Table of Contents
2.0 Financial strength.
Consolidated Income Statement
Consolidated Statement of Cash flow.
Consolidated Statement of Financial Position.
3.0 Major corporate actions and other developments over recent years.
Strong under pressure.
Delivering on plans.
Returns to shareholders.
Commitment to governance.
Engaging our stakeholders.
4.0 Overall conclusion.
Petra Diamonds is one of the leading diamond mining groups and is the top supplier of uncut diamonds to the international market. Petra overcomes various challenges for providing a strong set of consequences in the financial year 2016 (the “Year”), gaining the highest manufacture levels and continuing stable development with their development programs which are continued significantly on aim over the previous seven years.
Petra had an aim to raise its production to approximately 3 Mcts by started a mine development program in the fiscal year 2009. After then this aim was increased to approximately 5 Mcts additional to the achievement of Finsch in the financial year 2011, and then the target was raised to approximately 5.3 Mcts in the financial year 2016, because of the achievement of the Kimberley Mines in that Year. During this time, Petra’s expenses for functional investment have raised from US$40.9 million in the fiscal year 2009 to get to a top-level of US$297.6 million (without any capitalized borrowing expenses) in the financial year 2016. This considerable expend shows the rapid activities of Petra which involve the underground improvement settling the recent mining region at Finsch, Cullinan and Koffiefontein, as well as the manufacturing of the new quarry at Cullinan.
At present Petra is directing Capex for being on a refusing tendency. Further, a year of important expend in the financial year 2017 of approximately US$218 million (over chiefly owed to subversive progress, the settlement of the new Cullinan quarry and further investment for the recent Kimberley Ekapa Mining combined scheme), previous to declining considerably to approximately US$130 million in the financial year 2018 and approximately US$85 million in the financial year 2019. Capex necessities drop because of the increase of the production and profit of Petra; and the cash flow of the company is predicted to increase. It is predicted that the company will be a free cash flow positive company from the financial year 2017 and become a strong cash flow generative in the upcoming financial year 2018.
Our Recommended Resources:
According to Kimberley Process statistics, in 2015, the production of world diamond in volume enhanced 1.6% to 127.4 Mcts, and the production by value reduced 4.1% to US$13.9 billion. On the basis of the financial year 2016, production of 3.7 Mcts and sales of US$430.9 million, 2.9% of the world supply of diamond by volume and 3.1% by value are supplied by Petra. Petra with world-class resource 312.2 Mcts, is having the position of third place on the basis of the resource volume. And this will lead Petra for keeping their business for a long time as Cullinan and Williamson run their products for more than 50 years.
By volume 47% and by value 62% of world diamond has been produced in Africa. Petra excavates and sells uncut diamonds from its expanded collection of diamond quarries in South Africa and Tanzania, and it is also looking for a new quarry in Botswana and South Africa……….