Petra Diamonds Limited
Annual Report and Accounts 2013
22
Strategic Review
Our Strategy and Key Performance Indicators continued
PROFIT FROM MINING
ACTIVITY
US$ million
138.6
+34%
12
103.3
11
76.4
10
67.2
09
7.8
13
138.6
SAFETY
LTIFR
0.67
-41%
12
1.13
11
0.80
10
1.03
09
0.71
13
0.67
2
Optimise recoveries
KEYS TO ACHIEVING
$
Focus on safety as number
one management priority
$
Focus on ‘value’ as opposed
to ‘volume’ production
FY 2013 ACHIEVEMENTS
$
LTIFR rate improved, despite
the acceleration of Petra’s
expansion plans
$
Bottom cut lowered at
Finsch to capture higher
value smaller diamonds
$
13 diamonds recovered and
sold for +US$1 million each
FOCUS FOR FY 2014
$
Continue striving for a zero
harm workplace
$
Ongoing plant refinements
across the Group’s operations
$
Continue to optimise plant
processing and security
KEY PERFORMANCE INDICATORS
Description
Profit from mining activity (stated
before retrenchment costs, depreciation
and share-based expense) reflects the
operating margins of Petra’s assets.
Petra’s expansion plans aim to access
major undiluted ore blocks; this is
expected to substantially increase
future margins over time.
Description
The health and safety of employees
is Petra’s number one priority. LTIFR
is the number of lost time injuries
multiplied by 200,000 and divided
by the number of hours worked.
Petra uses this indicator to track
the Group’s annual performance.
Performance for the Year
Group LTIFR for the Year reduced
to 0.67. This is an encouraging trend
considering the increase in activities
as the capital programmes progress
and the much higher number of
contractors working on site.
Performance for the Year
Profit from mining activity increased
34% to US$138.6 million, further to
the increased production and sales
for the Year, combined with a stable
environment for diamond pricing.
This represents an operating margin
of 34%, slightly higher than the margin
of 33% achieved in FY 2012.
Risk management
Management’s focus on a zero harm
environment requires a zero tolerance
approach towards any action that
results in potential injury to employees,
contractors or visitors. In addition to
appropriate risk management processes,
Petra has strategies, systems and
training in place to promote a safe
working environment.
Risk management
Rigorous operational and financial
discipline is required in order to
keep operating costs in check. A
comprehensive annual budgeting
process covering all expenditure is
undertaken and approved by the
Board. Monthly reporting highlights
variances and remedial action can
therefore be taken on a timely basis.
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