Petra Diamonds, a diamond mining group, has revealed that out of its cash and diamond debtors for the year ending 30 June 2020 (FY 2019), $13.3 million was held by Petra’s reinsurers as security deposits on the group’s cell captive insurance structure.
The results showed that the figure has increased $0.7 million from 2019’s FY figure of $12.6 million.
Petra explained that as part of the disposal of the KEM JV and Helam operations in FY 2019, an amount of $2 million was transferred from the cell captive to the new owners.
The company said it has committed to paying insurance premiums over the next year of $1.8 million, to fund the environment rehabilitation insurance product for its South African operations, compared to $2.2 million in FY 2019.
Reflecting on its financial highlights, Petra outlined that its revenue is down 36 percent to $295.8 million, compared to FY 2019 of $463.6 million.
Petra's FY 2020 net loss after tax was $223 million including a non-cash impairment charge of $91.9 million, compared to FY 2019, where its net loss after tax was $258.1 million including a non-cash impairment charge of $246.6 million.
In addition, its consolidated net debt as of FY 2020 stood at $696.6 million, an increase from its FY 2019 figure of $595.2 million. Petra stated that this is due to lower sales and the capitalisation of the deferred coupon payment on the company's $650 million loan notes of $23.6 million.
Commenting on the results, Richard Duffy, chief executive of Petra, said: “While there have been unprecedented challenges to contend within 2020, I am pleased that operationally the company has performed very well, strongly supported by project 2022-driven efficiencies.”
He added: “This, combined with our highly valued people, world-class asset base and the agreement in principle reached with our noteholders and lender group on our long-term capital structure, provides a sustainable future for the company, once operating conditions normalise.”
