Petra Diamonds lowers diamond production rate guidance
Lower grades are expected to continue into FY24 in the Cullinan mine. Despite this Petra’s FY25 guidance is unchanged
Diamond company Petra Diamonds has lowered its diamond production rate guidance for the current financial year through to FY24 in its half year operating results for FY23.
The company stated a number of difficulties it faced in the first of the financial year as the reason for this decrease.
Its total diamond production for the first half of FY23 decreased by 21% to 1.4 million carats compared with the first half of FY22.
Petra put the decline down to lower grades at the Cullinan Mine, lower tonnes mined at Finsch and production suspensions at both Williamson and Koffiefontein. The company had a breach of its tailings storage facility at Williamson in November 2022 and has made the decision to close the Koffiefontein Mine.
Lower grades are expected to continue into FY24 in the Cullinan mine. Despite this Petra’s FY25 guidance is unchanged.
Richard Duffy, chief executive officer of Petra, said: “Despite some challenges in the first half of FY 2023, Petra continues to benefit from the operational improvements we have made across the business which provide for greater stability and resilience.
“As a result, we are seeing improvements to equipment and tunnel availability at Finsch, resulting in an increase in ROM grades from December 2022. At the Cullinan Mine, we have continued to mine and recover targeted tonnes as we continue to seek to mitigate the impact of the recent grade challenges experienced.”
He added: Although lower grades at the Cullinan Mine are now expected to continue through FY 2024, mitigating factors around the re-opening of Tunnels 36 and 41 and the completion of development of two new tunnels, Tunnels 46 and 50, are expected to start contributing to production in FY 2025 and more than offset the impact of lower grades this financial year and next.
“The CC1E project currently under development is further expected to contribute higher grade tonnes from the end of FY 2024 and return average grades towards the 40cpht level. At Finsch, the acquisition of new drill rigs and LHD loaders supports improved production in the second half of FY 2023.”
