Petra Diamonds Limited
Annual Report and Accounts 2013
34
DEBT FACILITIES
US$ million
Performance Review
Financial Review continued
Tax charge
The tax charge of US$24.6 million (FY 2012: US$10.5 million)
arises due to deferred tax (net of charges and credits),
reflecting the utilisation of certain capital allowances,
predominantly at Finsch and Cullinan, during the Year.
Impairment and retrenchment costs
During the Year, the Group decided to put both Sedibeng
and Star on care and maintenance subsequent to the disposal
process which did not yield an acceptable offer. Management
reviewed the carrying value of operational assets at each mine
and recognised an overall impairment loss of US$12.6 million
(FY 2012: US$nil), being management’s assessment of the
higher of fair value less cost to sell and value in use of the
mines. Further details are provided in note 8. The Group has
also provided U$2.6 million (FY 2012: US$nil) for retrenchment
costs at Sedibeng and Star.
Adjusted net profit
An adjusted net profit after tax attributable to equity holders
of US$52.3 million (refer to note 13) was recorded for the Year
(FY 2012: US$39.2 million), adjusted for unrealised foreign
exchange movements, retrenchment costs, impairment charges
and transaction costs. The Company recorded an adjusted
profit of 10.31 cents per share (FY 2012: 7.82 cents per share
– refer to note 13). These adjusted profit figures are considered
to be more appropriate in comparing results year on year.
Group profit
A net profit after tax of US$27.9 million was recorded for the
Year (FY 2012: US$2.1 million loss), reflecting the impact of the
Group’s solid trading for the Year. The prior year’s results were
substantially impacted by the non-cash, unrealised loss on
foreign exchange of US$38.6 million, which was significantly
lower for FY 2013 due to the restructuring of the Group’s
treasury structure (as noted in “Net unrealised foreign
exchange loss” on page 33).
Cash and diamond debtors
As at 30 June 2013, Petra had cash in hand of US$26.2 million
(30 June 2012: US$47.3 million) and diamond debtors of
US$74.8 million (FY 2012: US$25.1 million), which were settled
in the normal course of business shortly after Year end.
Of the cash balances, US$14.1 million was held as unrestricted
cash, US$10.3 million was held by Petra’s reinsurers as security
deposits on the Group’s cell captive insurance structure
(with regards to the Group’s environmental guarantees) and
US$1.8 million was held by Petra’s bankers as security for
other environmental rehabilitation bonds lodged with the
Department of Mineral Resources in South Africa.
Diamond debtors of US$74.8 million related to the June 2013
tender and were significantly higher than FY 2012 levels, due to
the June tender being the largest held by Petra to date, again
due to the strong production levels of Q4 FY 2013.
Diamond inventories
As at 30 June 2013, the Company had diamond inventories of
ca. US$31.5 million (ca. 348,403 carats) (30 June 2012: US$24.5 million
(ca. 221,748 carats)), due to the increased production levels
in Q4 FY 2013 compared to the comparative period.
GROUP ADJUSTED EBITDA
FY 2012 vs. FY 2013
In November 2012, Petra completed an optimisation of its existing debt
structure, serving to increase the Group’s debt and working capital facilities.
2.8
47.7
85.8
90.3
1.8
1.4
122.4
Other direct
income
Adjusted mining and
processing costs
Revenue
Adjusted
EBITDA FY 2012
Exploration
Corporate
overheads
Adjusted
EBITDA FY 2013
Amortising term
(ABSA and RMB)
Amortising term
(IFC)
Revolving credit
(ABSA and RMB)
Revolving credit
(IFC)
Working capital
(ABSA and FNB)
81
35
30
25
51
1...,26,27,28,29,30,31,32,33,34,35 37,38,39,40,41,42,43,44,45,46,...142