender of FY 2017 yielding ca. US$66.4 million (ca. 574 kcts sold), with a third and final tender for H1 FY 2017 scheduled for early December 2016. Prices achieved during the second tender held firm with year-to-date rough diamond prices remaining flat on a like for like basis in comparison to H2 FY 2016.

- Expansion programmes, including the Cullinan plant project, remain on track and in line with expectations. The new caves being installed at Cullinan and Finsch are both starting to deliver undiluted ore and will result in a continued increasing ROM grade profile and improved product mix.

- Net debt at Period end of US$463.9 million (30 June 2016: US$384.8 million) within expected levels and excludes cash from the October diamond tender. The Company has undrawn bank facilities of US$70.0 million (30 June 2016: US$110.0 million), with an additional unrestricted cash balance of US$30 million (30 June 2016: US$36.7 million) available at Period end. Petra remains on track to become free cash flow positive from H2 FY 2017 onwards.

- Tragically, despite historically having an exceptional safety record, it is with deep regret that the Company announces that three unrelated incidents lead to four Petra employees being fatally injured during the Period.

Citigroup today reaffirms its neutral investment rating on Petra Diamonds Ltd (LON:PDL) and raised its price target to 150p (from 120p).

Panmure Gordon today downgrades its investment rating on Petra Diamonds Ltd (LON:PDL) to hold (from buy) and left its price target at 152p.

StockMarketWire.com
Petra Diamonds Ltd said its H1 production rose 24% to 2,015,087 carats due to increased contribution from undiluted ROM ore leading to improved ROM grades, and additional tailings production from Kimberley Ekapa Mining.

It remained on track to deliver FY production of about 4.4-4.6 million carats (Mcts). The company said H1 revenue rose 48% to $228.5m due to increased sales volumes.

Diamonds sold rose 47% for the period to 1,910,113 carats.

"In line with past years, H2 is expected to be a stronger sales period, due to the timing of tenders being weighted towards the latter half of Petra's financial year," the company added in its H1 trading update.

CEO Johan Dippenaar commented that due to the increased contribution in H1 from undiluted ore, Petra had delivered strong operational results, reporting significant increases in production and revenue.

"We continue to advance our expansion programmes and, from this point onwards, will see a meaningful reduction in Capex as the capital projects, which were first set out in 2009, come to fruition," said Dippenaar.

"Safety remains our highest priority at Petra and we are placing renewed focus on this vital area and relentlessly striving for a zero harm workplace."

StockMarketWire.com
Petra Diamonds has announced the launch of a $600m notes issue and restructuring of its debt facilities.

It intended to offer $600m in aggregate principal amount of senior secured second lien notes due 2022. The notes would be issued by Petra Diamonds US$ Treasury, a subsidiary of Petra Diamonds Ltd.

Proceeds would be used to refinance the company's existing $300m 8.25% senior secured second lien notes due 2020, to repay all drawn bank facilities, and for general corporate purposes.

At the same time, Petra said it intended to enter into new bank facilities to provide additional liquidity to the company. It said these facilities would remain undrawn upon closing of the offering of the 2022 notes.

"The new capital structure will provide the group with additional financial flexibility as a result of an extended debt maturity profile and increased liquidity position," it said in a statement.

Petra added that the terms of the 2022 notes would be determined at the time of pricing of the offering, subject to market conditions.

CEO Johan Dippenaar said the group's new capital structure provided Petra with financial flexibility, with no drawn debt maturities until 2022.

"This represents a further step forward in the next phase of the company's development as the eight-year capital expenditure programme at the group's flagship Finsch and Cullinan mines nears completion."

StockMarketWire.com
Petra Diamonds said its Q3 production was steady at 999,768 carats, from 995,905 carats a year earlier, taking production for nine months to March 31 up 15% to 3.014m carats, from 2.625 carats.

The group maintained its full year production guidance of about 4.4 Mcts.

It said revenue was down 1% to $119.1m, with no revenue from exceptional diamonds. A year earlier, revenue was $120.5m, including $15.0m from exceptional diamonds. Excluding exceptional diamonds, revenue rose 13%.

Revenue for nine months was up 27% to $347.6m, including $10.9m from exceptional diamonds. A year earlier, revenue was $274.4m, including $25.0m from exceptional diamonds. Excluding exceptional diamonds, revenue rose 35%.

CEO Johan Dippenaar commented that further progress was made with Petra's expansion programmes during the three-month period, as evidenced by the higher ROM grades achieved as a consequence of the increased contribution from undiluted ore.

ROM production for Q3 increased 18% to 760,916 carats, from 646,850 carats a year earlier, further to ROM grade improvements as a result of the ongoing ramp-up of underground expansion projects.

"The significant strengthening of the company's balance sheet following the recent debt restructuring, as well as the positive signs we are seeing in the diamond market, position us well as we continue to ramp up production from our capital programmes," said Dippenaar.