Petra Diamonds Limited
Annual Report and Accounts 2013
Chairman’s Statement
Our goal has always been to build a world-class diamond group
and we continue to make solid progress in this regard.
Delivering strong growth
Dear Shareholder,
I am delighted to introduce Petra’s 2013 Annual Report and to
report on a further period in which the Company consolidated
its position as a leading independent diamond producer.
Delivering on our strategy
Our goal has always been to build a world-class diamond group
and we continue to make solid progress in this regard. In FY 2013,
we delivered further production and revenue growth and
confirmed that our expansion plans are on track.
Over the years, Petra has honed a company culture that
focuses on efficiencies and minimisation of overheads, placing
the Group in a strong position to maximise value from its
assets. This is evident in our financial results, with profit from
mining activity up 34% to US$138.6 million, adjusted EBITDA
up 36% to US$122.4 million, adjusted operating cashflow up 57%
to US$132.8 million and a net profit after tax of US$27.9 million
(as opposed to a loss of US$2.1 million in FY 2012).
Commitment to sustainable business in Africa
Petra has a positive role to play in Africa, which is where we have
developed extensive experience in the operation of world-class
diamond mines. We create value by optimising and investing in
our assets with the aim of delivering long-life operations and
significantly increased production. Petra’s mines are typically
located in rural areas where they are an important employer,
meaning that the economic benefit generated for our local
communities is significant and our operations support many
more people than the number of direct employees.
The challenges associated with operating in Africa, particularly
with regards to recent labour relations in South Africa, are well
publicised but the many positives of operating in the region often
go unsung. We believe the continent offers great opportunities
to do business in the diamond sector, and the countries where
we operate encompass world-class orebodies, temperate climates,
skilled workforces with generations of diamond experience and
well-developed infrastructure. We are proud to contribute to a
long-term future for the diamond industry in Africa and believe
that the responsible extraction of this valuable resource can
contribute to driving socio-economic development.
Corporate Governance
Petra continued to make progress in terms of its corporate
governance in FY 2013, with the appointment of Tony Lowrie
as the Company’s Senior Independent Director. This is a key UK
corporate governance requirement and previously Petra did
not have a Director acting in this role. Tony brings a wealth
of relevant expertise to the Company, having an association
of over 35 years with the equities business and being currently
a non-executive director of Kenmare Resources plc,
also a FTSE 250 mining company.
I would also like to thank Dr Omar Kamal for the valued
contribution he made to the Company during his tenure as a
Director. Dr Omar Kamal, the representative of one of Petra’s
major shareholders, Al Rajhi Holdings W. L. L., stepped down
from the Board in February 2013.
Petra is a special company
being driven forward
by a special team.
Stay up to date with Petra’s
progress and growth on our
investor website.
Adonis Pouroulis
Non-Executive Chairman
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